Table of Contents
1 Introduction 2
2 Background of the motor industry of India 2
3 Strategic Planning 2
3.1 PESTLE Analysis 2
3.1.1 Political Factors 2
3.1.2 Economic forces 3
3.1.3 Sociocultural factors 3
3.1.4 Technological factors 3
3.2 SWOT Analysis 3
3.2.1 Strengths 4
3.2.2 Weaknesses 4
3.2.3 Opportunities 4
3.2.4 Threats 4
4 Attractiveness of the Industry 4
4.1 Competitors in the industry environment. 5
4.1.1 Threat of new entrants 5
4.1.2 Threat of substitute providers 6
4.1.3 Intensity of Rivalry 6
4.1.4 The bargaining power of suppliers 6
4.1.5 Customers / Power of buyers 6
5 Conclusion 7
6 Bibliography 7
1 Introduction
There are various external forces that can affect different industry environments. This can present opportunities and threats for companies operating in the same industry. Companies need to adapt to an ever changing environment by changing their strategies with the constant change in the environment. This will allow companies to sustain a competitive advantage (Hill and Jones; 2004). According to Peet Venter (2015) there are many external factors and forces that affect industries and organisations such as, customers, suppliers, existing competitors, potential competitors and substitute providers. Porter (2015, Peet Venter; 148) states that the primary entrants of an industry are customers and suppliers. These include incumbent rivals, new competitors and providers of new products and services from outside industries. An industry Analysis is of extreme importance for an organisation when making strategic decisions in order to sustain a competitive advantage.
This assignment focuses on the “industry analysis in the context of external environment” and “the attractiveness of the industry”, with reference to Maruti Suzuki in the conclusion.
2 Background of the motor industry of India
The automotive market is one of the foundations industries of the Indian economy. The Indian government made a decision...