Kotlin Multiplatform & Compose Multiplatform - Starter kit for pragmatics
Rubber Industry Analysis: PESTLE, 5 Forces, SWOT & Opportunities
1. FLOW OF PRESENTATION
About rubber
Types of rubber
Research methodology
Usage of rubber
PEST Analysis
Porter’s Five Force Model
OT analysis
2. WHAT IS RUBBER?
"Rubber" they don't usually specify what kind. There are many different kinds of rubber, but they all
fall into two broad types: natural rubber (latex—grown from plants) and synthetic rubber (made
artificially in a chemical plant or laboratory).
3. TYPES OF RUBBER?
1, Natural Gum Rubber - Superior resilience, tensile strength, elasticity, and abrasion resistance.
2, Natural Latex Rubber - Ultra-elastic has excellent strength and stretch ability. Has exceptional tear
resistance.
4. RESEARCH METHODOLOGY
Research Objective
To Analyze current scenario of Rubber industry in India.
To Interpret role of Rubber sector in economic growth.
To find out the challenges ahead of the rubber sector.
To study Industry’s Driving force.
To find out opportunity and threats in Indian Rubber Industry.
Research Design
Exploratory Research Design
Data Sources
• Catalogues
• Websites
• Magazines
• Books
• Newspapers
• Article
• Government institutions
5. CONT…
Data Analysis
PESTEL analysis
SWOT analysis
GE Nine Matrix
BCG Matrix
Port’s five force model analysis
Strategic group mapping model
Key success factor
Limitation of Study
The first limitation of our project is the project is the time constraint, as we have to complete
this project in limited time period.
The project is wholly based the secondary data, which is less reliable than primary data.
6. USAGE OF RUBBER
Custom rubber molding
Transfer molding
Compression molding
Injection molding
Turn key capabilities with machining capabilities
Part form prototype to high volume
Material & design assistance
Mold design and creation
Rubber to metal bonding
Fabric reinforced to rubber molding
Cured-on wheels
Forklift seats & forks
Rubbers spacer
Solid press on tyres
Polyurethane wheels
7. PESTLE ANALYSIS
(A) Political Factors
Rubber Administration Regulation
All the rubber products manufacturers and producers are under the control of rubber Administration Regulation.
Human Rights Issue
Multinational corporations are facing different human rights issues, rules, regulations, laws and policies of different
governments in operating countries.
Waste management and public concerns
Increasing environmental consciousness is most important to growing legislation. The firm’s operation is
exaggerated by federal legislative applications that concentrate on the four objectives.
Decrease the quantity of material inflowing the nation’s solid waste management system.
Diminish the consumption of natural scarce resources.
Increase the reuse and recycling product packaging materials.
To shelter the natural environment and human health from undesirable effects related with the dumping
of product packaging materials.
8. (B) ECONOMIC FACTORS:-
Commodity prices
Foreign exchange & global economic conditions.
There are many tree cutted then also directly impact by environment issues.
Many complication are there in environment.
Foreign exchange & global economic conditions
Operating in global environment is not as easy as operating in local market, because it involve the
exposure to currency exchange rates variations. This generally affects the interest rate, economic growth,
government actions inflation and other economic factors.
9. (C) SOCIO-CULTURAL FACTORS:-
Now-a-days consumers are not brand loyal as they were previously, now they can easily switch to another
product. Consumer choice for Solid Press-On Tires Solid Industrial Tires Is affected by two major
characteristics such as ethnicity and age. Due to quality reason, age factor plays very important role when
choosing a Solid Press-On Tires. Some studies have been conducted and found that in general may result
profit problems specially, kidney stones. In compare to adults, house specially teens and twenties have
fewer interest spans for products and have a preference of products that seems different and to be fun.
Now players in rubber industry changes to non rim products for instance Mold Design and Creation,
Rubber to Metal Bonding, Fabric Reinforced to Rubber Molding, Cured-On Wheels etc.
The country is saving over Rs.2000 crores annually in foreign exchange through production of about six
lacks tons of NR, a very vital strategic raw material needed for the industrial progress".
Allowing manufacturers to import rubber under Advance License Scheme till February 1999
Permission to import polyurethane
Low Bound Kate of 25% for rubber as per the WTO Agreement
Unabated import of NR even after the cancellation of Advance License Scheme in February 1999
10. (D) TECHNOLOGICAL FACTORS:-
Technological advancement in manufacturing and new quality improvement concepts such JIT, Six Sigma
etc. are the significant providers to improve efficiency of bottling operations and quality of products.
Advancement in technology also helps to introduce new product lines for example new product launch
brands that meet changing customer style, preferences and uses.
In rubber industry distribution process is a big challenge because process can be able to place the right
products at right time.
In tire industry technology can provide a competitive advantage, if it is applied in area such as logistic
products into stores less extravagantly and costs beyond the distribution pipeline while increasing sales
information availability.
11. PORTER’S FIVE FORCE MODEL
THREAT FROM THE NEW ENTRANTS
Capital Requirement
Demand Side Benefits of Scale
Customer Switching Costs
Customer Loyalty
Government Policy
BARGAINING POWER OF SUPPLIERS
Number of firms
Firms can’t influence market prices
Switching Cost
Differentiation of Inputs of Suppliers
Backward Integration
12. CONT…
BARGAINING POWER OF BUYERS
High buyer profit
The Switching Cost
Brand Preference
Bargaining Power of Buyers
RIVALRY AMONG COMPETITORS
Number of Firms
Product Differentiation
Exit Barrier
High fixed Costs
13. OT ANALYSIS
OPPORTUNITIES
Growing Economy
Growing Automobile Industry
Since the first car rolled out on the streets of Mumbai (then Bombay) in 1898, the Automobile Industry of
India has come a long way. During its early stages the auto industry was overlooked by the then Government
and the policies were also not favourable.
Growing OEM demand
Traditionally, the replacement market has been the main growth driver for the Rubber industry, as also the
major segment that consumes Rubbers; however, with the recent escalation in auto sales, OEM demand too,
has been on a substantial increase, thus enlarging its share in the sales pie. Auto sales have been growing at a
CAGR of 15.8% during 2002-06, which has driven the growth in the Rubber industry, keeping the OEM
demand buoyant.
14. CONT…
THREATS
Continuous increase in prices of natural rubber, which accounts for nearly one third of total raw material
costs so it become a big threats again industry.
Cheaper imports of Rubbers, especially from China, selling at very low prices, have been posing a
challenge. The landed price is approximately 25% lower than that of the corresponding Indian Truck/ LCV
Rubbers. Imports from China now constitute around 5% of market share with crude prices scaling
upwards, added pressure on raw material prices is expected.
Threat from imports
The increase in import of cheap Chinese Rubbers last quarter has resulted in the fall of Rubber prices by
over 25 per cent in the market. Rubbers majors, including MRF and Metro, may oppose the entry of
Chinese Rubbers, but the world’s top Rubber makers.
The recent easing in import norms for Rubbers is another bother for local Rubber producers. There is
hardly any major duty differential between the import of Rubbers and Rubber-inputs.
As a result, local Rubber producers face the threat of cheaper imports.
Local producers have been working, and have also managed, to match international companies in terms of
product quality.
It has also decided to market imported Rubbers from its overseas parent. Industry sources also point out
that Michelin has started marketing its product in India, albeit in a very low-key fashion.