<p align="justify">CITIC Pacific Mining is the completely owned subsidiary of the Hong Kong, as listed in the stock exchange as CITIC. The headquarter of the company is in Perth. CITIC was founded with the major objective of managing the operations and construction of Sino Iron, which is an integrated mining, port-operation supplying, and mining of high grade and low impurity iron ore items to the Asian steel mills. CITIC Pacific is the diversified company with the major focus on the manufacturing of special steel, property, and mining of iron ore. It supplies the products as the raw material required in making the steel and the property development in China. The company’s operation segments involve iron-ore mining, special steel, civil infrastructure, property, power generation and many other areas (Citicpacificmining, 2019). The company is working at a large level and needs to identify and analyze the industrial competition level. The managers of the CITIC Pacific can use the Porter five force model to determine the competition level in the industry which helps them in decision making at strategic level. Here is the detailed Porter five forces analysis of the company;</p>
<h2 align="justify">Bargaining Power of Buyers</h2>
<p align="justify">The buying power in the mining industry is relatively high or medium. However, the two elements are responsible for affecting the bargaining power of buyers; first is the negotiation level and second is the price sensitivity. As being the state-owned company, it has huge customer bae because of the reasonable prices set by the government. The special steel manufacturing and iron is not the standardised products which helps it in gaining advantage in the industry. It is necessary for the CITIC Pacific to integrate forwardly to eliminate the cost and gain more profits. And also try to bring high quality raw materials to maintain the industrial position (Deepsjyoti, 2019).</p>
<h2 align="justify">Bargaining Power of Suppliers</h2>
<p align="justify">The bargaining power of suppliers is relatively low in the complete integrated steel and iron mining, because of their own mines use for exploration and further processes. CITIC Pacific has its own mines and supply raw materials to other companies. It is necessary for the company to maintain good relationship with the suppliers to have cost advantage. The company needs to work on its supply chain and make it more efficient (Hopkins, 2018).</p>
<h2 align="justify">Threats of New Entrants</h2>
<p align="justify">The barriers to entry are moderate in the case of CITIC Pacific, because of the huge capital requirement, as lots of manpower and investment is needed in exploring the mine and for the further process to prepare it for the raw material supply to customers. But if the government policies of the China are favorable, there will be new entrants to gain the benefits. In case of CITIC pacific, new entrants have to introduce differentiated products, as it has grabbed the major part of market share. However, threats are not faced by only new entrants, but existing companies can also diversify in this sector to gain economies of scale and profits (Deepsjyoti, 2019).</p>
<h2 align="justify">Threats from the Substitute Products</h2>
<p align="justify">Threats of the substitute products are low in the case of CITIC Pacific, because of steel and iron are the major products use in almost everything durable. However, use of aluminium has been increased in automobiles, etc. but still iron and steel can never be completely omitted, or their demand would decrease immensely. However, plastics use is increasing but still the demand of the iron and steel will be in the market (Kazakoff, 2003).</p>
<h2 align="justify">Rivalry of Existing Players</h2>
<p align="justify">The competition in the mining industry specially in steel and iron is medium or high, because of the mines and non-renewable resources. As the resources are limited, and the demand of the steel and iron increases day by day, the competition level in the industry gets intense. CITIC has to work hard to explore new mines to diversify the risk. However, the exit barriers in the industry is quite high so the competition level is limited between certain companies. Rivals strive hard to grab the market share from each other; thus, it is necessary for the CITIC Pacific to make the strategies which helps it in gaining more market share and customers (Hopkins, 2018).</p>
<h2 align="justify">References</h2>
<p align="left">CiticPacificmining, 2019. About CPM. [Online], Available at: <a href="https://citicpacificmining.com/about">https://citicpacificmining.com/about</a>, [Accessed on: 2nd July, 2019].<br />
Deepsjyoti, 2019. Steel Industry Analysis. [Online], Available at: <a href="https://www.scribd.com/document/134162528/Steel-Industry-Analysis">https://www.scribd.com/document/134162528/Steel-Industry-Analysis</a>, [Accessed on: 2nd July, 2019].<br />
Hopkins, B. 2018. Corporate Governance at Citic Pacific Porter Five Forces Analysis. [Online], Available at: <a href="https://www.case48.com/porter-case/1541-Corporate-Governance-at-Citic-Pacific">https://www.case48.com/porter-case/1541-Corporate-Governance-at-Citic-Pacific</a>, [Accessed on: 2nd July, 2019].<br />
Kazakoff, D. 2003. IME Industry Analysis. [Online], Available at: file:///C:/Users/CC/Dropbox/Business%20Law/Industry_Analysis.pdf, [Accessed on: 2nd July, 2019].</p>