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Mktg Strats   Tyre Industry
 

Mktg Strats Tyre Industry

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    Mktg Strats   Tyre Industry Mktg Strats Tyre Industry Presentation Transcript

    • THE TYRE MANUFACTURING INDUSTRY
    • PRESENTED BY:
      • NAME ROLL NO.
      • Dattu Ade 1
      • Reena Alva 4
      • Vicky Barot 6
      • Abhijit Bhongle 8
      • Bhushan Bhoye 9
    • INTRODUCTION
      • Faces huge competition, cost and price pressure.
      • The zooming auto industry has driven the growth.
      • The number of vehicles is swelling.
      • The truck and bus market is the largest segment in terms of value.
      • Economic expansion and road development has made a contribution.
      • eg. The golden quadrilateral and the NSEW Corridor project.
      • Though the volumes have increased the profitability has gone down due to the increase in raw material cost.
    • Five forces model
    • A 2 tier Industry
      • Tier 1 players
      • Present in all three segment -
      • 1)Replacement market
      • 2)Original equipment manufacture(OEMs)
      • 3)Export
      • Tier 2 player
    • Key Players
    • Major Sales Segment
    • Intensity of Rivalry : High
      • The tyre industry in India is fairly concentrated, with the top 5 companies accounting for more than 80% of the total production of tyres.
    • BARGAINING POWER OF SUPPLIERS - High
    •  
      • Number of Suppliers – Low
      • Availability/ acceptability of raw material substitutes – Low
      • Switching costs – High
      • Threat of forward integration – High
      • Tyre industry not the key customer
    • Demand for Tyres
    • Bargaining Power of Buyers
      • OEM’s High
      • In Replacement Market Moderate
      • Switching Cost Low
      • Threats of Backward Integration Low
    • THREAT OF POTENTIAL ENTRANTS
      • LOW, due to HIGH ENTRY BARRIERS
    • ENTRY BARRIERS
      • Highly capital intensive industry
      • Rs4bn for radial tyre plant with a capacity of 1.5mn tyres
      • Rs1.5-2bn for a crossply tyre plant of a capacity to manufacture 1.5mn tyres
      • High raw material costs
      • Shortage of raw material
      • Force of rivalry
      • High risk
    • THREAT OF SUBSTITUTES
      • Low, but increasing
      • Import of tyres
      • ISI mark made compulsory
    • Porter’s Model
      • Entry High returns
      • Barrier High risks
      • High
      • Low
      • High Low Exit Barrier