Industry analysis 2 essay

Automobile industry essay in english

Economies of scale Economies of scale help producers to lower their cost by producing the next unit of output at lower costs. One is the market — based view of strategy with the target to eliminate weaknesses and the other one is the resource — based view of strategy with the target to enlarge fortes. Can you easily switch from one supplier to another one? Nature of Demand The nature of demand is highly cyclical in nature. Banks will have to serve the retail banking segment effectively in order to utilize the growth opportunity. The heavy motors including buses, trucks, auto rickshaws and multi-utility vehicles are manufactured by Tata-Telco, Eicher Motors, Bajaj, Mahindra and Mahindra, etc. Many of the ideas in this section have been taken from TV presenter and market practitioner, Jim Cramer It was established in as a small business that catered to the local population.

Introduction to the Life Insurance Industry in India 6 1. In fact, there are some legal requirements that should be met by the car manufacturers, including environmental regulations aimed at reduction CO2 emissions.

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Advanced technologies Advanced technologies make it difficult for new competitors to enter the market because they have to develop those technologies before effectively competing. Substitutes performance - The performance of the substitute sector will also play a important role in the success of the NANO car. But more important is, how macro-level factors impinge on the industry-environment. Having a car allows us the convenience that public transportation cannot. Considering all the factors, the competitive landscape within the industry is still not yet clearly defined. Along with other factors the Old Worlds industry rivalry is very high. The auto industry is considered to be an oligopoly A market condition in which sellers are so few that the actions of any one of them will materially affect price which helps to minimize the effects of price-based competition. At this level the price of the NANO car was one thing that is attracting customers.

Immediately following World War II, there were roughly nine buyers for every new car produced. How strong is the position of sellers? The auto industry is just a multiplier, a driver for employment, for investment, for technology.

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Besides that, Perodua has provided a conducive working environment and reward their staff by constantly reviewing their performance and upgrading the benefits of company. This will provide room for improved consumer feedback mechanism which will lead to improved product for consumers The projected sales of two wheelers in India in FY15 are 18MN.

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This market is relatively untouched by two wheeler marketers and hence this should be explored and custom made vehicles should be designed for people residing in these areas.

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Industry Analysis