-NATIONAL LAW UNIVERSITY, JODHPUR-

MANAGERIAL ECONOMICS
PORTERS FIVE FORCES: ANALYSIS

OF

CEMENT, CONSTRUCTION AND AUTOMOBILE

INDUSTRY

SUBMITTED

TO-

SUBMITTED BY-

DR. RITUPARNA DAS

AYUSHI CHAUDHARY (ROLL NO.1057)

ASSOCIATE PROFESSOR

DIVPRIYA CHAWLA

FACULTY OF POLICY SCIENCE

ABHILASH AGRAWAL (ROLL NO.1054)

NATIONAL LAW UNIVERSITY ,

3RD SEMESTER

JODHPUR

B.B.A., LL.B(H ONS.)

(ROLL NO.1059)

NATIONAL LAW UNIVERSITY, JODHPUR

-MANAGERIAL ECONOMICS ASSIGNMENT -

TABLE OF CONTENTS
Introduction................................................................................................................................3
Construction Industry.............................................................................................................3
Cement Industry.....................................................................................................................5
Automobile Industry..............................................................................................................7
|PAGE

-TABLE

OF

C O N T E N T S - INTRODUCTION
Through this assignment we are giving a comparative analysis of three vital industries,
namely: automobile, cement and construction. We will first in the course of this Introduction
give you a description of all these three industries and then proceed on to first describe the
Porters fiver forces to determine the scope of survival after entering each of these industries
by first analyzing it in isolation with respect to these five forces and then giving a brief
elaboration making use of both the domestic and the international scenario.
CONSTRUCTION INDUSTRY
Construction activity creates physical assets in a number of sectors of the economy.
Construction sector has two key segments: (i) Buildings, falling into one of the following
categories: residential, commercial, institutional and industrial; and(ii) Infrastructure such
as road, rail, dams, canals, airports, power systems, telecommunication systems, urban
infrastructure including water supply, sewerage, and drainage and rural infrastructure. Assets
once created also need to be maintained. Many upstream economic activities depend upon the
construction sector. It is roughly estimated that 4045 per cent of steel; 85 per cent of paint;
6570 per cent of glass and significant portions of the output from automotive, mining and
excavation equipment industries are used in the construction industry.The Construction sector
has been contributing around 8 per cent to the nations GDP (at constant prices) in the last
five years (200607 to 201011). As indicated by Table 19.1, GDP from Construction at
factor cost (at constant prices) increased to `3.85 lakh crore (7.9 per cent of the total GDP) in
201011 from `284798 crore (8 per cent of the total GDP) in 200607. The growth in
construction sector in GDP has primarily been on account of increased spending on physical
infrastructure in the last few years through programs such as National Highway Development
(NHDP) and PMGSY/Bharat Nirman.
With around 31000 enterprises involved in the construction industry in 2011, the industry is
thesecond largest employer in the country after agriculture. Over 95 per cent of the

Status Quo..........................................................................................................................8
Porters Five Forces.................................................................................................................10
Porters Five Forces Analysis...............................................................................................10
Automobile Industry........................................................................................................12
Cement Industry...............................................................................................................14
Construction Industry.......................................................................................................19
Industry Analysis......................................................................................................................23
Cement Industry...................................................................................................................23
India..................................................................................................................................24
Future forecasts................................................................................................................25
Construction Industry...........................................................................................................26
Construction industry in India..........................................................................................26
Characteristics of the Construction Industry....................................................................28
Construction Sector Present & Future Trends..................................................................30
Segmentation in the Industry...........................................................................................31
Challenges to the Construction Industry..........................................................................32
Efforts by the Government to revive the Industry............................................................34
International Overview of the Construction Industry......................................................35
In UAE.............................................................................................................................35
Automobile Industry............................................................................................................37
Conclusion................................................................................................................................45

|Page