Evaluation of Industry Market Rivals, Essay Example

Describe your firm’s three closest competitors and their strengths.

Sto Corporation; headquartered in Atlanta, Georgia, is the world’s largest manufacturer of exterior insulation and finish systems, as well as the innovative leader in innovative claddings and coatings, according to Sto Corp (2011). The company presently market over 800 products worldwide, for new construction and restoration projects and faces immense competitions from  E I DuPont De Nemours (DuPont), Sherwin Williams and PPG Industries.

EI DuPont De Nemours

DuPont has a 209 year old track record in market driven science that delivers products of value to its customers, according to DuPont (2011). The company mission statement is the creation of shareholders and societal value, while reducing environmental foot prints along the value chains developed throughout operations (DuPont, 2010).

Base on its 2010 sales performance of $31.5b, by majoring in performance coatings, performance chemicals, agriculture and nutrition, safety and protection, and electronics and communication, the global company drives itself self through core values like safety and health, environmental stewardship, high ethical behavior, and respect for people (DuPont, 2011).

DuPont strengths are its markets and products diversity, as well as its growing sales performance and earnings per share delivered to shareholders. The company percentage of  sales by region for 2010 were Developing Asia 14%, North America 39%, Latin America 12%, Developed Europe, Middle East and Africa (EMEA) 19%, Developing EMEA 7%, and Developed Asia 9%, according to DuPont (2011).

The company’s strength is demonstrated by the presence in each market segment to developed core markets and mission for the relevant business area. Its business area of performance chemicals for example, are Titanium Technologies and Chemicals and Fluoroproducts, and this is supported by a mission strategy that is geared to accelerate earnings and cash growth through cost and working capital productivity, and in selected higher growth market regions and technologies, to achieve top quartile performance  among peer global specialty chemical manufacturers (DuPont, 201).

PPG Industries

This company is a leader in its market, a streamlined efficient manufacturer, and operates on the leading edge of new technologies and solutions. Headquartered in Pittsburg, Pennsylvania, PPG Industries has established manufacturing facilities in 38 countries including Argentina, Austria, France, New Zealand, Suriname, UK, USA, and Uruguay,  as well as equity facilities in at least 22 countries, giving it overall presence in 60  locations globally, according to PPG Industries (2011).

PPG Industries strengths resides in its ethics; which purports the belief that excellence in business and high ethical standards, were complementary. The company was also committed to furnish goods and services that meet societal needs, as well as provide employees with safe, healthy and fulfilling work environments, deliver to its shareholders excellent returns, as well as being a good corporate citizen in the communities it operates as well as in each nation (PPG Industries, 2011).

The New York Stock Exchange listed company operates in the performance coating,  business, and supply markets in  the aerospace industry, architectural coatings in America and Asia/Pacific through its well established Olympic, PPG Porter, Monarch and Lucite brands (PPG Industries, 2010).

PPG Industries also has dominance in Automotive Finishes, Protective and Marine Coatings, Automotive OEM Coatings, Industrial Coatings, as well as Fiber and Flat Glass market segments, according to PPG Industries (2011).

The company Chairman and Chief Executive Officer, Charles Bunch commented in the 2010 annual report that the company strengths rests in its diversity which has helped it to meet challenges quickly, creatively and effectively, and is a requisite to success in global markets and economies (PPG Industries, 2010).

PPG Industries strengths were also evident in its achievement of five successive record breaking quarterly earnings, through aggressive focus on operations and structural changes by its cutting edge management team. This performance enables it to achieve strong cash generation period after period, and to use the position of strength to drive growth in all segments of its marketing portfolio (PPG Industries, 2010).

In terms of competitiveness and the ability to respond to changes in the market, PPC Industries reports that it is keeping a watchful eye on the global economy, and is prepared to the changing conditions as soon as they appear on the horizon.

Sherwin Williams

The thirds strongest and closes competitors challenging Sto Corporation is Sherwin Williams, which is a company that has been in operation since 1866 distributing and selling coatings and related products, according to Sherwin Williams (2011).

A global leader in the development, manufacture and sale of coatings and related products covering 109 countries, Sherwin Williams employs 32,000 workers and market its products through 3954 paint stores and branches (Sherwin Williams, 2011).

The company strength is also shown through its brands, Sherwin-Williams, Dutch Boy, Kryton, MinWax, and Thompson Water Seal, and the fact that it also has strong distribution among leading mass merchandisers, home centers, independent paint dealers, hardware stores, automotive retailers, and industrial distributors, according to Sherwin Williams (2011).

By means of these diverse markets, the company has amassed annual sales revenue of $7.8 b in 2010 to position itself as the largest coating manufacturer in the United States and the third largest worldwide, according to Sherwin Williams (2010)

Conclusion

Sto Corporation therefore is operating in  very challenging market environment, where PPG Industries, DuPont and Sherwin Williams has the requisite financial resources, market diversity, cutting edge technologies and strategies, excellent ethical core values, as well as the human resource management skills to advance their positions in a dynamic operating global market.

Consumers may be the beneficiary as a result of the competitive power of the company, and the possibility that the eventual market leader in the final analysis may be the organization that is able to combine innovation, enduring quality, aggressive advertisings strategies and lower prices to attract the highest percentage of customers in a contracting global economy.

Reference

DuPont, (2010). 2010 DuPont Annual Review, DuPont Investor Center-Corporate Profile www.phx.corporate-it.net/external.File?item=UGTY , 10/21/11

PPG Industries Inc. (2011). About PPG Industries www.ppg.com/en/ourcompany/pages/default.aspx , 10/21/11

Sherwin Williams, (2011). About Sherwin Williams, Annual Reports www.investor.sherwin-williams.com/annual-reports , 10/21/11

Sto Corporation (2010).About Us. www.stocoro.com/index/php/en/.2009072880/footer/about-us/menu-id.IS,html , 10/21/11