2. PRESENTED BY:
* NAME ROLL NO.
* Arunn menon 1
* Faces huge competition, cost and price pressure. * The zooming auto industry has driven the growth. * The number of vehicles is swelling.
* The truck and bus market is the largest segment in terms of value. 4.
* Economic expansion and road development has made a contribution. * eg. The golden quadrilateral and the NSEW Corridor project. * Though the volumes have increased the profitability has gone down due to the increase in raw material cost. 5. Five forces model
6. A 2 tier Industry
* Tier 1 players
* Present in all three segment -
* 1)Replacement market
* 2)Original equipment manufacture(OEMs)
* Tier 2 player
7. Key Players
8. Major Sales Segment
9. Intensity of Rivalry : High
* The tyre industry in India is fairly concentrated, with the top 5 companies accounting for more than 80% of the total production of tyres. 10. BARGAINING POWER OF SUPPLIERS - High
* Number of Suppliers – Low
* Availability/ acceptability of raw material substitutes – Low * Switching costs – High
* Threat of forward integration – High
* Tyre industry not the key customer
13. Demand for Tyres
14. Bargaining Power of Buyers
* OEM’s High
* In Replacement Market Moderate
* Switching Cost Low
* Threats of Backward Integration Low
15. THREAT OF POTENTIAL ENTRANTS
* LOW, due to HIGH ENTRY BARRIERS
16. ENTRY BARRIERS
* Highly capital intensive industry
* Rs4bn for radial tyre plant with a capacity of 1.5mn tyres * Rs1.5-2bn for a crossply tyre plant of a capacity to manufacture 1.5mn tyres *...