challenges and prospects of Ethiopian cement market
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Date
2019-07
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Addis Ababa University
Abstract
The general objective of the study was to find out challenges and prospects of Ethiopian cement
market. The study has employed exploratory research design since the subject understudy is
novel in cement industry. Qualitative research method has been used to collect data. The
sampling strategy for the study was non-probability (purposive)sampling based on criteria.
Based on their market share and cement production capacity, six cement firms have been
selected from the industry.Totally, 6 cement firms’ marketing mangers and 9 whole sellers
wereselected to conduct the study. The selected cement firms in the industry covers 69% of the
total cement production capacity and 85% annual cement market share. In-depth interview has
been done to collect data from the marketing managers and whole sellers of the cement firms’
understudy. The data has analyzed by using content analysis method. Main findings of the study
includes; imbalance between production capacity and cement demand due to enormous cement
projection in the country, drop in cement demand due to slow construction boom, marketing mix
strategies 4ps and market intermediaries. The prospects of Ethiopian cement market
includes;huge number of population and countries fast growth rate, low cement per capita
consumption, increased government spending on infrastructure, and availability of rural and
urban housing projects. The study has recommended that, the cement market should be regulated
in some extent to safeguard the small cement firms, government should plan and execute cement
demand simulation mechanisms, and alternative energy sources should be practiced and utilized
in cement firms to reduce cement production cost.
Description
A thesis submitted to Addis Ababa university college of
Business and economics in partial fulfillment of the
Requirements for the degree of masters of business
Administration
Keywords
Cement, Cement per capita consumption, Production capacity, Marketing mix strategies