PLEASE RESPOND TO THIS, I MUST COMPLETE A PEER REVIEW ON THE BELOW. Thanks
Please demonstrate critical thinking abilities. No fewer than 250 words for post. Do not summarize the post and/or course concept(s), but perhaps comment on concepts directly applicable to your workplace.
For this response, should outside sources be used to support the content within the postings, proper in-text citations and correctly formatted references should be prepared consistent with the APA (6th edition). The list of references should be physically positioned at the end of the postings.
Hello, thank you! Please use critical thinking, good grammar and do not plagiarized, thanks.
The problem at Alcoa Corporation is how to hold its dominant position and maintain its market share in the aluminum industry. Gaining traction on a market with numerous entities that are all within a few percentages of each other.
The logical answer to gaining market share in the aluminum industry is to acquire and/or merge with some of the other existing companies in this sector. Right now, Alcoa is in the middle of the pack when it comes to the top ten in the industry. I believe that there is an opportunity to use some of the free cash flow to acquire some of the smaller companies to gain a large portion of the market. Alcoa Corporation sits at 5th position at 11.4% aluminum production market share (Aluminum Leader, 2017). The top position is held by UC Rusal with 13.2% (Aluminum Leader, 2017). Gaining the top spot is not out of reach and maximizing this opportunity to garner a larger portion is attainable.
The company that is recommended for merger or acquire is East Hope Aluminum Co, Ltd. manufactures aluminum and related products. The company was founded in 2003 and is based in Sanmenxia, China. East Hope Aluminum Co, Ltd. operates as a subsidiary of East Hope Group Company Limited (Bloomberg, 2017). This company currently holds 5.1% of the market and would be an easy target to acquire. I suggest making an offer to buy a share of this private company that holds 5.1% of the market. This will propel Alcoa Corporation to the top of market share with a total of 16.5% if a successful purchase is made.
I highly recommend this action to gain a large market share. Why stop there and not follow suit with a few more moves to gain an advantage on the industry. I believe it is in the best interest of Alcoa Corporation to take a leap of faith in a move that will change the revenue for not only the company, but that of the shareholders. This move makes the most sense and Alcoa Corporation has the means and know how to dominate the industry. It is likely this move will be made and others will follow shortly behind this in the near future.
Strategic analysis, planning, and implementation
I believe Alcoa Corporation has propelled itself the past two years by separating from its parent company and streamlining all its production of Aluminum products. This more freed up a large portion of free cash and has made Alcoa Coporation a profitable business. The only thing missing is caputuring a large portion of the market share. With the moves the past two years into the black on the financial spreadsheets it shows that Alcoa Corpration has the know how for analying, planning and implementation of strategy to be the leader in its industry.
Aluminum Leader (2017), How the World Aluminium Market Works, Retrieved from: http://www.aluminiumleader.com/economics/world_mar… to an external site.
Bloomberg (29 September 2017), Company Overview of East Hope (Sanmenxia) Aluminium Co, Ltd, Retrieved from: https://www.bloomberg.com/research/stocks/private/… to an external site.