Fall 2004 - National Ready Mixed Concrete Association

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feature Multiple, Non-integrated Competitors • Input costs are generally equal for all dominant producers • Market share increases are seen (by some) as the primary means to achieve increased profit • Competition may be viewed as “irrational” and lacking financial discipline, even though they may not view themselves in that way • Market tends to “ebb and flow” as specific market conditions change Multiple, Integrated Producers • Difficult to compete in this type of market unless it is a high growth market and demand is outstripping supply. However, once supply exceeds demand, it can be extremely difficult to compete • Prices are generally low, again where supply exceeds demand • Market share is vehemently protected • Profit may be sacrificed to maintain volume at upstream plants • Can be very profitable for all when cement prices stay low Single, Integrated Producer • One competitor with a cost advantage can, but not necessarily will, drive prices down • Two stereotypes exist: the integrated producer that seeks to maintain customer relations for the upstream products and the integrated producer seeking to control market share for upstream products • Competitive dynamics vary considerably • Competitors must understand the integrated producer’s strategic intent in order to position themselves either in alignment and share the market or stay “out of the way” of the major producer As mentioned previously, these are but four of the many potential variations of markets out there. In general terms, you should be able to identify which of the four major profiles are in the particular marketplace you are in. We believe that this is the first step in the development of an appropriate marketplace strategy. The next step would be to identify the relative strengths and weaknesses of the competitors. In this example, we have examined two basic types, the integrated or the non-integrated producer. All you need to know about concrete color. Just one call is all it takes to learn how Davis Colors can provide you with the number one concrete color brand in America, the most widely used automatic dosing systems, and the personalized marketing tools that will help you build your business. Call 800-356-4848 ext. 132 or visit www.daviscolors.com. #1 IN SYSTEM INSTALLATIONS WORLDWIDE Tel: 800-356-4848 Fax: 323-269-1053 www.daviscolors.com © 2004 Davis Colors, a brand of Rockwood Pigments, Inc. PIGMENTS Integrated Producers (either cement, aggregates or both) Strengths • Access to the full vertical integration profit stream, which could lead to higher profit than is available to a non-integrated competitor • Generally “deeper pockets” for capital investment purposes • Improved economies of scale such as purchasing power, employee benefits costs, etc. • Control of the supply chain • Strong desire for growth and profitability Weaknesses • Significantly greater capital investment required • Extremely sensitive to volume declines • Difficulty diversifying the supply chain 44 ı FALL 2004
IF YOU’RE DRIVEN TO OWN THE HIGHEST IN SATISFACTION, THIS IS YOUR TRUCK. What’s it like to own a Sterling ® Ask a Sterling owner. Sterling Trucks received the highest customer satisfaction ranking for conventional medium-duty trucks in the J.D. Power and Associates 2003 U.S. Medium-Duty Truck Customer Satisfaction Study SM . Sterling conventional medium-duty trucks received a higher overall product satisfaction ranking than any other manufacturer. The study evaluated factors including engine, cab interior, and exterior design and styling. See your local Sterling work truck expert to test drive a dependable medium-duty Acterra ® and L-Line. Or visit www.sterlingtrucks.com. And see real satisfaction at work. J.D. Power and Associates 2003 U.S. Medium-Duty Truck Customer Satisfaction Study. SM Medium-Duty Truck defined as Gross VehicleWeight Class 5, 6, or 7 truck. www.jdpower.com Call 1.800.STL-HELP for your local Sterling work truck expert. ST/MC-A-335. Specifications are subject to change without notice. Sterling Trucks is registered ISO 9001. ©2004, Freightliner LLC. All rights reserved. Sterling Trucks is a member of the Freightliner Group. Freightliner LLC is a DaimlerChrysler Company.
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Page 4: infocus Concrete Concrete in FOCUS
Page 8: the corporate suite Getting the Mos
Page 11 and 12: Concrete By Bruce Chattin, Washingt
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Page 15 and 16: INDEPENDENCE PRYOR ★ OGLESBY ★
Page 17 and 18: Driving one is a perk in itself. Th
Page 19 and 20: This colored concrete garden plaza
Page 21 and 22: UP-FRONT THINKING THAT BREEDS BETTE
Page 23 and 24: PREMIER DESIGN It’s the freedom t
Page 25 and 26: concrete-related associations show
Page 27 and 28: Gaynor, Richard Meininger and Jon M
Page 29 and 30: environmental scene To LEED or Not
Page 31 and 32: The Clearview Elementary School in
Page 34: tech talk The seminar was developed
Page 37 and 38: the body. The main points here are
Page 40 and 41: feature Business Models in a Consol
Page 42 and 43: feature Figure 1 Fragmented Industr
Page 46 and 47: feature — e.g., an integrated cem
Page 48: feature Shrinkage-Reducing Admixtur
Page 51 and 52: All tanks built to UL specs. Burner
Page 53 and 54: Meeting the demands of the ready-mi
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Page 58 and 59: education matters Sales Manager as
Page 60 and 61: education matters matic supervisory
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Page 64: workforce issues Q Question: We are
Page 67 and 68: Our manufacturing capabilities at B
Page 69 and 70: 1 800-626-0200 270-487-6774 FAX 487
Page 71 and 72: CONCRETE in focus ı 71 Products &
Page 73 and 74: index to advertisers ACCOUNTING SOF
Page 75: Introducing Novomesh TM HPP 2.0. Th

Fall 2004 - National Ready Mixed Concrete Association

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