Scribd
Upload
3K views1 page

Porter Five Forces For Paint Industry

The document analyzes Porter's Five Forces model for the paint industry in India. It finds: [1] The threat of new entrants is low due to domination by big players and high capital requirements. [2] The bargaining power of buyers is high as customers are price sensitive and have many options. [3] The bargaining power of suppliers is medium as some raw materials have global supply shortages. [4] Competitive rivalry is low as the market growth provides opportunities for all players, though differentiation plays a role. [5] The threat of substitutes is low as wallpaper is the main alternative but substitution propensity is low.

Uploaded by

Akshay Pokharkar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
3K views1 page

Porter Five Forces For Paint Industry

The document analyzes Porter's Five Forces model for the paint industry in India. It finds: [1] The threat of new entrants is low due to domination by big players and high capital requirements. [2] The bargaining power of buyers is high as customers are price sensitive and have many options. [3] The bargaining power of suppliers is medium as some raw materials have global supply shortages. [4] Competitive rivalry is low as the market growth provides opportunities for all players, though differentiation plays a role. [5] The threat of substitutes is low as wallpaper is the main alternative but substitution propensity is low.

Uploaded by

Akshay Pokharkar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Akshay Pokharkar

18BSP2199

• Porter’s Five Forces Model

➢ Threat of New Entrants


• Paint market in India is dominated by few Big players, making it difficult for anyone
to newly entering the industry to compete
• Working capital needed is high causes difficulty to local players and big
firms(Nippon Paints,Asian Paints, Berger Paints, Nerolac etc ) enjoys economies of
scale
• Threat of new entrants is Low

➢ Bargaining power of Buyer’s


• Household and industry users are main customers
• Customers are Price sensitive because for them no of options available and decisions
are made on quality , price and differentiating factors.
• Bargaining power of customer is High

➢ Bargaining power of Supplier


• Over 300 Raw materials make the final product
• Some raw materials has global supply shortage , thus supplier of this material has
solid bargaining power.
• Bargaining power of supplier is Medium

➢ Competitive Rivalry
• Top competitor for Nippon – Asian , Berger , Nerolac , Akzonobel, Ameron
International Corporation
• Current market growth can provide ample room of opportunities for all the players
• All firms offering almost same features. Differentiation plays a vital role
• Competitive rivalry is Low

➢ Threat of Substitutes
• Another alternative for decorative wall paints available today is Wallpaper
• But buyers propensity to substitute is Low
• Threat of substitute is Low

You might also like