Case Study: Gulf Ferro Alloys
Introduction
In our globalized world, business today knows no boundaries. Internet and cheap transportation allowed suppliers and consumers to trade no matter where they are and what they need. This status of wide open market, where alternatives are always available for the customers, has put most suppliers in a constant competition. Even if some major suppliers hardly face competitors of their caliber they have to stay in shape and alerted of new comers. In this common business atmosphere suppliers must possess and pursue presenting advantages over their competitors in order to attract the customers and execute sales. These advantages are known as competitive advantages and their sources are mainly quality, service, speed, innovation and cost competitiveness. Successful companies always attempt to deliver them all in order to survive, especially when the competition gets brutal during a slow economy. One of these Companies is Gulf Ferro Alloys (Sbayek).
Background
Sabayek is a producer of Ferro Silico-Manganese (FeSiMn), which is one of the Ferro Alloys used in Steel manufacturing. In simple words, (FeSiMn) is made by smelting a mixture of mainly Manganese ore, quarts, energy coal and some additives in big blast electric furnaces. Most of these input raw material is imported from overseas, mainly South Africa, Australia and the United States. After smelting, the cast produced go through a process of crushing and screening to finally have the finished product in a rock form with diameters that range between 10-100mm, upon customers request. The only consumers for this product are Steel makers; where 10 to 13 Kgm of (FeSiMn) is indispensible to make one ton of Steel. Annually, Sabayek produces 80-100 thousands metric ton and around 85% of its total production is sold in the Middle East, especially in the Gulf region. Currently, Sabayek main competitors are the Indian suppliers.
Purpose
Since late 2008, the global economic crises and the
In our globalized world, business today knows no boundaries. Internet and cheap transportation allowed suppliers and consumers to trade no matter where they are and what they need. This status of wide open market, where alternatives are always available for the customers, has put most suppliers in a constant competition. Even if some major suppliers hardly face competitors of their caliber they have to stay in shape and alerted of new comers. In this common business atmosphere suppliers must possess and pursue presenting advantages over their competitors in order to attract the customers and execute sales. These advantages are known as competitive advantages and their sources are mainly quality, service, speed, innovation and cost competitiveness. Successful companies always attempt to deliver them all in order to survive, especially when the competition gets brutal during a slow economy. One of these Companies is Gulf Ferro Alloys (Sbayek).
Background
Sabayek is a producer of Ferro Silico-Manganese (FeSiMn), which is one of the Ferro Alloys used in Steel manufacturing. In simple words, (FeSiMn) is made by smelting a mixture of mainly Manganese ore, quarts, energy coal and some additives in big blast electric furnaces. Most of these input raw material is imported from overseas, mainly South Africa, Australia and the United States. After smelting, the cast produced go through a process of crushing and screening to finally have the finished product in a rock form with diameters that range between 10-100mm, upon customers request. The only consumers for this product are Steel makers; where 10 to 13 Kgm of (FeSiMn) is indispensible to make one ton of Steel. Annually, Sabayek produces 80-100 thousands metric ton and around 85% of its total production is sold in the Middle East, especially in the Gulf region. Currently, Sabayek main competitors are the Indian suppliers.
Purpose
Since late 2008, the global economic crises and the
References: • Interview with Mr. Bader Nasser Al Ajmi, Sales & Marketing Manager. • Interview with Mr. K. Manoharan, Finance Manager. • www.sabayek.com • Metal Expert, World Ferro Alloys News, Issue 25 (61), June 18, 2012. www.metalexpert-group.com • CRU Monitor: Bulk Ferro Alloys, March 2011 ED. www.crugroup.com • MESTEEL. “GCC Construction Steel Output to Exceed 23 mln mt by15”. 4 April 2012. • Metal Bulletin. “Manganese highlights: European prices sliding on reduced demand”. July, 2012.