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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