An Australian SME 2 wheeler company wants to enter India. I have been appointed as a consultant and will be conducting a Five forces analysis on the 2 wheeler segment in India & recommend whether they should enter or not. Thus, firstly to understand the two-wheeler industry, then the Porter’s 5 forces analysis.
Below figure is of the 5 forces analysis:
INTRODUCTION TO TWO-WHEELER INDUSTRY :
Automobile industry is one of the largest industries in global market. Two-wheeler segment is one of the most important components of the automobile sector. India is the second largest two-wheeler market in the world. Currently, in India there are 7 scooters manufacturers,…show more content… Competitive pressures from supplier – seller relations : Bargaining power
5. Competitive pressures from seller – buyer relations : Bargaining power
Rivalry : The key players in two-wheeler industries are Hero Honda motor Ltd.(HHML), Bajaj Auto Ltd. And TVS motor co. ltd. The Indian Auto Policy 2002 gives added advantage to two-wheeler manufacturers to enter even other countries outside India. Since big manufacturer plant with high technology and good R&D team needed many of them do not enter in two-wheeler industries. Only the companies which are in automobile line will expand their product line like Mahindra.
Among the direct and obvious forces in the industry, existing competitors must first deal with one another. When organizations compete for the same customers and try to win market share at the others’ expense, all must react to and anticipate their competi¬tors’…show more content… Because now a days there is a lot of segment in buses in urban areas and the private companies also influenced very much, buses are available from normal buses to high-tech ac buses which is threat to two-wheeler industry. Since only two people can travel in a bike most of them use auto when they go out with their families and if they are affordable to buy a care will use car instead of auto. Since bus service has increased when compared to five years back people who are aged above 45 years uses buses because of their health condition. These are the substitute product available to