Transformational Corporate Strategy
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CRANEFIELD COLLEGE OF PROJECT AND PROGRAMME MANAGEMENTINDIVIDUAL ASSIGNMENTFORMODULE M 4Transformational Corporate StrategyPlease include the following declaration:“I hereby declare that this assignment is entirely my own work, and that it has not previously been submitted to any other Higher Education Institution. I also declare that all published and unpublished sources have been fully acknowledged and properly referenced. This includes figures, tables and exhibits. Where modified by me, this has also been indicated.”Print NameSignatureID NumberChris Du Preez[pic 1]6511225042084Table of ContentsExecutive Summary 11. INTRODUCTION 22. PROBLEMS AND CAUSES 22.1. Sandvik Competitive Environment 22.2. Sandvik Basic Strategic Environment 32.3. Degree of turbulence in the market 52.4. Analysis of the stages of market growth 72.5. Key Factors of Success in the Industry 73. FIVE FORCES ANALYSIS 83.1. Threat of new entrants 83.2. Bargaining power of suppliers 83.3. Bargaining power of buyers 83.4. Threat of substitutes 83.5. Competition in the industry 84. FOUR LINKS ANALYSIS 84.2. Opportunities and threats from formal cooperative links and networks. 94.3. Opportunities and threats presented from complementors. 94.4. Opportunities and threats from government links and networks. 95. ANALYSIS OF COMPETITORS 10
5.1. Analysis of customer and market segmentation 116. CONCLUSIONS AND RECOMMENDATIONS 116.1. Conclusions 116.2. Recommendations 127. BIBLIOGRAPHY 13TABLE OF FIGURESFigure 1: SWOT ANALYSIS 3Executive SummarySandvik Mining and Construction RSA (PTY) LTD is part of the swedish-based Sandvik Group, a global industrial concern specializing in the marketing and supply of underground mechanized mining products. The company has a vision of setting the industry standard. In respect of the construction side of the business, various solutions are provided for surface rock excavation, tunnelling, demolition, recycling and road rehabilitation. Customers benefit from a range of equipment that are developed based on extensive research conducted by Sandvik research teams, focusing on rock tools, drilling rigs, loaders and trucks, crushing and screening machinery and bulk materials handling. The company operates in the african market, that has been stable for the past few decades. Growth has been steady at around 4,3% with very little turbulence in the market. There is fierce competition between competitors to deliver products to the limited customer base. Africa is however the new shopping mall for developers, and the market will explode, with new opportunities, as government investment in new infrastructure increase. This will result in even more competition, and only those with innovative products will survive. Research and development in new more portable mining and construction equipment is needed, as these will be in high demand, replacing the traditional heavy machinery. Collaboration will be key in finding and developing equipment of the future, and Sandvik with its already established research capability, is well positioned to take the lead in this area. Sandviks strategy of focusing on improving customers’ operational efficiencies and profitability through the creation of high-tech engineering products, is well poised to take them to the next millennium. There core capabilities drive value creation. It makes use of a common value chain, but the emphasis is on strong differentiation in its application. Its value creation is based on strong market position and pricing power, attractive returns and customers benefitting and capitalizing on reduced cost and increased productivity. This together with its well established business practices and exceptional leadership, will ensure sustainability for years to come. Focus should however be on the development of small portable equipment.