8/6/2019 5 Porter Analysis

1/10

By,

Sahitya Urs(0911369)

Kiran Raj(0911371)

8/6/2019 5 Porter Analysis

2/10

Vast hydroelectric potential (150,000 MW).

Large pool of highly skilled technical personnel.

Impressive power development in absolute terms

Enabling framework for private investors.

Potentially, one of the largest power markets in the world

8/6/2019 5 Porter Analysis

3/10

Present

2.4% of the overall world energy output

6th largest energy user, comprising about 3.3% of

the overall global energy expenditure per year.

The gross electricity production capability of IndianPower Sector is placed at around 111 GW.

Future

Exponential demand growth

Capacity Enhancement Increased significance of the role of the private players

and foreign investments

New strategies and reforms

Increased significance of renewable sources of energy

8/6/2019 5 Porter Analysis

4/10

Factors Threat from Competitors (Present) Threat from Competitors (Future)

High Moderate Low High Moderate Low

Number of Competitors

Buyers switching Costs

Industry Growth

Competitors Fresh Moves

Excess capacity

Cost Structure of firms

Degree of product differentiation

among sellers? Brand Loyalty to

existing customers?

8/6/2019 5 Porter Analysis

5/10

High Moderate Low High Moderate Low

Can firms adjust to prices quickly

Use of fascilitating prices

Exit Barriers

8/6/2019 5 Porter Analysis

6/10

FactorsThreat of New Entrance

(present)

Threat of New Entrance

(Future)

High Moderate Low High Moderate Low

Capital Requirement

Profit Margin

Economies of Scale

Switching Cost

Government Restriction

Access of favorable locations

8/6/2019 5 Porter Analysis

7/10

Access to technology know how

Access to Raw materials

Demand side advantages to

incumbents from large installed base

Government protection

8/6/2019 5 Porter Analysis

8/10

Factors Threat of Substitution (present)Threat of Substitution

(future)

High Moderate Low High Moderate Low

Availability of Substitutes

Price, Performance and quality of

services of Substitutes

Switching cost

Cost factor

8/6/2019 5 Porter Analysis

9/10

Factors (present) (future)

High Moderate Low High Moderate Low

Do buyers purchase in large

volumes?

Can buyers can find

substitutes for industrys

product?

Do firms in industry make

relationship specific

investments tosupport transactions with

specific buyers?

Is price elasticity of demand

of buyers product high or

low?

8/6/2019 5 Porter Analysis

10/10

Factors (present) (future)

High Moderate Low High Moderate Low

Do firms in industry

purchase relatively small

volumes relativeto others customers of

supplier?

Few substitutes for suppliers

input

Do firms in industry make

relationship specific

investments tosupport transactions with

specific suppliers?

Are suppliers able to price

discriminate among

prospective

Customers according to

ability/willingness to pay for

input?