3 wheeler industry Porters Five Force analysis

3 Wheeler Industryin India

Presented by:-

Jeffin Joy

1st sem. MBA

Automobile Sector

2 types:-

Passenger Vehicle

Goods Vehicle

(source:- Autobei Consulting Group)

54%

23%

10%7%

4%2%

0%

10%

20%

30%

40%

50%

60%

Bajaj Auto Piaggio TVS Mahindra Atul Auto Others

Market Share

(Source:- www.currentweek.com)

PORTER’S FIVE FORCES MODEL

The threat of entry:

• Possibilities of new entries to the industry is LOW.

• Strong Customer Loyalty to the existing brands.

• Higher Capital investment, High stock and bigger warehouse facility and maintenance.

• Owning a wide distribution network is important and is very costly.

Bargaining power of buyers:

• Availability of existing substitute products.

• Low switching cost and switching is simple.

• Bargaining power: HIGH

Bargaining power of suppliers:

• Their ability to dictate supply, price, quality and the cost of switching to a new supplier.

• Strength of distribution channel.

• Bargaining power: HIGH

The threat of substitutes:

• Customers switch to alternatives depends upon whether the substitute provides a higher perceived benefit or value.

• Mini cars.

• 4 wheeler goods vehicles.

• Other public transportation vehicles.

• Threat of substitutes: HIGH

Competitive rivalry:

• Organizations with similar products aimed at the same customer group.

• The main competitors are very much balanced, with roughly in equal size.

• New technology.

• Competitive rivality: HIGH

PEST Analysis…

Political:-

Organizations are influenced by government policies.

Economic:-

Organizations have to operate in conditions of boom and bust.

Social:-

Organizations culture has a direct influence by culture of the society that operates. Lifestyle changes due to increase income have resulted in consumer needs.

Technology:-

The level and focus on technology affects the organization. Development of automated assembly line has increased productivity and efficiency.

Thank You…