Car Industry: Swot Analysis

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SCMS Journal of Indian Management, April-June, 2010. 67
A Quarterly Journal
A c o n s u m e r ' s d e c i s i o n d e p e n d s o n t h e i n t e r p l a y o f m a n y f o r c e s o r s t i m u l i . P r o d u c t o f f e r i n g t h r o u g h s o m e p r o m o t i o n a l m e t h o d s i s t h e i n i t i a l s t i m u l i . T h e m a r k e t i n g a n d e n v i r o n m e n t a l s t i m u l i e m e r g e f r o m c u l t u r a l , s o c i a l , p e r s o n a l a n d p s y c h o l o g i c a l f a c t o r s . T h e c u s t o m e r s j u d g e t h e d e a l s i n s e v e r a l w a y s . T h e r e p u t a t i o n a n d t e c h n i c a l e x p e r t i s e o f t h e m a n u f a c t u r e r, t h e q u a l i t y o f s e r vice and technical advancement of t h e s e r v i c e p r o v i d e r f o r m t h e c r i t e r i a t o e v a l u a t e t h e m a n u f a c t u r e r s a n d t h e d e a l e r s . T h i s s t u d y , i n t h e f o r m o f S W O T a n a l y s e s p e r f o r m e d t h r o u g h F r i e d m a n ' s t e s t , c o v e r s t h e c o n s u m e r s ' g e n e r a l o p i n i o n t o w a r d s t h e p a s s e n g e r c a r s a n d a l s o p r o v i d e s u s e f u l i n f o r m a t i o n t o t h e g e n e r a l p u b l i c , c a r o w n e r s , d e a l e r s a n d c a r m a n u f a c t u r i n g c o m p a n i e s i n m a n y w a y s . I

A Consumer Stimul i
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Car Industry:
SWOT Analysis
Dharmaraj C., Sivasubramanian M. and Clement Sudhahar J.

Mr. D h a r m a r a j C . , A s s i s t a n t P r o f e s s o r, S c h o o l o f M a n a g e m e n t , K a r u n y a U n i v e r s i t y , C o i m b a t o r e - 6 4 1 1 1 4 , Ta m i l n a d u , E - M a i l : D h a r m a r a j b u s i n e s s @ gm a i l . com

D r . S i v a s u b r a m a n i a n M . , R e a d e r i n C o m m e r c e , G o v e r n m e n t A r t s C o l l e g e , C o i m b a t o r e - 6 4 1 0 1 8 , E . M a i l : D r m s i v a s u b r a m a n i a n @ gm a i l . com

D r. C l e m e n t S u d h a h a r J . , A s s o c i a t e P r o f e s s o r, S c h o o l o f M a n a g e m e n t , Ka r u n y a U n i v e r s i t y, C o i m b a t o r e - 6 4 1 1 1 4 , Ta m i l n a d u , E - M a i l : C l e m n s @ re d i f f m a i l . com

n India, after independence, industrialization has paved
the way for people to possess luxury items such as
television, refrigerators, home appliances, cars, etc.
Motor–car is one
of the commonly
used conveyances
by the upper and
m i d d l e - c l a s s
people. Before two
decades, only a
few industrialists
and rich people
owned cars. There
was a time when
one had to wait for
weeks, months or
even years to buy
a car in India. The
option of Indian
drivers was limited
to a few models.
But, after libera -
lization, the earning capacity of the middle-class people
has also increased. Now-a-days, motor car is not only
bought for social status, but as a necessary one. Taking into the consideration
of the above, many
automobile companies
turned to
Asian countries,
par ticularly India
and China. The
automobile industry
in India is the
eleventh largest in
the world with an
annual production
of approximately
two million units.
India is expected to
over take China as
the world’s fastest
growing car market
in terms of the
SCMS Journal of Indian Management , April - June, 2010. 68
A Quarterly Journal
number of units sold, and the automotive industry is one of
the fastest growing manufacturing sectors in India. Because
of its large market (India has a population of 1.1 billion; the second largest in the world), a low base of car ownership
(12 per 1,000 people) and a surging economy, India has
become a huge attraction for car manufacturers around the
world. Until the early 1980s, in India owning a car was
considered to be a luxury possession. During those days
there were only four producers of passenger cars, namely,
Hindustan Motors (HM), Premier Automobiles Ltd. (PAL),
and Standard Motors...
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