About Holcim

Founded in Switzerland in 1912, Holcim is one of the world's leading suppliers of cement and aggregates (crushed stone, sand and gravel). Holcim's core businesses include the manufacture and distribution of cement, and the production, processing and distribution of aggregates (crushed stone, gravel and sand), ready-mix concrete and asphalt. The company also offers consulting, research, trading, engineering and other services. Holcim's main business segments are the manufacture and distribution of cement and aggregates. Holcim offers customers a wide range of cement-based materials and develops customized blends for special applications. The production of aggregates centers on quarrying, preparing and sorting the raw material. Holcim entered into a strategic alliance with Gujarat Ambuja Cements to participate in the growth market of India, making a public purchase offer to the shareholders of The Associated Cement Companies (ACC) and Ambuja Cement Eastern. In the same year, Holcim acquired Aggregate Industries, thus entering the UK market and strengthening its aggregates and ready-mix concrete businesses in North America.

SWOT Analysis
Strengths:

Leading position in construction materials market Optimized product range along the value chain Presence in diverse geographic markets Greater proximity to customers

Weaknesses:
Substantial long term financial liabilities Reduced presence in Africa & Middle East Region

Opportunities:
Increased focus on emerging markets Acquisition of Tarmac Iberia

Threats:
Intensifying competition Environmental regulations Declining US home-building industry

Resource and capabilities

Resource and capabilities of a company can lead to competitive advantage only when they are: Valuable Rare Inimitable Non-substitutable

Holcim is a global company employing some 80,000 people, with production sites in around 70 countries. In 2011, Holcim recorded sales of over 20 billion Swiss francs. Holcim maintains good relationship with suppliers. 63% of group companies check suppliers for quality assurance and environmental management. The takes corporate social activities seriously and 65% of the companies comply with CSR policy. Relationship with government plays an important part from strategy point of view because generally there exists an uneasy relationship between the government and an MNC. CSR activities like ccontributing to the provision of education for societys future help in building long term relationship with the home country government. Holcim considers R&D to be an important element of their business. Holcim currently has more than 12 research and development projects. Still they try to keep the R&D cost low. The cost in fact is lower than its competitors. In recent years what has really been Holcims great strength is that its ability to move faster and better in the emerging markets. Holcim reported sales increases in four of its five group regions in 2011, led by emerging markets in Latin America and Asia. Holcims investment policy and product range are adapted to suit the maturity of each market and local customer needs. So while cement and aggregates are the basis of the business, other products bring us closer to the end-consumer. As markets mature and customer needs broaden, we offer readymix concrete, concrete goods, asphalt and associated services. Following this strategy Holcim is able to occupy a strong position in the emerging markets. Holcim built up a strong cement portfolio in emerging markets while the aggregate portfolio is mainly focused on mature markets and on urban areas in emerging markets.

Cement - market positioning to capture growth