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SWOT Analysis of Berger Paints and Porter's 5 Forces Analysis for Paints Industry
- 1. SWOT Analysis and Porter’s 5 Forces
- 2. Submitted by Name UID Number Manish Goswami 2019-1805-0001-0046 Manish Kumar Raj 2019-1805-0001-0037 Neel Sarkar 2019-1605-0001-0018 Neha Sharma 2019-1805-0001-0051
- 3. ABOUT BERGER PAINTS INDIA • Second Largest Company in Paint Industry • Founder: Lewis Berger • Headquarters: Kolkata, India • Number of employees: 3,500+ (2018) • Chairman: Kuldip Singh Dhingra • Multinational
- 5. Strength Weakness • Ranks #2 as per sales Revenue • Effective supply chain • Green initiative • International presence • Wide range of products • Diverse Customer Base • Bad public image • No premium alternative • High Dependence on Decorative segment
- 6. Opportunities Threats • Business diversification • Increasing penetration in rural market • Growth of real estate, automobile , and home decor • Innovation with changing trends • Fluctuation in Raw material price • Competition eroding the margin • Threat from New Substitutes like Tiles and Wallpapers
- 7. Porter’s Five Forces for Paint Industry
- 8. Top Companies in Paint sector based on Revenue (2019) Akzo Nobel 10% Asian Paints… Berger Paints 18% Hardcastle 0% Jenson Nicholso 0% Kansai Nerolac 15% Mitshi India 0% Shalimar Paints 1%
- 9. Threat of New Entrants - LOW ● Asian Paints & Berger Paints alone Accounts to 75% of Revenue among Listed Paints Companies. So it's difficult for anyone to be the Emperor in the Paints Industry ● Working Capital Required is High. 300 different kinds of Material is Used in the Paints Industry ● Shortage in supply of raw materials
- 10. Competitive Rivalry -Low ● About 80 % of this sector is contributed by top 3 companies ● Large company like Asian paints is the main competitor ● Unorganized sector
- 11. Bargaining Power of Supplier - Medium ● Over 300 Raw materials are required which includes Solvents, Pigments, Binders, Additives etc ● Titanium Dioxide is a Key Ingredient used which have huge shortage hence supplier can bargain ● Import of raw materials ● High fluctuation of price in raw materials
- 12. Bargaining Power of Buyer - Medium ● Industry and household are the main customer for the industry ● Price Sensitive
- 13. Threat of Substitutes - Low • In Rural Areas Lime wash is used as a Substitute • Wallpaper is Used as a Substitute • People Use Marbles in case of Paintings as well
- 14. Competitive Rivalry (Low) Threat of Substitutes (Low) Threat of New Entrants (Low) Bargaining Power of Buyer (Medium) Bargaining Power of Supplier (Medium)