Afton Industries Case Study

Introduction
Afton Industries is a one product company; they manufacture roof tiles. The company consists of five major sh arholders who are also members of the advance of directors. Afton is in operation since the year 1998 and during those years, they were able to create a strong reputation on the food market. They are facing a leadership localise beca engage they are the largest local producer of cover tiles and their competitors do not have the same manufacturing facilities. As charge on for tiles has growingd during the years, Afton wishes to expand the company so as to increase the production capacity of the business to be able to pay consumers demand. The company is looking for ways to reduce make up (fixed cost e.g. rent), to increase sales and maximise production and profits. Below you for take away find the different ways, decisions and risks the company will/must take to keep this leadership position.

Nature of the market that Afton Industries is competing in.
Describe the record of the market place for roofing tiles that Afton Industries is competing in (you can use porters five forces model as occasion of your analysis, if relevant)
First of all, the market in which Afton is operating in is an oligopoly market which means that it is dominated by a small number of sellers.



Afton do have some competitors who are GAF Corporation, Monaro and Georgia and peace-loving Corporation but they do not have the facilities that Afton has on the market that is why Afton remains in the leadership position for the time being. But the level of competition is increasing, large manufacturers are supplying the regions in which Afton is located and are being well-known too. Secondly, there is the power of the buyer; the demand for roofing tiles is parasitical upon the housing market and if people already have tiles or have other preferences or taste, the market for tiles will for certain face a decline. It all depends on the trends and way of livelihood of people. Some prefer now to have wood...If you want to get a full essay, order it on our website: Orderessay



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