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    Tyre Industry Analysis

    Uploaded by

    RickMartin
    This document contains data on rivalry among competitors in various industries such as coal, steel, auto and analysis of their concentration ratios (CR4), HHI scores, prices, growth rates, and profits. It also discusses the structure, conduct and performance of these industries and contains strategic group maps of various segments in the tire industry in India from 2000-2005 showing companies' market shares and returns on assets. Finally, it outlines the three generic strategies of overall cost leadership, differentiation and focus as well as the skill sets required for each.

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    © All Rights Reserved
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    Tyre Industry Analysis

    Uploaded by

    RickMartin
    231 views14 pages
    This document contains data on rivalry among competitors in various industries such as coal, steel, auto and analysis of their concentration ratios (CR4), HHI scores, prices, growth rates, and profits. It also discusses the structure, conduct and performance of these industries and contains strategic group maps of various segments in the tire industry in India from 2000-2005 showing companies' market shares and returns on assets. Finally, it outlines the three generic strategies of overall cost leadership, differentiation and focus as well as the skill sets required for each.

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    Tyre Industry Analysis.pptx

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    This document contains data on rivalry among competitors in various industries such as coal, steel, auto and analysis of their concentration ratios (CR4), HHI scores, prices, growth rates, and profits. It also discusses the structure, conduct and performance of these industries and contains strategic group maps of various segments in the tire industry in India from 2000-2005 showing companies' market shares and returns on assets. Finally, it outlines the three generic strategies of overall cost leadership, differentiation and focus as well as the skill sets required for each.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    231 views14 pages

    Tyre Industry Analysis

    Uploaded by

    RickMartin
    This document contains data on rivalry among competitors in various industries such as coal, steel, auto and analysis of their concentration ratios (CR4), HHI scores, prices, growth rates, and profits. It also discusses the structure, conduct and performance of these industries and contains strategic group maps of various segments in the tire industry in India from 2000-2005 showing companies' market shares and returns on assets. Finally, it outlines the three generic strategies of overall cost leadership, differentiation and focus as well as the skill sets required for each.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 14

    Moving ahead of industry

    analysis..

    Rivalry Among Existing Competitors


    Al

    Coal

    Steel

    Auto

    CR4

    0.949 0.570

    0.813

    0.671

    HHI

    0.438 0.124

    0.238

    0.153

    Price/M 160
    T

    150

    90

    -----

    Ind.
    Growth

    4.8%

    14.5%

    14.3%

    18.0%

    Profits/
    Sales

    -0.16

    -0.80

    -0.33

    0.18

    BE/MT

    8.46

    28.59

    55.72

    -----

    AVC/M
    T

    63.36 20.82

    45.92

    -----

    Diff/Sal
    es

    0.014 0.010

    0.026

    0.051

    Numerous or equally
    balanced competitors
    Slow growth industry
    Low profitability

    High fixed costs (Breakeven)


    Lack of differentiation or
    switching costs
    High exit barriers

    Structur
    e

    Conduct

    Performance

    Strategic Segments and


    Competitive Systems
    Technological

    Number of
    Differentiation Sources

    differentiation and
    brand loyalty

    Large

    Segmen
    t2

    Few
    (Price
    )

    Strong threat of
    Chinese and Korean
    imports and market
    maturity
    Segmen
    t1
    Low

    Segmen
    t4
    Segmen
    t3
    Towards mature
    market

    Segmen
    t5

    High
    Competitive Position

    Sales

    Strategic Group Map:2005


    MRF

    Large
    JK Tires

    Birla
    Tires
    Small

    TVS

    Apoll
    o

    Ceat

    Falco
    n

    Narrow

    Wide

    Tire
    Range

    Sales

    Strategic Group C.V. Tire


    (2005)
    MRF

    Large

    JK Tires

    Birla

    Small

    TVS

    No

    Apoll
    o

    Ceat

    Falco
    n
    Small

    Large

    Market
    Share

    Sales

    Strategic Group: 2/3 Wheeler Tire


    (2005)
    MRF

    Large
    JK Tires

    Apoll
    o

    Birla

    Ceat

    Small

    Falco
    n
    No

    Small

    TVS

    Large

    Market
    Share

    ROI and Strategy of Indian Tire


    Manufacturers (2000)
    Return on Sales
    (ROS)
    18
    %
    15
    %
    12
    %
    9%

    JK
    Tyres

    TVS

    Apollo
    Tyres

    MRF

    Ceat

    Falcon
    Tyres

    6%
    3%

    0.5
    %

    1%

    1.5
    %

    2%

    2.5
    %

    3%

    3.5
    % Asset
    Turnover

    ROI and Strategy of Indian Tire


    Manufacturers (2005)
    Return on Sales
    (ROS)
    18
    %
    15
    %
    12
    %
    9%

    JK
    Tyres

    Apollo
    Tyres

    TVS

    6%

    MRF

    Falcon
    Tyres

    Ceat

    3%

    0.5
    %

    1%

    1.5
    %

    2%

    2.5
    %

    3%

    3.5
    % Asset
    Turnover

    Strategic Groups- an example Of the Paper


    Industry

    Strategic Groups
    Firms within an industry differ
    systematically in traits other than
    size, so that industry contains
    subgroups of firms
    Firms within a group are somewhat
    homogeneous and recognize their
    mutual dependence.
    Barriers to entry become specific to
    the group-Mobility barriers.

    Three Generic Strategies


    Uniqueness perceived
    by customer

    Industr
    ywide

    Particula
    r
    Segment
    only

    Low Cost Position

    OVERALL COST
    LEADERSHIP

    DIFFERENTIATION

    FOCUS

    STRATEGIC ADVANTAGE

    S
    T
    R
    A
    T
    E
    G
    I
    C
    T
    A
    R
    G
    E
    T

    Skill sets required


    Overall Cost
    Leadership
    Sustained capital
    investment
    Process engineering
    skills
    Ease of manufacture
    Low cost distributing
    system
    Structured
    organization
    Incentives based on
    meeting quantitative
    targets

    Differentiation
    Strong R&D/marketing
    abilities
    Product engineering
    Reputation for
    quality/technological
    prowess
    Strong co-ordination
    among functions
    Subjective measures of
    incentives

    Struck in the middle

    Return on
    Investmen
    t

    [email protected]

    Market Share

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