Platinum Group of Metals: a strategic assessment of the South African industry Online publication date: Tue, 10-Jul-2007
by A.K. Garg, R. Van Tonder, Prof. (late) R.J.O. Joubert
International Journal of Indian Culture and Business Management (IJICBM), Vol. 1, No. 1/2, 2007
Abstract: In order to analyse the strategic issues with regard to the South African Platinum Group of Metals (PGM) industry, a risk analysis and an assessment of the competitiveness of the industry were conducted. The analysis of risk related to market conditions indicates a relatively low risk rating driven by increased demand for jewellery and autocatalysts, while the industry is exposed to moderate risk for raw materials and supporting services, which is expected to remain moderate in future. Overall, the current risk for production factors was found to be moderate and is expected to remain moderate over the medium term. The results of industry risk analysis indicate that the PGM industry is currently exposed to moderate risk. Applying Porter's diamond model (Porter, 1990), the research found that the South Africa's PGM industry has a very strong platform and is expected to become more competitive in future, although increased cooperation will still be evident. The competitiveness of South African producers is expected to increase over the medium term, since most of the expansion will come on stream in the near future. The paper also discusses the development potential of South Africa in line with the exploitation of PGM.
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