THE EXTERNAL ANALYSIS
Indian mechanical industries have proven to have benefited from the political side as they get a lot of support from the government. They are benefited by having chances to research and develop their business as well as doing new inventions. Apart from this, the government has invested much, especially in the mechanical industry, so that this industry can grow for their customers’ needs.
As India has economic growth, so it has given chances to grow industries like mechanical industry. So it helps in attracting foreign investors to invest in their business leading to the development of their industry. Having concern about the needs of the people helps them in meeting more customers’ needs; thus, they can attract more customers to their products.
Technological factors are the most important factor for any growing industry, and in this part, the mechanical industry has chances to grow as the government provides them with support in their industry.
High competition in the market has proven fruitfully simultaneously harmful for any growing companies, especially for mechanical industries. As per the view of ÖNEREN et al. (2017), competitive rivalry is the most harmful factor for any industry like mechanical industry.
For example, vehicle companies like Tata motors have many competitors in the market, so sometimes they are losing customers in India. Along with this power of the suppliers can be as harmful as the competitive rivalry, especially in the mechanical industry.
As Indian industries have a minimum number of suppliers, they can negotiate their prices with their supplies. This helps in decreasing the profit level of any organization as they have to negotiate with their selling prices. The most important threat for the mechanical industry is the power of bargaining of the customers.
As there are many companies who are producing technical products, customers can choose a substitute as per their reasonable price needs. Apart from these threats, the threat of having new businesses in the competitive market can be a harmful reason for their survival.
Although to take entry in the competitive market is not as easy as they need a minimum amount of investment to compete. For example, the competitors of the Thermax Company are BSE, NSE; ABB India limited can create the most threat to the survival of the company.
As the Indian government is providing support to the mechanical industry, so it is easy to build a successful position. Along with this, India is experiencing economic growth as well as having a large number of customer density they are experiencing chances to grow.
As per the view of Kumbara, (2020), social factors are providing a chance to grow as people need technical products for their domestic use. As the mechanical industry has chances to invent and research, they can provide environment-free products to their customers, leading to a strong chance to survive in the market.
Providing customers with reasonable price but quality products, help in achieving the desired customer number as well as the desired profit level.
Making the employees understand that how their effort helps the organization in growing helps them to produce more product as per the market need. As per the view of Yaacob, (2019), especially in mechanical industry invention is the most important factor to their success, so making more new products helps in gathering more customers leading to their survival.
High pricing of the products can make the product more reliable especially the mechanical products simultaneously low pricing can attract their customers. Providing the employees with the facilities so that they can work comfortably has proven the most important factor leading to the survival of the Thermax Company.
Kumbara, A., 2020. THE ANALYSIS OF PORTER’S FIVE FORCES IN LUCKY TEXTILE GROUP IN FACING THE COMPETITION OF TEXTILE INDUSTRY. Dinasti International Journal of Economics, Finance & Accounting, 1(3), pp.397-412.
ÖNEREN, M., ARAR, T. and YURDAKUL, G., 2017. Developing competitive strategies based on SWOT analysis in Porter’s five forces model by DANP. Journal Of Business Research-Turk, 9(2), pp.511-528.
Pereira, L. and Tortorella, G., 2018. Identification of the relationships between critical success factors, barriers and practices for Lean implementation in a small company. Brazilian Journal of Operations & Production Management, 15(2), pp.232-246.
Yaacob, A., 2019. THE COMPETITIVENESS STUDY ON KELANTAN PADDY INDUSTRY USING PORTER’S DIAMOND MODEL. Journal of Contemporary Social Science Research, 3(1), pp.14-23.
|Political||Indian Government support has proven the most helpful political factor, especially in the mechanical industry.||ÖNEREN, M., ARAR, T. and YURDAKUL, G., 2017. Developing competitive strategies based on SWOT analysis in Porter’s five forces model by DANP. Journal Of Business Research-Turk, 9(2), pp.511-528.|
|Investment of the Indian government to the mechanical industry has given them a chance to grow.|
|Economic||The economic growth of India facilitates mechanical industries like Thermax Company with a chance to grow.||Kumbara, A., 2020. THE ANALYSIS OF PORTER’S FIVE FORCES IN LUCKY TEXTILE GROUP IN FACING THE COMPETITION OF TEXTILE INDUSTRY. Dinasti International Journal of Economics, Finance & Accounting, 1(3), pp.397-412.|
|Large numbers of the population provide a chance to grow economically.|
|Social||Making products for domestic use helps in getting more customers.||Yaacob, A., 2019. THE COMPETITIVENESS STUDY ON KELANTAN PADDY INDUSTRY USING PORTER’S DIAMOND MODEL. Journal of Contemporary Social Science Research, 3(1), pp.14-23.|
|Having a large number of people in an area helps them in marketing their products easily.|
|Technology||Using technical processes to produce their products helps in producing more number of products as per the customers’ needs.||Pereira, L. and Tortorella, G., 2018. Identification of the relationships between critical success factors, barriers and practices for Lean implementation in a small company. Brazilian Journal of Operations & Production Management, 15(2), pp.232-246.|
|Having technological advancements helps in producing environment-free products leading to their survival.|
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