Porter five forces analysis is a framework for industry analysis and business strategy development

formed by Michael E. Porter of Harvard Business School in 1979.

5 Forces Model- Michael Porter
Bargaining power of suppliers,
Bargaining power of buyers,
Threat of new entrants,
Threat of substitutes, and
Rivalry among competitors
Porters Five Forces model: illustrates the various factors that affect the ability of any firm in the
industry to earn a profit

The automotive industry in India is one of the larger markets in the world and had previously been one
of the fastest growing globally, but is now seeing flat or negative growth rates.
The majority of India's car manufacturing industry is based around two clusters in the west and north. The
southern cluster consisting ofChennai is the biggest with 35% of the revenue share. The western hub
near Mumbai and Pune contributes to 33% of the market and the northern cluster around the National
Capital Region contributes 32%.
[9]
Chennai, with the India operations
of Ford, Hyundai, Renault, Mitsubishi, Nissan, BMW,Hindustan Motors, Daimler, Caparo, and PSA
Peugeot Citron is about to begin their operations by 2014. Chennai accounts for 60% of the country's
automotive exports.
[10]
Gurgaon and Manesar in Haryana form the northern cluster where the country's
largest car manufacturer, Maruti Suzuki, is based.
[11]
The Chakan corridor near Pune, Maharashtra is the
western cluster with companies like General Motors, Volkswagen, Skoda, Mahindra and Mahindra, Tata
Motors, Mercedes Benz, Land Rover, Jaguar Cars, Fiat and Force Motors
[12][13]
having assembly plants in
the area. Nashik has a major base of Mahindra & Mahindra with a UV assembly unit and an Engine
assembly unit. Aurangabad with Audi, Skoda and Volkswagen also forms part of the western cluster.
Another emerging cluster is in the state of Gujarat with manufacturing facility of General
Motors in Halol and further planned for Tata Nano at their plant in Sanand. Ford, Maruti Suzuki
and Peugeot-Citroen plants are also set to come up in Gujarat.
[14]
Kolkata with Hindustan
Motors,Noida with Honda and Bangalore with Toyota are some of the other automotive manufacturing
regions around the country
The five forces are:

1. The threat of new entrants
In the auto manufacturing industry, this is generally a very low threat. Factors to examine for this threat
include all barriers to entry such as upfront capital requirements (it costs a lot to set up a car
manufacturing facility!), brand equity (a new firm may have none), legislation and government policy
(think safety, EPA and emissions), ability to distribute the product (Alfa Romeo has been out of the US
since the early 90s largely due to the inability to re-establish a dealer network. But if you are looking at
Singapore, for example, only one Alfa Romeo dealer is needed!).

2. The bargaining power of buyers/customers
Who in the US has ever bought a car without bargaining? Anybody? In 2009 especially, US dealers were
giving great deals to buyers to get the industry moving. While quantity a buyer purchases is usually a
good factor in determining this force, even in the automotive industry when buyers only usually purchase
one car at a time, they still wield considerable power.

However, this may be different in other markets. In Singapore it sure is lower than in the US, creating a
more favorable situation for the industry but not the buyers.

Generally, however, it's safe to say the customers have some buying power, but it depends on the
market.

3. The threat of substitute products
If buyers can look to the competition or other comparable products, and switch easily (they have low
switching costs) there may be a high threat of this force. With new cars, the switching cost is high
because you can't sell a brand new car for the same price you paid for it. A P5F analysis of the car
industry covers the new market, not used or second-hand.

But what about the threat of substitute products before the buyer makes the purchase? You need to know
whether the market you are analyzing has many good alternatives to new cars. A vibrant used car market
perhaps? Used cars threaten the new market. How about a very good mass-transportation system?
Product differentiation is important too. In the car industry, typically there are many cars that are similar -
just look at any mid-range Toyota and you can easily find a very similar Nissan, Honda, or Mazda.
However, if you are looking at amphibious cars, there may be little threat of substitute products (this is an
extreme example!).

4. The amount of bargaining power suppliers have
In the car industry this refers to all the suppliers of parts, tires, components, electronics, and even the
assembly line workers (auto unions!). We know in the US the auto unions are tremendously powerful. But
we also know that some suppliers are small firms who rely on the carmakers, and may only have one
carmaker as a client. So this force can be tricky to evaluate.

5. The intensity of the competitive rivalry (which is in part determined by 1-4)
We know that in most countries all carmakers are engaged in fierce competition. Tit-for-tat price slashes,
ad campaigns, and product developments keep them on the edge of innovation and profitability. Margins
are low and pressure between rivals is high.












PORTERS FIVE FORCES MODEL
Banking is mainly a client oriented business. A high-quality of services to the client is crucial for the
growth and stability of any bank. A wider distribution and access of financial services helps both
consumers and producers to raise their welfare and productivity. Such access is especially powerful for
the poor as it provides them opportunities to build savings, make investments, avail credit, and more
important, insure themselves against income shocks and emergencies. To survive in an increasingly
competitive environment, bank need to come up with various facilities like Internet banking, mobile
banking etc. With the onset of mobile banking, the industry finds itself at the threshold of the next
major technological leap.

Buyer Power - High bargaining power of customers on account of banks renders uniform services to
the clients. Now a days almost all banks would like to provide requisite information very easily by way
to Internet, Mobile banking to the clients
Supplier Power- Low bargaining power of suppliers on account of RBI regulatory benchmarks. Banks
have to meet numerous regulatory standards created by RBI
Competitive Rivalry- High competition of account of number of prominent public, private, foreign along
with cooperative banks
Availability of Substitutes - High menace from substitutes like NBFCs, Mutual funds, Government
securities and T-bills
Threat of new entrants - Low threat of new entrants on account of banking regulations. Before setting
up of A new bank, it is essential to take the consent of RBI

Axis Bank HDFC Bank ICICI Bank Kotak Mahindra Bank
All those banks where greater parts of stake or equity are held by the private shareholders and not by government are called "private-sector banks". These are the major players in
the bankingsector as well as in expansion of the business activities India. The present private-sector banks equipped with all kinds of contemporary innovations, monetary tools and
techniques to handle the complexities are a result of the evolutionary process over two centuries. They have a highly developed organisational structure and are professionally managed.
Thus they have grown faster and stronger since past few years.
[1]