Luck Companies Case Study
1. Physical Environment Segment. I would have to say neutral effect on industry because even though the resources this industry excavates is positive for the industry, scouting locations, availability of resources and diminished resources offset those positives. Also important but NOT the most important would be Economic (Neutral) and Demographic (positive). 2. Most influential of 5 forces would be Rivalry among competing firms (High) and Threat of Substitute Products (moderate). The industry Luck Company operates is composed of a few big players who compete against each other. Substitutes of stone/rock would be a threat to the industry, depending on what building materials are needed there are some alternatives such as wood, metal, steel, aluminum and other new artificial building materials. This is not an attractive industry for new entrants. Barriers to Entry are very high. These companies in the industry are operating on economies of scale that cannot be replicated. Incumbents who are operating with positive returns should continue their strategy and look for opportunities for growth. 3. Major competition in the mid-eastern region consists of Vulcan Materials and Martin Marietta Materials. Both of these companies operate on cost-leadership strategies and will continue because Luck Companies uses a differentiation strategy. 4. The most critical value chain activities for Luck Companies would be Operations (superior- industry leader of industry technology) and Distribution (neutral- I didn’t see anything to suggest they are superior/inferior to their competition) and the major support functions are their human resources departments (superior – Luck Companies operates under a “values driven culture” that is intended to achieve greater financial outcomes and better performance 5. Significant Financial Factors – 25% Market share in Virginia as of 2010. Net Sales of 2.5 billion in 2009, down from 3.0 billion in...
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