Scribd
Upload
99 views5 pages

Submitted By: Group No 4 Divine Gomado, 11XPGDM08 Kunal Bassi, 11XPGDM13 Svetlana, 11XPGDM22 Tarun Gupta, 11XPGDM24 Tabrez Ahmad, 11XPGDM23

The document is a proposal for a management course project on the construction equipment industry in India. The scope of the project is to create an industry profile and strategic framework for the number 2 player to surpass the industry leader within 3-5 years. The objectives are to analyze industry forces, conduct a PESTLE analysis, study the industry's history and evolution, classify industry categories, describe the top two players' strategies and advantages, and recommend options for the number 2 player to become the new leader.

Uploaded by

Tabrez Ahmad
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
99 views5 pages

Submitted By: Group No 4 Divine Gomado, 11XPGDM08 Kunal Bassi, 11XPGDM13 Svetlana, 11XPGDM22 Tarun Gupta, 11XPGDM24 Tabrez Ahmad, 11XPGDM23

The document is a proposal for a management course project on the construction equipment industry in India. The scope of the project is to create an industry profile and strategic framework for the number 2 player to surpass the industry leader within 3-5 years. The objectives are to analyze industry forces, conduct a PESTLE analysis, study the industry's history and evolution, classify industry categories, describe the top two players' strategies and advantages, and recommend options for the number 2 player to become the new leader.

Uploaded by

Tabrez Ahmad
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Submitted By : Group No 4 Divine Gomado, 11XPGDM08 Kunal Bassi, 11XPGDM13 Svetlana, 11XPGDM22 Tarun Gupta, 11XPGDM24 Tabrez Ahmad,

11XPGDM23

INTERNATIONAL MANAGEMENT INSTITUTE | DELHI CONSTRUCTION PROJECT PROPOSAL FOR STRATEGIC JAN, 2011
EQUIPMENT INDUSTRY

MANAGEMENT COURSE

SCOPE

: To prepare a comprehensive profile of Construction Equipment industry in India and prepare a Strategic framework for the No.2 player to topple down industry leader in next 3-5 years.

OBJECTIVES : The efforts should be to cover the following aspects


To identify the sources of profitability in the industry and competitive structure using Porters five forces Model. To carry out PESTLE analysis. To study historical origin of industry in line with following questions : How different players entered the industry with what capacities How had been the growth and profitability history of the industry To classify the industry into different categories on the basis of technology, size, geography, distribution, brand or ownership (if possible) and study the dominant behavior of players in each category. To describe the evolution strategies and performance of top two players in terms of sales revenue. To identify the source of competitive advantage and competences of top two players that are critical to their success To identify and recommend the strategic options to no.2 player chosen for next 3-5 years to become number one player and built distinct advantage over others.

Brief About Industry & its players


Before 1960s Indias need for construction equipment were primarily met by imports. Domestic production began in 1964 with the setting up of Bharat Earthmovers Ltd. (BEML), a public sector unit of the MoD, at Kolar in South India to manufacture dozers, dumpers, graders, scrapers, etc. for defence requirements under licence from LeTorneau Westinghouse, USA and Komatsu, Japan. In the private sector, the Hindustan Motors Earthmoving Equipment Division, was established in 1969 at Tiruvallur, near Chennai with technical collaboration from Terex, UK for manufacture of wheel loaders, dozers & dumpers. This factory has since been taken over by Caterpillar for their Indian operations. The machines manufactured by Caterpillar in the Tiruvallur factory are marketed by TIL and GMMCO. In 1974, L&T started manufacturing hydraulic excavators under license from Poclain, France. In

1980 and 1981, two more units, Telcon and Escorts JCB commenced manufacture of hydraulic excavators (under license from Hitachi, Japan) and backhoe loaders (under license from JCB, UK) respectively. Escorts JCB has been taken over by JC Bamford Excavators Ltd. U.K. in 2003 and is now called JCB India Ltd. Volvo and Terex Vectra are the most recent entrants in the Indian market. Construction equipments can be broadly classified into two categories :

Some of the key players in the industry are :

Reasons for Opting This Industry


Demand in CE industry is predominantly dependant on Infrastructure industry which is getting significant thrust from Govt. Import of price competitive Chinese equipments putting downward pressure on prices of domestic equipment manufacturers. After 2000 most of the global firms of this industry had entered India which is forcing Indian companies to invest significantly in R&D to match international quality standards. Imports of used equipment mainly mobile cranes & crawlers have increased significantly.

Under all these pressures it will be interesting to explore how firms will develop their strategy to exploit the long term potential this industry has, due to Govt. commitment to infrastructure development. Also, to gain from the potential areas like after sales service, leased and rental equipments and exports.

You might also like