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ANALYSIS OF OPERATING ENVIRONMENT AND COMPETITION
One of the most prolific and important improvements in our quality of life during the last century has been the development of air conditioning. This technology evolved over the twentieth century from the early applications in the textile and printing industries - applications that are still in use in some form today. As well as being the precursor to modern domestic thermal comfort systems, industrial and commercial air conditioning has continued to evolve in its own right.
Macro-Environment Analysis
Demographic Environment:
Growing population creates demand for more air conditioners, with declining air temperature and decreasing reliabilities on rain, demand for air conditioners is bound to go up. With industrialization at its peak and increasing urban population, a greater percentage of the population has now started opting for air conditioners.
Rural India, which accounts for nearly 70% of the total number of households, offers plenty of scope and opportunities. The urban consumer durable market for products including air conditioners is growing annually by 7 to 10 % whereas the rural market is zooming ahead at around 25 % annually.
Socio-cultural Environment:
This is perhaps the most difficult element of the macro-environment to evaluate, manifesting itself in changing tastes, purchasing behaviour and changing priorities. The type of goods and services demanded by consumers is a function of their social conditioning and their consequent attitudes and beliefs. Socio-cultural values usually take time to develop and therefore difficult to change. Shifting preferences from air coolers to air conditioners and people’s beliefs in its reliability and longevity makes it a best seller. Even though air conditioners are not considered a luxury commodity anymore, there are more advanced versions of air conditioners which may be purchased as a prestige product. For instance split air
One of the most prolific and important improvements in our quality of life during the last century has been the development of air conditioning. This technology evolved over the twentieth century from the early applications in the textile and printing industries - applications that are still in use in some form today. As well as being the precursor to modern domestic thermal comfort systems, industrial and commercial air conditioning has continued to evolve in its own right.
Macro-Environment Analysis
Demographic Environment:
Growing population creates demand for more air conditioners, with declining air temperature and decreasing reliabilities on rain, demand for air conditioners is bound to go up. With industrialization at its peak and increasing urban population, a greater percentage of the population has now started opting for air conditioners.
Rural India, which accounts for nearly 70% of the total number of households, offers plenty of scope and opportunities. The urban consumer durable market for products including air conditioners is growing annually by 7 to 10 % whereas the rural market is zooming ahead at around 25 % annually.
Socio-cultural Environment:
This is perhaps the most difficult element of the macro-environment to evaluate, manifesting itself in changing tastes, purchasing behaviour and changing priorities. The type of goods and services demanded by consumers is a function of their social conditioning and their consequent attitudes and beliefs. Socio-cultural values usually take time to develop and therefore difficult to change. Shifting preferences from air coolers to air conditioners and people’s beliefs in its reliability and longevity makes it a best seller. Even though air conditioners are not considered a luxury commodity anymore, there are more advanced versions of air conditioners which may be purchased as a prestige product. For instance split air