Preview

5 Forces for Hero Honda

Powerful Essays
Open Document
Open Document
7134 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
5 Forces for Hero Honda
PORTER’S FIVE FORCES MODEL FOR HERO HONDA PROJECT ON PORTERS FIVE FORCES MODEL FOR TWO WHEELER COMPANY HERO HONDA

SUBMITTED BY: MITHUN KUMAR PATNAIK ROLL NO:A3O6O1909082 MBA2009-2011 BATCH

BY MITHUN KUMAR PATNAK, AGBS HYDERABAD.

Page 1 -

AMITY GLOBAL BUSINESS SCHOOL BANJAJAR HILLS, ROAD N0:11 ADJECENT TO LAKE VIEW APPARTMENTS RELIANCE HUMSAFAR BUILDING HYDERBAD

-

PORTER’S FIVE FORCES MODEL FOR HERO HONDA INDEX Contents…………………………………………………………………………………………………………………page 1. INTRODUCTION TO PORTER’S FIVE FORCES MODEL 2. ABOUT THE AUTOMOBILE SECTOR 3. INTRODUCTION TO HERO HONDA 4. PORTER’S FIVE FORCES FOR HERO HONDA 5. THREAT OF NEW COMPETITORS 6. RIVALRY AMONG EXISTING FIRM IN INDUSTRY 7. THREAT OF SUSTITUTES 8. SUPPLIERS BARGAING POWER OF CONSUMERS 9. KEY FACTORS ONFULENCING DEMAND OF THE 2-WHEELER 10. KEY FACTORS AFFECTING SALES OF MOTOR CYCLES 11. APPRECIATION ON PORTERS FIVE FORCES MODEL 12. BIBLIOGRAPHY

BY MITHUN KUMAR PATNAK, AGBS HYDERABAD.

Page 2 -

-

1. PORTER 'S FIVE FORCES

PORTER’S FIVE FORCES MODEL FOR HERO HONDA A MODEL FOR INDUSTRY ANALYSIS

The model of pure competition implies that risk-adjusted rates of return should be constant across firms and industries. However, numerous economic studies have affirmed that different industries can sustain different levels of profitability; part of this difference is explained by industry structure. Michael Porter provided a framework that models an industry as being influenced by five forces. The strategic business manager seeking to develop an edge over rival firms can use this model to better understand the industry context in which the firm operates. Diagram of Porter 's 5 Forces

BY MITHUN KUMAR PATNAK, AGBS HYDERABAD.

Page 3 -

-

I. Rivalry

PORTER’S FIVE FORCES MODEL FOR HERO HONDA

In the traditional economic model, competition among rival firms drives profits to zero. But competition is not perfect and firms are not unsophisticated passive price takers.



Bibliography:         WEBSITE: WWW.HEROHONDA.COM WWW.HEROCYCLES.COM WWW.WEKIPEDIA.COM WWW.TIMESOFINDIA.COM HTTP://WWW.THEHINDUBUSINESSLINE.COM HTTP://ECONOMICTIMES.INDIATIMES.COM/SEARCH.CMS WWW.INDIAINFOLINE.COM HTTP://WWW.FADAWEB.COM/INDIANTYRESINDUSTRY.HTM BOOKS:    AUTOCARE OVERDRIVE INDIAAUTO BY MITHUN KUMAR PATNAK, AGBS HYDERABAD. Page 20 - -

You May Also Find These Documents Helpful

  • Good Essays

    Currently, I am a corporate continuous improvement manager in the auto industry. Porters five force model is utilized in the auto industry to evaluate how the competitive forces are affecting the current market place. Michael Porter, a respected figure relating to industry analysis, created a way to analyze and estimate the profitability of organizations within an industry (Parnell, 2014). The analysis includes five principles which are classified as competitive forces. Existing rivalry, barriers to entry, threat of substitutes, the bargaining power of buyers and suppliers are the competitive forces in Porters five force model.…

    • 602 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Rize Documentary

    • 528 Words
    • 3 Pages

    In doing strategic analysis, it is sometimes useful to examine the industry in terms of Porter’s five forces (however, some industry characteristics critical to formulating strategy might not be apparent from this framework).…

    • 528 Words
    • 3 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Homework

    • 348 Words
    • 3 Pages

    Prepare an analysis of the automobile manufacturing industry using Porter’s five forces framework. For each component force provide support for your conclusion. In addition, at the completion of your analysis provide a conclusion, along with support, of whether you expect the automobile industry to report high or low profitability in the near future.…

    • 348 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    The configuration of the five forces differs by industry. The strongest competitive force or forces determine the profitability of an industry and become the most important to strategy formulation. The most prominent force, however, is not always obvious. Industry structure grows out of a set of economic and technical characteristics that determine the strength of each competitive force. Taking the perspective of an incumbent or a company already present in the industry molds the end result of the analysis. The analysis can be readily extended to understand the challenges facing a potential entrant. Moreover, the devil is in the details of locating the key data to conduct the actual analysis. The following sections provide a brief summary of the five…

    • 1810 Words
    • 8 Pages
    Powerful Essays
  • Better Essays

    JWI515 Week 5 Assignment 2

    • 1515 Words
    • 5 Pages

    Awareness of the five forces can help a company understand the structure of its industry and stake out a position that is more profitable and less vulnerable to attack. By understanding how the five competitive forces that shape strategy influences profitability in a particular industry, executives can develop a strategy for enhancing their company’s long-term profits (Porter, 2014).…

    • 1515 Words
    • 5 Pages
    Better Essays
  • Good Essays

    case Ready to Eat

    • 1175 Words
    • 4 Pages

    Through an analysis of Porter's 5 Forces focused on competitors, we highlight the elements that determine profitability:…

    • 1175 Words
    • 4 Pages
    Good Essays
  • Better Essays

    Michael Porter's five forces are business theories that can clarify important issues a business faces. The strategy is determined by a unique combination of activities that deliver a different value proposition than competitors or the same but better. The intent of Michael Porter is to help discover why conditions are the way they are in a deep strategic analysis. The five forces inform and promote the strategic review process, environmental investigation and positional analysis. Porter's model provides a general view of the firm, its competitors, and the firm's environment (Laudon, K., & Laudon, J. 2012 pp. 95). It reveals the source of competition in an industry and the external impact including the opportunities and threats an organization faces to gain competitive advantage. Porter's five forces are of great importance to promote strategic options to improve performance in the industry. It also provides a good explanation for the…

    • 1301 Words
    • 6 Pages
    Better Essays
  • Powerful Essays

    An industry analysis through Porter’s Five Forces reveals that market forces are favorable for profitability.…

    • 3389 Words
    • 14 Pages
    Powerful Essays
  • Best Essays

    Porters Industry Analysis

    • 2138 Words
    • 9 Pages

    Porter developed a five-force model, which outlines the five competitive powers of the automobile manufacturing industry. The five basic competitive forces are: (1) market competitors, (2) new entrants, (3) suppliers, (4) buyers, and (5) substitutes (Porter, 1985). Porter identifies the forces are being the power of buyers and suppliers, threat of new entrants and substitutes, and potential rivalry with the companies within the industry (Kotler, 2009). It was not until later that a sixth force was developed: relative power of other stakeholders. Its inclusion was made to add a much-needed holistic element to the analysis of competition within an industry.…

    • 2138 Words
    • 9 Pages
    Best Essays
  • Powerful Essays

    Five Forces Model

    • 2253 Words
    • 10 Pages

    Porter’s Five Forces Analysis is based on the concept that the key objective for any organization should be to gain advantage over its competitors, it is not the industry that an organization is in that counts, but where it wants to compete in terms of the nature of the competition. This competition is provided by the nature of the rivalry between existing firms, the threat of potential entrants and substitutes and the bargaining power of both the suppliers and buyers (Lowson, 2002). The five-forces model is extremely helpful in systematically diagnosing the principal competitive pressures in a market and assessing how strong and important each one is. This straightforward approach is the most widely used technique of competition analysis.…

    • 2253 Words
    • 10 Pages
    Powerful Essays
  • Best Essays

    In order to make an assessment of the profit potential in any type of business organisation, Michael Porter’s Competitive Forces Model is one of the frequently adopted frameworks. This competitive forces model of Porter’s comprises of collective strength of five forces which differs from one business organisation to other (Porter, 1980). The five forces as illustrated by Porters can be mentioned as:…

    • 3201 Words
    • 13 Pages
    Best Essays
  • Satisfactory Essays

    COMM 391 BUSINESS ENVIRONMENT ANALYSIS AND REVENUE MODEL Introduction to Management Information Systems Winter 2013 – Term 2 Learning Objectives For discussion … 1. Describe Porter’s five forces model and…

    • 1654 Words
    • 7 Pages
    Satisfactory Essays
  • Good Essays

    Porter’s five forces of competition framework view the profitability of an industry as determined by five sources of competitive pressure. These five forces of competition include three sources of “horizontal” competition: competition from substitutes, competition from entrants, and competition from established rivals. Two sources of “vertical” competition are the power of suppliers and power of buyers.…

    • 942 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Hectogenius

    • 2972 Words
    • 12 Pages

    Information system/Information technology is a very important sector in modern day’s business world. Without Information system a company cannot compete with other companies and that’s exactly what this report is trying to prove. In this report you can find exclusive information about Jamuna group of industries (Pegasus leathers). With help of porter’s five forces analysis the report has indicated the power and weaknesses of Jamuna group. The values chain analysis showed which sector they should improve on at the moment with a recommendation of which ISP they should use now. This report tells Jamuna group of industries what they should do in the future to gain competitive advantage.…

    • 2972 Words
    • 12 Pages
    Powerful Essays
  • Powerful Essays

    Mag-Lite, Made in America

    • 6529 Words
    • 27 Pages

    Every successful enterprise had to start somewhere. Some encountered more humble at the beginning, some less. Some had the advantage of large capital investments, some started with a couple of bucks. Some had a professional office or laboratory to their disposal and some launched a big entrepreneurial idea from the back of the garage.…

    • 6529 Words
    • 27 Pages
    Powerful Essays