close
This essay has been submitted by a student. This is not an example of the work written by professional essay writers.

Bargaining Power of Suppliers

downloadDownload printPrint

Pssst… we can write an original essay just for you.

Any subject. Any type of essay. We’ll even meet a 3-hour deadline.

Get your price

121 writers online

blank-ico
Download PDF

Rubber

There are two reasons behind this being low first one is most of the tyre firms get 150 days credit for buying the rubber from international market which is not the case if they buy it from domestic growers. And the second reason is credit is being offered at LIBOR which is the London Interbank Offered Rate. It is the rate of Interest at which banks borrow funds from other banks Other petrochemical based material

The power of suppliers is high in this category as India is limping back in case of petro based raw materials like carbon black and chemicals which account in quantity terms but are high cost generators. Also the price of NTC fluctuates in line with the prices of Caprolactum (a petroleum derivative) its main raw material. The prices of these materials are beyond the control of tyre Industry.

Bargaining power of Buyers OEM’s The OEMs are always in strong position when the bargaining power of buyers is concerned. The reason behind this is most of them are having contract with their relative tyre manufacturer under which the prices of tyre remain stable for this OEM irrespective of market price. The benefits are given to them as they are buying in bulk and the relation gives the tyre firm something called brand association. Replacement The scene in replacement segment is quite reverse as the bargaining power for the replacement segment is moderate due to the fact that the buyers are not that strong as compared to OEMs. The demand in buses and truck segment is always high because of Indian poor road conditions apart from the purchase is made in small units.

Threat of substitute It is moderate as the industry is facing opposition from retreading sector all over the globe. This cheaper option around 20-25 % of the original tyre cost is present in developed countries since some decade back.

Threat of new entrants The threat of new entrant is moderate or can be described as low because the industry is highly capital intensive and the level of technological expertise required is also highly specific. But if we see from domestic industry’s point of view,this better can be defined as high. The reason being global tyre industry is already seeing mergers and acquisitions in order to restructure. And as of now India and china going to be the hub of activities as far as tyre industry is concerned due to low production cost as well as other relevant benefits.

Industry Rivalry High, because gradually the overseas players are capable of expanding their wings over Indian tyre Industry and also limited and every player is moving towards automated technology like ERP and SCM.Apart from the mentioned reason the industry is seeing high competitive scenario at present because of various reasons like rising input costs, low realization from growing OEM segment where the vehicle segment is not ready to share their burden of tyre firms.

Remember: This is just a sample from a fellow student.

Your time is important. Let us write you an essay from scratch

experts 450+ experts on 30 subjects ready to help you just now

delivery Starting from 3 hours delivery

Find Free Essays

We provide you with original essay samples, perfect formatting and styling

Cite this Essay

To export a reference to this article please select a referencing style below:

Bargaining Power of Suppliers. (2019, February 27). GradesFixer. Retrieved December 3, 2021, from https://gradesfixer.com/free-essay-examples/bargaining-power-of-suppliers/
“Bargaining Power of Suppliers.” GradesFixer, 27 Feb. 2019, gradesfixer.com/free-essay-examples/bargaining-power-of-suppliers/
Bargaining Power of Suppliers. [online]. Available at: <https://gradesfixer.com/free-essay-examples/bargaining-power-of-suppliers/> [Accessed 3 Dec. 2021].
Bargaining Power of Suppliers [Internet]. GradesFixer. 2019 Feb 27 [cited 2021 Dec 3]. Available from: https://gradesfixer.com/free-essay-examples/bargaining-power-of-suppliers/
copy to clipboard
close

Sorry, copying is not allowed on our website. If you’d like this or any other sample, we’ll happily email it to you.

    By clicking “Send”, you agree to our Terms of service and Privacy statement. We will occasionally send you account related emails.

    close

    Attention! This essay is not unique. You can get a 100% Plagiarism-FREE one in 30 sec

    Receive a 100% plagiarism-free essay on your email just for $4.99
    get unique paper
    *Public papers are open and may contain not unique content
    download public sample
    close

    Sorry, we could not paraphrase this essay. Our professional writers can rewrite it and get you a unique paper.

    close

    Thanks!

    Please check your inbox.

    Want us to write one just for you? We can custom edit this essay into an original, 100% plagiarism free essay.

    thanks-icon Order now
    boy

    Hi there!

    Are you interested in getting a customized paper?

    Check it out!
    Having trouble finding the perfect essay? We’ve got you covered. Hire a writer
    exit-popup-close

    Haven't found the right essay?

    Get an expert to write you the one you need!

    exit-popup-print

    Professional writers and researchers

    exit-popup-quotes

    Sources and citation are provided

    exit-popup-clock

    3 hour delivery

    exit-popup-persone