Usha Martin has complete control of the power of suppliers since they are the owners of a manufacturing facility. Usha Martin bargaining power of buyers are low since customers are large and buy in volume, the products being purchased are standard or undifferentiated making it easy to switch to other suppliers, and customer’s purchases represent a major part of the company’s total revenue. Substitute products for Usha Martin is relatively low since substitute products prices are higher, causing switching costs to be high and competitors does not have the potential to increase market penetration or production capacity like Usha Martin. The rivalry among its competitors is not as intense as the number of competitors are not equal in size and demand for the company products continue to increase and fixed costs in the industry is low compare to other competitors. As rivalry among various companies continues it might intensify, industry profits might decline, in most cases to the point where the industry might become inherently unattractive. Nevertheless, Usha Martin has faced challenging situations in the past and still manages to implement effective strategies that helped benefit the organisation …show more content…
Consumers tend to favour businesses who take a responsible proactive approach. In other words, a competitive sustainable strategy would not only help the company acquire new customers it can keep existing ones. Nevertheless, Usha Martin strategist was aware of this issue and create means and ways using the strategy established to remain sustainable. One way the company strategy implemented was its corporate responsibility when the company chose to partner with a community in developmental activities which would be accessible and