3 wheeler industry porters five force analysis
DESCRIPTION
done on the basis of porters five forcesTRANSCRIPT
3 Wheeler Industryin India
Presented by:-
Jeffin Joy
1st sem. MBA
Automobile Sector
2 types:-
Passenger Vehicle
Goods Vehicle
(source:- Autobei Consulting Group)
54%
23%
10%7%
4%2%
0%
10%
20%
30%
40%
50%
60%
Bajaj Auto Piaggio TVS Mahindra Atul Auto Others
Market Share
(Source:- www.currentweek.com)
PORTER’S FIVE FORCES MODEL
The threat of entry:
• Possibilities of new entries to the industry is LOW.
• Strong Customer Loyalty to the existing brands.
• Higher Capital investment, High stock and bigger warehouse facility and maintenance.
• Owning a wide distribution network is important and is very costly.
Bargaining power of buyers:
• Availability of existing substitute products.
• Low switching cost and switching is simple.
• Bargaining power: HIGH
Bargaining power of suppliers:
• Their ability to dictate supply, price, quality and the cost of switching to a new supplier.
• Strength of distribution channel.
• Bargaining power: HIGH
The threat of substitutes:
• Customers switch to alternatives depends upon whether the substitute provides a higher perceived benefit or value.
• Mini cars.
• 4 wheeler goods vehicles.
• Other public transportation vehicles.
• Threat of substitutes: HIGH
Competitive rivalry:
• Organizations with similar products aimed at the same customer group.
• The main competitors are very much balanced, with roughly in equal size.
• New technology.
• Competitive rivality: HIGH
PEST Analysis…
Political:-
Organizations are influenced by government policies.
Economic:-
Organizations have to operate in conditions of boom and bust.
Social:-
Organizations culture has a direct influence by culture of the society that operates. Lifestyle changes due to increase income have resulted in consumer needs.
Technology:-
The level and focus on technology affects the organization. Development of automated assembly line has increased productivity and efficiency.
Thank You…