THE IMPACT OF THE PRESENCE ON GLOBAL MARKETS OF CALCIUM CARBIDE ORIGINATING FROM CHINA ON OTHER INDUSTRY ROLE PLAYERS: THE CASE OF SA CALCIUM CARBIDE (PTY) LTD.

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Royce Sitshonile Mazo, Elias Munapo ORCID logo

DOI:10.22495/rgc7i4c2art6

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Abstract

This research assesses how the presence of calcium carbide originating from China has impacted on the operations of other role players in the industry. SA Calcium Carbide (Pty) Ltd. located in Newcastle, South Africa, was used as a case study. The study spanned all markets where the company has a footprint meaning domestically, regionally and internationally. The aim of the study was to discern the extent to which companies like SA Calcium Carbide have been affected by the presence of products from China on the global market with special focus being put on the competitiveness in terms of pricing of products. The study used a survey strategy, and was exploratory in nature. The choice of the survey strategy was motivated by the need to collect both quantitative and qualitative data in order to meet the research objectives. The data was gathered, with an 80 percent response rate, using a questionnaire method from more than 70 current SA Calcium Carbide customers both from the domestic and the export side of the business. In order to consider the different perspectives of the whole scenario, 10 companies involved in either manufacturing or trading of Chinese manufactured calcium carbide were interviewed, some face to face and some telephonically. The study revealed that current customers, who are predominantly from the African continent, buy product from SA Calcium Carbide primarily because of its high quality. It also evident from the results that the export volumes of SA Calcium Carbide were on a gradual downward trend due to loss of market share to Chinese companies.

Keywords: SA Calcium Carbide, Chinese Competitors, Mixed Study, Market Share

Received: 28.06.2017

Accepted: 20.09.2017

How to cite this paper: Mazo, R. S., & Munapo, E. (2017). The impact of the presence on global markets of calcium carbide originating from China on other industry role players: the case of sa calcium carbide (PTY) LTD. Risk Governance and Control: Financial Markets & Institutions, 7(4-2), 234-245. http://doi.org/10.22495/rgc7i4c2art6