Porters Five Force Analysis of Ceat Tyres

 The Threat Threat of Rivalry NUMBER OF COMPETITORS

3

I"#$stry %rowth

Few major players MRF has the most mar!et share & ICR' e(pe)ts the tyre i"#$stry to report a %rowth of &*+,* over the "e(t three years

Fi(e# )ost- stora%e )ost

./0

4i5ere"tiatio"

./0

Swit)hi"% )ost

7/0

Op"e""ess of terms of sale

.

E()ess )apa)ity

3

Strate%i) sta!es

'sset spe)iali8atio"

Fi(e# )ost of e(it

9ovt/ restri)tio"s

.

3

1o"% stora%e life "o spe)i2) mai"te"a")e re$ire# for the stora%e Ra#ial a"# t$6eless tyres 6ei"% the spe)ial pro#$)ts No 6$ilt i" swit)hi"% )osts asso)iate# Terms a"# poli)ies are ope" to all the 2rms

No strate%i) sta!es

Ra#ial tyres a"# t$6eless tyres are spe)ial pro#$)ts

3

.

No 9ovt/ restri)tio"s

'vera%e

./0

 The Threat of E"try E)o"omies of s)ale

&

Re$ires h$%e )apital 33: )r of )apital

Pro#$)t #i5ere"tiatio"

3/0

Re$ires #i5ere"tiatio" li!e %rip t$6eless ra#ial o5 roa# ra)i"% et)

&

C$stomers hi%hly val$e the 6ra"# of the tyres a"# are loyal to them

Bra"# i#e"tity

Swit)hi"% )ost

.

No impli)it )ost asso)iate# with swit)hi"%

'))ess to )ha""els of #istri6$tio"

3/0

Capital re$ireme"t

&

No easy a))ess to #istri6$te# )ha""els re$ires e5ort am# time to set$p ;$%e )apital re$ire# to set$p a tyre ma"$fa)t$ri"% pla"t

'))ess to te)h"olo%y-!"ow how '))ess to raw material

9ovt/ prote)tio"

'vera%e

&

Not easily availa6le re$ire heavy R<4 )ost

.

Raw material easily availa6le "at$ral < sy"theti) r$66er "ylo" fa6ri) steel-)opper wires No prote)tio" from %ovt/ a"yo"e )a" e"ter the mar!et

.

3/.

 The threat of s$6stit$te 'vaila6le of )lose s$6stit$te Swit)hi"% )ost

&/0

Ta"!s tra)!s Ma"%lev ;over)raft "o )lose s$6stit$te =ery hi%h )ost asso)iate#

&

S$6stit$te pri)e val$e

&

Pro2ta6ility of pro#$)ers of  s$6stit$te

&

'vera%e

S$6stit$tes have "o #ire)t impa)t o" tyres $se# mai"ly i" #efe")e &/7.0

 The 6ar%ai"i"% power of 6$yers N$m6er of 6$yers

&

'vaila6ility of s$6stit$tes

&

'lo"% with major a$tomo6ile )ompa"ies ma"y vehi)le ow"ers are the )$stomers of tyres No )lose s$6stit$tes

Swit)hi"% )ost

.

No i" 6$ilt swit)hi"% )ost

Ba)!war# i"te%ratio"

&

No a$tomo6ile )ompa"y ma!es tyres "or willi"% to ma!e i" f$t$re ;ave si%"i2)a"t )o"tri6$tio" to the vehi)le>s performa")e spe)ially i" ra)i"% a"# to$%h terrai" Not si%"i2)a"t )ost )o"tri6$tio" to vehi)les total )ost '$tomo6ile i"#$stry is i" pro2t

Co"tri6$tio" to $ality

&

Co"tri6$tio" to )ost

3

B$yer>s pro2ta6ility

&

'vera%e

3/0

 The 6ar%ai"i"% power of s$ppliers N$m6er of s$ppliers

&

'vaila6ility of s$6stit$tes

3

Swit)hi"% )ost

.

S$pplier>s Threat of forwar# i"te%ratio" I"#$stry>s threat of 6a)!war# i"te%ratio"

&

Co"tri6$tio" to $ality

3

I"#$stry>s importa")e to s$ppliers

'vera%e

Overall avera%e

Ma"y s$ppliers availa6le for raw r$66er a"# sy"theti) r$66er 0: * )oms$mptio" of r$66er is i" tyre i"#$stry No swit)hi"% )ost i" 6$ilt No r$66er pro#$)ers are i" tyre i"#$stry No tyre ma!ers pro#$)e r$66er "or they are pla""i"% 'vera%e )o"tri6$tio" to the $ality $ality #epe"#s majorly o" the pro)ess 's the tyre i"#$stry is the 0: * )o"s$mer of the r$66er i"#$stry

.

&

3

3/.?