The paper 'Open Innovation and Strategy' is a good example of a Management Assignment. CSR is an Australian based public company that deals with the manufacture and supply of building products and aluminum. The company’ s headquarters are in Sydney with operations in other countries such as New Zealand and Asia. The company was founded in 1887 as a colonial sugar refining company and later expanded to building materials manufacturing and mining of bauxite, petroleum, and aluminum. This paper involves a company analysis of CSR looking at its external and internal structures (“ CSR Limited” 2017). Situation Analysis External Analysis 2.1.1Industry analysis. Using the porter’ s five forces of structure we find we look at the industry and what is happening in it currently.
The threats of new entrants are high since the industry is very profitable, barriers of entry into the building and construction industry include the start-up costs which are very high, government regulations, access to distribution channels is sometimes found to be challenging but not impossible. The threat of substitutes is also evident with the number of these types of companies running as high as 70,000 companies with 590 dealing in construction and mining, meaning clients can find these products sold in CSR in other companies also.
Bargaining power of buyers is average since the substitutes found also work with roughly the same prices, differences found are very slight. The prices also vary with the quantity of the building materials available in the company (“ CSR Limited” 2017). Bargaining power of suppliers sometimes comes into play when there are unique resources being supplied which may cause the prices of the raw materials to go up. Looking at CSR who mine some of their raw materials, we find they are a bit advantaged as they do not have to incur huge costs of buying raw materials. 2.1.2 Market Analysis 220.127.116.11 Market Structure. The Australian construction industry has low degrees of market share concentration.
There are many small scale businesses and a huge span of a diverse range of products and services (“ CSR Limited” 2017). Individual companies are less likely to reach huge sizes that would allow them to become vertically integrated (Kotler 2015). The top players command less than 10% of division revenue. 18.104.22.168 Customers Buyers of the building and construction materials include the real estate companies that build houses for sale or are contracted to build houses for sale.
Also, individual buyers who are constructing their own homes. Those involved in the purchase decisions include architects and structural engineers. They but building and construction materials ranging from concrete, glass, ceilings, roofing tiles, wooden doors all sold at CSR. These items are bought all round the year with the building and construction industry booming there is always a high demand for the products.
They buy some of these products at CSR because they can offer better prices they mine some of their raw materials used in the making of these building products such as bauxite. These products are bought by visiting the company warehouses where purchases can be made then delivered to the client. Comparisons on the brand are high due to the availability of the products from other providers with equally good quality.
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