Argos is a leading international producer of cement and concrete, with operations in Colombia, the US, and the Caribbean. It has nine cement plants in Colombia and two in the US, making it the fifth largest cement producer in Latin America. Argos is also a leader in the Colombian concrete market and the fourth largest concrete producer in the US, with over 300 plants across its markets. The company was founded in Colombia in 1934 and has since expanded its operations through mergers and acquisitions. It focuses on building strong market positions through strategic planning and internationalization.
2. • Argos is an international producer and marketer of cement and
concrete, with a presence in Colombia, the U.S. and the
Caribbean.
• Argos is a leader in Colombia and in the cement business, as is
the fifth largest producer in Latin America and second largest
in the southeastern United States. It has nine plants in
Colombia and two in the U.S..
• In the concrete business, Argos is a leader in Colombia and
fourth largest producer in the United States. Has 308 plants in
Colombia, United States, Haiti and Panama. The total installed
capacity is 14.5 million cubic meters of concrete per year.
COMPANY
3. • Argos was founded in Medellin (Colombia) on 27
February 1934 Arango Jaramillo Claudino founded by
Rafael and Jorge Arango Carrasquilla, Carlos Sevillano
Gomez Ceballos and Carlos Leopoldo Ochoa Arango
Velez.
• In October 1936 the factory started production. Making
profits from the same year, which allowed to provide its
first dividend in 1938.
• Back of its association with Cementos del Nare, Argos
launched a business-building efforts in different regions
of western Colombia.
HISTORY
4. • 1998 the Corporation acquired Andean Venezuela Cement and
invested in Cementos Colon in the Dominican Republic and
Haiti CimenterieNationaled'Haiti INCEM Corporation in
Panama.
• 2005 it merged all its cement producing companies in
Colombia.
• 2006 acquires concreteraReadyMixed Concrete Company in
the U.S., merged its concrete production companies in
Colombia (Agrecón, Western Concrete and Metroconcreto)
and cement and acquires the assets of Cementos Andino and
concreteros Concrecem in Colombia.
• 2009 acquires all of the investments in the Caribbean in
Cementos Colon, CimenterieNationaled'Haiti and INCEM
Corporation.
HISTORY
5. • Cement: Cement is a substance that unites or brings
cohesion. It comes in powder and is obtained by crushing
hard rocks (limestone and clay). It hardens with water
and produces compounds that are highly resistant. Its
duration prior to use depends on the proper storage of
cement is made.
• Gray cement: Argos has three types of gray cement, the
general purpose used in the vast majority of the
constructs, the structural use and the oil used.
PRODUCT
7. • Focus in buildings generally, so potential buyers would
be those individuals and companies engaged in the
construction area as workers, builders, engineers and
contractors and large companies developing large urban
projects and real estate.
• The cement has a very low differentiation so the target
market focuses on features and additional specifications
will be established by the product.
TARGET MARKET
8. • It is the largest cement manufacturer in the country, with
a market concentration of more than 50%.
• Barriers to entry for other companies, since it is very
difficult and expensive to establish the infrastructure
necessary to establish a cement company.
• It has several manufacturing facilities in different
countries located in strategic locations.
• Strategic planning of the organization is geared towards
the internationalization of its processes and products so
that it has adopted international standards in its
production and administrative processes.
• One of the best companies with revenues in Colombia.
SWOT-STRENGTHS
9. • There is strong stock level as their actions are most
concentrated in a few holders to be part of the GEA
Group.
• Argos aims to strategic management that is given from
the highest levels of GEA so sometimes they are not
consistent with the kind of business that the company
develops.
• Decision making is slow because it needs a consensus to
implement actions.
• The power in the management business managers possess
but not shareholders which may ultimately pose a risk.
SWOT-WEAKNESSES
10. • The increase of public expenditure in Colombia in areas
such as construction, expansion of roads, housing
development, etc..
• Oligopoly of cement and concrete that is in Colombia
provided to ensure a set level of sales, since it is quite
difficult to compete in this guild.
• Colombia trade agreements with various countries can
subscribe to facilitate the passage of the cement.
• The country's wealth in natural resources Argos gives a
wide range of minerals needed for the production of their
products.
SWOT-OPPORTUNITIES
11. • As the cement made from mineral materials, there is a
risk that these shortages.
• Increased demands on environmental certificates both
nationally and internationally that hurt production and
higher costs may be awarded to the company.
• Climate change will cause some increase costs such as
transportation.
SWOT-THREATS
14. • It is a country that opens doors to Colombian
businessmen, which has an open foreign policy which allows
entry to the market with higher expectations.
• Similarly greatly influences the TLC between Colombia and
Canada, because Canada is one of the major developed
economies, generating 2.6% of global GDP and is a country
with high purchasing power.
• Canada will contribute to the growth and potential growth of
the Colombian economy and creating more development by
NAFTA has been agreed with the country Colombia has
preferential access to a market 33 million consumers with high
income levels.
Country to export - Taking
advantage of opportunities
15. • http://www.argos.com.co/
• GUIA PARA EXPORTAR A CANADA. Ministerio de
comercio, industria y turismo, Colombia. Proexport
Colombia. Año 2006
• http://www.argos.co/site/DesktopModules/Bring2mind/D
MX/Download.aspx?Command=Core_Download&EntryI
d=8&PortalId=0&TabId=64
• http://datos.bancomundial.org/indicador
BIBLIOGRAPHY