Project Report on Industry Analysis
Project Report
On Industry analysis Of
INDIAN AUTOMOBILE INDUSTRY
CHAUDHARI CHIRAG [4]
CHAUDHARI RAVI [7]
MULTANI AKIL [30]
SHEIKH SHOEB [48]
VACHHANI MIRAJ [57]
INTRODUCTION OF PORTERS FIVE FORCES MODEL AND SWOT ANALYSIS:
PORTERS FIVE FORCES ANALYSIS According to Michael Porter’s well known model of structural analysis of industries, the state of competition in an industry depends on five basic competitive forces. * Rivalry among exiting firm * Threat of new entrants * Threat of substitutes * Bargaining power of suppliers * Bargaining power of buyers. * The five forces competition structure of industry. The diagram is a slightly modified presentation of the one provided by Porter. The arrow in the diverse direction indicates opposing forces. For example, just as the buyers and suppliers may also have bargaining power over the firm may also some bargaining power over the buyer and suppliers.
Threat of Entry: A growing industry often threat of new entrants that can alter the competitive to be high if industry is profitable or critical, entry varies are low and expected retaliation from the existing firm is not serious.
The following are some of the important entry barriers * Government Policy: In many cases government policy and regulation are important entry barriers. For example, prior to the economic liberalization in India, government-dictated entry barriers were rampant, like reservation of industries / products for public sector and small scale sector. Industrial licensing, regulations under MRTP Act, import restrictions, restrictions on foreign capital and technology etc. * Economies of Scale: economies of scale can deter entry in two ways: it keeps out small players and discourages even potentially large because of the risk of large stakes. * Cost Disadvantages Independent of Scale: Entry barrier may also arise from the cost advantages, besides that of economies of
On Industry analysis Of
INDIAN AUTOMOBILE INDUSTRY
CHAUDHARI CHIRAG [4]
CHAUDHARI RAVI [7]
MULTANI AKIL [30]
SHEIKH SHOEB [48]
VACHHANI MIRAJ [57]
INTRODUCTION OF PORTERS FIVE FORCES MODEL AND SWOT ANALYSIS:
PORTERS FIVE FORCES ANALYSIS According to Michael Porter’s well known model of structural analysis of industries, the state of competition in an industry depends on five basic competitive forces. * Rivalry among exiting firm * Threat of new entrants * Threat of substitutes * Bargaining power of suppliers * Bargaining power of buyers. * The five forces competition structure of industry. The diagram is a slightly modified presentation of the one provided by Porter. The arrow in the diverse direction indicates opposing forces. For example, just as the buyers and suppliers may also have bargaining power over the firm may also some bargaining power over the buyer and suppliers.
Threat of Entry: A growing industry often threat of new entrants that can alter the competitive to be high if industry is profitable or critical, entry varies are low and expected retaliation from the existing firm is not serious.
The following are some of the important entry barriers * Government Policy: In many cases government policy and regulation are important entry barriers. For example, prior to the economic liberalization in India, government-dictated entry barriers were rampant, like reservation of industries / products for public sector and small scale sector. Industrial licensing, regulations under MRTP Act, import restrictions, restrictions on foreign capital and technology etc. * Economies of Scale: economies of scale can deter entry in two ways: it keeps out small players and discourages even potentially large because of the risk of large stakes. * Cost Disadvantages Independent of Scale: Entry barrier may also arise from the cost advantages, besides that of economies of
References: www.wikipedia.com 1. Book-“Business Environment” by Francis cherunilam 2. Book-“Business Environment’’ by Justine paul