PORTER’S FIVE FORCES

By

Anuroop Bose

Brij Mohan

Shofale Ganguly

Nikhileshwar Rao

Shravya Reddy

INTRODUCTION

Porter’s Five Forces Chart

COMPANY OVERVIEW-TATA India’s largest and most trusted

Multinational Conglomerate. Founded by Jamsetji Tata in 1868. Headquarters in India. It comprises over 100 operating companies,

with operations in more than 100 countries across six continents, exporting products and services to over 150 countries.

The revenue of Tata companies, taken together, was $103.27 billion (around Rs624,757 crore) in 2013-14, with 67.2 percent of this coming from businesses outside India.

Around 581,000 employees worldwide.

TATA MOTORS LIMITED India’s largest automobile company.

It has revenues of INR 2,32,834 crores (USD 38.9 billion) in

2013-14.

It is the leader in commercial vehicles in each segment, and

among the top in passenger vehicles with winning products

in the compact, midsize car and utility vehicle segments.

Also listed in the New York Stock Exchange (September

2004), has emerged as an international automobile company.

INTENSITY OF EXISTING RIVALRY Large industry size Fast industry growth rate

BARGAINING POWER OF SUPPLIERS

High competition among suppliers Diverse distribution channel Low cost of switching suppliers Volume is critical to suppliers

BARGAINING POWER OF CUSTOMERS

Driving prices far below

competitors, causing

them to exit, thus shifting

power with buyers back

to the firm.

Low buyer price

sensitivity.

Large number of

customers.

THREAT OF SUBSTITUTES Price band. Substitutes performance.

THREAT OF NEW ENTRANT High capital requirements Strong distribution network required. Advanced technologies are required. Industry requires economies of scale. Entry barriers are high.

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