Summary Of Porter's Five Forces In The Automobile Industry
1. Threat of Entry:-
New entrants can always come up in the automobile industry but it is a very low threat. It is a big market but the capital which is required for a company to invest to get into this industry is a very large amount of money. The emerging companies may not have that kind of funds when they start off so it is tough to compete with the established major players like TATA, Mahindra, and Ashok Leyland in the market.
2. Bargaining power of buyers:-
In the commercial vehicle segment a customer purchases one vehicle for his/her industry but the price is such that a customer does a lot of product research before going for a particular vehicle. So, ultimately the customer has the bargaining power because he has the choice for going …show more content…
If there is one major player then all the companies have to abide by its pricing as they are lack of options or alternates. If there is more than one supplier in the market then it becomes easy for the buyers and the bargaining power of suppliers reduces accordingly. We can say that the number of suppliers is inversely proportional to the bargaining power. There is a major concern in switching suppliers which is the product must be differentiated in the same way as it used to before otherwise it will defeat the purpose of the company. There more than pricing focus should be on the quality of goods that go into making of the product. The presence of same quality suppliers will help in switching after the price is taken into …show more content…
Different marketing activities are involved in positioning our product Bokaro such as:-
• Responsive Marketing:-
Responsive marketing is all about how the product can respond to each and every demand and need of the customer. Customer needs and demands change with the passage of time so the marketing needs to evolve along with it. For some people fuel cost is more important that is nothing but mileage and to cater to that need dual fuel operations of Bokaro helps. It is in the medium price segment so customers who are worried about high price can acquire it easily. Customers are also concerned about after sales service and our company is ready to provide service efficiently with our wide service centres network.
• Anticipative Marketing:-
Anticipative marketing activity is that in which future market opportunities are anticipated and accordingly the product is positioned in the market. Road transport is emerging as the primary mode of transport. 60% of goods are transported by roads. Safe transport of goods is very necessary and for that the cargo belts of Bokaro would help in the safe and secure transit of goods. Its wider wheel base improves ground clearance which causes better road grip which that helps in smooth running of the vehicle with
New entrants can always come up in the automobile industry but it is a very low threat. It is a big market but the capital which is required for a company to invest to get into this industry is a very large amount of money. The emerging companies may not have that kind of funds when they start off so it is tough to compete with the established major players like TATA, Mahindra, and Ashok Leyland in the market.
2. Bargaining power of buyers:-
In the commercial vehicle segment a customer purchases one vehicle for his/her industry but the price is such that a customer does a lot of product research before going for a particular vehicle. So, ultimately the customer has the bargaining power because he has the choice for going …show more content…
If there is one major player then all the companies have to abide by its pricing as they are lack of options or alternates. If there is more than one supplier in the market then it becomes easy for the buyers and the bargaining power of suppliers reduces accordingly. We can say that the number of suppliers is inversely proportional to the bargaining power. There is a major concern in switching suppliers which is the product must be differentiated in the same way as it used to before otherwise it will defeat the purpose of the company. There more than pricing focus should be on the quality of goods that go into making of the product. The presence of same quality suppliers will help in switching after the price is taken into …show more content…
Different marketing activities are involved in positioning our product Bokaro such as:-
• Responsive Marketing:-
Responsive marketing is all about how the product can respond to each and every demand and need of the customer. Customer needs and demands change with the passage of time so the marketing needs to evolve along with it. For some people fuel cost is more important that is nothing but mileage and to cater to that need dual fuel operations of Bokaro helps. It is in the medium price segment so customers who are worried about high price can acquire it easily. Customers are also concerned about after sales service and our company is ready to provide service efficiently with our wide service centres network.
• Anticipative Marketing:-
Anticipative marketing activity is that in which future market opportunities are anticipated and accordingly the product is positioned in the market. Road transport is emerging as the primary mode of transport. 60% of goods are transported by roads. Safe transport of goods is very necessary and for that the cargo belts of Bokaro would help in the safe and secure transit of goods. Its wider wheel base improves ground clearance which causes better road grip which that helps in smooth running of the vehicle with