Usa Martin's Business Strategy: Usha Martin

716 Words3 Pages
Usha Martin started its company in the 90’s with a simple strategy which transcend into various strategies that help the company gain its competitive position. This competitive advantage and a strong financial performance in the past was achieve through its aggressive capital investments, end-to-end integration and proactive product extension. However, in the business environment is constantly changing looking for new ways to get ahead of the competition. Usha Martin competitors are no exception to this fact, the future is uncertain, so no competitive advantage is secured as new technology is being introduce every day especially when owning or controlling the supply chain of commodity inputs necessary to make a company final product is extremely…show more content…
Usha Martin initially build efficient facilities to achieve such presence making it costly for competition to imitate. They were able to access strong customer loyalty or strong brand preferences as they were able to customize products for customer needs with fast delivery services. If competition lacks adequate distribution channels or access to raw materials it would pose a problem for them to enter that market since the company backward integrated to take charge of its suppliers as well as forward integrated to take charge of their distributors giving them full control to maintain tight control over production and overhead…show more content…
Usha Martin has complete control of the power of suppliers since they are the owners of a manufacturing facility. Usha Martin bargaining power of buyers are low since customers are large and buy in volume, the products being purchased are standard or undifferentiated making it easy to switch to other suppliers, and customer’s purchases represent a major part of the company’s total revenue. Substitute products for Usha Martin is relatively low since substitute products prices are higher, causing switching costs to be high and competitors does not have the potential to increase market penetration or production capacity like Usha Martin. The rivalry among its competitors is not as intense as the number of competitors are not equal in size and demand for the company products continue to increase and fixed costs in the industry is low compare to other competitors. As rivalry among various companies continues it might intensify, industry profits might decline, in most cases to the point where the industry might become inherently unattractive. Nevertheless, Usha Martin has faced challenging situations in the past and still manages to implement effective strategies that helped benefit the organisation

    More about Usa Martin's Business Strategy: Usha Martin

      Open Document