Preview

Porter's Five Forces Analysis On The Two Wheeler Company Wants To Enter India

Powerful Essays
Open Document
Open Document
1169 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Porter's Five Forces Analysis On The Two Wheeler Company Wants To Enter India
Answer 2.
An Australian SME 2 wheeler company wants to enter India. I have been appointed as a consultant and will be conducting a Five forces analysis on the 2 wheeler segment in India & recommend whether they should enter or not. Thus, firstly to understand the two-wheeler industry, then the Porter’s 5 forces analysis.

Below figure is of the 5 forces analysis:

INTRODUCTION TO TWO-WHEELER INDUSTRY :
Automobile industry is one of the largest industries in global market. Two-wheeler segment is one of the most important components of the automobile sector. India is the second largest two-wheeler market in the world. Currently, in India there are 7 scooters manufacturers, …show more content…
Competitive pressures from supplier – seller relations : Bargaining power
5. Competitive pressures from seller – buyer relations : Bargaining power

Rivalry : The key players in two-wheeler industries are Hero Honda motor Ltd.(HHML), Bajaj Auto Ltd. And TVS motor co. ltd. The Indian Auto Policy 2002 gives added advantage to two-wheeler manufacturers to enter even other countries outside India. Since big manufacturer plant with high technology and good R&D team needed many of them do not enter in two-wheeler industries. Only the companies which are in automobile line will expand their product line like Mahindra.
Among the direct and obvious forces in the industry, existing competitors must first deal with one another. When organizations compete for the same customers and try to win market share at the others’ expense, all must react to and anticipate their competi¬tors’ …show more content…
Because now a days there is a lot of segment in buses in urban areas and the private companies also influenced very much, buses are available from normal buses to high-tech ac buses which is threat to two-wheeler industry. Since only two people can travel in a bike most of them use auto when they go out with their families and if they are affordable to buy a care will use car instead of auto. Since bus service has increased when compared to five years back people who are aged above 45 years uses buses because of their health condition. These are the substitute product available to
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Best Essays

    Porter's 5 Forces and the Us Auto Industry
    • 3346 Words
    • 14 Pages

    Porter's 5 Forces and the Us Auto Industry

    This report focuses on the identification, analysis, and application of Porter’s Forces to the United States automobile industry. The report focuses on the application of Porter’s Five Forces to the industry as a whole, and is broken down into the individual applications of each force. Sources used in the production of this report are drawn from many disciplines and range from encyclopedia-based data, government reports, widely published periodicals, to industry opinions. The goal of the report is to give the reader a clear concise understanding of the US auto industry and a general picture of how Porter’s Five Forces are a relevant comparison tool for each aspect of the industry.…

    • 3346 Words
    • 14 Pages
    Best Essays
    Read More
  • Satisfactory Essays

    Tata NANO Case Study
    • 761 Words
    • 3 Pages

    Tata NANO Case Study

    A subdivision of the market can separate the car segment into passenger and commercial segments. It is the passenger segment on which Tata can capitalize. Many motorbike travelers can and do carry a passenger on the back of their bike. Like it is said in the case, if Tata can convert some of these two-wheeled riders by providing more comfort and safety for the price, Tata can capture a decent amount of the passenger car segment.…

    • 761 Words
    • 3 Pages
    Satisfactory Essays
    Read More
  • Powerful Essays

    International Application with Porter’s Five Forces Model
    • 1459 Words
    • 6 Pages

    International Application with Porter’s Five Forces Model

    Porter’s Five Forces Model is a unique way in which industry leaders can gauge both internal and external factors that may directly impact their business by allowing them to recognize forces that can be used to influence competition between firms. Porter’s Model provides insight into several reasons why variances exist in the market and items such “risk-adjusted rates of return” are not constant as would be expected from the model of pure competition. (Porter, 2010) Specifically, Porter’s model displays how rivalry along with four other specific forces direct impact business competition and operations. (Porter, 2010) This is important because rivalry amongst firms in an industry is the driving force that affects factors such as the rates in which a firm might charge for their product, as well as the percentage of market share in the industry. Rivalry can be utilized in a way that can drive competition as well as a technique in which existing firms can protect their current operations by placing “barriers to entry” as a way to inhibit new entrants. (Porter, 2010)…

    • 1459 Words
    • 6 Pages
    Powerful Essays
    Read More
  • Good Essays

    Case 11 Mabindra Mabindra B

    • 10331 Words
    • 41 Pages

    Case 11 Mabindra Mabindra B

    which manufactures and markets utility vehicles and light commercial vehicles, was the fourth-largest automaker in India as…

    • 10331 Words
    • 41 Pages
    Good Essays
    Read More
  • Powerful Essays

    Price Wars: the Cost of a Competitive Behaviour
    • 2013 Words
    • 9 Pages

    Price Wars: the Cost of a Competitive Behaviour

    Putsis, W.P. and Dhar, R. (1998). "The many faces of competition." Marketing Letters, 9, 269–284.…

    • 2013 Words
    • 9 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Analysis of Macro-Strategy Dynamics: Automotive Industry
    • 3029 Words
    • 13 Pages

    Analysis of Macro-Strategy Dynamics: Automotive Industry

    Automobile industry of India can be broadly classified under passenger vehicles, commercial vehicles, three wheelers and two wheelers, with two wheelers having a maximum market share of more than 75%. Automobile companies of India, Korea, Europe and Japan have a significant hold on the Indian market share. Tata Motors produces maximum numbers of mid and large size commercial vehicles, holding more that 60% of the market share.…

    • 3029 Words
    • 13 Pages
    Powerful Essays
    Read More
  • Good Essays

    Classic 500 Case Study
    • 6716 Words
    • 27 Pages

    Classic 500 Case Study

    The car part is one of the greatest businesses on the planet. Being a noteworthy income and occupation producing area it drives the economies of a portion of the superpowers of the world. In India the vehicles business has developed rapidly since the coming of the liberalization period the car business and particularly the bike portion has developed quickly.…

    • 6716 Words
    • 27 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    BUSINESS COMPETITION
    • 272 Words
    • 1 Page

    BUSINESS COMPETITION

    Competition unconsciously urges every producer to continuously upgrade their standards while securing the worth of every penny. This also enables industries to ride on the rapid change of globalization and cater to the ever changing wants and needs of every consumer. Competition creates rivalry among competing sellers or producers that constitutes the traditional view of business competition. These are the direct competitors within the industry that offers the same product or services. These are the business organization trying to beat each other. And adjoining the competition is threats. Consumers have no ending satisfaction when it comes to market, due to much appearance of substitutes products. Business competes because they don’t want others to surpass them. Every business wants to aim on top providing the good and right timing and continuous improvement affiliates thereof the good performance of the organization. However, organizations have to be keenly observant on their competitors and mostly to their customers so they may initiate the right process or strategy that is needed. Also, one thing that organizations do compete about is the customers. Organization and competitors are trying to attract customers. Because customers are the market of organization, in other thoughts, it’s like customers is the king and organizations and competitors are the ambitious species that trying to attract or win the heart of the king just to be on top and be powerful among all.…

    • 272 Words
    • 1 Page
    Satisfactory Essays
    Read More
  • Good Essays

    Five Forces Analysis for Case Study
    • 1021 Words
    • 5 Pages

    Five Forces Analysis for Case Study

    In order to investigate POH power in the current market, Porters Five Forces tool can help analyzing business situation. It can help to understand company’s position in the market, to exploit firm’s competitive strength, find weaknesses and treats in order to analyze and minimize them. This analysis can give the big planning tool for the future moves into other market, or avoid mistakes running the business. As company has already expanded that much as it plans to supply more expensive goods to the same customers, the analysis of competitors and company’s situation can help POH to move to the markets in other countries.…

    • 1021 Words
    • 5 Pages
    Good Essays
    Read More
  • Powerful Essays

    Porter's Five Forces Model
    • 2274 Words
    • 10 Pages

    Porter's Five Forces Model

    Porter five forces model is basically a framework for industry analysis. It helps in business strategy development. It was presented by Micheal Porter. According to this framework, there are 5 forces that determine the competitiveness of a market and its attractiveness and profitability. These forces are threat of substitute products, bargaining power of buyers, bargaining power of sellers, threat of new entrants, competitive rivalry within an industry.…

    • 2274 Words
    • 10 Pages
    Powerful Essays
    Read More
  • Better Essays

    Consumar Behaviour in Small Car Market
    • 953 Words
    • 4 Pages

    Consumar Behaviour in Small Car Market

    The Indian passenger car industry had a sheltered existence till the early 80’s. Until 1981, there were two dominant players in the Indian scene – Hindustan Motors and Premier Automobiles. In 1982, Maruti Udyog, a 50:50 joint venture between Suzuki Motors and the Indian Government introduced a hatch back car at an affordable price. Gradually, Maruti introduced different new models creating different segments and overtook HM and PAL with attractive prices and fresh designs. Within a short span of time, MUL occupied number one position in the car market. In the mean time, the opening up of the economy in 1991 attracted several multi-national companies. Besides this, some domestic majors also entered into the passenger car market. As a result, India has become one of the fastest growing car markets in the world. In fact, it holds a promising ninth position in the entire world and growing with a cumulative annual growth rate (CAGR) of about 14 percent, ready to surpass many developed markets. Today, almost every major car maker of the world is present in India where Maruti Suzuki is the market leader with over 50 percent market share. It is to be noted that in the car market, there are three major segments, out of which small car segment constitutes almost 81 percent of the Indian passenger car industry. It shows that there is immense growth potential to small cars and the future growth looks very promising due to various factors and forces. Some of them are low penetration, good economic growth, buoyant rural markets, growing middle class, poor public transport system and fuel efficiency of small cars.…

    • 953 Words
    • 4 Pages
    Better Essays
    Read More
  • Satisfactory Essays

    bazaz allianz
    • 857 Words
    • 4 Pages

    bazaz allianz

    Bajaj Auto Ltd, the flagship company of the Rs. 8000 crore Bajaj group is the largest manufacturer of two-wheelers and three-wheelers in India and one of the largest in the world.…

    • 857 Words
    • 4 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Operational Strategy of Bal and Hmc
    • 5171 Words
    • 21 Pages

    Operational Strategy of Bal and Hmc

    India is the second largest two wheeler market in the world, next only to China. The two wheeler industry segment largely comprises motor cycles, mopeds, and automatic scooters. The yearly sales are pegged at around 13.5 million units.…

    • 5171 Words
    • 21 Pages
    Good Essays
    Read More
  • Powerful Essays

    Two Wheeler Industry - Growth Indicators
    • 11726 Words
    • 47 Pages

    Two Wheeler Industry - Growth Indicators

     The Indian two-wheeler (2W) industry has shown a strong volume growth over the last two-years, having grown by 25% in 2009-10 and 27% in 2010-111 to reach 13.3 million units. This strong double-digit growth has been driven by multiple factors. One reason, of course, is statistical as this period of high double-digit growth has showed up after a rather sedate previous two years, when the 2W industry volumes had shrunk by 5% in 2007-08 and had grown by a mere 5% in 2008-09. In addition to the contribution of pent-up demand, the 2W industry growth over the last two years has been supported strongly by various underlying factors including India’s rising per capita GDP, increasing rural demand, growing urbanization, swelling replacement demand, increasing proportion of cash sales and the less measurable metric of improved consumer sentiment. Going forward, ICRA expects the 2W industry to report a volume CAGR of 10-12% over the next five years to reach a size of ~21-23 million units by 2015-16 as it views the fundamental growth drivers comprising of expected steady GDP growth, moderate 2W penetration levels, favourable demographic profile, under developed public transport system and utility quotient of a 2W - to be intact. Additionally, the entry of new players in the industry, multitude of new model/ variant launches, growing distribution reach, cheaper ownership costs on a relative basis are expected to be some of the other prime movers for industry growth over the medium term. In ICRA’s view, while the trend in rising commodity prices, hardening interest rates and increasing fuel costs may lead to some moderation in industry growth over the short term, the growth over the medium to long term is expected to remain in double…

    • 11726 Words
    • 47 Pages
    Powerful Essays
    Read More
  • Best Essays

    e bike
    • 2831 Words
    • 12 Pages

    e bike

    The face of automobile industry that was redefined with the invention of fuel-efficient four-stroke engine technology is all set to see dawn of a new era in two-wheeler industry. It's not petrol or diesel or any other fuel, but its electricity that have initiated a revolution in two-wheeler industry in India.…

    • 2831 Words
    • 12 Pages
    Best Essays
    Read More

Related Topics