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Pestel and Porter Five Force Analysis of Container Line Shipping Industry in India

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Pestel and Porter Five Force Analysis of Container Line Shipping Industry in India
Analysis of “Shipping Industry” in India
Business Group: Container Line

Compiled by:
Ashok Lalwani

Introduction:

There are many factors which directly or indirectly affect the present day businesses like government policies, regulations, laws, human rights, competition, technology, international organisations, world trade bodies, child labour, minimum wage, pollution, accidents, risks, violence, security, labour, supplies etc. Therefore it becomes important for every business to determine these various factors and plan their strategies accordingly to survive against all such odds. But practically it is virtually impossible to consider all such individual factors and therefore specific models exists like PESTEL and Porter five forces which are applied available to determine the external and internal environments factors affecting the shipping industry in India, the same are applied here. Overall shipping industry in India is very large in size and volume, therefore “Container Line” business group has been taken for discussion under this study. Container line business involves hiring, transportation, repairs and movement of containers by exporters, trader or agents for transportation of goods to any foreign destination against agreed freight rates. The reason for choosing this industry as part of study is due to enormous support being given by government of India to promote foreign trade for the economic development, as well as my personal experience of 5 years in shipping industry under AP Moller Maersk Group gave me thrust to explore more about this industry.

* First we will analyse the overall industry using PESTEL analysis which refers to factors like Political, Economic, Social, Technological, Environmental and Legal factors than;

* We will analyse the companies working under this industry using Porter’s Five Forces model which are threat of new entrant, threat of substitution, power of buyers, power of sellers and competitive rivalry.


References: Census of India 2001, Statistics, http://www.censusindia.gov.in (Accessed 14.05.2010) Ministry of Shipping, Government of India, http://shipping.nic.in (Accessed 14.05.2010) Regional Seas, United Nations Environment Programme, http://www.unep.org/regionalseas (Accessed 14.05.2010) Marine Environment, http://www.imo.org/ (Accessed 14.05.2010) National Portal of India, http://india.gov.in (Accessed 14.05.2010 & 15.05.2010) Wikipedia, http://en.wikipedia.org (Accessed from 14.05.2010 – 18.05.2010) Custom House Agents, Chennai Customs, Government of India, http://www.chennaicustoms.gov.in/html/cha.html (Accessed 14.05.2010) Infrastructure, Government of India, http://infrastructure.gov.in/port.htm (Accessed 14.05.2010) Information on Indian Infrastructure and Core Sectors, India core, http://www.indiacore.com/ports.html (Accessed 15.05.2010) Indian Ports Association, http://ipa.nic.in/ (Accessed 15.05.2010) Special Economic Zones in India, Government of India, http://sezindia.nic.in (Accessed 15.05.2010) Marine Engines and Systems, MAN Diesel, http://www.mandieselturbo.com/0000721/Products/Marine-Engines-and-Systems.html (Accessed 14.05.2010 - 15.05.2010) CLT propeller Design, SISTEMAR, http://www.sistemar.com/CLTpropellers/desing.html (Accessed 14.05.2010 - 15.05.2010) Directorate General of Shipping, http://www.dgshipping.com (Accessed 14.05.2010 & 15.05.2010) Legislative Department, India Code, http://indiacode.nic.in/ (Accessed 15.05.2010) Statistics, Country Profile, World Trade Organisation, http://stat.wto.org (Accessed 15.05.2010) Income Tax Department, Government of India, http://www.incometaxindia.gov.in (Accessed 15.05.2010) Ministry of Finance, Government of India, http://finmin.nic.in (Accessed 14.05.2010 & 15.05.2010) INTTRA, Shipping Industry E-Commerce Platform, http://www.inttra.com/home/home.aspx (Accessed 16.05.2010) Maersk Line, http://www.maerskline.com (Accessed 14.05.2010 – 18.05.2010) Maersk Global Corporate Site, http://www.maersk.com (Accessed 14.05.2010 – 18.05.2010) Mediterranean Shipping Company (I) Pvt Ltd, http://www.mscindia.com (Accessed 16.05.2010 – 18.05.2010) APL Limited, http://www.apl.com/ (Accessed 16.05.2010 – 18.05.2010) Kandla Port Trust, http://kandlaport.gov.in/ (Accessed 15.05.2010 – 17.05.2010) I-maritime Consultancy Pvt Ltd, http://www.imaritime.com (Accessed 16.05.2010 – 18.05.2010) Mantrana Maritime Advisory, http://www.mantrana.in (Accessed 17.05.2010) Indian Custom EDI System, http://ices.nic.in/Ices/home.aspx (Accessed 16.05.2010) Reserve Bank of India, http://www.rbi.org.in (Accessed 16.05.2010) Porter Five Forces, Strategy, Quick MBA, http://www.quickmba.com/strategy/porter.shtml (Accessed 16.05.2010) The Face of New India, A compilation of socio-cultural trends 2009, www.insightinstore.com (Accessed 15.05.2010) Beyond Porter; A Critique of the Critique of Porter, Dagmar Recklies, http://www.themanager.org/Strategy/BeyondPorter.htm (Accessed 18.05.2010)
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