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SWOT analysis of Avantha Power

Avantha Groupis an Indian business conglomerate led by Gautam Thapar. The US$4bn company is

one of Indias largest business conglomerates. Its businesses include power generation anddistribution, power transmission and distribution equipment and services, paper and pulp, foodprocessing, farm forestry, chemicals, infrastructure, Information Technology and InformationTechnology Enabled Service.

Avantha Power & Infrastructure Limited (APIL), part of the Avantha Group, is an established power

generation company with 1226 MW of operational capacity, 1260 MW of generating capacity under

various stages of construction and another 1,320 MW of generating capacity under planning. APIL

lay special emphasis on workforce development and believe in the values of 3 i- Integrity,

Imagination and Individual for a holistic approach towards enabling resource empowerment.

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Strength -

> Strong backing of Avantha group and Thaparlegacy makes it a force.

> It has services like electricity generation,distribution, paper industry, food processing,

electrical equipments etc

> Huge capacity generation in pipeline.

> Integrated across the value chainGeneration,Transmission and Distribution

> Each project is strategically located near anavailable fuel source or load centre. This reduces thetransportation costs of coal and also ensures quickersupply of coal.

Weakness -

> Present only in very few states namely

Chhattisgarh, Madhya Pradesh and Maharashtra.> Incomplete projects lead to rise in costs whichinclude interest costs.

> Limited Market share due to intense competition.

> New entrant in Independent power plant sector.

Opportunities -

> Can diversify into other means of powergeneration.

> Huge scope in power sector once the projectsbecome operational

> Increasing demand for power

Threats -

> Changes in international prices of coal.> Susceptible to legal hassles on environmentalclearance for new projects

> Huge labour requirement

> Government policies and regulations affectsoperation

AVANTHA

POWER

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Porter five forces analysis

Supplier power:

the success of an E-merchant depends a lot on the prices that it offers to customers and thespeedy delivery of orders.

Online retail companies sell various products ranging from books to computer accessories toapparels to footwear. Since there are many suppliers for any particular category, they cant

show power on online retail companies

Buyer power:

The customer base for the industry is large and diffused with the customers spoilt for choice;their preferences for websites are dominated by price and delivery time. Thus, the

bargaining power among customers is high as they have the option of buying from countless

other media, both online as well as offline.

Switching costs are also less for customers since they can easily switch a service from oneonline retail company to other one.

So, all these factors make customers to possess more power when compared to online retailcompanies.

Threat of New Entrants:.

The setting up costs for an E-platform is fairly low. Even small players in niche domains areentering the E-retail platform as there is low capital cost.

hough the big players have their own distribution channels, the small players are not tooworse off as they can utilize the courier services for their deliveries.

Industry is also going to grow at a rapid rate. It is going to touch 76 billion $ by 2021.Industry is going to experience an exponential growth rate

Threat of substitutes:

Substitute for this industry as of now is physical stores like bigbazar, pantaloons, shoppersstop, globus etc. Their threat is very low for this industry because customers are going for

online purchases instead of going to physical stores as it will save time, effort, and money.

When we compare online with physical store, both are almost same and in some cases,online discounts will be available which makes customers to buy products online.

Rivalry with in Industry:

Rivalry among competing brands is high as there are many players like Flipkart, Myntra,Jabong, Snapdeal, Amazon, Homeshop18 etc.

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