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IRACST – International Journal of Commerce, Business and Management (IJCBM), ISSN: 2319–2828

Vol. 6, No.3 May-June 2017

Competitive Analysis of Nissan Motors Pvt


Ltd. Beyond Porter’s 5 Force Model
MANISHA MITTAL Five forces as advocated by Porter are no doubt,
brilliant encapsulation of competition. But in a today’s
CMGGCW BHODIA KHERA, FATEHABAD (HRY)
perspective there are new moves to it.
EMAIL - Pariaggarwal001@gmail.com
Each force has underground drivers and the ultimate
challenge is to uncover those drivers, whose presence
or absence will make a force significant or
1. ABSTRACT insignificant.

2. NISSAN
The model of pure competition implies that risk –
adjusted rate of return should be constant across firms NISSAN (Nissan motor company ltd) is a
and industries. However, numerous economic studies multinational automaker headquartered in Japan. It was
have affirmed that different industries can sustain a core member of the Nissan Group, but has become
different profitability and part of that difference can be more independent after its restructuring under Carlos
explained by industry structure. Ghosn (CEO).

Michael Porter in 1979 provided a framework for Nissan is the sixth largest automaker in the world
industry analysis and business strategy. It draws behind ford, General Motors, Volkswagen
upon industrial organization (IO) economics to derive AG, Hyundai Motor Group, and Toyota . It formerly
five forces that determine the competitive intensity and marketed vehicles under the "Datsun" brand name. As
therefore attractiveness of a market. These forces are of 2012, the company's global H.Q is located in Nishi-
the threat of new entrants, the threat of substitution, the ku, Yokohama. In 1999, Nissan entered a two way
bargaining power of buyers, the bargaining power of alliance with Renault S.A. of France, which owns
suppliers, and the rivalry amongst existing competition 43.4% of Nissan while Nissan holds 15% of Renault
in the industry. The paper, instead of taking 5 forces shares, as of 2008. Along with its normal range of
straight away, uncover the drivers of each of the force models, Nissan also produces a range of luxury models
separately, analyze their impact and then conclude the branded as Infiniti.
actual strength of the force. KEYWORDS- bargaining;
competition; encapsulation ; economic ;organization 3. PORTER’S 5 FORCE MODEL

1.1 HYPOTHESIS The Porter's Five Forces Model is useful, because it


helps you understand both the strength of a position you

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IRACST – International Journal of Commerce, Business and Management (IJCBM), ISSN: 2319–2828
Vol. 6, No.3 May-June 2017

are considering moving into,and of your current power in the situation, because suppliers and buyers
competitive position. will go elsewhere if they don't get a good deal from
you. On the other hand, if no-one else can do what you
With a clear understanding of where power lies, you
do, then you can often have tremendous strength.
can take fair advantage of a situation of strength,
improve a situation of weakness, and avoid taking Threat of Substitution: This is affected by the ability
wrong steps. This makes it an important part of your of your customers to find a different way of doing what
planning toolkit. you do – for example, if you supply a unique software
product that automates an important process, people
Conventionally, the tool is used to identify whether new
may substitute by doing the process manually or by
products, services or businesses have the potential to be
outsourcing it. If substitution is easy and substitution is
profitable. However it can be very illuminating when
viable, then this weakens your power.
used to understand the balance of power in other
situations. Threat of New Entry: Power is also affected by the
ability of people to enter your market. If it costs little in
There are five important forces that determine
time or money to enter your market and compete
competitive power in a business situation. These are:
effectively, if there are few economies of scale in place,
Supplier Power: Here you assess how easy it is for or if you have little protection for your key
suppliers to drive up prices. This is driven by the technologies, then new competitors can quickly enter
number of suppliers of each key input, the uniqueness your market and weaken your position. If you have
of their product or service, their strength and control strong and durable barriers to entry, then you can
over you, the cost of switching from one to another, and preserve a favorable position and take fair advantage of
so on. The fewer the supplier choices you have, and the it.
more you need suppliers' help, the more powerful your
4. BEYOND PORTER’S 5 FORCE
suppliers are.
MODEL
Buyer Power: Here you ask yourself how easy it is for
buyers to drive prices down. Again, this is driven by the
The Porter's Five Forces tool is a simple tool for
number of buyers, the importance of each individual
understanding where power lies in a business situation
buyer to your business, the cost to them of switching
from your products and services to those of someone but with period of time there are many new moves to
else, and so on. If you deal with few, powerful buyers,
these 5 forces. This section will consider each force
then they are often able to dictate terms to you.
individually to go beyond porter’s 5 force model.
Competitive Rivalry: What is important here is the
number and capability of your competitors. If you have 4.1 THREATS OF NEW ENTRANTS

many competitors, and they offer equally attractive A threat of New Entrants is the possibility of new firms
products and services, then you'll most likely have little to enter the industry which can affect profitability.

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IRACST – International Journal of Commerce, Business and Management (IJCBM), ISSN: 2319–2828
Vol. 6, No.3 May-June 2017

This force is majorly driven by following drivers:- In this case, Indian consumers are quite homogeneous
towards small car segment. In 2009, India surpassed
Japan to become the largest small-car market in the
world, accounting for the sale of around 900,000 small-
cars, as compared to 700,000 sold in Japan. Moreover,
passenger cars and utility vehicles are the main
4.1.1 INCREASE OR DECREASE IN SCALE segments of the Indian passenger vehicle industry with
the former accounting for 78% of total volumes. India
IN AUTOMOBILE INDUSTRY, THE has primarily been a small-car market, mainly due to
CAPITAL AND EXPERTISE TO SETUP the high demand for a cost-effective mode of
AN AUTO OR PARTS transportation. Within the passenger car segment, small
MANUFACTURING FACILITY IS A cars comprising A1 and A2 segment account for almost
80% of total volumes.
GREAT ENOUGH BARRIER TO ENTRY
TO PREVENT MANY NEW ENTRANTS Nissan judged this requirement of Indian customer well
TO SET UP. before paving its way to India and consequently started
its production with their India made small car “Micra”.
Nissan setup its manufacturing plant at Oragdam near Also the launch of Nissan Sunny an entry level sedan
Chennai with capacity of 2,00,000 units per year which strengthens the positioning of Nissan in small car
can be reached to 4,00,000 units per year in future. segment of India.
Moreover, plant also posses 650 acres of unused land Actual Force: Indian customer is homogeneous
where a two more assemble lines can be setup once the towards the small segment of cars mainly because of
capacity of 4,00,000 units gets saturated. following reasons:-
However, given India’s incredible growth forecasts, • Narrower road
infrastructure progress (especially better and new roads)
and ever expanding financing options to rural residents, • Parking Space
the market is still very attractive. As such we expect the
threat to new entrant is medium. • Low per capita Income.

Actual Force: Demand of customer is the major force These factors consequently made the Indian automobile
which drives the increase or decrease in scale of an market a hub for small car segment.
organization. An organization will try to reach MES
when there is demand of the standardized product in the Impact: Low
market.
4.1.3 CONCENTRATION
Impact: Medium
Concentration of a firm in any sector play a very vital
4.1.2 HETEROGENEITY OF CUSTOMERS entry barrier for new entrants and Indian automobile
sector is highly concentrated with apprx 78% of share is
Heterogeneity of customers directly affect the scale of in hand of top three OEM i.e. Maruti Suzuki, Hyundai
an organization i.e. homogeneous group of customer and Tata Motors. These players with their strong
will demand for a similar product which in turn would product portfolio, particularly in the small car segment,
be suitable for a firm to produce with high economies extensive distribution and servicing reach and strong
of scale however a heterogeneous group of customer brand franchise (created over several years) have
demand for different products which would not be maintained their market position for years together.
possible for a firm to produce on MES. However, Indian market industry has been highly

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IRACST – International Journal of Commerce, Business and Management (IJCBM), ISSN: 2319–2828
Vol. 6, No.3 May-June 2017

competitive, especially in the small car segment where


an incumbent players by virtue of their large volumes,
facilitating economies of scale and established vendor 4.2 Bargaining Power of customers
base can competitively price their models.
The power of buyer is the impact that customer have on
Nissan gauged this in early stages and consequently it a producing industry. This force is majorly driven by
started in India with made in India small car- Micra following drivers:-
along with heady mix of killer pricing, rapidly
expanding distribution channels and aggressive 4.2.1 CONCENTRATION OR
expansion strategy. FRAGMENTATION OF BUYER.

Actual Force: Gaining Market Share, Exploiting Indian


location for their global strategy, reducing cost with
high localization.

Impact: High, since Nissan has very less market share


as compared to others and highly profitable competitive
industry always attract new entrants which can impact
the small market share of Nissan heavily.

4.1.4 LEVEL OF SWITCHING COST

Level of Switching cost talk about impact on customer


to switch from one car OEM to other. India’s If Customers are concentrated then there would be few
automobile sector is highly competitive in terms of buyers with significant market share, however in
substitute’s availability, consequently switching cost for automobile sector customers are quite fragmented. In
an Indian consumer is quite low. Also since Nissan has order to target fragmented customers Nissan has
very few models in small car segment, impact of patched up with Hover Auto Motive India for its sales
switching will be very high for them. and marketing partner in India.

Thrust: Availability of substitutes Few of the figures include:-

Impact: Very High Actual Force: Spread of Population

Impact: High, since Nissan currently have only two car


4.1.5 OVERALL IMPACT: MEDIUM models only and also servicing is restricted to only 75%
of Indian market, rest still need to be discover.
Nissan is growing with a rapid speed but still there are
miles to go, consequently there is Medium threat to it
from new entrants with attractiveness score of 2.65. 4.2.2 POSSIBILITY OF BACKWARD
INTEGRATION
Drivers  Weight  Thrust  Impact  Rating  Attractiveness 
Nissan India target customers
on  Score 
include individuals who
Nissan 
purchase cars for their own use,
Economies of  0.4  Demand  Medium  3  1.2 
moreover customers are also
Scale 
very fragmented so it is quite
Heterogeneity  0.2  Homogeneous  Low  4  0.8 
of Customers  Need  impossible for Indian consumer
Concentration  0.25  Gaining  High  2  0.5  to move onto backward
Market Share 
Switching  0.15  Availability of  Very  1  0.15 
3
Cost  Substitutes  High 
Total  1           2.65 
IRACST – International Journal of Commerce, Business and Management (IJCBM), ISSN: 2319–2828
Vol. 6, No.3 May-June 2017

integration and impact Nissan India profitability. • Basic luxury like ikey, power
steering, windows etc.
Thrust: Threat of New Entrants
Actual Force: Efficient Forward Integration.
Impact: Low.
Impact: Low, though now a day’s buyer information
4.2.3 IMPROVEMENT IN BUYER has been enriched as compared to past but buyer taste is
INFORMATION not constant and changes rapidly so it is very important
for a firm to keep their buyer information updated.
Buyer Information has improved significantly from past
few years with advent of Information & Technology. 4.2.4 NEW DISTRIBUTION CHANNEL
By using the same, firms have innovatively developed
various mean to gather information on buyers like:- Distribution is one of the key to success in a
competitive market. In automobile industry the most
• Free trial of any new launch to check prevailing ways of distribution are:-
the like of new car.
• Companies own outlet.
• Providing Gifts on the feedback of
purchase of new car. • Franchise dealership.

• Telephonic surveys. • Sharing distributing outlets of other


manufacturer.
• Retrieving information from various
blogs and forums. The transformation of the business of selling cars and
trucks is happening before our eyes at an incredible
• Cross selling of data from one pace and winner could be only one who keep himself
industry to another. Like Credit card updated and can cater to different market segments
differently. With the advent of information technology,
Holder data to Car manufactures to
going forward a tech-savvy consumer may be looking
know the habits of consumers. Etc.
for a test drive in a virtual world and order them
instantly. With highly busy schedule of metro people
it’s going to be much more difficult for person to spend
Nissan used this tool quite tactfully and able to launch a time on these activities.
vehicle which meets the needs of great mass of
audience. Indian consumer basically looks for Nissan India is currently looking after increasing its
following factors in a vehicle which Nissan Micra and dealership to a number of 150 by 2013 but they should
Sunny completely met. also focus on what’s going to be next after that. Do they
really require these many stores in future? A key
• Competitive Price determinant for the success of Nissan going to be the
how fast it is able to ramp up in its distribution network
• Fuel Efficiency and after sale service that too custom made for different
market segment.
• Power
Actual Force: Efficient Forward Integration
• Safety
Impact: High
• Low Turning Radius because of
congestion on road.

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IRACST – International Journal of Commerce, Business and Management (IJCBM), ISSN: 2319–2828
Vol. 6, No.3 May-June 2017

4.2.5 NEW WAY TO COMMUNICATE TO congestion on Indian roads.


CUSTOMERS .
Nissan India was able to cater this need of Indian
Communication is one of the factors which gets change
consumer by launching the diesel variant of Micra and
and innovate daily. Since the time of advent of
telegraph till online chats communication has gone into Sunny on Actual Force: Change in Operation/Running
numerous changes. Currently, most companies are
using social media tools in many of the same ways they Cost. Impact: Medium.
use their e-mail lists: sending out mass communications
to everyone, posting news, launching new products etc. 4.2.7 OVERALL IMPACT: HIGH
Moreover few of the social media sites like Facebook
Nissan has scored the attractiveness score of 2.1 i.e.
provides you to some absolutely remarkable
buying power of Nissan’s customers is quite high. It
communication tools built into sites that allow you to
depicts that Indian buyers are powerful and there are
reach out and interact in ways that are so new there
spread across the country moreover switching cost is
aren't even metrics for them.
low for them.
Nissan like other automobile companies too gauge this
change with the time and also launched them on same 4.3 BARGAINING POWER OF SUPPLIERS
platform. Below are few of the Nissan India footprints
A product Industry requires raw materials –labor,
on these new ways to communication.
components, equipments and many other supplies.
Actual Force: Efficient Forward Integration Impact: Since the same producing firm cannot produce all its
High inputs own its own, it need to be dependent on the
suppliers for same. In the car industry this refers to all
the suppliers of parts, tires, components, electronics,
4.2.6 CHANGE IN CUSTOMER TASTE
and even the assembly line workers (auto unions!). This
In Indian automobile sector consumer taste vary with force is majorly driven by following drivers:-
the change in fuel price. From past few years rise in
petrol has significantly affected the preference of Indian 4.3.1 CONCENTRATION OF SUPPLIERS
consumer towards petrol variants of cars. The latest
hike has widened the price gap between petrol and In case of Nissan Micra more than 85% of its parts are
diesel to nearly Rs 30 per liter. procured locally and out of that around 50% of them are
within Chennai only.
Industry statistics indicate that the diesel car sales will
almost double from current levels to 2.3 million units in Moreover Nissan is working on higher localization for
2015-16, estimates CRISIL Research. Diesel specifically its diesel engine for Micra and Sunny.
penetration—the proportion of diesel cars in total cars Localization though helps in achieving EOS and MES
sold—will rise from the current 36 percent to 45 but simultaneously it calls for a threat from the
percent in 2015-16. Customers are more likely to prefer concentrated suppliers.
diesel cars, as the gap between petrol and diesel prices
Actual Force: Cost of Production.
has widened. The greater fuel economy of diesel cars
assumes significance with the increasing traffic Impact: High

4.3.2 FORWARD INTEGRATION

Forward Integration refers when a supplier of inputs to


a manufacturing firm, itself start selling the finished

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IRACST – International Journal of Commerce, Business and Management (IJCBM), ISSN: 2319–2828
Vol. 6, No.3 May-June 2017

goods. However in case of car industry this threat is Nissan is quite innovative in maintaining its supplier
quite low due to following factors:- relationship and in same line they have developed a
new process which has been explained below.
• High Entry Barriers i.e.
A ‘Panel Committee’ selects candidate suppliers for
• High capital cost business with Renault and Nissan, based on their
QCDDM performance (Quality, Cost, Delivery,
• Competitive Pricing Development and Management).
• Distribution Strategy etc. A “Sourcing Committee” then selects suppliers for each
project, using a transparent process to manage the
• Small suppliers
Request For Quotation (RFQ).
• Technology Requirement.
Supplier’s performance is continuously reviewed and
Actual Force: Supernormal Profits of Automobile shared with suppliers throughout this process.
Industry.
Actual Force: Efficient Backward Integration
Impact: Low
Impact: Low

4.3.3 IMPROVEMENT IN SUPPLIER


4.3.5 OVERALL IMPACT: LOW
INFORMATION .
Nissan has scored the attractiveness score of 3.2 which
Supplier information has been reformed tremendously. implies that Nissan has low threat from its supplier
In today’s world detailed information about various because supplier are small in nature and not in a
suppliers can be easily obtained online. Few sites like condition to forward integrate moreover Nissan has a
Indiamart.com provides complete list of directory of very stream lined process of co-ordinate with supplier
supplier along with differentiation based on segments. which give it an added advantage. Only area where
Nissan needs to little cautious is the local concentration
Actual Force: Efficient Backward Integration
of suppliers because high localization may lead to threat
Impact: Medium of new entrant into market.

Drivers  Weig Thrust  Impact  Ra Scor


4.3.4 NEW WAYS TO CO-ORDINATE WITH ht  on  tin e 
Nissan  g 
SUPPLIER . Concentration  0.3  Cost of  High  2  0.6 
of Suppliers  Production 
Supplier has become a very vital part of any production Forward  0.3  Supernormal  Low  4  1.2 
life cycle without which no manufacturing company Integration  Profits of 
Automobile 
can sustain in its industry. Consequently, many ways Industry 
have developed for maintaining relationship with Improvement  0.2  Efficient  Mediu 3  0.6 
supplier out of which one of them is Supplier in Supplier  Backward  m 
Information  Integration 
relationship management (SRM). SRM is the
New ways to  0.2  Efficient  Low  4  0.8 
discipline of strategically planning for, and managing, co‐ordinate  Backward 
all interactions with third party organizations that with supplier  Integration 
Total  1           3.2 
supply good and/or services to manufacturing
organization, In practice, SRM entails creating closer,
more collaborative relationships with key suppliers in 4.4 Threat of Substitutes
order to uncover and realize new value, and reduce risk.

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IRACST – International Journal of Commerce, Business and Management (IJCBM), ISSN: 2319–2828
Vol. 6, No.3 May-June 2017

In Porter Model a threat of substitutes exist when a


product demand is affected by the price change of a
substitute product. This force is majorly driven by Actual Force: Operation/Running Cost of car.
following drivers:-

4.4.1 NEW SUBSTITUTES & ITS Impact: Low


PERFORMANCE

In automobile industry of India apart from a large


number of substitutes availability from other OEM 4.5 RIVALRY
except Nissan there are few new substitutes which has
emerged in India. And most dominating of them is Rivalry as considered by most of the earlier economist
advent of Metro in various cities of India. is the competition from various existing firms but in
today’s world of rapid development even rivalry has
After a huge success of Delhi Metro, Bangalore has taken a new form. Rivalry is the competition to a firm
become first city in south to have Metro after a 7-km which can affect its profitability by any means. In other
stretch was commissioned in October. Kolkata Metro, words any particle on planet which has potential to
which is the first one in the country, has taken up a new affect a firm’s goal, market share & profits is a rival to
14.67-km east-west corridor that will be implemented that firm. In broader terms they can be classified as
by railways. Mumbai has taken up metro projects-Line given in figure.
1 (11.07 km), Line 2 (31.87 km) - on PPP model at an
estimated cost of Rs 10,016 crore. Going in same line
few other cities has started or will be launching their
metro soon. In addition to the five forces, drivers and actual forces
which has been discussed so far the following section
Actual Force: Operation & running cost of cars. will discuss few of the drivers and forces which can
have direct impact on NMPIL.

Impact: Very High 4.5.1 INDUSTRY GROWTH

Indian Automobile industry has shown a moderating


4.4.2 INCREASE IN BUYER COMFORT growth in current year. Comparing the data from SIAM,
SUBSTITUTE it can be analyzed that:-
Buyers are moving from comfortable substitute towards
economical substitutes which can also be figured out
from Nissan case where Honda, a premium car marker, So considering the market share of Nissan even a small
market share has dropped to 0.74% in January 2012. dip in the industry growth can highly impact the Nissan
Also following figure shows the decline in premium car India overall strategy.
segment in India.
Impact: Very High

Actual Force: Slow down in industry


It clearly indicates that Indian automobile industry is
moving towards the fuel economical substitute instead 4.5.2 DOMINANT DESIGN
of comfortable substitute which Nissan India is able to
Financial Year 2012 was a landmark year – for many
cater with its small car Micra.
auto manufacturers. It paved way for many break
through designs like Fluidic Verna & XUV 500. Both

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IRACST – International Journal of Commerce, Business and Management (IJCBM), ISSN: 2319–2828
Vol. 6, No.3 May-June 2017

the design dominates the market as they launch. 4.7.1 CORPORATE LEVEL
However looking at the stable of Nissan with its plan to
launch with Nissan Teana, X-Trail & 370Z it will At corporate level NISSAN GLOBAL should focus on
always remain a tough game for any player. its Indian subsidiary because location of India can be
proved a best place for a company’s global strategy.
Actual Force: Change in Customer Taste Considering, starting R&D base here, redirecting
component suppliers, exporting components to other
Impact: Low
countries etc. is much more economical in Indian
subcontinent which NISSAN can use for its benefit
4.5.3 POLICY CHANGES with slight change in corporate strategy. In short,
NISSAN along with its alliances and partner
Any policy change by government of India will RENAULT can use the potential of India in a holistic
have direct impact on NMIPL. way to become a major market holder in Indian
Automobile industry.

Actual Force: Change in economy. 4.7.2 BUSINESS UNIT LEVEL

Impact: Very High At business unit level, NMIPL should focus on two
heading:-
4.5.4 OVERALL IMPACT: VERY HIGH
1. Cost Advantage
Despite the high concentration ratio seen in the
automotive sector, rivalry in the Indian auto sector is 2. Differentiation
intense due many factors listed along. The industry
rivalry is extremely high with any being product being By applying these strategies in Narrow and Broad way
matched in a few months by the competitors. This it will lead to three different strategies:-
instinct of the industry is primarily driven by technical
capabilities acquired over years of gestation under the 1. Cost Leadership
technical collaboration with international players.
2. Differentiation
4.6 ACTUAL FORCES BEYOND PORTER’S 5
FORCES 3. Focus

4.7.3 FUNCTIONAL LEVEL


Following diagram provides a pictorial view of the
actual forces which drives the Porte’s 5 forces. Very Functional level of organization is the level of operating
Inner circle corresponds to rivalry from all the factors. divisions and departments. Functional level strategies
Second Circle depicts the Porter’s 5 forces applicable involve the development and coordination of resources
on a form rivalry. Third circle from inside shows through which business unit level and corporate level
various drivers which push these five forces and intense strategies can be executed efficiently and effectively.
the rivalry. The outermost circle uncovers the actual
forces which impact the competition of NISSAN In case of NMIPL, it should focus on following
MOTORS INDIA PVT LTD. and are actually functional level strategies:
responsible for competition to NMIPL in the industry.
¾ On building more plants, R&D departments,
4.7 NISSAN INDIA FUTURE’S STRATEGY export hub etc in India which can lead to MES.

Nissan India looking at the competition should develop ¾ Providing substitutes within in its product line
its strategy at three levels. so that customer can stick to same brand.

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IRACST – International Journal of Commerce, Business and Management (IJCBM), ISSN: 2319–2828
Vol. 6, No.3 May-June 2017

¾ To devise new distribution channel matching ¾ Increase the forward integration as a company
with requirement of customer and pace of in itself would be directly dealing with the
industry customers.

¾ Adopting futuristic means of communication


5.2 A CAR WHICH IS NOT JUST A CAR
to be at par with competition.
Usually a car has been utilized for travelling purpose
¾ To optimize the localization of supplies since
and about 75% when it is standing idle in a garage or
high localization may lead to possible union or
parking there is no utilization of same. Considering the
new competitor which can impact NMIPL
same a car which can not only be utilized for travelling
adversely.
but can also fulfill other requirement of a human can do
wonder in the world. Few of the ideas are mentioned
5. BEYOND PORTER’S 5 FORCES
below –
Till now it has been discussed that a firms is bound by ¾ Car as an inverter or power generator for home
the various external drivers & forces which force a – By just plugging a socket in an idle standing
company to adopt certain strategy in order to sustain or car it will work like an inverter for your
compete in the market. However this sections throws complete house.
light on How can a firm like NMIPL overcome these
forces and adopt a strategy which makes itself a super ¾ Car as a microwave oven for kitchen –
attractive firm even in the adverse condition. Channelizing the heat which gets produce in a
standing car it can work like a microwave
5.1 CUSTOMIZE YOUR CAR & TAKE A oven for your kitchen.
TEST DRIVE ONLINE.
¾ Car as a movie theatre at home – Using front
Customizing your car before buying will allow and rear mirror for projection, speakers for
passenger to chose car based on their specific needs. It surround sound & convertible seats which can
is going to be as easy as ordering a dinner from a be transformed into comfortable sofa set for
restaurant. It will not only provide passenger to chose complete family can provide you an exact feel
their car but also completely vanish the need of visiting of a movie theatre.
a showroom to take a test drive. Customer will be free
to take a test drive at any time and any place of the IMPACT
world using an online interface which will match
exactly with real world scenarios. ¾ Competition to non-automobile industry.

¾ Multiple use of a car.


IMPACT

¾ Reduce the buying power of Customers upto a 5.3 CAR WHICH CAN REPAIR ITSELF

greater extent as now every car is very A car which can repair its part itself and never required
specific to customer. a service. Such cars can handle any impact on its body
& parts and even on getting an impact on same it can
¾ Completely Remove the Problem of handle them individually without any need of manual
Distribution Channel since neither any labor.
Distributor required nor any showroom.
IMPACT

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IRACST – International Journal of Commerce, Business and Management (IJCBM), ISSN: 2319–2828
Vol. 6, No.3 May-June 2017

¾ Complete Automobile Service industry will ™ Indian Automotive Industry: At the Crossroads
simply shutdown which is dependent on the by EXIM BANK
servicing of a car after sales.
™ The Indian Automotive Industry Evolving
Dynamics by KPMG INDIA

¾ Highly Competitive in market irrespective of ™ Determinants of Competitiveness of the Indian


any forces. Auto Industry by ICRIER

™ Indian Auto Industry the way forward by Sunil


Kakkar General Manager (Supply Chain) Maruti
6. BIBLIOGRAPHY Suzuki India Ltd

6.3 BOOKS
6.1 ONLINE RESOURCES
™ Strategy and business landscape by Pankaj
™ Nissan India: www.nissan.in Ghemawat.
™ Nissan Global: www.nissan-global.com

™ Live Mint:
http://www.livemint.com/2012/07/05170512/Rena
ultNissan-India-plans-to.html

™ Times Of India:
http://articles.timesofindia.indiatimes.com/2011-
11-18/india/30414640_1_metro-projects-dmrc-
model-project-report

™ SIAM India - SOCIETY OF INDIAN


AUTOMOBILE MANUFACTURERS:
www.siamindia.com

6.2 RESEARCHES & REPORTS

™ Indian Auto components Industry – A Report by


ICRA, March 2012

™ Indian Passenger Vehicle Industry – A Report by


ICRA, March 2011

™ Automotive Industry Analysis by Prof. Alan


Flury, December 5, 2005

™ Scope of Renualt-Nissan Alliance by Coventry


university London campus

™ Automotive Industry –by India Brand Equity


Foundation, Sep 2009

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