Afton Industries Essay

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Introduction Afton Industry is specialized in the manufacturing of roofing tiles and is active in this only production. The company exists since 1998, its experiences give it the competitive advantage to built up a good reputation on the tiles market. Actually the company is the leader on the market, its competitors have not been able to achieve the same performance due to their lack of equipment in the manufacturing department. Afton has five major shareholders which include the members of the board of directors. Considering the increase in demand for tiles, the company concentrates on planning to intensify the production capacity of Afton, in a way to satisfy demand. Due to the increase in demand of tiles, the company is looking for different alternatives to stay competitive by reducing all the costs and at the same time maximized the business’s production and profits. Below there are analysis and decisions that can lead the company to avoid certain risks and to stay at the top on the tiles’ market. 1. Nature of the market that Afton Industries is competing in. Describe the nature of the market place for roofing tiles that Afton Industries is competing in (you can use porter’s five forces model as part of your analysis, if relevant) Afton industry form parts in the oligopoly market, which simply defines as a specific market being control by a smaller number of sellers. The famous company has a number of competitors at this time being; Pacific Corporation, GAF Corporation, Georgia and Monaro. Fortunately for Afton these competitors are at the same high level and this is a good advantage for Afton, which has been able to create and maintain a good reputation on the market. Nevertheless at any time Afton can lose its leader position on the market, as the competition is more and more increasing. There are other suppliers which work in the same area as

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