HIGH PRIORITY MARKET- AUTOMOBILE
PORTERS FIVE FORCES ANALYSIS
Competitive Rivalry
Ÿ Competitive rivalry has increased post liberalisation to a great extent. Ÿ
The competition has turned more intense after the entry of foreign players like Volkswagen and Ford in low- priced hatchback segment.
Ÿ Foreign firms have aggravated the competition by changing their traditional designs and substituting it to cater Indian needs.
Threat of New Entrants
Ÿ The threat of new entrants is generally medium because of the brand equity and capital intensive nature of the business.
Ÿ But, considering India, foreign firms( with capital) have done pretty well.
Substitute Products
Ÿ The threat from substitute products continues to be low, with public transportation being under developed even in cities.
Ÿ Changing travel patterns and the convenience give it an edge.
Bargaining Power of Suppliers
Ÿ Bargaining power of suppliers is low as most of the auto component manufacturers are specialised in some segments related to only one client.
Ÿ Suppliers, in turn depend on them.
Bargaining Power of Customers
Ÿ In a market, like India there is lot of bargaining power available to the customers as there are variety of products available in the same range, by different manufacturers.
Ÿ It still depends on the markets.
Threat of New Entrants( Low)
Bargaining Power of Customers
( High)
Competitive Rivalry
( High)
Substitute Products( Low)
Bargaining Power of Suppliers( Low)
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