Strategic analysis of cement industry in India using structure conduct performance paradigm

Abstract

The research essentially attempts to explore and bring together the myriad pieces of academic literature and theories that seem to link the structure-conduct-performance of Indian cement industry. The research on one side views the phenomenon with the perspective of Porter s industry structure and on other side emphasizes the role of resource driven theoretical perspective in understanding the problem. The research basically aims to explore the Structure, Conduct and Performance of Indian cement industry, finding the relationship between them and studying the impact of demographics on the perceptions of masons regarding the structure and conduct of cement firms. The construct of masons perceived Market Structure of the cement firms, was operationalized by using exploratory and confirmatory factor analysis that resulted in five sub factors namely (1) competitive intensity, (2) substitutes availability (3) new entrants, (4) bargaining power of suppliers, (5) bargaining power of buyers. Similarly, the construct of Firm Conduct was operationalized that resulted in five sub factors namely (1) strategic orientation, (2) innovation research, (3) cost leadership, (4) marketing orientation, (5) stakeholder engagement. Similarly, the construct of Performance was operationalized that resulted in four sub factors namely (1) value creation (2) firm competitive performance (3) logistics performance (4) customer performance. The relationship among the constructs clearly explains that Structure of cement industry impacts its conduct which in turn impacts the performance of the industry. Also, demographics play an important role in determining the strategic formulation and orientation of the cement firms. newline