Professional Documents
Culture Documents
NUMBER OF
COMPETITORS
Industry growth
2.5
Differentiation
2.5
Switching cost
1.5
Opnenness of terms of
sale
Excess capacity
Strategic stakes
Asset specialization
Govt. restrictions
No strategic stakes
No Govt. restrictions
Average
2.5
Product differentiation
3.5
Requires differentiation
like grip, tubeless, radial,
off road, racing etc
Brand identity
Switching cost
Access to channels of
distribution
3.5
Capital requirement
Access to
technology/know how
Access to raw material
Govt. protection
Average
3.2
4.5
Profitability of producers of
substitute
Average
Availability of substitutes
Switching cost
Backward integration
No automobile company
makes tyres nor willing to
make in future
Have significant
contribution to the
vehicles performance
specially in racing and
tough terrain
Not significant cost
contribution to vehicles
total cost
Automobile industry is in
profit
Contribution to quality
Contribution to cost
Buyers profitability
Average
3.5
Availability of substitutes
Switching cost
Suppliers Threat of
forward integration
Industrys threat of
backward integration
Contribution to quality
Industrys importance to
suppliers
Average
Overall average
2
4
3.26