A SWOT analysis is a foundation part analysis of a company which assists the organization to figure out the prospect development strategy of the company (Batista, 2016). For Oman Cement Company, the SWOT analysis detailed as follow:

Strengths: The most excellent quality, product name, the assist from the government, and also the demographic sight.

Weaknesses: Deficiency on staff, older machine set up has been turned off for maintenance manufacture because the company to get weakens in reaching the demand from the market.

Opportunities: The Company produces cement with very high quality in the Gulf countries. The requirement for SRC and OPC cement is quite huge because of the quality product which enhances the customer attraction headed for the Oman cement.

        Threats:  Due to world monetary depression, the manufacturing business has to face a significant threat. Cement order will drop if the manufacture work decreases. This could impact the Oman Cement Company in the future. Furthermore, a number of UAE factories have buried the local market as there is deficiency of cement production ability in Oman.

Competitive Alternative strategy for OCC

            To get the number of competitive benefits in the cement industries, Oman Cement Company needs to figure out about the competitive strategy for the company to practice. The Strategy Clock from Bowman could be implemented to study and analyze the competitive condition between Oman Cement Company compared with the other companies. Oman Cement Company seems to follow option number five on the Strategy Clock which is focused differentiation. It is a fact that Oman is one of the most famous countries in petroleum export, that is why Oman Cement Company began to manufacture a rare cement type which utilizing purposely for oil wells. This kind of cement is in compliance with the standards of American Petroleum Institute, as well as the company until now is the only company in Oman which produces this kind of cement. And do not forget that Oman Cement Company started producing another type of cement, which is called Sulphate Resistant Cement. It can be used where high resistant to sulfate molest is required, and where the demand occurs for the cement of this kind, due to some geographical position of Oman, and distinguish faces moisture and salinity, especially in regions, which are closer to the sea (Osborne, 2016).   

Business environment or micro-environment

            Based on five forces model by Porter, there are different forces that pressure the presentation of business from a working industry. Here is the list of those five forces for Oman Cement Company (OCC).

The threat of new contestant

            The business of cement takes an important role for its capital demand on plant equipment, building plants as well as product requirements which not under than eighteen months to activate. And the rare materials of cement area (milestone, Gypsum, etc.) are prescribed by the government in the country. For that reason, the business is already conquered by two confined companies that contain a long contract with the government for the development of rare material in dissimilar sites.

Competitive competition

            The two challenging local level cement companies RCC and OCC are working in country’s divergent locations with instruction given by the government, and they both acquire their revenue as well as trade all of their manufactured goods even their market needs further. Moreover the cement orders in the country are rising and surpassing the production capability of these local companies. It is a fact that building plant cement comes with very high price. The Oman Cement Company, which is located in Muscat having country’s 80% of the manufacturing of cement.

Alternate manufactured goods

            There is not alternate to cement for building as well as manufacturing material in Oman in the nearby future, which means that the product is certainly irreplaceable for now and shortly future as well.

Bargaining control of Buyers

        It has been observed that demand for cement has exceeds all the previous demand levels in the country. The government controls the two factories manufactures and the prices the material for expansion. Shifting to the companies of the adjacent countries, the products from these companies are expensive as they come up with extra taxes as well as shipping costs. That’s why, the bargaining control of buyers is almost zero, until any changes made in the policy.

 Bargaining control of Suppliers

            The majority cement elements are local and they are below from management of the company, and except for less amount of bauxite for the manufacture. This confirmed for zero suppliers’ control.

                Porter 5-forces evaluation for the two Cement Companies in Oman which are OCC and RCC presents that Cement Company is taking money-making industry with a low business force. Oman Cement Company has its prime location in Muscat and conquered the center along with the northern area with all government main developments as well as constructions.  This fact has provided benefits to OCC as compared to its competitor RCC. However, RCC which runs the business on the southern area also gets the benefit of free of charge exports to Yemen and many other countries as well (Lawson, 2018).

                Acknowledge the main competitor and measurement of its strength and weakness considered to be an important component aspect to set up the thriving of the marketing strategy. The dominant opponent of Oman Cement Company (OCC) as mentioned above is Raysut Cement Company (RCC) (Simbolon & Elviani, 2017). Oman Cement Company located in the industrialized region of Muscat, and it has marked its dominance in the cement market of center as well as northern areas of Oman. Meanwhile, the manufacturing plant of RCC has its location in port Salalah, which is Oman’s southern area and its distance from Muscat is 1000 KM.  RCC claimed to be the strongest local competitor for OCC in cement business. The clink and cement production of RCC surpasses the production of OCC, and the company got a better income than OCC. When their production is compared in 2007 to 2008, it was evident that both companies manufacturing improved in the year 2008. As per both companies financial report; the demand for their production was more than the production capability of their manufacturing plants and deficiency had been made up by importing cement outside the country with higher costs.

            Based on the above summary report, we can see that both companies get significant revenue. It is obviously evaluated that revenue of these companies turns down in 2008 when it is compared with year 2007. The report also presents that OCC revenue was less than RCC revenue. On the basis of RCC’s yearly report, the exports to Yemen came with many benefits as distribution was made with higher prices as compared to Oman, where prices fix proscribed as well as settled with Ministry of Commerce and Finance to sustain the country plan in construction and country’s crucial infrastructure (Shaker & Jamil, 2015).

References of SWOT Analysis of Oman Cement Company

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Capita, A., 2011. Saudi cement sector. Analyst 966, no. 2, p. 43.

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Lawson, F. H., 2018. Comparing Modes of Regional Economic Governance: The Gulf Co-operation Council and the Association of Southeast Asian Nations. Initiatives of Regional Integration in Asia in Comparative Perspective, pp. 155-175.

Narwal, T. et al., 2018. Successful Implementation of New Technologies in Sour Oman Fields: Securing High Risk Wells, Savings & Production Increase. Abu Dhabi International Petroleum Exhibition & Conference.

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Shariq, M., 2016. Bankruptcy Prediction by Using the Altman Z-score Model in Oman: A Case Study of Raysut Cement Company SAOG and its subsidiaries. Australasian Accounting, Business and Finance Journal, pp. 70-80.

Simbolon, R. & Elviani, S., 2017. Bankruptcy analysis using altman z-score model in retail trading company listed in Indonesia stock exchange. Proceedings of AICS-Social Sciences, pp. 273-279.

Singh, D., 2018. Stock Price Determinants: Empirical Evidence from Muscat Securities Market, Oman. Firm Value-Theory and Empirical Evidence.