Threat of New entrants Bargaining power of Suppliers Bargaining Power of Buyers Threat of Substitute products or services Degree of Rivalry

among existing competitors

Threat of new entrants is influenced by

Factors Entry Deterring Price Tata NANO Advantages Yes, The Price is Rs 130,000. Threat of new entrants Low

Overa ll Rating : LOW

Retaliation by TATA in case of competition High Entry Costs

Yes, because of large resources. Yes,TATA spent Rs 17oo* crore as initial investment + 4 years on research
HIGH because of its parent experience(TATA Motor) Yes**

Low Medium because of reverse engineering process and availability of resources.

Low

Experience

Other Cost advantages

Low

Bargaining Power of Buyers is influenced by

Factors Differentiation Tata NANO Advantages Price , Durability , Brand equity Large number of consumers Buyer Power Low

Overa ll Rating : LOW

Concentration

Low

Profitability
Quality

Easy Availability of loans

Car has passed the full frontal crash and side impact crash Passed Govt. Test of emission,noise and vibration

Low
Low

Bargaining Power of Suppliers is influenced by

Factors Concentration High Supplier Power Low

Overa ll Rating : LOW

Switching Costs

Low

Low

Organization/cartel Diversification of supplier products

No No

Low Low

Threat of Substitute product is influenced by

Factors Threat of substitute

Availability
Other Category substitutes

Same category -NO low

Yes, but, minimal Medium extent e,g. High end bikes and other car models like Reva,Alto High Low

Overall Rating Low

Time Lag in availability of same category product Quality of substitute

Quality influences the customer.

Low in short term

Rivalry among Existing competitors is influenced by Factors Rivalry among

existing competitors Brand Image Brand equity influences the customer Negligible in short term Depends on Volume Medium as customers can switch to other products Diverse Low among same category low Low Medium

Overall Rating Mediu m

No.of Competitos Size of payoff Switching costs

Origin of competitors

High