Analysis of competitive environment and survival of companies in India

“Competition” is a very pervasive term, it exists everywhere whether its a co-operative

society, business organisation or any place of national importance. When we talk about the
business, we must see what our rivals are doing?. So there is cut-throat competition around
the business. This piece of writing will analyse “how Indian inc. survives in the competitive
environment and their parameter”.
The competitive environment is defined as a business environment in which there are large
numbers of sellers selling a homogenous or different product. The seller sells a similar
product or service in this external system. For instance, garments shop are many in numbers
so the competition is high. On the other hand, there is a business in which competition is less,
for instance, airlines company are few and so the competition is less. So an analysis of the
competitive environment is necessary to achieve and maintain a competitive advantage in
reaching and selling to your target market. A business organisation can beat their rivals by
constant study of competitors tactics and developing strategy thereon.
Whenever new players want to enter into the competitive market, they first analyse some
criteria on that basic types of competitive market exists. So criteria can be like, (i) Number of
sellers and buyers (ii) Entry and exit (iii) price determination (iv) government intervention.
So there are mainly 4 types of competitive environment exists:-
 Perfect competition:- in this there is a large number of buyers and sellers, selling
homogenous product. example:-garments store.
 Monopolistic competition:- A competition in which a company sells homogenous but
different product. Example:- toothpaste by Colgate and HUL
 Oligopoly:- A market of few sellers having more government intervention. Example:-
telecom industry, automobile.
 Monopoly:- A market in which having one seller, that determines the buyers and
sellers. Example:- Indian railways, Defence
To survive in the competitive environment, each market has to develop its strategy to be at
the top. To understand this and to get an idea of “how Indian company survive” here, I am
taking some companies from some prominent sectors which are important nowadays.
 Pharma sector:- Due to rising medical ailment and every day new viruses are coming
that affects the human body, so pharma sector is continuously rising and therefore,
many companies are coming in this like Sun Pharma, Mankind, torrent pharma,
orchid pharma. But the main issue here is, this sector comes under Monopolistic
competition and any particular company prevails over the other by their MRP. And
Mankind is one of them, comparatively, the rate of mankind is less concerning other
pharma company. In this sector, the company survives by their networking skill
because directly or indirectly doctor advice and hospital recommendation are
important here. Due to government intervention like the drug controllers act,
companies can not overrule the basic elements of being a drug company.
 Telecom sector:- earlier there were many payers in this sector like tata Docomo,
MTL, excel but due to regulations and government intervention few players survive
and that’s why it comes in oligopoly market where they survive by providing some

SAP I’D: 500077285 BY: MAYANK BHAGERIA

 promotional offers and easy network for instance reliance JIO can be a good example
in this category.
 Defence sector:- this sector is the backbone of any nation. There are few players
although this sector enjoys a monopoly. Few companies like Hindustan aeronautics
Bharat dynamics survive because of having an extraordinary capability and they try to
improve technology to be at the top over the competitors.
 IT sector:- companies like TCS, Infosys, Wipro, Mindtree are the ones that enjoy the
perfect competition. But the main key thing of their survival is customer retention and
relationship.

The most popular framework of competitive market analysis are the following:-

 SWOT Analysis: You can assess the external and internal factors that influence your
company. This framework helps you identify competitive advantages and compare
your competitors' strong and weak sides on different marketing channels and define
your further marketing steps.
 Porter’s Five Forces: This framework explores the competitive market forces in the
industry and helps define the industry’s strengths and weaknesses. It involves five
elements: new entrants, buyers, suppliers, substitutes, and competitive rivalry. These
five influence the level of competition in your industry.

In the conclusion, I would take the example of Kalyan jewellers. See how this company
comes with new idea and thoughts to beat its competitor Tanishq by TATA. so the company
comes with different taste and preference in different states like a buyer in Kashmir and a
buyer in Karnataka won’t seek the same kind of jewellery. But that is different from the
Tanishq they sell a uniform product in each store all over India. So to beat direct competitors,
companies need to come with innovations, ideas different marketing strategy to survive.

SAP I’D: 500077285 BY: MAYANK BHAGERIA