China Road and Bridge Corporation in Rwanda - Case Study Example

INDUSTRY/СОMРЕTITОR АNАLYSIS Student’s Name: Course Code: Tutor’s Name: Date of Submission Industry competition analysis China road and Bridge Corporation in Rwanda Industry competition analysis is an assessment of the weaknesses as well as the strengths of any potential or existing competitor in the market (Fleisher and Bensoussan, 2007). The analysis provides the existing threats as well as opportunities in the market (Fleisher and Bensoussan, 2003).according to Kuo (2016), in Rwanda; there are special economic zones which are secured to offer incentives to businesses with fewer economics regulations when setting up a business in the area. These zones are primarily set up to enhance economic growth due to the use of fewer tariffs and more control of customs. This means that industries set up in the zones will benefit from the better working conditions provided by the government in the zones (Namata, 2014). In Rwanda, these zones usually address the constraints that are associated with the private sector through availing important factors of production such as energy transport system and the necessary skills( Rwanda development board, n.d). China road and Bridge Corporation is a Chinese company seeking investment in Rwanda special economic zones. In the process of analysing the strengths as well as opportunities the company will get, the following aspects should be considered. Business strategy Fleisher and Bensoussan (2007) say that thorough research should be conducted to know the competitors business strategies. Various Rwandan, as well as foreign companies, usually operate in the special economic zones. This is due to the presence of the incentives offered by the Rwandan government to the firms that open up in the zones (Rwanda development board n.d.). It is hard to know the contents of competitor business plan. However, the Chinese road and bridge corporation should conduct enough research through intelligence to be able to know what competitor businesses have in order to make their investment viable. There are some major sources of information regarding the business strategy of the existing investments whether they are local or international (Fleisher and Bensoussan, 2007). The information usually comes from annual reports of shareholders, analysts' interviews or press releases. The company should seek to get information regarding other investments in the region so as to compete favourably. After analysing the other businesses' strategies, Chinese road and Bridge Corporation will come up with strategies which are cost effective and viable to continue operating in the area. It should adopt better activities of hiring, promotional campaigns, strategic partnerships as well as acquisitions and mergers (Fleisher and Bensoussan, 2003). Websites comparisons Chinese road and bridge corporations should compare its website with other construction companies operating in Rwanda special economic zones. Due to the presence of numerous foreign and domestic construction companies in the zone, the company should seek to compare its website with its competitors (Construction and Engineering, 2017). This will help in coming up with unique facilities as well as competitive strategies compared to the competitors. The company website provides useful information regarding the company (Construction and Engineering, 2017). This will make the Chinese road and Bridge Corporation to adopt some of its competitor’s strategies as well as improve on its own regarding its various operations. Web sites also play a significant role in the online marketing of any business. The company will be able to market itself with the help of website (Fleisher and Bensoussan, 2003). Web sites of other companies will also help the company to improve on its strategies on pricing, social integration helps in gathering important ideas as well as its digital presence. Targeting All competitors in a specific field of operation offer the same products or services. They also target the same consumers or buyers. Chinese road and Bridge Corporation should segment its market to offer services better to the customers in the Rwanda special economic zone (Porter, 2008). By so doing, the company should pay close attention to the customers in the region so as to outdo its competitors. Consumer relationship with any business is equally important (Fleisher and Bensoussan, 2003). The company should try to relate well with their consumers in the region so as to come up with increased competitive advantage, therefore, performing better than its competitors. Consumer targeting will require the company to compare its objectives with those of the competitors. A good example is a competitor aiming at achieving short-term financial objectives. Such a company will not be in a position to respond well to a competitive attack (Namata, 2014). Such a competitor will focus on providing services that can be defended in a better way. China Road and Bridge Corporation should try to understand the present foreign and domestic building companies so as to lay down objectives that are long term. They will also be in a position to target their customers better with the laid objectives (Fleisher and Bensoussan, 2007). Competitor’s assumptions Assumptions made by any business towards its competitors help in shaping the moves to be taken by the company in performing better than the competitors (Fleisher and Bensoussan, 2007). Chinese road and Bridge Corporation should understand and assume that it is the only company that can provide better services in the zone (Rwanda development board n.d). While trying to perform their tasks in making them the best in the industry, the company will be in a position to realise their long-term goals and objectives. These assumptions in Rwanda special economic zone may be based on the regional factors such as subsidised taxation to foreign direct investments which may attract more and more customers (Rwanda development board n.d). Trends in the building industry in the region can also be assumed to be upcoming. This will help the company in laying down some strategies that will make it dominate the industry in the zone as well as the whole country or region (Porter, 2008). The assumptions should keep on changing due to the dynamic nature of the competitive environment. Profiling the competitors Knowledge regarding rival business is very important for any business survival (Porter, 2008). For ant company or business organisation to increase its competitive advantage, it must offer its customers' value in the existing market (Fleisher and Bensoussan, 2003). This profiling may reveal the weaknesses of rival businesses making the concerned company work on them hence becoming more competitive (Fleisher and Bensoussan, 2007). Profiling will also make the business to predict the rival business’s strategy. Chinese road and Bridge Corporation should profile the other companies in the region so as to come up with the best strategy to outdo them. Both foreign and domestic building companies in Rwanda can be profiled to come up with a prediction on whether to adopt their strategy or improve on the current strategies, therefore, creating value to the customers. For a successful competitor analysis, Chinese road and bridge corporation should be in a position to define its industry in Rwanda. This will make it know its competitors as well as the target customers in the country and the region at large. Customer analysis will also be accompanied by knowing the benefits they expect from the company so that the company can deliver the best. After understanding the customers, the company should analyse its strengths which will make it compete favourably with the other competitors in the market. The strengths here will range from services they offer to the pricing. It should then weigh the success factors using marketing models so that it can be in a position to compete well. For a successful analysis, the company should rate all the competitors on the success factors that are important to the company. Marketing is equally important for a good competition to be achieved (Fleisher and Bensoussan, 2007). The company should segment its market well with the knowledge of customer base as well as customer’s loyalty Fleisher and Bensoussan, 2003). It should use its employees and the skills that they have in order to market it well. Customers’ satisfaction is equally important in any marketing. If the customers are satisfied, the company’s competitive advantage also increases considerably (Namata, 2014). Chinese road and Bridge Corporation should make sure that their customers are satisfied and by so doing their operations will benefit their customers more. This will be facilitated well by conducting SWOT analysis on the company. These will include the strength such as the skilled personnel in the firm. Weaknesses such as the availability of uncooperative workers will affect the company negatively (Rwanda development board n.d). There are some external opportunities in that the Rwanda special economic zone has fewer government regulations and interventions (Kuo, 2016). Threats are also there in that there is stiff competition from both domestic and foreign construction companies which offer the same services as the corporation. Making better use of the strengths and opportunities will make the company compete favourably with its competitors. References Construction and Engineering, 2017, May 16, Company Overview of China Road and Bridge Corporation, Bloomberg, retrieved from, https://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=26447281 Fleisher, C. and Bensoussan, B. 2007, Business and competitive analysis: effective application of new and classic methods, FT Press, New Jersey. Fleisher, C. and Bensoussan, B. 2003, Strategic and Competitive Analysis: Methods and Techniques for Analyzing Business Competition, Prentice Hall, New Jersey. Kuo, L., 2016, November 22, Rwanda is a landlocked country with few natural resources. So why is China investing so heavily in it? Quartz Africa, Retrieved from https://qz.com/827935/rwanda-is-a-landlocked-country-with-few-natural-resources-so-why-is-china-investing- Namata, B., 2014, January 25, China in Rwanda: Big projects, jobs and skills for the locals, The East African, retrieved from, http://www.theeastafrican.co.ke/news/China-in-Rwanda-Big-projects-jobs-and-skills-for-the-locals/2558-2160316-1vl1vx/index.html Porter, M.E, 2008, Competitive Advantage: Techniques for analysing industries and competitors, Simon and Schuster. Rwanda development board n.d., Rwanda special economic zones: accelerating Rwanda economic growth and development.pdf. Read More