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3.8) PORTERS 5 FORCES THREAT OF NEW ENTRANTS INDUSTRY COMPETITORS Most of the Companies take Raw materials from small suppliers. The companies have high ability to Substitute and switch easily from one supplier to other supplier and the substituting cost is also comparatively less. So the Bargaining power of Suppliers in Automobile Industry is very less. BARGAINING POWER OF BUYERS THREAT OF SUBSTITUTES Maruti Suzuki follows localization of products with a very effective multi-segmentation strategy to grab different segments of market with different versions of its brands. TATA Motors
The Threat of New Entrants to existing players in the market of Automobile in India is very low. The constraints for new entrants include initial investment of capital for setting up a manufacturing plant will be huge, the existing players brand image and also the government regulations like safety measures, emissions etc. In addition to these, an automobile manufacturer should have a strong dealer network which will be difficult in case of the new entrant. The new entrants who want to penetrate into the Indian automobile industry will have to develop a trust of customers, create brand image which highlights in quality and reliability of the brand.
Internal Rivalry is very …show more content…
The Bargaining power of the Buyers in the Automobile Industry is very high since customer can easily opt for any vehicle among the available wide range of products. The factors that affect the buying decision of the customer are quality, appearance, price and the environmental effect. Based on these factors, customers can switch from one Company to other, if they feel that the other product would cater to their preferences and requirements.
Threat of Substitutes for Automobile Industry in Indian Scenario is not very high. Though there are many other transportation mediums available such as buses, trains etc.; None of them provide the same convenience, independence, time saving and value that are provided by the cars. So threat of substitutes has a least impact on the Automobile …show more content…
Maruti also follows differentiated marketing strategy which concentrates on all the segments in market, thereby trying to capture a huge target market. Maruti did an extensive research and found out the appealing factors of customers in India.
Most of the Indians tend to buy vehicles which provide more mileage. So Maruti focused on this component and created all its passenger cars with high mileage. Also, the main emphasis is on road safety measures.
Maruti has built its own brand image that guarantees high quality at a very reasonable price. Thus it is evident that it adopts Cost- Effective Strategy and building a strong emotional connection with the customer base.
TATA Motors is an Indian Automobile Company headquartered at Mumbai which manufactures Cars, Trucks, Buses and other Heavy Vehicles. It entered the commercial vehicle business in
