MBA Project Report on Indian Pharmaceutical Industry

The Indian Pharmaceutical Industry (IPI) today is in the front rank of India’s science-base industries with wide ranging capabilities in the complex field of drug manufacture and technology.

Accounting for two percent of the world’s pharmaceutical market, the Indian pharmaceutical sector has an estimated market value of about US $8 billion. It’s at 4th rank in terms of total pharmaceutical production and 13th in terms of value. It is growing at an average rate of 7.2 % and is expected to grow to US $ 12 billion by 2010.

From simple headache pills to sophisticated antibiotics and complex cardiac compounds, almost every type of medicine is now made indigenously. The Indian Pharmaceutical sector is highly fragmented with more than 20,000 registered units. It has expanded drastically in the last two decades. The leading 250 pharmaceutical companies control 70% of the market with market leader holding nearly 7% of the market share. It is an extremely fragmented market with severe price competition and government price control. Custom Dissertation Help requires industry reports.

Over the last two years the pharmaceutical market value has increased to about US $ 355 million because of the launch of new products. According to an estimate, 3900 new generic products have been launched in the past two years. These have been by and large launched by big brands in the pharma sector. And in the year 2005 Indian pharmaceutical companies captured around 70% of the domestic market. With the Product Patent Act, which came into action in January 2005, this industry is able to attract big MNCs to India. Earlier these big firms had apprehensions in launching new drugs in the Indian market. <a rel=”nofollow” onclick=”javascript:ga(‘send’, ‘pageview’, ‘/outgoing/article_exit_link/5555656’);” href=”http://www.mbaprojectreport.net”><b>MBA Projects </b></a> require quality digital database.

As in the present scenario, only a few people can afford costly drugs, which have

increased price sensitivity in the pharmaceutical market. Now the companies are trying

to capture the market by introducing high quality and low price medicines and drugs.

At present, a large number of Indian pharmaceuticals companies are looking for tie-ups

with foreign firms for in-license drugs. Contract research and pharmaceutical

outsourcing are the new avenues in the pharmaceutical market. Contract manufacturing

is growing at a very fast pace and is estimated to grow to US $30billion, whereas

contract research is estimated to reach US$6-10 billion

Indian multinational companies like Dr.Reddy’s Lab, Cipla, Ranbaxy, Wockhardt etc have created awareness about the Indian market prospects in the international pharmaceutical market. Approvals given by Foods and Drugs Administration (FDA) and ANDA (Abbreviated New Drug Application)/DMF (Drug Master File) have played an important role in making India a cost-effective and high quality product manufacturer.

Furthermore, the changes that took place in the patent law, change of process patent to

product patent, have helped in reducing the risk of loss for intellectual property.

 

Major Uses of Collapsible Tubes in Pharmaceuticals Industry

The pharmacies are able to render for different tubes for packing the creams and ointments without any ease. In fact, there are lots of application are rendered to get the help of alumina collapsible tubes to buy for it. In addition, there are several advantages are able to specify by using those collapsible tubes to render for it. In fact, most of the industries are becoming high and render to get the effective tubes for packaging any creams and medicine in the form of collapsible tubes. There are lots of applications are maintained to get the plastic and other molded tubes are selling in the online with the help of collapsible aluminum tubes without any ease. Moreover, these collapsible tubes are contained with one or more polymers together with certain additives. They are manufactured for the pharmaceutical purposes and must be free from substances that can be extracted in significant quantities by the product contained forever.

 

Uses of Collapsible Aluminium Tubes

However, the collapsible tubes are manufactured with the help of nature additives and the services are expected from the container. For plastic containers in general, some of the additives are molded with antioxidants, antistatic agents, colors, impact, modifiers, lubricants, plasticizers, and other stabilizers. They are required to meet various purposes in selecting the right choice for rendering with alumina collapsible tubes forever. Fortunately, the suppliers of collapsible tubes are making progress in delivering the practical and other containers or dispense to merge within. They must consider the following things when they are supplying the collapsible tubes at affordable manner.

• Low in cost
• Low in weight
• Durable
• Pleasant to touch
• Flexible and long lasting
• Odorless
• Unbreakable
• No leakage of tubes

 

The entire collapsible tubes are manufactured with one suck options and make them to prevent higher dosage options. Hence, it can make them to dispensed with better results and squeeze them with little effects. There is no need for contamination of drugs and other hazardous substances to endorse within. Thus, these tubes are made up of several advantages or disadvantages when it consists of party level. Collapsible aluminium tubes are the perfect pharmaceutical tube because they prevent air contaminants and allow for maximum shelf life after opening.

Collapsible aluminum tubes are the best forms of pharmaceutical packaging materials as they are light weight and cost efficient. They help in improving the overall quality of packaging as they offer complete protection and also meet the expectations of the users.

Discipline in industry

Why discipline is important in industry? Discuss the code of Discipline in industry.

Introduction:- Discipline is very essential for a healthy industrial atmosphere and the achievement of organisational goals. Discipline in industry may be described as willing cooperation and observance of the rules and regulations of the organisation. Discipline is essential to a democratic way of life.

According to Brembless: ” Discipline does not mean a strict and technical observation of rigit rules and regulations. It simply means working, co-operating and behaving in a normal & orderly way, as any responsible person would except an employee to do”

Importance of Discipline in industry.

Discipline is the very essence of life. The goals or objectives of industrial discipline should be clearly stated.

  • To ensure that employers & employee recognize each others rights and obligations.
  • To promote constructive cooperation between the parties concerned at all levels.
  • To maintain discipline in industry.
  • To secure settlement of disputes & grievances by negotiation, cancellations voluntary arbitration.
  • To eliminate all forms of coercion violence in industrial relation.
  • To avoid work stoppages.
  • To facilitate the free growth of trade unions.
  • Respect for the human personality.
  • Management personnel should set high standards.

Discipline is the very precious step in life everywhere and every place. An industrial organisation is an organic whole in which a variety of forces act in union towards the attainment of its ultimate aims. Obviously, smooth and effective functioning demands a high degree of co-ordination among the various elements which from integral pacts of an organization. In an industry big or small manpower is the major factor. Manpower can be used effectively only if there is discipline in the industry. Maintain of discipline is a prerequisite for the attainment of maximum productivity not only of the workers but also of the whole nation. In this way discipline is important in industry.

Introduction:

InIndia, the problem of industrial discipline was debated by the Indian Labour Conference held in1957. in conference noted the record of discipline by employers & employees.  A sub-committee was appointed to draft a model code of discipline, which would be acceptance to all. Indian Labour Conference discussed 3 draft codes including:-

  • A ‘Code of Conduct’ to regulate inter-union relations.
  • A ‘ Code of Discipline’ to regular labour management relations.
  • A ‘ Code of Efficiency and welfare’ for laying down norms of  productivity and labour welfare. The four central organisation of labour then representing an Indian labour conference including (INTUC, AITUC, HMS, UTUC) agreed to comply with the code. The adoption of ‘code of discipline ‘ was announced in June 1958.

Importance of code of discipline in industry.

To maintain discipline in industry the main objectives of code are:-

  • Maintaining peace and order in industry.
  • Recognize the rights and responsibility of each other.
  • It prohibits strikes and lock-outs.
  • Facilitating a free growth of trade unions.
  • Settlements of disputes
  • Unionwill discourage of duty damage to property, careless operation in subordination and other unfair labour practices on the part of workers.
  • Avoiding work stoppages in industry.

Thus the code of discipline consists of three sets of principles – Obligation to be observed by management, obligation to be observed by trade unions.

Code of discipline has been helpful in improving industrial relation in the country. The code of discipline is a major step in establishing orderly atmosphere in the industrial unit.

China Pharmaceutical Industry: Analysis And Market Trends

The domestic pharmaceutical market is highly fragmented and inefficient. China, as of 2007, has around 3,000 to 6,000 domestic pharmaceutical manufacturers and around 14,000 domestic pharmaceutical distributors. Most often cited adverse factors include a lack of protection of intellectual property rights, a lack of visibility for drug approval procedures, a lack of effective governmental incentives, poor corporate support for drug research and differences in the treatment in China accorded to local and foreign firms.

Even so, the industry environment has been transformed for the better over the last 10 years. Entry to the WTO has brought a stronger patent system, medical insurance is now more widespread, and pharmaceutical-related regulations have been stiffened. China is reportedly expected to become the fifth largest pharmaceuticals market in the world by 2010.

Currently China has about 3,500 drug companies, falling from more than 5,000 in 2004, according to government figures. The number is expected to drop further. The domestic companies compete in the $10 billion market without a dominant leader. As of 2007, China is the world’s ninth drug market, and in 2008 it will become the eighth largest market.

China’s thousands of domestic companies account for 70% of the market, and the top 10 companies about 20%, according to Business China. In contrast, the top 10 companies in most developed countries control about half the market. Since June 30, 2004, the State Food and Drug Administration (SFDA) has been closing down manufacturers that do not meet the new GMP standards. Foreign players account for 10% to 20% of overall sales, depending on the types of medicines and ventures included in the count. But sales at the top-tier Chinese companies are growing faster than at Western ones.

This report examines the Chinese Pharmaceutical Industry from the basics onwards. The report focuses on the WTO accession of China and the impact it has had on the Chinese pharmaceutical industry, trends in the industry, competition in the industry, etc.

The report also analyzes the Chinese pharmaceutical industry through a SWOT analysis and a PEST analysis. The report looks at the investment scenario in the Chinese pharmaceutical industry and the role of the government in the industry and other factors.

A look at the top market players in the Chinese pharmaceutical industry completes this research report.

Table Of Contents :

Executive Summary 4

Global Pharmaceutical Industry Introduction 5
Industry Definition 5
Market Overview 5
Market Forecast 8

China’s Pharmaceutical Industry 9
Industry Definition 9
Industry Overview 9
Industry Segmentation 10
Competitive Scenario 10
Growth Factors Affecting the Industry 12
Issues Facing the Industry 13

Analysis of China’s OTC Pharmaceutical Market 15
Market Definition 15
Market Overview 15
Market Segments 15
Competitive Scenario 16
Sector Forecast 18

Analysis of China’s Generics Market 19
Market Definition 19
Market Overview 19
Market Segments 19
Competitive Scenario 20
Sector Forecast 21

Analysis of the Major Market Trends 23

SWOT Analysis of China’s Pharmaceutical Industry 26
Strengths 26
Weaknesses 26
Opportunities 26
Threats 27

PEST Analysis of China’s Pharmaceutical Industry 28
Political Features 28
Economic Features 29
Social Features 30
Technology Features 31

Investing in China’s Pharmaceutical Industry 33
Distribution Systems 33
Hospitals vs. Pharmacies 34
OTC Sector 35
Drug Pricing Policy in China 36
Market Consolidation 37
Outlook for Sector Investment 38

Chinese Pharma’s Contract Research Services 41

Outlook of Chinese Pharmaceutical Industry 44

Major Players in the Industry 47
AstraZeneca PLC 47
Beijing Double-Crane Pharmaceutical (DCPC) 50
Beijing TongRenTang Co., Ltd. 50
GlaxoSmithKline Plc 51
Northeast Pharmaceutical Group (NEPG) 52
Pfizer Inc 52
Sanjiu Medical and Pharmaceutical Co. Ltd. (SMPCL) 53
Shanghai Pharmaceutical Co. Ltd 54

Appendix 55

Glossary 58

List of Figures & Tables

Figures

Figure 1: Drug Market Trends (1998-2008) 44
Figure 2: Healthcare Expenditure Trends (1998-2007) 55
Figure 3: National Income & Drug Market Expenditure 56
Figure 4: OTC and Hospital Sourced Drug Market Trends, $bn (1998-2008) 56
Figure 5: Generics Market Trends (1998-2008) 57

Tables

Table 1: China OTC Pharmaceuticals Market Segmentation – Value, 2007 15
Table 2: China OTC Pharmaceuticals Market Segmentation on a Global Scenario – Value, 200716
Table 3: China OTC Pharmaceuticals Forecast in U.S.$ 18
Table 4: China Generics Market Segmentation – Value, 2006 19
Table 5: China Generics Market Segmentation on a Global Scenario – Value, 2006 20
Table 6: China Generics Market Value Forecast in U.S.$ 22
Table 7: China Drug Market Indicators 55
Table 8: Health Expenditure Indicators 55

Industry analysis Outsourcing

Industry analysis, as the name suggests, is a criteria to assess the present and prospective performance of an organization. This not only helps you in ascertaining your actual position, but also gives the owners an idea to compare their activities with their competitors in the same field. When things get unmanageable, it is always a better choice to get your services outsourced. Industry analysis outsourcing relates to getting your analysis and evaluation done from the expertise at lower costs.

A fresh businessman can find it difficult to assess the threats, opportunities, strengths and weaknesses of its company. Further, he may not be in a stage to hire employees at higher costs in the initial stages. This is where, outsourcing comes in picture. You can analyze social, economic and political factors which may affect the business in the long- run. Industry analysis is concerned with assessing how profitable the industry is in which they deal. Various industry forces for industrial analysis are mentioned as follows:

2.Ease of entry

Ease of entry describes whether it is going to be easy for the competitive firms to enter new markets or not. If it is hard to enter new industries due to market barriers, it is going to benefit the present industries as the chances of competition will be reduced.

3. Power of Suppliers

Suppliers can enjoy negotiable powers in the presence of limited suppliers in the respective line. They can establish cordial relationships between the buyer and organization by delivering qualitative products and services at reasonable rates.

4.Power of Buyers

In contrast, bargaining power rests in the hands of buyers as well. It can happen when strong buyers can put huge pressure on the business by asking for qualitative products at competitive prices.

5.Availability of substitutes

In order to earn potential gains, it is necessary to create a competitive advantage by offering substitutes for the same line of products at reduced costs. However, the strategy to differentiate one product with another can add to increase the demand for products/

4.Competitors

It is always the best idea to outstand the rivals by creating strategies which they can’t imitate. Competitiveness can be seen with respect to pricing mechanism, promotional activities, product innovations and enhanced customer services.

If these industrial forces are controlled and managed efficaciously, it is going to benefit your firm indeed. This analysis can be carried out efficiently, only in the presence of experienced and qualified professionals. In order to get the best outsourcer, a deep research should be made to identify, evaluate and analyze their past and current records of performance. It should be noted that they conduct industry analysis in the least possible time. However, the provision of outsourced services will depend on the type of industry you are in.

How to find Gift Best Industrial Tool

Each Christmas season, there dependably is by all accounts that one individual on our rundown who is verging on difficult to search for. At the point when that individual is a handy man, the issue is intensified by the way that they appear to possess each tool possible. What could be left to purchase them that they don’t as of now have? There are a ton of superb industrial products that make incredible presents, notwithstanding for the individual who appears to have everything. Garments are a typical gift around the occasions. A tough, solid arrangement of garments is a down to earth gift that will keep its beneficiary safe at work.

Finding it Online:

The greater part of the top online industrial supplies entrances declare normal rebates and offers for the better advantage of clients. There are occasional offers on chose things. This makes a longing in the client to shop again with them as they are getting the best at a low cost. They give same day shipping taking into account certain criteria. Online installment is conceivable.

The Tools to Pick:

The door supply convenient mass trucks which are required for different industrial use. You can browse a differed range contingent upon parameters such as sorts, sizes, styles and shapes. The material utilized can be chosen from plastic, vinyl, cotton and steel. You can look over a differed scope of hues according to your enjoying. Materials like polyurethane are useful for simple cleaning. You can pick either a pivoted top or sliding cover according to your need. You get ones with entryway locks which are great if you have to store and transport things. The ones with solid steel base are sturdier. Picking a rust proof truck is essential. Guarantee that the materials utilized are affirmed to meet FDA norms. A bed truck is utilized to straightforwardness development of a substantial load and stuffed merchandise. It is useful for lifting slips, plastic beds and wire wicker bin. You can settle on erosion safe material.

Bundling gear incorporates strapping supplies, stretch wrap gadgets, tape distributors, tapes and bundling truck which store all that you have to wrap. Shipping boxes are utilized for transporting products starting with one place then onto the next. They come in different shapes relying upon the reason you require it for. There are telescopic boxes, square and ridged boxes in different sizes, twofold divider compartments, side stacking boxes and froth lined containers to convey risky materials with notice data.

Top Products:

You can browse different producers who give top online industrial supplies such as baileigh tools. You can discover online that give a rundown of brands and the products they offer. You can even purchase online through these entrances by online installment. With the constantly developing natural concerns it is ideal to purchase from organizations who give earth amicable products. It is best to do some examination on the sort of products every brand gives, know their general image picture, check for audits and affirm if the products meet certified item principles.

The Uses for LPG

Liquefied petroleum gas, also called LP gas, has many different uses. It has been around since the discovery of fossil fuels, but commercial products did not come into use until 1912. The most efficient and common way to find LP gas is stored in steel cylinders. These cylinders are oftentimes sized and developed for specific uses, such as agriculture, hospitality, construction, sailing, heating, cooking, and automobiles. LP gas cylinders are constantly being updated to new safety standards. As a very volatile flammable gas, it poses obvious dangers.

Cooking

LP gas is used for cooking mainly in developing nations and in rural parts of developed nations. It is convenient to transport and does not rely on a perhaps unreliable grid system. In many nations, the local or national government supplies and/or subsidises the LP gas tanks.

In many parts of the western world, it is not quite as common for indoor cooking. Many people have municipal natural gas piped to their houses for that purpose. However, it is very common for outdoor cooking. LP gas grills are one of the most common ways to grill food in many areas. Some prefer charcoal, but LP gas offers an ease of use and consistency that is unmatched.

Heating

In rural parts of several different countries and in many different parts of Europe, LP gas is an alternate heating source besides kerosene or electricity. In areas that do not have municipal access to natural gas, it is very popular. It’s also popular, because it does not rely on a grid system, which makes it ideal for those who want to keep a lower profile. Also, it works well for areas that are prone to natural disasters, which require shutting off the municipal natural gas or interruptions in electrical service.

In addition to using the gas itself as a heating source through burning it, it can be used for a combined heat and power application. These are generators that run on LP gas. They create electricity, which can then be used to power many different devices, including heaters. It’s incredibly important when buying and storing LP gas that you buy from one of the reputable LPG suppliers in Sydney. You must make sure that you buy from the best, because safety is a number one concern.

Autogas

Autogas differs from industrial and cooking applications of LP gas. Typically, LP gas for running forklifts and gas grills is mostly propane. In some areas, it can be as much as 99.99% propane. However, autogas is slightly different. It features a mixture of propane and butane for stability purposes. That’s because propane and butane both act differently at different temperatures, and one needs to have a stable mix in the vehicle for consistent performance. LP gas burns much cleaner than petrol or diesel, but it does not have as high of an octane rating. That means that it is fairly clean, but you will have to consume more fuel by volume. LP gas has not become a very common automobile fuel yet because it is best served by industrial and cooking applications.

 

Working In The Fashion Industry

Working in the fashion industry:

When you work in the fashion industry you get golden invites to a lot of exclusive events with all the stars and usually get to party fabulous with all the great drinks and bubbly champagne because a party is not a party without a specialty drink. In the fashion industry, they have the head of marketing and PR and they usually develop friendships with flower shops, major magazine companies, boutiques, salons, clothing stores and everything and every place, etc.

The fashion industry deals with models, make-up, fashion and style. They have editors and editors-in-chief just to make sure that everything is where it’s supposed to be which is supposed to be a personification of over the top glamour. They also have assistants and other workers that make-up guest lists for events and have event designers, and designers of all kinds and all stars.

Note: When working in the fashion industry, there are no tears in fashion, and gum chewing is definitely unacceptable which is considered to be very unprofessional and you must always keep yourself groomed at all times and really pay close attention to your appearance.

Fashion week: Fashion week always kicks into high gear.

However, there are many benefits while working in the fashion industry, especially if you work for a major magazine company, you get a lot of free stuff that designers send over to the company and goodie bags, and you get to score a lot of fun stuff and tickets to get into events and backstage passes, you even get a press pass for every beauty event there is in order for you to interview the models and the models on the come up just so you can write a piece and an article for your job and including for fashion week and if you’re a fashion intern, you get to live in one of those fabulous loft apartments depending on the location you came from or your job location.

Know this: When you’re in the fashion industry, you end up having a clear understanding of how you can add fashion into your life. I myself is a person who really lives for fashion and style and I call myself a true fashionista and knowing what and what not to wear just like the show on TLC.

In those fashion jobs, they usually have the wardrobe closet with all of those fashion samples that you can test out and you get to go backstage to talk to the models because in fashion, you must always work hard by trying no to mess up, but at the same time, be able to take constructive criticism without any fuss or tears because know one wants to have a cry baby on staff.

Fashion week: When fashion week looms in, fashion week is almost like looking into a crystal ball.

When first getting a job in fashion: The first day on the job is kind of an intense time to be late, so you must always keep on with communication at all times whether you’ll be late or not which shows responsibility on your behalf and be happy with the work and the position that you get because it’s considered a great opportunity with benefits that are great, no girl could possibly say no.

Now a fashion assistant does all the shopping and picks up the outfits and accessories for the necessary shoots and the beauty snoops are the ones who do the on the fly interviews, checks out what’s new on the market and acting as an insider without anyone else really knowing about them, they usually create a story that is writeable with enough information that their bosses can read and always have to put the clothes neatly in the bag after picking up the outfits and accessories and if you’re an intern on an internship in the fashion industry, it’s all about learning to become the best.

Now there’s a lot of competition in the fashion industry because it’s really tough and you need to be more thick skinned than what you really are. One of the most important things in the fashion industry is to have a party weeks before fashion week and need to make sure they have enough stars and celebrities at their parties for the purpose of the press.

And last, but not least, when working in the fashion industry, you must be capable of handling a job and meeting deadlines by completing every job successfully with a lot of confidence within yourself because at the end of the day or week, you’ll be rewarded for all of your hard work with all of those fabulous items and goodies which is the best.

Present Day Film industry

The major business centers of film making are concentrated in the United States, India, Hong Kong and Nigeria. 1).UNITEDSTATES The United States has the oldest film industry(and largest in terms of revenue), and Los Angeles, California is the primary nexus of the U.S. film industry. However, four of the major film studios are owned by East Coast companies. Only The Walt Disney Company and owner of Walt Disney Pictures, Touchstone Pictures, Hollywood Pictures, Miramax Films, and the Pixar Animation Studios is actually headquartered in Southern California. The same can be said for Sony Pictures which is headquartered in Culver City, California, although the corporate side of Sony Pictures is headquartered in Tokyo, Japan. 2).INDIA The Indian film industry is multi-lingual and the largest in the world in terms of ticket sales and number of films produced. The industry is supported mainly by a vast film-going Indian public, and Indian films have been gaining increasing popularity in the rest of the world—notably in countries with large numbers of expatriate Indians. One third of the Indian film industry is mostly concentrated in Mumbai (Bombay), and is commonly referred to as “Bollywood” as an amalgamation of Bombay and Hollywood. The remaining majority portion is spread across west and south India (in Marathi, Tamil, Malayalam, Kannada and Telugu speaking areas). However, there are several smaller centers of Indian film industries in regional languages (apart from Hindi, Marathi, Telugu, Tamil and Malayalam) centered in the states those languages are spoken. Indian films are made filled with action, romance, comedy, dance and an increasing number of special effectsIndia is the world’s largest producer of films, producing close to a thousand films annually.[1][9] About 600 of the total films produced are in Telugu and Hindi, approximately 300 each, while the remaining are in other languages.[9] However, Hindi films account for about half of the total revenue generated by cinema in India.[9] The provision of 100% foreign direct investment has made the Indian film market attractive for foreign enterprises such as 20th Century Fox, Sony Pictures, and Warner Bros.[10] Prominent Indian enterprises such as Zee, UTV and Adlabs also participated in producing and distributing films. deals4now.com 3).HONG KONG Hong Kong is a filmmaking hub for the Chinese-speaking world (including the worldwide diaspora) and East Asia in general. For decades it was the third largest motion picture industry in the world (after Indian and Hollywood) and the second largest exporter of films.[citation needed] Despite an industry crisis starting in the mid-1990s and Hong Kong’s return to Chinese sovereignty in July 1997, Hong Kong film has retained much of its distinctive identity and continues to play a prominent part on the world cinema stage. 4).NIGERIA Nigeria was ushered into modern film making by a film known as Living in Bondage, which featured Kenneth Okonwo, Kanayo. O. Kanayo, Bob Manuel Udokwu, Francis Agu, Ngozi Nwosu, Nnena Nwabueze, etc. This movie, which hit the market in 1992, marked a turning point in the Nigerian movie industry and heralded the trend in modern-day movie making in Nigeria. Watch the movies and get the fun of them and relax yourself from your work. One of the site about film industry in India at

The major business centers of film making are concentrated in the United States, India, Hong Kong and Nigeria.

1).UNITEDSTATES

The United States has the oldest film industry(and largest in terms of revenue), and Los Angeles, California is the primary nexus of the U.S. film industry. However, four of the major film studios are owned by East Coast companies. Only The Walt Disney Company and owner of Walt Disney Pictures, Touchstone Pictures, Hollywood Pictures, Miramax Films, and the Pixar Animation Studios is actually headquartered in Southern California. The same can be said for Sony Pictures which is headquartered in Culver City, California, although the corporate side of Sony Pictures is headquartered in Tokyo, Japan.

2).INDIA

The Indian film industry is multi-lingual and the largest in the world in terms of ticket sales and number of films produced. The industry is supported mainly by a vast film-going Indian public, and Indian films have been gaining increasing popularity in the rest of the world—notably in countries with large numbers of expatriate Indians. One third of the Indian film industry is mostly concentrated in Mumbai (Bombay), and is commonly referred to as “Bollywood” as an amalgamation of Bombay and Hollywood. The remaining majority portion is spread across west and south India (in Marathi, Tamil, Malayalam, Kannada and Telugu speaking areas). However, there are several smaller centers of Indian film industries in regional languages (apart from Hindi, Marathi, Telugu, Tamil and Malayalam) centered in the states those languages are spoken. Indian films are made filled with action, romance, comedy, dance and an increasing number of special effectsIndia is the world’s largest producer of films, producing close to a thousand films annually.[1][9] About 600 of the total films produced are in Telugu and Hindi, approximately 300 each, while the remaining are in other languages.[9] However, Hindi films account for about half of the total revenue generated by cinema in India.[9] The provision of 100% foreign direct investment has made the Indian film market attractive for foreign enterprises such as 20th Century Fox, Sony Pictures, and Warner Bros.[10] Prominent Indian enterprises such as Zee, UTV and Adlabs also participated in producing and distributing films. deals4now.com

3).HONG KONG

Hong Kong is a filmmaking hub for the Chinese-speaking world (including the worldwide diaspora) and East Asia in general. For decades it was the third largest motion picture industry in the world (after Indian and Hollywood) and the second largest exporter of films.[citation needed] Despite an industry crisis starting in the mid-1990s and Hong Kong’s return to Chinese sovereignty in July 1997, Hong Kong film has retained much of its distinctive identity and continues to play a prominent part on the world cinema stage.

4).NIGERIA

Nigeria was ushered into modern film making by a film known as Living in Bondage, which featured Kenneth Okonwo, Kanayo. O. Kanayo, Bob Manuel Udokwu, Francis Agu, Ngozi Nwosu, Nnena Nwabueze, etc. This movie, which hit the market in 1992, marked a turning point in the Nigerian movie industry and heralded the trend in modern-day movie making in Nigeria.

Six Sigma And Lean For The Pharmaceutical Industry

This is because Six Sigma aims at minimizing variation in products and processes, and Lean Manufacturing aims at eliminating manufacturing waste.

Possible Areas for Implementation:

-Research and Development

The Research and Development process is the most important process in pharmaceutical companies and forms a major part of costs. The Lean concept is desirable in this scenario to understand the critical processes to new drug development, and to research and streamline existing ones.

It is important to have these objectives to reduce drug failures, effect maximum utilization of resources, and increase productivity and optimum utilization of staff and other resources.

-Cycle Times

Increased cycle times are major factors affecting the timely manufacture, supply and launch new drugs. The earlier companies can take advantage of this market situation ultimately means the difference between success and failure of the product.

Value stream mapping and process modeling concepts of Lean Manufacturing and Six Sigma can help in reducing cycle times and operational costs, in addition to increasing the efficiency of processes as well as staff.

-Defects

Any defects with respect to drugs would be a big blow to any pharmaceutical company. Lean concepts such as DFSS can help, as they utilize tested scientific tools and statistical tools that help reduce the cost of human errors.

Companies can use advanced tools to conduct quality analysis, yield analysis, cost comparison of jobs, risk assessment and comparison of manufacturing processes at different sites.

Rewards of Six Sigma

The Lean transformation has to happen at the operations and management levels, as well as in the behaviors towards customer focus and consistent mission statement and values. Six Sigma teams should endeavor to change momentum in their organizations.
Six Sigma training cannot be ignored; a comprehensive strategy towards training needs at multiple points in the transformation to Lean means achieving stronger organizational skills throughout top management and other staff members.

In the transition to Lean Six Sigma, IT plays a very important role towards continual improvement. The complex pharmaceutical manufacturing structure requires flexible and interoperable IT systems. Systems should be in place that enable data mining and analysis quickly, accurately and efficiently. The data will then be more reliable.

With unduplicated data, the information recovered becomes the driving force in decision-making, as well as in lowering administrative costs. For example, if a batch of drugs released is defective, a reliable IT system can provide data towards the locations to which it has been dispatched, as well to find out where the defect may have originated. With more dependence on automated checks built into the system, quality results are achievable.

This enables rapid analysis and design changes for the improvement of operating efficiency and compliance. Last but not least is the utilization of real-time demand driven sales, which helps reduce inventory and its carrying costs before product expiration.

The Six Sigma and Lean approach to the pharmaceutical industry has possibilities for implementation. Though not the easiest, its implementation can definitely reduce costs, process errors and product defects.

Competency Model for Restaurant Industry Professionals, Making a Win-Win Situation

In order to recognize professional brilliance in restaurant business, the National Restaurant Association Educational Foundation announced the first-ever “Food and Beverage Service Competency Model” to recognize best budding employees and the expertise needed to outshine. It covers positions from every industry, from food server to kitchen handler and senior executives and highlights the skills and abilities to manage Restaurant Booking Systemsto grow higher in the profession. In 2015, greater branding challenges for restaurant businesses involving food and beverage services will make transparency in food management & to make a reach out to farther locations to grab more employment to the restaurant industry along with a growth in economic rate.

This model was being developed in association with the U.S. Department of Labor and kept on its CareerOneStop site. The development of competency model initiated in June 2014 and was backed by the required funds by NRAEF, Bill & Melinda Gates Foundation, ACT Foundation, Joyce Foundation and Lumina Foundation for Education. The inputs and guidance was provided by the industry leaders, like restaurateurs, senior executives and other key resources.

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The competency model is the one among other 23 models for industry like aerospace, health care, building & construction and innovative manufacturing. It helps potential workforce to identify what is needed in order to achieve professional excellence.

Rob Gifford, executive vice president of strategic operations and philanthropy for the National Restaurant Association and the National Restaurant Association Educational Foundation (NRAEF) said – “This model profiles the employability and technical skills essential to achieving life-long career success in the industry.” “Our objective was to create a state-of-the-art, sustainable model specific to the restaurant and foodservice sector, and chart the pathways to career success afforded by the industry.”

Steve Kramer, an NRAEF spokesman said – the model will help job trainers and instructors alike when planning educational and skill training programs, and in the development of curriculum for use at the secondary and post-secondary school levels.

He added, “It will serve as a foundation for skills-building.” “It will help instructors and trainers teach students and employees the skills they need to get placed and advance. It also will help hiring managers to judge skills and ability. They will be able to use it as a score card showing that candidates interviewing for jobs actually have the experience that make them good fits for the positions.”

This model is a game-changer for our industry.” “We are now among dozens of American industries with a systematic and cohesive way of looking at the workforce. Our industry built that for itself,” – said Mr. Kramer.

How Economic Factors Affect The Aviation Industry

Introduction

The aviation industry is particularly susceptible to external economic factors because it affects and depends on a substantial number of industries. Also, because the industry involves operating between borders, then economic factors from other parts of the world other than the domestic market also affect it. Issues such as fiscal policies (both within and without the countries of destination), wage inequality and positive and negative externalities have a way of changing operations within this industry.

How shifts and price elasticity of supply and demand affect the aviation industry

Supply and demand price elasticity of airline carriers may vary depending on the nature of the industry. For new and emerging industries such as the Indian aviation sector, then price elasticity of demand and supply is near perfect. The number of carriers being added into their markets are largely affected by the nature of demand for the commodity the country underwent rapid economic growth in the late nineties thus setting the stage for a shift in the country’s business arena. Many people within India had a renewed need for utilizing aviation services because of internationalizing their businesses. This demand for the commodity led to rapid expansion within the sector and increasing numbers of carriers. (Keller & Buttler, 2000)

However in traditionally developed countries such as the US, supply has exceeded demand. Consequently, air tickets go for much lower prices than they should. Besides that, aircrafts are reducing their capacity to cope with decreasing demand for the service. They are even trying to cut down on labor costs so as to cope with this low demand in the service. This also makes it very difficult for new entrants to do well in the industry and severely impedes their success. (Doganis, 2002)

Effect of positive and negative externalities

One of the major positive externalities that one has to consider when examining the aviation industry is its effect on the economy. Many experts have asserted that the aviation industry has numerous effects on the GDP of the country under consideration. For instance, a carrier provides employment to a substantial percentage of its country’s unemployed. This means that the aviation industry reduces unemployment rates. Also, it boosts the tourism sector and the hospitality industry in general.

The aviation industry has the capability of exposing a certain country to new markets. The overall effect of this is an increase in the following

  • Trade improvement
  • Business efficiency
  • Increasing number and quality of growth sectors
  • Boosts investments
  • Improves other aspects of the economy

It should be noted that there are some negative externalities as well. Top on this list is environmental emission. The aviation industry utilizes the highest amount of fuel in the transport sector. Consequently, it is also responsible for the rising amount of carbon emissions into the atmosphere. This is the reason why many governments have passed laws intended on regulating the quantity of emissions emanating from aircrafts. The UK has been very keen on these factors, as they have passed stringent laws to curb excess emission. The country has established carbon limits for the industry and those who stay within their limits can sell their carbon balances (virtually not literally) to other airline companies that fail to stay within their limits. This goes a long way in encouraging airline operators to operate within their limits thus causing them to substantially reduce their output of harmful emissions.

Aircraft companies are responding to increasing concern for environmental sustainability by changing the designs of the engines. Due to technological changes, many carriers can now access engines that use as much as seventeen percent less fuel than they did in the past. On top of this, it is now possible to create aircrafts that encourage laminar flow thus utilizing less fuel. However, these technological changes do not come with a price. Most of the airlines that have embraced these changes have had to dig deep into their pockets to accommodate those changes. (Keller & Buttler, 2000)

Another aspect that is instrumental to the aviation industry is the issue of terrorism. The airline industry is particularly vulnerable to this issue owing to the fact that an aircraft transports a large number of passengers. Consequently, terrorists who want to attract the attention of the world can easily do so through this avenue. On top of that, aircrafts usually carry a multicultural mix of clients and it is therefore possible to communicate to variable governments through the airline industry. Airlines provide the means that enable potential terrorists to enter target countries. The worst incident in this regard is the September 11 attacks. After this incident, the US government decided to beef up its security measures in all entries into their country especially the airports. The airline industry was affected by this because they were the ones that had to cover costs of these improved security measures.

Another externality affecting the aviation industry is the issue of noise regulation. Airports are known for their noise because aircraft engines have to burn a lot of fuel in order to take off from their respective destinations. The consumption of fuel energy has to be countered by another form of energy i.e. sound. This is what constitutes that heavy noise. Many airports built near residential areas have a tendency of disrupting lives in residential areas. This is especially so during nighttime. Consequently, airlines have had to purchase aircrafts that make less noise during take off or build their airports in areas that are far away from residential areas. Since noise is considered a source of pollution, government bodies have passed legislations to minimize that pollution. This is especially true in environmentally conscious states such as Britain. (Keller & Buttler, 2000)

Effect of monetary and fiscal policies

Taxes within any country have a direct bearing on the performance of domestic or foreign carriers. This is because whenever the government chooses to impose higher taxes on the industry, then these additional costs are carried forward to the consumer in terms of ticket prices. On the other hand, airline operators may choose to minimize their labor costs by reducing the number of employees that operate under their wing. (Doganis, 2002)

In the United Kingdom, the aviation industry fell victim to overall fiscal policies after government realization that the aviation industry was not taxed as duly as it should be. After institution of more stringent taxation laws within the aviation industry, it was found that the number of cargo operators went down. Similarly, UK passenger outputs drastically reduced.

The airline industry is also particularly vulnerable to charges made by government bodies. These include issues such as air traffic control charges and track access charges. Most of the costs incurred with regard to the type of scheme under consideration have affected the aviation industry negatively since these contribute to higher production costs.

Countries in which airline companies are operated by the government tend to under-perform. These carriers are not susceptible to market forces and passengers have very little say in the sector. However, when governments decide to liberalize their aviation industries, then this creates a very positive impact upon airline operators. It encourages privately owned airlines who compete on the basis of their quality of service rather than on monopolistic forces.  A perfect example of such a fiscal policy was in the Asian continent in India specifically. India made the choice to liberalize their aviation industry and hence witnessed tremendous growth within the sector. The country now boasts of seventy-five percent share attributed to private carriers. It has also grown by a whooping twenty percent this year. (Doganis, 2002)

The amount of infrastructural investment within the aviation sector has a  substantial effect on the performance of the industry. For instance, if the government makes large investments in infrastructural facilities that support airlines such as building more airports or improving the ones that exist, then chances are that such an industry will perform well. It should be noted that monetary policies are determined by governments and directly affect allocation of resources. This is the reason why infrastructural development is usually likened to government policy. Besides this, the government should also goes out of its way to ascertain that most of the infrastructure necessary to make the aviation industry successful is available for instance, building access roads to airports.

Wage inequality and the aviation industry

The airline industry has some characteristic wage inequality issues currently. Experts indicate that due to this wage inequality, the aviation industry has been recording negative performance in terms of employee turnover. Most of the employees affected by these inequalities tend to look for other alternatives outside of the aviation industry. Generally, workers are not happy with what they are making in the aviation sector and the situation is particularly evident in the United States.

Within the US, almost eighty percent of the employees in San Francisco’s airline industry get less than ten dollars per hour. These wage inequalities have caused the federal state to intervene in this situation. They have decided to pass legislations that would require air carriers to increase their minimum wage by a whooping thirty percent. (Doganis, 2002)

However, it should be noted that airline wage costs were deregulated by most western states. Consequently, wage payments have been left in the hands of airline operators themselves. Some of the problems faced by workers in the airline industry today were largely determined by deregulation of these labor costs. Research studies on employee earnings in the nineties (after wages were deregulated) indicated that employees began earning less. This was true in almost all sectors, more especially in aviation. For instance, it was found that secretaries, managers, pilots and flight attendants all registered lower earnings at that time.

Wage inequality between firms was largely evident in certain professions. For instance what pilots earn in one particular company differs tremendously from what they will earn in another company. This trend is especially highlighted when one analyzes some of the union data available within the country.

Employees within the aviation industry are just as susceptible to job losses as other workers in the country. In the nineteen nineties, the US underwent rapid retrenchment in almost all sectors of the economy. The aviation sector was not left behind. Most of the personnel had to deal with the same issues that their respective counterparts were undergoing. Those that lost jobs lost them as result of the overall employment climate within the country.

Overall summary of how the economy affects airline industry / Conclusion

The aviation industry causes positive externalities such as; encouraging tourism, heightening employment and boosting investment within any one country. This could bring about an overall increase in the GDP. However, some of the negative externalities associated with the industry include emission of noise, excessive emission of harmful gasses into the atmosphere thus causing pollution. (Keller & Buttler, 2000)

The aviation industry is affected by monetary and fiscal policies in that government decisions to tax airlines eats into their operating costs. Also investments in infrastructure have a large role to play. It can also be asserted that the decision to liberalize the aviation industry can bring about many positive effects into the industry. Closely linked to fiscal and monetary policy is the issue of wage inequality. Companies that operate in countries with job losses are likely to witness the same within aviation. However, statistics show that inter-firm disparities in wages are quite high especially with regard to pilots. Lastly, the aviation industry is affected by elasticity in supply and demand depending on the size of the industry and how long it has been in operation.

How to Find Information for an Industry Analysis

Finding information for an industry analysis takes patience and a keen eye

With so much information online, you would think finding information for an industry analysis would be easy. This is not always so. Information costs money, and marketing and research firms spend a lot of time and energy compiling data about every niche you can think of. Finding information for an industry analysis often means paying these companies for their reports or access to their large database of information. However, along with paying for reports, there are still some free things you can do to find quality information for an industry analysis.

Instructions

  1. Identify the industry. Determine the code that corresponds to your industry by going to the North American Industry Classification System (NAICS) website under “Resources.” For example, if you are looking for information about corn farmers, the NAICS code would fall under the “Agriculture, fishing, forestry and hunting” section, and the code specific to corn farmers would be 111150.
  2. Get an overview of the industry. Look up trade associations online for your industry or find the “Encyclopedia of American Industries” in your local library. Your local library should also have other resources such as “Standard and Poor’s Industry Surveys” or the “US Industry and Trade Outlook.” These sources should help you determine the size of the industry in dollars, the history, leading companies, government regulations related to the industry and whether the industry is seasonal.
  3. Determine industry trends. Look up websites related to your industry on compete.com and compare their online traffic data. This will give you a general sense of which companies are leading the industry and what kinds of growth patterns they might experience in the future. Use a search-based keyword tool such as Google’s keyword tool to see how many people are searching for words related to your industry.
  4. Look up consumer data. Go to the Bureau of the Census website to find industry data related to consumers in different geographical regions in the United States. Include demographics such as age, income, sex, race, ethnicity and family status for your industry. For psycho-graphic information such as buying habits, taste and lifestyle patterns, go to Nielsen’s Clarita site under “Resources.”
  5. Identify the competition. You can look up information about all publicly traded companies by checking with the Securities and Exchange Commission website. Looking at the search results for the products in your industry will tell you who the online competition is. Any company that fulfills the needs of the consumers of your industry is a competitor.

Importance of Statistics to Industry & Business

Statistics help businesses make predications and decisions.
Statistics is a branch of applied mathematics that collects and organizes data to interpret and predict future behavior or results. Almost every industry uses statistics, including insurance, consumer products, retail, pharmaceuticals and even the federal government. Statistics are important for a number of reasons and can be used for various purposes.

Government Statistics

  • The government uses statistics to measure ongoing economic indicators that greatly affect business and industry. For example, tracking the gross domestic product, or GDP, determines quarterly increases or decreases in business and industry expenditure. Productivity, expenditures on durable goods, retail sales and unemployment statistics help the government determine if there is an impending recession on the horizon or if economic conditions are improving.

Marketing Statistics

  • Companies can use statistics to measure market share and market potential, the percent of the market they hold in dollars, and the total amount of dollars and units sold in their industries. They can then use these current statistics to examine and develop marketing strategies to increase their market share.

Marketing Research Statistics

  • Statistics are a core component of marketing research techniques. Companies use marketing research agencies to conduct quantitative research with consumers to evaluate new and existing products. Developing models from these statistics can show the potential trial, usage and success of these products.

Sales Forecasting Statistics

  • Statistics help companies develop sales forecasts one, two and even five years into the future. Companies can then modify or improve their products, hire additional sales reps and put the necessary resources in place to meet these targets. Sales forecasting statistics are also a useful tool in business and marketing plan development.

Insurance Statistics

  • Life insurance companies rely on statistics to assess whether to give coverage and how much to charge. Actuaries plug in massive amounts of data to evaluate the likelihood of a person getting illnesses or injuries based on factors such as age and occupation. Life expectancy statistics help determine the cost of life insurance premiums.

09 Chemical Industry Analysis and Forecast: keep a close eye more favorable market prices trend-MDI

Containing a certain proportion of pure MDI with more benzene methyl isocyanate Jiduo Ya mixture (polymeric MDI), and pure MDI with polymeric MDI modified objects collectively, is the most important production of polyurethane raw materials, small amount of MDI used in addition to polyurethanes of Other Side. Both the flexibility of polyurethane rubber, but also the strength and excellent processing performance, especially in the heat, noise, wear, oil, and flexibility have other synthetic materials can not match the advantages of following the Polyethylene , PVC, acrylic, polystyrene and ABS plastic after the sixth-largest, has been widely used in national defense, space, light industry, Chemical industry , Petroleum, textiles, plastics, transportation, automotive, medical and other fields of economic development and people’s lives indispensable new materials.

The recent rise in international oil prices increased the cost pressure on the downstream chemical industry, chemical industry as a whole in the context of warming up, some chemical prices have increased, the current prices of our products to find the main line of investment-related stocks opportunities;

Individual stocks, the proposed focus on the MDI industry Yantai Wanhua Polyurethane industry Huafeng Spandex, Yantai Spandex, BDO industry in Shanxi-D, yellow phosphorus industry Success Group

Chemical industry continued to rebound in the economy

2010 first quarter, China’s basic chemical industry showed rapid warming trend. Industry Sell Revenue and total profits are significantly higher than the same period in 2009, the rise in the basic maintenance of stable profit margins, while fixed asset investment growth rate declining trend appeared in the future slowdown in new capacity for the chemical industry to provide a guarantee for the benign development . The second quarter is expected to remain the basis of the chemical industry continued to rebound the economy.

Crude oil prices increase pressure on chemical costs

The recent wave of international crude oil prices rose sharply. Last week in Europe, America, Asia and optimistic economic data, oil prices rose sharply, the New York light crude rose to 6.44% week, a breakthrough over the past year high this week that rising oil prices continued the trend. Recovery from the economic situation, demand for oil and gas resources is expected by the end of restoration to the higher level, crude oil prices will continue to rise.

Direct push crude oil prices of ethylene and other basic raw material prices, and thus indirectly increase the cost of promoting downstream industries, such as MDI, TDI, polyether, polyurethane, polyester, ethylene PVC And so the rise in oil prices and increasing cost pressures. In the absence of demand for the support of the lower, oil prices can only compress the profit space, it is proposed concern MDI, polyurethane and other needs of the more vigorous chemical sub-sectors. In addition, higher oil prices, while the coal or other non-oil products for the materials listed companies of concern.

Prices of varieties of investment opportunities

Chemical plate, the variety and prices of stocks related to the most sought after by the market easily. Prices from recent situation and the expected future price hikes, the recent concern with the proposed MDI, spandex, BDO, phosphorus and other species related to investment opportunities in individual stocks.

INDUSTRY ANALYSIS

INDUSTRY ANALYSIS

*Shanmukha Rao. Padala  **Dr. N. V.S. Suryanarayana

INTRODUCTION:

Industry and competition are the main constituents of the task environment of a business firm. The environmental survey will not be complete without industry analysis and competitor analysis. Analysis of macro environment gives rise to common information whereas Industry Aanalysis provides structural realities, specific and unique information, which are required for strategy formulation. Industry analysis brings to light the industry attractiveness and the firm’s competitive position within the industry. The indusrty’s attractiveness is mainly determined by its growth potential and inherent profitability of of the industry. Analysis of industry and competition helps not only strategy formulation but also helps in building competitive advantage.

Michael E. Porter’s book ” Competitive Strategy” propelled the concept of industry analysis into the foreground of strategic thought and business planning. His well defined analytical framework helps strategic managers to understand industry dynamics and to correctly anticipate the impact of remote factors on a firm’s operating environment.

The nature and degree of competition in an industry hinge on five forces: the threat of new entrants, the bargaining power of customers, the bargaining power of suppliers, the threat of substitute products or services, and the jockeying among current contestants.

FRAME WORK FOR INDUSRTY ANALYSIS:

The following framework, which consists of seven aspects, is helpful to do industry analysis.

  1. Basic Conditions: Under general/basic conditions, product categories, performance of the industry in recent years and size of the industry are considered. Before 1980 the Indian passenger car industry was oligopolistic, industry size was small and licensing system was used as an entry barrier. Customer service and quality of vehicles were lesser-known aspects. The industry operated with limited players in a regulated protected  environment. In 1980 Maruti entered the Indian passenger car industry. The post liberalization period witnessed the entry of several new players including MNCs. The industry went through growth phase and other players adopted new strategies. The demand for passenger cart was 15,714 in 1960. Within  next two decades it increased to 30,989. The Compound Annual Growth Rate rose from 3.50% to 18.60% in 1983.
  2. Industry Setting/ Environment: Michael Porter classified industries on the environment.
  • Fragmented industry
  • Emerging industry
  • Transition to maruti
  • Declining industry
  • Global industry

Industry settings must project the industry type to which the firm belongs. With regard to Indian passenger car industry, it is a growing industry and it is likely to have prolonged phase of growth. It employs 4,50,000 people directly and 10 million indirectly and it contributes 4% of GDP currently.

  1. Industry Structure: Till 1980, there were only two players in the passenger car industry namely Hindustan Motors and Premier Auto Ltd. In 1980, Maruti entered the scene. With liberalization global car giants such as Suzuki, General Motors, Ford, Daewoo, Hyundai, Honda, Peugeot, Fiat, Mitsubishi, Daimler Benz and BMW entered the Indian market through joint venture route. Before 1980, licensing policy served as an entry barrier. After 1980, huge capital requirement, cost advantages and experience curve effect of early players like Maruti proved to be an entry barrier for new players.

Industry structure is concerned with number of players, total market size, market share of players, nature of competition, barriers, differentiation, and cost structure of players.

  1. Industry Attraction: Industry attractiveness is mainly determined by: industry potential, industry growth, industry profitability and forces shaping competition. The demand for small car is increasing in India. The l;uxury car is the segment where the demand is slowly on the rise in recent times. The factors that determine profitability in passenger car industry are technology and volume. All players have different models in all market segments. The existing players Premier Auto Ltd., and Maruti put up defensive strategies. Cost reduction, reduction of delivery time, marketing network, auto financing by Citicorp, export orientation, price cutting, aggressive pricing policy, modernization, expansion and after sales service are notified in Indian passenger car industry.
  2. Industry Performance: Performance of the industry is studied in terms of sales, profitability, production and technological advancement. The compact car segment has witnessed several challenges Daewoo launched Matiz, and Hyundai launched Santro. Indica launched by Tata Motors proved to be a world class low priced diesel car. Maruti experienced tough competition from Indica and Indica reshaped Indian car market. A price war was unleashed by leading players. Modernization of plants, export thrust, superior after sales service have been observed among all leading players. Now Tata Motors introduced ‘Nano’ car at world least cost.
  3. Industry Practice: Industry practice refers to what majority of players in the industry does with distribution, pricing and R&D. joint venture with MNC is an accepted industry practice to ensure quality in passenger car industry. After sales service centers are established by all leading manufacturers. In recent times, Maruti has lost its dominant position mainly because of the aggressive attitude of new players. However it enjoys the cost advantage as it was established in a regular environment.
  4. Emerging Trends: The emerging trends are examined by studying product life cycle, stage of the industry, changes in buyer needs, and innovation in products, process, and growth rate and government policies. McKinsey consultants have predicted 256 per cent growth in industry production. The Ministry of Heavy Industries and Public Enterprises plans to double the contribution of auto industry by promoting exports.

How Competitive Forces Shape Strategy:

The essence of strategy formulation is coping with competition. It is easy to view competition too narrowly and too pessimistically. Intense competition in an industry is neither coincidence nor bad luck.

In the fight for market share, competition is not manifested only in the other players. Rather, competition in an industry is rooted in its underlying economics, and competitive forces exist that go well beyond the established combatants in a particular industry. Customers, suppliers, potential entrants and substitute products are all competitors that may be more or less prominent or active depending on the industry.

The collective strength of these forces determines the ultimate profit potential of an industry. It ranges from intense in industries where no company earns spectacular returns on investment, to mild in industries, where there is room for quick high returns.

In the economist’s perfectly competitive industry, jockeying for position in unbridled and entry to the industry very easy. This kind of industry structure, of course, offers the worst prospect for long run profitability. The weaker the forces, the greater the opportunity for superior performance.

Whatever their collective strength, the corporate strategist’s goal is to find a position in the industry where his or her company can best defend itself against these forces or can influence them in its favour.

Knowledge of these underlying sources of competitive pressure provides the groundwork for a strategic agenda of action. They highlight the critical strengths and weaknesses of the company, animate the positioning of the company in its industry,.

MICHAEL PORTER’S ANALYSIS:

According to Michael Porter, the nature and degree of competition in an industry depends on four forces. The threat of new entrants, the bargaining power of suppliers, the threat of substitute products or services, and the jockeying among current contestants. To establish a strategic agenda for dealing with these competing currents and to grow despite them, a company must understand how they operate in an industry and how they affect the company in its particular situation.

The strongest competitive force or forces determine the profitability of an industry and so are of greatest importance in strategy formulation. Even a company with a strong position in an industry unthreatened by potential entrants will earn low returns if it faces a superior or a lower cost substitute product. In such a situation, coping with the substitute product becomes the number one strategic priority. A few characteristics are critical to the strength of each competitive force.

1. Threat of Entry:

New entrants to an industry bring new capacity, the desire to gain market share, and often substantial resources. The seriousness of the threat of entry depends on the barriers present and on the reaction from existing competitors that the entrant can expect. If barriers to entry are high and a new comer can expect sharp retaliation from the entrenched competitors, obviously he will not pose a serious threat of entry. There are six major sources of barriers to entry.

  1. Economies of scale – These economies deter entry by forcing the aspirant either to come in on a large scale or to accept a cost disadvantage.  Scale economies in production, research, marketing and service are probably the key barriers to entry. Economies of scale can also act as hurdles in distribution, utilisation of the sales force, financing and nearly any other part of a business.
  2. Product Differentiation – Brand identification creates a barrier by forcing entrants to spend heavily to overcome customer loyalty. Advertising, customer service, being first in the industry, and product differences are among the factors fostering brand identification.
  3. Capital Requirements – The need to invest large financial resources in order to compete creates a barrier to entry, particularly if the capital is required for unrecoverable expenditure.
  4. Cost Disadvantages Independent of Size – Entrenched companies may have cost advantages not available to potential rivals, no matter what their size and attainable economies of scale. These advantages can stem from the effects of the learning, proprietary technology, access to the best raw materials, sources, assets purchased at pre-inflation prices or favourable locations.
  5. Access to Distribution Channels – The new entrants must of course secure distribution of his product or service. The more limited the wholesale or retail cannels are and the more that existing competitors have these tied up, obviously the tougher that entry into the industry will be. Sometimes this barrier is so high that, to surmount it, a new contestant must create its own distribution channels.
  6. Government Policy – The government can limit or even foreclose entry to industries with such controls as license requirements and limits on access to raw materials. The government also can play a major indirect role by affecting entry barriers through controls such as air and water pollution standards and safety regulations.

2. Powerful suppliers and buyers:

Suppliers can exert bargaining power on participants in an industry by raising prices or reducing the quality of purchased goods and services. Powerful suppliers can thereby squeeze profitability out of an industry unable to recover cost increases in its own prices.

Customers likewise can force down prices, demand higher quality or more service, and play competitors off against each other – all at the expense of industry profits.

The power of each important supplier or buyer group depends on a number of characteristics of its market situation and on the relative importance of its sales or purchases to the industry compared with its overall business.

A company’s choice of suppliers to buy from or buyer groups to sell  should be viewed as a crucial strategic decision. A company can improve its strategic posture by finding suppliers or buyers who possess the least power to influence it adversely.

Most common is the situation of a company being able to choose whom it will sell to in other words, buyer selection, Rarely do all the buyer groups a company sells to enjoy equal power.

3. Substitute Products

By placing a ceiling on prices it can charge, substitute products or services limit the potential of an industry. Unless it can upgrade the quality of the product or differentiate it somehow, the industry will suffer in earnings and possibly in growth.

Substitutes not only limit profits in normal times, they also reduce bonanza an industry can reap in boom times.

4. Jockeying for Position

Rivalry among existing competitors takes the familiar form of jockeying for position – using tactics like price competition, product introduction, and advertising. Intense rivalry is related to the presence of a number of factors:

  • Competitors are numerous or roughly equal in size and power;
  • Industry growth is slow, precipitating fights for market share that involve expansion minded members;
  • Fixed costs are high or the product is perishable, creating strong temptation to cut prices;
  • Exit barriers are high. Exit barriers keep companies competing even though they may be earning low or even negative returns on investment.
  • The rivals are diverse in strategies, origins and personalities. They have different ideas about how to compete and continually run head – on into each other in the process.

EXPERIENCE CURVE AS AN ENTRY BARRIER:

In recent years, the experience curve has become widely discussed as a key element of industry structure. According to this concept, unit costs in many manufacturing industries, as well as in some service industries decline with experience of a particular company’s cumulative volume of production.

The cost decline creates barrier to entry because new competitors with no experience face higher costs than established ones, particularly the producer with the largest market share, and have difficulty catching up with the largest market share, and have difficulty catching up with the entrenched competitors.

Adherents of the experience curve concept stress the importance of achieving market leadership to maximise this barrier to entry, and they recommend aggressive action to achieve it, such as price cutting in anticipation of fallings costs in order to build volume.

The height of the barrier depends on how important costs are to competition compared with other areas like marketing selling, and innovation. The barrier can be nullified by product of process innovations leading to a substantially new technology and thereby creating an entirely new experience curve. New entrants can leapfrog the industry leaders and alight on the new experience curve, to which those leaders may be poorly positioned to jump.

SWOT ANALYSIS:

SWOT or WOTS is an acronym for strengths, weakness, opportunities and threats underlying strategic planning process. The purpose of strategic planning is to discover future opportunities and threats so as to make plans to exploit or avoid them, as the case may be, in the crucial step of strategy formulation. Though SWOT analysis should be undertaken as an integrated process in strategic management, it has been broken into two parts because of the different nature of information requirement for each. The first part is the environmental analysis for identifying opportunities and threats, and the second part is corporate appraisal for identifying strengths and weaknesses.

SWOT analysis begins with the appraisal of external environment so that the organisation can analyse the various opportunities and threats offered by it and the organisation can relate itself in the light of its strengths and weaknesses. From this point of view, managers should appraise the various organisational factors through which it can cope up with its environment. Such a process is known as corporate appraisal. Corporate appraisal is the process through which managers analyse the various factors of their organisation to evaluate their strengths and weaknesses so as to meet the opportunities and threats of environment.

USEFULNESS OF INDUSTRY ANALYSIS:

The basic purpose of industry analysis is to assess the relative strengths and weakness of an organization relative to other players in the industry. It tries to highlight the structural realities of a particular industry and the extent of competition within that industry. Through industry analysis, an organization can find whether the chosen field is attractive or not and assess its own position within the industry. Industry analysis helps firms in the following ways.

  • Industy Attractiveness:

Industry analysis helps to find out:

  1. the growth potential of the industry,
  2. the profitability of the industry and
  3. the relative ability of player in that industry.

Where the growth prospects are good and profit potential is great, the firm can safely conclude that the field is attractive and offers enough room for others to enter and explocit the field. At this stage firm needs to answer certain questions like:

  1. is it a growing industry?
  2. if yes, at what pace the industry is growing?
  3. are there any limits to growth in the industry?
  4. does it offer good returns consistently etc.
  • Competitive Position:

Where does the firm stand in comparison to other in a particular industry. Finding answers to such a question is important for various reasons. First, it helps the firm to find its own advantageous/disadvantageous place. Second, it enable the firm to know whether it is able to deliver value for money when compared to others in the industry. Third, it can think of effecting improvements in its product and service offerings in an attempt to defend and improve its standing in the market place.

SUMMARY:

Industry analysis brings to light the industry attractiveness and the firm’s competitive position within the industry. The nature and degree of competition in an industry hinge on five forces: the threat of new entrants, the bargaining power of customers, the bargaining power of suppliers, the threat of substitute products or services, and the jockeying among current contestants. The framework, which consist of seven aspects viz., basic conditions, industry setting/environment, industry structure, industry attraction, industry performance, industry practice and emerging trends are helpful to do industry analysis. The basic purpose of industry analysis is to assess the relative strengths and weakness of an organization relative to other players in the industry. It tries to highlight the structural realities of a particular industry and the extent of competition within that industry.

According to Michael Porter, the nature and degree of competition in an industry depends on four forces: the threat of new entrants, the bargaining power of suppliers, the threat of substitute products or services, and the jockeying among current contestants.

The experience curve has become widely discussed as a key element of industry structure in recent years. According to this curve, unit costs in many manufacturing industries, as well as in some service industries decline with experience of a particular company’s cumulative volume of production.

 

How to Compare Industry Gross Profit Margins

An industry profile is a report or gathering of data centered on an area of business that outlines and describes the major components of that area. Profiles often provide an overview of the industry and may make projections about future trends. Examples of business sectors include the pharmaceutical, transportation or retail industry.

Formula

  • The gross profit margin formula is revenue minus cost of goods sold divided by revenue. For example, a company with revenue of $125,000 and cost of goods sold of $75,000 has a gross profit margin of 40 percent. This indicates 40 cents of each dollar is available to pay for expenses and provide profit.

Features

  • To compare business industries, individuals can collect information from a finance website on each industry’s dollar figures. This provides the essential information for calculating the gross profit margin. The percentage result of each industry’s formula is then available for comparison.

Warning

  • Comparing gross profit margins among industries is not always a good benchmark or financial indicator. Each industry typically has a historical gross profit margin that reflects the cost of goods for specific goods or services. Creating a multi-industry gross profit comparison can result in a comparison of apples and oranges.