Preview

Pestel and Porter Five Force Analysis of Container Line Shipping Industry in India

Better Essays
Open Document
Open Document
7055 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Pestel and Porter Five Force Analysis of Container Line Shipping Industry in India
Analysis of “Shipping Industry” in India
Business Group: Container Line

Compiled by:
Ashok Lalwani

Introduction:

There are many factors which directly or indirectly affect the present day businesses like government policies, regulations, laws, human rights, competition, technology, international organisations, world trade bodies, child labour, minimum wage, pollution, accidents, risks, violence, security, labour, supplies etc. Therefore it becomes important for every business to determine these various factors and plan their strategies accordingly to survive against all such odds. But practically it is virtually impossible to consider all such individual factors and therefore specific models exists like PESTEL and Porter five forces which are applied available to determine the external and internal environments factors affecting the shipping industry in India, the same are applied here. Overall shipping industry in India is very large in size and volume, therefore “Container Line” business group has been taken for discussion under this study. Container line business involves hiring, transportation, repairs and movement of containers by exporters, trader or agents for transportation of goods to any foreign destination against agreed freight rates. The reason for choosing this industry as part of study is due to enormous support being given by government of India to promote foreign trade for the economic development, as well as my personal experience of 5 years in shipping industry under AP Moller Maersk Group gave me thrust to explore more about this industry.

* First we will analyse the overall industry using PESTEL analysis which refers to factors like Political, Economic, Social, Technological, Environmental and Legal factors than;

* We will analyse the companies working under this industry using Porter’s Five Forces model which are threat of new entrant, threat of substitution, power of buyers, power of sellers and competitive rivalry.


References: Census of India 2001, Statistics, http://www.censusindia.gov.in (Accessed 14.05.2010) Ministry of Shipping, Government of India, http://shipping.nic.in (Accessed 14.05.2010) Regional Seas, United Nations Environment Programme, http://www.unep.org/regionalseas (Accessed 14.05.2010) Marine Environment, http://www.imo.org/ (Accessed 14.05.2010) National Portal of India, http://india.gov.in (Accessed 14.05.2010 & 15.05.2010) Wikipedia, http://en.wikipedia.org (Accessed from 14.05.2010 – 18.05.2010) Custom House Agents, Chennai Customs, Government of India, http://www.chennaicustoms.gov.in/html/cha.html (Accessed 14.05.2010) Infrastructure, Government of India, http://infrastructure.gov.in/port.htm (Accessed 14.05.2010) Information on Indian Infrastructure and Core Sectors, India core, http://www.indiacore.com/ports.html (Accessed 15.05.2010) Indian Ports Association, http://ipa.nic.in/ (Accessed 15.05.2010) Special Economic Zones in India, Government of India, http://sezindia.nic.in (Accessed 15.05.2010) Marine Engines and Systems, MAN Diesel, http://www.mandieselturbo.com/0000721/Products/Marine-Engines-and-Systems.html (Accessed 14.05.2010 - 15.05.2010) CLT propeller Design, SISTEMAR, http://www.sistemar.com/CLTpropellers/desing.html (Accessed 14.05.2010 - 15.05.2010) Directorate General of Shipping, http://www.dgshipping.com (Accessed 14.05.2010 & 15.05.2010) Legislative Department, India Code, http://indiacode.nic.in/ (Accessed 15.05.2010) Statistics, Country Profile, World Trade Organisation, http://stat.wto.org (Accessed 15.05.2010) Income Tax Department, Government of India, http://www.incometaxindia.gov.in (Accessed 15.05.2010) Ministry of Finance, Government of India, http://finmin.nic.in (Accessed 14.05.2010 & 15.05.2010) INTTRA, Shipping Industry E-Commerce Platform, http://www.inttra.com/home/home.aspx (Accessed 16.05.2010) Maersk Line, http://www.maerskline.com (Accessed 14.05.2010 – 18.05.2010) Maersk Global Corporate Site, http://www.maersk.com (Accessed 14.05.2010 – 18.05.2010) Mediterranean Shipping Company (I) Pvt Ltd, http://www.mscindia.com (Accessed 16.05.2010 – 18.05.2010) APL Limited, http://www.apl.com/ (Accessed 16.05.2010 – 18.05.2010) Kandla Port Trust, http://kandlaport.gov.in/ (Accessed 15.05.2010 – 17.05.2010) I-maritime Consultancy Pvt Ltd, http://www.imaritime.com (Accessed 16.05.2010 – 18.05.2010) Mantrana Maritime Advisory, http://www.mantrana.in (Accessed 17.05.2010) Indian Custom EDI System, http://ices.nic.in/Ices/home.aspx (Accessed 16.05.2010) Reserve Bank of India, http://www.rbi.org.in (Accessed 16.05.2010) Porter Five Forces, Strategy, Quick MBA, http://www.quickmba.com/strategy/porter.shtml (Accessed 16.05.2010) The Face of New India, A compilation of socio-cultural trends 2009, www.insightinstore.com (Accessed 15.05.2010) Beyond Porter; A Critique of the Critique of Porter, Dagmar Recklies, http://www.themanager.org/Strategy/BeyondPorter.htm (Accessed 18.05.2010)
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Rize Documentary
    • 528 Words
    • 3 Pages

    Rize Documentary

    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
    Read More
  • Powerful Essays

    adms 4900
    • 2913 Words
    • 12 Pages

    adms 4900

    Porter’s Five Forces Model of Industry Competition: 1.Threat of new entrants: –Profits of established firms in the industry may be eroded by new competitors – High entry barriers lead to low threat of new entries –Economies of scale –Product differentiation –Capital requirements –Switching costs –Access to distribution channels –Cost disadvantages independent of scale. 2.The bargaining power of buyers: –Force down prices –Bargain for higher quality or more services–Play competitors against each other• A buyer group is powerful when –purchases…

    • 2913 Words
    • 12 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Mgt599 Module 2 Session Long Project
    • 1810 Words
    • 8 Pages

    Mgt599 Module 2 Session Long Project

    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
    Read More
  • Good Essays

    Porter 5 Forces Analysis of Computer Industry
    • 1033 Words
    • 5 Pages

    Porter 5 Forces Analysis of Computer Industry

    In his article “The five competitive forces that shape strategy“, Michael Porter (2008) updates and extends his “five forces” framework he first introduced in 1979 and which has influenced the academic and business research for decades. He reaffirms that “THREAT OF ENTRY”, “THE POWER OF SUPPLIERS”, “THE POWER OF BUYERS”, THE THREAT OF SUBSTITUTES”, and “RIVALRY AMONG EXISTING COMPETITORS” are the forces that shape every single industry, and a thorough understanding of such forces help analyze everything from the intensity of competition to the profitability and attractiveness of any industry. The framework has two dimensions; the vertical dimension that connects the raw material to consumers, and the horizontal dimension that reflects the way in which connection can be made. Both dimensions intersect in existing competitive rivalry.…

    • 1033 Words
    • 5 Pages
    Good Essays
    Read More
  • Powerful Essays

    Five Forces Model
    • 2253 Words
    • 10 Pages

    Five Forces Model

    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
    Read More
  • Powerful Essays

    Athletic Footwear Industry Analysis
    • 13415 Words
    • 54 Pages

    Athletic Footwear Industry Analysis

    Porter’s Five-Force Analysis provides insight into the attractiveness of a particular industry. One of the five forces is Barriers to Entry or the Threat of New Entrants. This force was rated as low because brand recognition and…

    • 13415 Words
    • 54 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Porter's Five Forces Article Review
    • 1264 Words
    • 6 Pages

    Porter's Five Forces Article Review

    Michael E. Porter’s article, “The Five Competitive Forces That Shape Strategy”, is an extension of his first work, “Porter’s Five Forces”. This article addresses forces beyond the existing competition and creates a framework that helps strategists understand industry structure and analysis. Industry structure is the basis for competition and profitability. The five forces that shape industry competition are the threat of new entrants, bargaining power of suppliers, bargaining power of buyers, substitute products, and finally rivalry among existing competitors. While there are many forces that many affect profitability in the short run, these five competitive forces drive industry profitability in the medium and long run.…

    • 1264 Words
    • 6 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Walmart Case Analysis
    • 2268 Words
    • 10 Pages

    Walmart Case Analysis

    A good source of the industry analysis is Porter 's Five Forces Model. It consists of threat of new entrants, bargaining power of buyers, bargaining power of suppliers, threat of substitute products & services, and intensity of rivalry among competitors in an industry. Let 's look at Porter 's five forces model;…

    • 2268 Words
    • 10 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Whole Foods
    • 1861 Words
    • 8 Pages

    Whole Foods

    The attractiveness of this industry and its potential for profit are functions of Michael Porter 's five competitive forces model: barriers to entry, bargaining power of both suppliers and buyers, the threat of substitute products, and the depth of competition among rival companies.…

    • 1861 Words
    • 8 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Competitive Strategy Of Netflix Inc.: Porter's Five Forces Model?
    • 2974 Words
    • 12 Pages

    Competitive Strategy Of Netflix Inc.: Porter's Five Forces Model?

    Sometimes the managers need to take other external factors into their consideration not only the intensity of rivalry between existing competitors, the threat of new entrants, the bargaining power of buyers, the bargaining power of suppliers, and the threat of substitutes. In order to make this Porter’s Five Forces Model complete or perfect, the managers should combine this model with other external models such as the PEST model, the Porter Diamond, competitive generic strategies, the industry life cycle and any other external factors models which will give the a very detailed overview the threats and opportunities of an…

    • 2974 Words
    • 12 Pages
    Powerful Essays
    Read More
  • Good Essays

    Porter’s Five Forces in Pepsi
    • 1790 Words
    • 8 Pages

    Porter’s Five Forces in Pepsi

    Porter has identified five competitive forces that shape every industry and every market. These forces determine the intensity of competition and hence the profitability and attractiveness of an industry. The objective of corporate strategy should be to modify these competitive forces in a way that improves the position of the organization. Porters model supports analysis of the driving forces in an industry. Based on the information derived from the Five Forces Analysis, management can decide how to influence or to exploit particular characteristics of their industry.…

    • 1790 Words
    • 8 Pages
    Good Essays
    Read More
  • Good Essays

    Porter’s Five Forces
    • 385 Words
    • 2 Pages

    Porter’s Five Forces

    We can say Porter’s Five Forces framework is a simple yet powerful framework that identifies the strength of each of five market levers on an industry. These forces determine the intensity of competition and hence the profitability and attractiveness of an industry. The objective of corporate strategy should be to modify these competitive forces in a way that improves the position of the organization. Porters model supports analysis of the driving forces in an industry. Based on the information derived from the Porters Five Forces Analysis, management can decide how to influence or to exploit particular characteristics of their industry.…

    • 385 Words
    • 2 Pages
    Good Essays
    Read More
  • Good Essays

    Attractive Industries
    • 1291 Words
    • 6 Pages

    Attractive Industries

    The Five Forces are composed of: Risk of Entry by Potential Competitors, The Bargaining Power of Buyers, The Bargaining Power of Suppliers, The Threat of Substitute products, and Rivalry Among Established Companies (Hill & Jones, 2008). Each of these forces in some shape or form has a unique impact within the market segment being analyzed. Porter once said, “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 (Porter, harvardbusinessonline.hbsp.harvard.edu, 2008).…

    • 1291 Words
    • 6 Pages
    Good Essays
    Read More
  • Powerful Essays

    Luggage Industry Analysis
    • 2824 Words
    • 16 Pages

    Luggage Industry Analysis

    SECTORAL ANALYSIS: LUGGAGE INDUSTRY IN INDIA Contents Luggage Market – Overview ......................................................................................................................... 3 Drivers:…

    • 2824 Words
    • 16 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Safta and India Report
    • 22438 Words
    • 90 Pages

    Safta and India Report

    Director (Regional and Multilateral Trade Relations), Department of Commerce, Government of India; Email: rsratna@nic.in # Deputy Adviser, Planning Commission, Government of India; Email: gsidhu@nic.in…

    • 22438 Words
    • 90 Pages
    Powerful Essays
    Read More

Related Topics