Analysis report of Boral Business

Businesses must immediately use several methods to increase market share and get a competitive edge in the current challenging business environment. Recent years have seen the majority of businesses use both business-to-business (B2B) and business-to-consumer (B2C) strategies to promote growth and expansion (Conrad & Newberry 2012, p. 113). Aside from increasing the gathering of pertinent data regarding the shifting consumer demands, competing rivals in the same market frontiers, and bolstering the distribution of goods and services to the complete target market are additional factors that drive businesses to embody these strategies.
Consequently, this essay will concentrate on Boral Limited an international company that provides construction and building materials. Boral currently holds 86th position out of 2000 top companies in Australia. In the past few years, Boral has realized stellar performance; for instance, its sales for the second quarter in 2017 amounted to $4, 308m (Bloomberg 2017).Today, it manufactures and distributes construction and building products across Australia, Asia, and the United States. To aptly meet the changing customer wants, Boral has divided its operations into four major divisions including construction materials and cement, building products, Boral USA, and Gypsum joint venture. Construction materials and cement focus on the supply of asphalt and concrete, the operation of quarries, property development, and transport. The Boral building division specializes in the provision of bricks, timber products, masonry, and roof tiles. Moreover, the USA focuses on the supply of concretes, masonry, fly ash, roof tiles, the operation of quarries, and bricks. Finally, Gypsum joint venture with USG Corporation manufactures and sells plasterboard and other products to Asia, Australia, and Middle Eastern Markets (Bloomberg 2017). Besides, the overall performance for Boral limited has consistently been improving because of its initiative of adopting both B2B and B2C systems which have ostensibly culminated to promising performance.

Most Important Competitors of Boral Limited

Since the establishment in North Sidney Australia, Boral Limited has expanded its operations to the USA and Asia. It has currently employed approximately 14, 475 employees who work in different locations and further provides outstanding services to customers (Boral Annual Report 2015). Boral’s overwhelming success over the period is attributable to its determination to deliver excellent services and providing zero harm products (Bloomberg 2017). Boral is well positioned to constantly meet customers growing demands through capturing growth opportunities, being innovative, and appropriately responding to the changing world. Despite the achievement of a 28% increase in profit after tax of AU $343m in the financial year 2017, Boral faces stiff competition from rivals. Some of these competitors include CSR Limited, LafargeHolcim Ltd, and Forterra Brick LLC. To cope with the growing competition in the industry, Boral uses its strengths to capitalize on the opportunities. Some of the potential opportunities the company experience include the ability to develop new products and services, a constant increase in the income level of the customers, global markets, and the growing economies (IBIS World 2017). Boral utilizes the strengths such as high profitability and revenue, significant demand in domestic markets, reduced labor costs, skilled employees, and a barrier to market entry. Nevertheless, its commitments of maximizing profits are shattered by the weakness and threats including high loan rates and high external business risks respectively.

Moreover, the ever-growing competition in the industry in Australia, USA and Asia is also a primary challenge to the management of Boral in meeting its ultimate goal of profit maximization and further growth and expansion (Boral Annual Report 2015). A profound evaluation of the rivals is as follows.

CSR Limited Company

CSR is one of the top company which manufacture construction materials such as plasterboard, concrete, roof tiles, and insulation. It currently operates approximately 35 building materials and manufacturing plants across Asia, Australia, the United States, and New Zealand.

Figure 1.1 Strength and weakness

Strength

Barriers to market entry.

Well-developed sales and distribution network.

High growth rate.

Weaknesses

Low financial base compared to Boral Limited.





(Source: IBIS World 2017).

LafargeHolcim Limited Company

LafargeHolcim is the largest cement producer in the world which makes about 400 million tons annually. Currently, it operates in nearly 90 countries across the world, providing aggregates for use in housing, concrete, cement, infrastructure, asphalt, and other projects. Furthermore, LafargeHolcim offers consulting and management services, research, and export and import trading activities.

Figure 1.2 Strength and weaknesses

Strength

Market leader in the provision of cement in the entire regions it operates.

Effective operations because of strong supply chains.

Skilled and highly experienced employees.

Consistent improvement in a financial position which allows it to meet the growing financial needs.

Significant use of technology and innovation plays a critical role towards manufacturing and distribution of products worldwide.

Weaknesses

Limited market share growth because of the fierce competition.

Its brand name has been hurt by alleged violations of legal imperatives.

(Source: IBIS World 2017).

Nonetheless, Boral has achieved stronger performance over its rivals. First, its strong financial position has played a crucial role in enabling it combat money related problems including acquiring crucial resources, marketing, research and development and application of best employee management practices which have allowed it to attain a competitive edge in the industry. Boral’s strong brand reputation has also attracted and maintained a large market share for the wide range of products offered (IBIS World 2017). In general, Boral is appropriately positioned to deal with various obstacles that hinders’ effective execution of day to day activities, tap developing opportunities, and improve the weaknesses.

Target Market for Boral’s Products

Boral provides a wide range of products to three major markets including the USA, Australia, and Asia. Through the four divisions identified earlier, Boral ensures both large-scale retailers’ or organizations and customers are provided with quality construction and building products. Boral targets serving customers in all regions of the USA, Australia, and Asia. The business focuses on these markets because of the robust infrastructural and real estate developments (D & B Hoovers 2017). Apparently, the demand for the constructions and building materials increases constantly due to the ever growing population in cities as well as improved income levels among the people hence spurring tremendous development of housing facilities. Therefore, Boral has accorded the high priority of serving in these markets because of the strong brand image which positively impacts on the level of demand for its products.

Besides, Boral intends to sell its products and services particularly the construction materials such as concrete, cement, and ceilings. These are primary products required by individuals developing personal residential or business houses. The level of demand among single customers is determined by the nature and size of the house. Usually, Boral directly distributes cement, concrete and ceilings to customers who are closer to its quarries and importantly able to purchase large amounts of products at ago (D & B Hoovers 2017). The main strength of these customers includes being consistent in demand, advertises about the Boral’s products and services hence creating brand loyalty which is key for repetitive purchase. Moreover, Boral sells its products to dealers and private house developers. The dealers and house developers’ purchases a substantial amount of products including cement from the company. Some of their strength includes the capability to buy products in large volume. Dealers’ plays a vital role in ensuring the products are distributed to most parts of the country. For instance, they buy the commodities from the company in bulk, collect customer feedback, and inform the organization concerning the changes in market demands.

However, Boral further processes or distributes products provided by suppliers. One of its primary suppliers includes Rondo. Since it was establishment in 1964, Rondo is famously known for manufacturing and designing suspended ceiling systems. Over an extended period, Rondo has consistently supplied ceiling systems to Boral which are ultimately distributed to customers. Also, Boral receives floor and ceilings from Armstrong, a company that design and manufacture quality products which inspires customers to deliver exceptional interiors envisioned by the company and users (D & B Hoovers 2017). These products are used in hospitals, homes, restaurants, offices, and classrooms to enhance comfort, create beautiful spaces, and improve building efficiencies. Afterwards, ceilings are sold to dealers who ensure the products reach the final consumers such as home developers. Because of effective supplier management practices, Boral has continually received standard commodities which have thus played a critical role in ensuring the growing demand is adequately met. Therefore, such relationships have consequently culminated in an overwhelming performance notably strong financial position which is pivotal for growth and development.

Types of Secondary Data which can be used by Boral to Market its Products

Ideally, marketing is inevitable for businesses in the contemporary business environment. Product promotion recently helps most organizations to realize success (Rabinovich & Cheon 2011, p. 315). Marketing enables companies to inform customers about the varieties of products offered, change in the prices and quality, and attract and retain customers. Well- established and global companies apply both integrated marketing communication and digital platforms to reach the target markets. Nowadays, the robust application of selling and product promotion has apparently heightened overall performance and sharpened competitive edge. Nonetheless, effective marketing depends on the capability of the organization to evaluate the changing consumer behavior and develop the most appropriate strategies to influence the buying decision.

Types of secondary data

Boral can capitalize on different types of secondary data to ameliorate the development of marketing measures to reinforce the sale of its products. Some of the existing information which can be utilized by the management includes the sales records, customer feedback forms, annual reports from the competitors, government data and the internet. First and foremost, sales reports provide information on territory activities, competition, and changes in the marketplace (Davari & Strutton 2014, p. 570). Ultimately, Boral will identify sales trends, the intensity of competition, and further potential target markets. Secondly, customer feedback forms are internal sources which will allow buyers to rate products and services provided by Boral. Also, these forms will help the organization to get access to pertinent information regarding the level of satisfaction, business effective in service delivery, and opinions on what they feel the organization ought to offer to suit their demands (Rabinovich & Cheon 2011, p. 307). Thirdly, competitors’ annual reports will enable the management to identify and comprehend the potential and existing competition in the industry. Also, such reports will assist Boral to correlate how competitors operations and financial capabilities impact their marketing strategies. Boral will also use the competitor data to predict competitors’ actions and leverage on the weakness to attain a competitive edge. Moreover, government documents contain accurate information including regulations, laws, buyers’ data and statistics that will help Boral to abide while carrying out marketing activities (Rabinovich & Cheon 2011, p. 310). Lastly, Boral will mine vital information from the internet which will provide data about current products offered by competitors, the purchasing behavior and other trends in the building and construction industry.

Criteria used to examine the quality of data and its appropriateness

According to Stewart (2014), the quality of the data will be ascertained by considering different aspects. Some of the methods include evaluating the purpose of information providers, the author, time when the information was gathered, the type of information, and its relationship with the business objective. If the data aligns with business objectives and provides solutions to various questions posed by the marketing department, the management should, therefore, apply it in the decision making.

Marketing Mix for Boral

It is crucial for Boral to employ marketing mix to bolster the demand for concrete, cement, and ceilings. In this case, the organization ought to embrace 4Ps which contains appropriate marketing elements. The model will help the company to define selling options regarding promotion, price, product, and place to meet the specific customer demands (Davari & Strutton 2014, p. 564). Boral should thus consider these elements as following while positioning concrete, cement, and ceilings as follows.

Product

Alongside providing concrete, cement, and ceilings, Boral should also offer supplementary products to ensure customers purchases different products collectively used in construction (Nuseir & Madanat 2015, p. 58). The company must manufacture and distribute quality products to suit users’ needs as well as meet the growing demand. Again, Boral should not incorporate features in the commodities which might increase the cost of production and the final price.

Place

It is fundamental for Boral to allow customers to view its products from the company website, its stores, and dealers point of sale. For instance, the business should hire individuals to respond to customer enquiries through the internet and its stores to furnish them with the required information to quickly make the purchasing decision. Moreover, it is essential for Boral to establish more distribution centers to enhance access to a significant market share. By implementing these suggestions will indeed assist the business to reach many customers in Australia, USA, and Asia.

Price

Undeniably, most buyers in the contemporary environment are price sensitive to any products they purchase. Because of this premise, Boral should charge a relatively low price for quality products and services. The strong financial position gives it the ability to increase efficiency, lower operational and trim production costs. Consequently, Boral will be in a position to offer quality construction products at an affordable price.

Promotion

Boral should apply different methods such as digital marketing and integrated marketing communications to ensure the information reaches the whole market. For example, the organization should utilize the internet, social media, television, radio, and others forms to enhance the consistent flow of information regarding the products and services offer (Nuseir & Madanat 2015, p. 63). Also, it is important for the Boral to constantly advertise and market its products since construction and building of infrastructure and houses is continuously conducted across the world.

Macro-environmental Trends Relevant to Boral

Macro-environmental factors have a significant impact on marketing and promotional strategies that will be used by Boral. The common trends that will inevitably influence Boral’s marketing mix include technology and legal factors (Islam & Pattak 2017, p. 28). However, Boral can improve its marketing mix concerning these trends through applying the recent technologies in developing and communicating any information regarding quality, price, and other features of the products. Furthermore, it should capitalize on technologies to carry out market research to get solid information concerning the most appropriate channels used by customers. On the other hand, Boral will engage legal experts to advice on the possible impacts government regulations on the marketing approaches. The business will perhaps comply with legal imperatives established by the government to protect consumer exploitation.

Conclusion

In conclusion, Boral's overwhelming success emanates from various perspectives such as the provision of quality construction and building materials. Despite facing fierce competition in the industry, Boral's strong financial position has played a crucial role in enabling it to meet operational and administrative costs. Therefore, developing appropriate marketing mix particularly basing on the 4Ps will significantly help Boral to reach the target market and create a competitive edge which is vital for success. Lastly, effective planning will assist the organization to aptly plan on how to overcome the turbulent external business environment including technology, political, and legal environment across the world.



References

Bloomberg, 2017. Overview of Boral Limited. [Online] Available at: https://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=392930. Accessed Nov. 6, 2017.

Boral Annual Report, 2015. Boral Annual Report for the Year ended 30th June 2015. [Online] Available at: http://www.annualreports.com/HostedData/AnnualReportArchive/b/ASX_BLD_2015.pdf. Accessed on Nov. 6, 2017.

Conrad, D. & Newberry, R. 2012. Identification and instruction of important business communication skills for graduate business education. Journal of Education for Business, 87(2): 112-120.

Davari, A. & Strutton, D. 2014. Marketing mix strategies for closing the gap between green consumers' pro-environmental beliefs and behaviors. Journal of Strategic Marketing, 22(7): 563-586.

D & B Hoovers, 2017. Boral Limited Revenue and Financial Data. [Online] Available at: http://www.hoovers.com/company-information/cs/revenue-financial.boral_limited.9ab562d784e8348b.html. Accessed on Nov. 6, 2017.

IBIS World, 2017. Boral Limited Premium Company Limited Australia. [Online] Available at: https://www.ibisworld.com.au/australian-company-research-reports/manufacturing/boral-limited-company.html. Accessed on Nov. 6, 2017.

Islam, M. & Pattak, D. 2017. Impact of Macro Environmental Factors on Garments Industry That Drives Export in Bangladesh. Studies in Business and Economics, 12(2): 23-29

Nuseir, M. & Madanat, H. 2015. 4Ps: A Strategy to Secure Customers’ Loyalty via Customer Satisfaction. International Journal of Marketing Studies, 7(4): 56-65

Rabinovich, E. & Cheon, S. 2011. Expanding Horizons and Deepening Understanding via the Use of Secondary Data Sources. Journal of Business Logistics, 32(4): 303-316.

Stewart, C. 2014. How to Evaluate External Secondary Data. [Online] Available at: http://blog.marketresearch.com/how-to-evaluate-external-secondary-data. Accessed on Nov. 6, 2017.