new presentation tata aria

8/8/2019 New Presentation Tata Aria

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Automobile Industry:

Product Differentiation

Automobile Industry:

Product Differentiation

Deepak Kumar

(KLSD College, Ludhiana)

Ms: Jyoti (Mohali)


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Indian Automobile IndustryIndian Automobile Industry

The Automotive industry in the is one of thelargest in the world. India is the world'ssecond largest manufacturer of motorcycles,with annual sales exceeding 8.5 million in

2009 India's passenger car and commercial vehicle

manufacturing industry is the seventh largestin the world, with an annual production of

more than 2.6 million units in 2009. In 2009, India emerged as Asia's fourth

largest exporter of passenger cars, behindJapan, South Korea and Thailand.


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As of 2009, India is home to 40 million passenger

vehicles and more than 1.5 million cars were sold inIndia in 2009 (an increase of 26%), making thecountry the second fastest growing automobilemarket in the world.

By 2050, the country is expected to top the world incar volumes with approximately 611 million vehicleson the nation's roads.

A major chunk of India's car manufacturing industryis based in and around the city of Chennai (alsoknown as "Detroit of India"), with the Indian cityaccounting for 60 per cent of the country's automotiveexports.


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Chakan corridor near Pune is an upcoming vehicular

production hub with General Motors, Volkswagen/Skoda, Mahindra and Mahindra in the process of setting up or already set up facilities


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HistoryHistory

The first car ran on India's roads in 1897. Till the 1930s, carswere imported directly. Embryonic automotive industryemerged in India in the 1940s.

Following the independence, in 1947, the Government of

India and the private sector launched efforts to create anautomotive component manufacturing industry to supply tothe automobile industry.

However, the growth was relatively slow in the 1950s and1960s due to nationalisation and the license raj which

hampered the Indian private sector.

After 1970, the automotive industry started to grow, but thegrowth was mainly driven by tractors, commercial vehiclesand scooters. Cars were still a major luxury.


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Japanese manufacturers entered the Indian market ultimatelyleading to the establishment of Maruti Udyog. A number offoreign firms initiated joint ventures with Indian companies.


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After Liberalisation.After Liberalisation.

Following economic liberalization in India in 1991, theIndian automotive industry has demonstrated sustainedgrowth as a result of increased competitiveness andrelaxed restrictions.

Several Indian automobile manufacturers such as TataMotors, Maruti Suzuki and Mahindra and Mahindra,expanded their domestic and international operations.

India's robust economic growth led to the further expansionof its domestic automobile market which attractedsignificant India-specific investment by multinationalautomobile manufacturers. In February 2009, monthly sales

of passenger cars in India exceeded 100,000 units.


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In the 1980s, a number of Japanese manufacturers launchedjoint-ventures for building motorcycles and light commercial-vehicles. It was at this time that the Indian government choseSuzukii for its joint-venture to manufacture small cars.

Following the economic liberalisation in 1991 and the gradual

weakening of the license raj, a number of Indian and multi-national car companies launched operations. Since then,automotive component and automobile manufacturing growthhas accelerated to meet domestic and export demands


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Production StatisticsProduction Statistics

Year Car Production %Change

CommercialVehicles

%Change

2009 2,166,238 17.34 466,456 -4.08

2008 1,846,051 7.74 486,277 -9.99

2007 1,713,479 16.33 540,250 -1.20

2006 1,473,000 16.53 546,808 50.74

2005 1,264,000 7.27 362, 755 9.00

2004 1,178,354 29.78 332,803 31.25

2003 907,968 28.98 253,555 32.86

2002 703,948 7.55 190,848 19.24

2001 654,557 26.37 160,054 -43.52

2000 517,957 -2.85 283,403 -0.58

1999 533,149 285,044


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ExportsExports

India's automobile exports have consistently grown andreached $ 4.5 billion in 2009, with United Kingdom beingIndia's largest export market followed by Germany,Netherlands and South Africa. India's automobile exports areexpected to cross $12 billion by 2014.

According to New York Times, India's strong engineeringbase and expertise in the manufacturing of low-cost, fuel-efficient cars has resulted in the expansion of manufacturingfacilities of several automobile companies like HyundaiMotors, Nissan, Toyota, Volkswagen and Suzuki.


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In 2008, Hyundai Motors alone exported 240,000 cars made inIndia. Nissan Motors plans to export 250,000 vehiclesmanufactured in its India plant by 2011. Similarly, GeneralMotors announced its plans to export about 50,000 cars

manufactured in India by 2011.

In September 2009, Ford Motors announced its plans to setup aplant in India with an annual capacity of 250,000 cars for US$500 million. The cars will be manufactured both for theIndian market and for export

Manufactured only in Chennai, India, the i10 is one ofHyundai'sbest selling globally exported cars.


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Passenger vehicles in India

Domestic Indian automotive companies

Passenger vehicles in India

Domestic Indian automotive companies

Chinkara Motors: Beachster, Roadster 1.8S,Rockster, Jeepster, Sailster

Hindustan Motors: Ambassador ICML: Rhino Rx Mahindra: Major, Xylo, Scorpio, Bolero Premier Automobiles Limited: Sigma, RiO

San Motors: Storm Tata Motors: Nano, Indica, Indica Vista,Indigo, Indigo Manza, Indigo CS, Sumo,Safari, Xenon, Aria


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Foreign automotive companies in India

Vehicles manufactured or assembled in India

Foreign automotive companies in India

Vehicles manufactured or assembled in India

BMW India: 3 Series, 5 Series, 1 Series. Fiat India (in collaboration with Tata Motors): Grande Punto, Linea, Palio

Stile. Ford India: Ford Figo, Ikon, Fiesta, Endeavour. General Motors India

Chevrolet (CSPIL): Spark, Beat, Aveo U-VA, Aveo, Optra, Cruze, Tavera. Honda Siel: Jazz, City, Civic, Accord. Hyundai Motor India: Santro, i10, i20, Accent, Verna Transform, Sonata

Transform. Mahindra Renault: Logan Maruti Suzuki: 800, Alto, WagonR, Estilo, A-star, Ritz, Swift, Swift DZire,

SX4, Omni, Versa, Eeco, Gypsy, Grand Vitara

Mercedes-Benz India: C-Class, E-Class. Mitsubishi (in collaboration with Hindustan Motors)[42]: Lancer, Lancer

Cedia, Pajero Nissan Motor India: Micra. Toyota Kirloskar: Corolla, Innova, Camry. Volkswagen India: Polo, Jetta, Passat. Audi India: A4, A6, Q5. koda Auto India[: Fabia, Octavia, Laura,Superb.


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Vehicles imported to IndiaVehicles imported to India Audi: A8, TT, R8, Q5, Q7.

Bentley: Arnage, Azure, Brooklands, Continental GT, Continental Flying Spur,Mulsanne. BMW: 6 Series, 7 Series, X3, X5, X6, M3, M5, M6 and Z4. Chevrolet: Captiva. Fiat: Nuova 500, Bravo. Honda: Civic Hybrid, CR-V. Jaguar: XF, XJ, XK.

Lamborghini: Gallardo, Murcilago. Land Rover: Range Rover, Range Rover Sport, Discovery 4, Freelander 2. Maybach: 57 and 62. Mercedes-Benz: CL-Class, CLS-Class, S-Class, SL-Class, SLK-Class, M-

Class, Viano. Mitsubishi: Montero, Outlander. Nissan: Teana, X-Trail, 370Z,

Porsche: 911, Boxter, Panamera, Cayman, Cayenne. Rolls Royce: Ghost, Phantom, Phantom Coup, Phantom Drophead Coup. koda: Superb. Suzuki: Grand Vitara. Toyota: Land Cruiser, Land Cruiser Prado, Fortuner*, Prius. Volkswagen: Beetle, Touareg, Phaeton. Volvo: S60, S80, XC90.


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Commercial Vehicle manufacturers in IndiaCommercial Vehicle manufacturers in India

Local Brands Ashok Leyland Force Mahindra Navistar Premier Tata

Foreign Brands Volvo Audi BMW Mercedes-Benz

Electric car manufacturers in India Ajanta Group Mahindra Hero Electric REVA Tara International Tata


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Overview of Tata Aria - Best MPV in its segment Tata Motors India has launched the much awaited MUV - Tata

Aria. The Aria competes head on with the Toyota Innova and ismuch better in terms of design, styling, exterior, interiors andsafety features. The Aria is a 7 seater multi utility vehicle and

will feature the latest 2179cc DiCOR 4 valve DOHC dieselengine. Toyota Innova, amongst the most successfulCrossovers has sold 132,045 units since its launch in 2005.

Tata Aria is available in four variants:Aria Pleasure, AriaPrestige, Aria Prestige Leather and Aria Pride. All the models ofTata Aria are equipped with disc brakes in all wheels plus

comes with all time 4 wheel drive system. Both these featuresare first for a multi utility vehicle in this segment in Indianmarket. The Tata Aria is being made available, to begin with,in 25 cities through 69 dealerships. Tata has chosen besttime for the launch of Tata Aria as Navratri have started from 8thOctober, 2010.


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Price of Tata Aria - Prices Announced

Tata Motors India has announced the prices

of Tata Aria, it is the most expensive vehiclefrom Tata's stable. The prices of Aria are alittle bit on the higher side but if we talk aboutthe features on offer, the price is true value

for money. The base model of Tata Aria ispriced at Rs. 12,90,000 and top of the linevariant is priced at Rs. 15,50,000. Theseprices are ex-showroom New Delhi.


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Design & Styling of Tata Aria - Bestlooking Crossover in its segment

- Huge 17" wheels, Chrome finish frontgrille, ORVM integrated turn indicators- Round shaped fog lamps, Verticalpillar mounted tail lamps- Swept back head lamps withintegrated turn indicators


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ExteriorDimensions of Tata Aria - Huge toaccomodate 7 people comfortably

Length of Tata Aria is 4780mm, width is

1895mm and height is 1780mm. TataAria has a seating capacity of sevenpassengers and all are comfortable, allbeacause of Tata Aria's huge wheelbase of2850mm and overall ground clearance of

200mm also lends off-roading capability toTata Aria. Tata Aria is bigger than ToyotaInnova in all respects and hence proves to bemuch more comforable with more legroomand headroom.


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Interiors, Entertainment and ComfortFeatures of Tata Aria - Fully Loaded

- Infotainment system with GPS based

navigation- Automatic Climate control, B pillar mountedAC vents- Pillar mounted AC vents on third row- Music system with USB port, aux-in jack and

6 speakers- Tata Blue connect to pair upto 5 phoneswith the infotainment system- Steering mounted controls for infotainmentsystem


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Main Storage and Luggage compartmentsin Tata Aria - Lots of them

6 overhead storage bins on the roof

Spacious luggage compartment with bootlight

Completely foldable second and third rowseats for a flat bed luggage load area.

Split folding feature on second row of seats

Collapsible third row for 5 seater plusgenerous luggage


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Variants of Tata Aria - 4 Options tochoose from

Tata Aria is available in three variants.Base variant Aria Pleasure, then AriaPrestige, then Aria Prestige Leather andtop of the line Aria Pride.

- Tata Aria Pleasure- Tata Aria Prestige- Tata Aria Prestige Leather- Tata Aria Pride


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City Wise Prices of Tata Aria Here are city wise prices of Tata Aria in 5 major cities of India,

these prices are in rupees and are ex-showroom. Local levies,entry tax, road tax, registration, insurance etc. are exclusive ofthese prices.

Place Mumbai New Delhi Chennai Kolkata Chandigarh Pleasure 3,20,00012,90,00012,90,00012,92,00013,00,000 Prestige14,40,00014,10,00014,05,00014,12,00014,20,000

PrestigeLeather14,80,00014,50,00014,45,00014,52,00014,60,000

Aria Pride15,80,00015,50,00015,45,00015,52,00015,60,000


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AMALGAMATIONAMALGAMATION "blending"blending togethertogether ofof twotwo oror moremoreundertakingsundertakings intointo oneone undertaking,undertaking, thethe shareholdersshareholders ofofeacheach blendingblending company,company, becoming,becoming, substantially,substantially, thetheshareholdersshareholders ofof thethe blendedblended undertakingsundertakings.. ThereThere maymay bebeamalgamations,amalgamations, eithereither byby transfertransfer ofof twotwo oror moremore

undertakingsundertakings toto aa newnew company,company, oror toto thethe transfertransfer ofof oneoneoror moremore companiescompanies toto anan existingexisting companycompany..

Amalgamation & MergersAmalgamation & Mergers

X Y+Example = Z

X Y+ = X


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""MERGERMERGER"" itsits anan arrangement,arrangement, wherebywhereby thethe assetsassets ofof twotwo

companiescompanies becomebecome vestedvested in,in, oror underunder thethe controlcontrol of,of, oneonecompanycompany (which(which maymay oror maymay notnot bebe oneone ofof thethe originaloriginal twotwocompanies),companies), whichwhich hashas asas itsits shareholdersshareholders all,all, ororsubstantiallysubstantially all,all, thethe shareholdersshareholders ofof thethe twotwo companiescompanies..


Procedure for Amalgamation / MergerProcedure for Amalgamation / Merger

CCheck MoA (change accordingly).heck MoA (change accordingly).DDraft Scheme of Arrangement ( Amalgamation / Merger).raft Scheme of Arrangement ( Amalgamation / Merger).CConsider it in Board Meeting.onsider it in Board Meeting.AApply to Court direction to call General Meeting.pply to Court direction to call General Meeting.

SSent copy of application made to High Court to Central Gov.ent copy of application made to High Court to Central Gov.SSend notices of General Meeting to with schemeend notices of General Meeting to with schemeNNotice Period shall not be less than 21 daysotice Period shall not be less than 21 daysNNotice can be way of Advertisement alsootice can be way of Advertisement alsoAAt General Meeting approve scheme, increase authorized share capitalt General Meeting approve scheme, increase authorized share capitaland to issue further shares, as requiredand to issue further shares, as required


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Procedure for Amalgamation / MergerProcedure for Amalgamation / Merger

Forward promptly notice and proceedings of meeting to SEs

Report the result of the meeting to Court

Move Court for approval of the scheme by filing petition in 7 days

inForm 40

Advertise the date of hearing fixed by the court

On receipt of Order from High Court, file it with RoC.

Proceed on effecting the scheme amalgamation / merger asapproved by High Court


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GOVERNING PROVISION

SECTION 391-394 of Companies Act, 1956

Most liberal sections in the entire

Companies Act, 1956.

By way of SCHEME you can

propose & achieve whatever you want


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SectionSection 391391 394394 ofof thethe CompaniesCompanies Act,Act, 19561956 dealsdealswithwith Compromises,Compromises, Arrangements Arrangements andandReconstructionsReconstructions andand otherother relatedrelated issuesissues throughthroughschemesschemes ofof arrangementarrangement approvedapproved byby thethe HighHighCourtsCourts.. A A resolutionresolution toto approveapprove thethe schemescheme ofofarrangementarrangement hashas toto bebe passedpassed byby thethe shareholdersshareholdersinin thethe generalgeneral meetingsmeetings.. TheThe shareholdersshareholders havehave totovotevote onon thethe resolutionsresolutions onon thethe schemesschemes ofofarrangementarrangement onon thethe basisbasis ofof thethe disclosuresdisclosures inin thethe

notice/explanatorynotice/explanatory statementstatement.. SectionSection 393393 ofof thetheCompaniesCompanies Act, Act, 19561956 specifiesspecifies thethe broadbroadparametersparameters ofof thethe disclosuresdisclosures whichwhich shouldshould bebegivengiven toto thethe shareholdersshareholders // creditors,creditors, forfor approvingapprovingaa schemescheme ofof arrangementarrangement..



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MERGER

Combining of two ormore commercial

organizations into one inorder to increaseefficiency and sometimesto avoid competition.

MERGER

REVERSE MERGER

As a commercial term, itmeans when a Healthy

Company (in terms of size,capital or listing status)is

merging in a Weak Company(in terms of size, or

unlisted).

SECTION 391-394 of Com anies Act, 1956


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DEMERGER

Division of a Company with two or moreidentifiable business units into two or more

separate companies

SECTION 2(19AA) of Income Tax Act, 1961.


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Friendly AcquisitionFriendly Acquisition

The acquisition of a target company that iswilling to be taken over.

Usually, the target will accommodate

overtures and provide access toconfidential information to facilitate thescoping and due diligence processes.


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Friendly AcquisitionsThe Friendly Takeover Process

Friendly AcquisitionsThe Friendly Takeover Process

1. Normally starts when the target voluntarily puts itselfinto play. Target uses an investment bank to prepare an offering

memorandum

May set up a data room and use confidentiality agreements topermit access to interest parties practicing due diligence

A signed letter of intent signals the willingness of the parties tomove to the next step (usually includes a no-shop clauseand a termination or break fee)

Legal team checks documents, accounting team may seekadvance tax ruling from CRA

Final sale may require negotiations over the structure of thedeal including: Tax planning Legal structures

2. Can be initiated by a friendly overture by anacquisitor seeking information that will assist in the

valuation process.


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Hostile TakeoversHostile Takeovers

A takeover in which the target has nodesire to be acquired and actively

rebuffs the acquirer and refuses toprovide any confidential information.

The acquirer usually has already

accumulated an interest in the target(20% of the outstanding shares) and thispreemptive investment indicates thestrength of resolve of the acquirer.


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Hostile TakeoversDefensive Tactics

Hostile TakeoversDefensive Tactics

Shareholders Rights Plan Known as a poison pill or deal killer Can take different forms but often

Gives non-acquiring shareholders get the right to buy 50percent more shares at a discount price in the event of atakeover.

Selling the Crown Jewels The selling of a target companys key assets that the

acquiring company is most interested in to make it lessattractive for takeover.

Can involve a large dividend to remove excess cash from the

targets balance sheet.White Knight The target seeks out another acquirer considered friendly to

make a counter offer and thereby rescue the target from ahostile takeover


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Bail Out Take Over

Takeover of a financially sick company by

a profit earning company to bail out formeris known as bail out takeover.

This take place with approval of FI / Banks.


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Classifications Mergers andAcquisitionsClassifications Mergers andAcquisitions

1. Horizontal A merger in which two firms in the same industry combine. Often in an attempt to achieve economies of scale and/or

scope.

2. Vertical A merger in which one firm acquires a supplier or anotherfirm that is closer to its existing customers.

Often in an attempt to control supply or distributionchannels.

3. Conglomerate

A merger in which two firms in unrelated businessescombine. Purpose is often to diversify the company by combining

uncorrelated assets and income streams4. Cross-border (International) M&As

A merger or acquisition involving a Indian and a foreignfirm a either the acquiring or target company.


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Motivations behind cross borderAcquisitions

Growth orientation

Access to inputs

Exploit unique advantage- brand name etc

Defensive- reduce earning volatility

Response to client needs

Opportunism favourable exchange rate


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A FEW VARIETY OF MERGER

Unlisted with Listed

Listed with Unlisted

Merger of Subsidiary with Holding Company

Merger with Group Company

Healthy Company with Weak Company

Merger through BIFR


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STOCK EXCHANGES ROLE

REQUIREMENTS

PERSPECTIVE

Listing Agreement Compliances

Stock Exchange Internal Norms

Observations

Compliance of Securities laws

Compliance of Companies Act


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Listing Agreement Compliances

The Company agrees that it shall file any

scheme/petition proposed to be filed before anyCourt or Tribunal under Sections 391, 394 and 101

of the Companies Act, 1956, with the stock

exchange, for approval, at least a month before it

is presented to the Court or Tribunal.

Clause 24(f)


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Clause 24(a)

Company to obtain in-principle approval forlisting from the exchanges having nationwidetrading terminals where it is listed, before

issuing shares or other securities to the

shareholders of Transferor Company.

Listing Agreement Compliances.. contd


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Clause 40A

Listing Agreement Compliances..contd

Company to comply with Continuous Listingrequirements while framing a scheme of

merger/demerger.

St k E h N


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Stock Exchanges Norms

Presently, Stock Exchange(s) are laying various other

norms before giving approval to the Companies

for

Merger, Demerger Reduction of Capital

Stock Exchange Norms contd


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Stock Exchange Norms..contd

MINIMUM CAPITAL REQUIREMENTS

1. Issued & paid up Equity Capital Rs 10 crores

(if there is a change in management/control)

OR

Issued & paid up Equity Capital Rs 3 crores

(If there is no change in management/control)

AND

2. Minimum Net Worth 20 crores

(Post amalgamation)

*BSE

Stipulations



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LOCK IN REQUIRMENTS

25% of the newly issued capital pursuant to the schemeof amalgamation should be kept under lock in for 3 yrs

from the date of listing

The lock in period are varied by the stock exchange oncase to case basis

*BSE Stipulations

C li f Oth L


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Compliance of Other Laws

The Stock Exchange(s) alongside considersthe compliance of Securities laws,

regulations, rules etc. applicable on theCompany and Companies Act also



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CONTINUOUS LISTING NORMS

(Transferee Co is Listed Co. & Transferor Co is Unlisted Co.)

Non- Promoter Holding 25% of Post -merger Capital

* (The entire holding of the shareholders of the transferor company be

excluded)

If Non- Promoter Holding Falls below 25% of Postmerger capital, then the Promoters have to dilute

excess portion.

*BSE Stipulations



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DEMERGERDEMERGER

Reliance NaturalResources Ltd

Reliance CapitalVentures Ltd


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TYPES OF DEMERGER

Listed Company demerging into twocompanies (both could be listed).

Listed Company is demerged into twocompanies and another unlisted entity ismerging with the one of the demerged entity.

Distribution of shareholding in a Whollyowned Subsidiary among shareholders


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1. At least 10 per cent of securities issued by a company wasoffered to the public through advertisement & followingconditions were fulfilled:

(a) minimum 20 lakh securities was offered to the public;

(b) the size of the offer to the public Rs. 100 crores ;and

(c) the issue was made only through book building withallocation of 60 % of the issue size to QIBsOr

2. It shall offer at least 25 % of each class to the publicthrough Advertisement & Shares applied inpursuance of such offer were allotted

CONDITION FOR LISTING

(Rule 19 (2) (b) of SCR Rules)


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R li I d t i Li it d


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Reliance Industries Limited

- A Unique Scheme of Arrangement-

FACTS

PRE ARRANGEMENT SCENARIO

Reliance Industries Limited was

engaged in various businesses:

(i) Coal based power business;

(ii) Gas based power business;

(iii) Financial services business;

(iv) Tele-Communication business

RIL demerger


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The family arrangement aims at

Segregation between the two Ambani Brothers

Provision for Specified Investors was made:

Holdings of RIL and other companies in the controlof Mr. Mukesh Ambani were transferred to a whollyowned subsidiary, Reliance Industrial Investmentsand Holdings Limited (RIIHL) along with a Private

Trust (Petroleum Trust). RIIHL and Petroleum Trust were described as

Specified Investors which renounced their rightsin the scheme itself.

RIL demerger

RIL demerger


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As a result of demerger the shareholders of RelianceIndustries Ltd. other than Specified Investors got oneshare each in the following four resulting companies foreach share held in RIL as on the record date:

Reliance Energy Venture Ltd. (REVL)

Reliance Communication Venture Ltd. (RCOVL)

Reliance Capital Venture Ltd. (RCVL)

Reliance Natural Resources Limited (RNRL)

The shares of all these resulting companies got listed onthe stock exchanges under the provisions of Cl 8.5.3.1of the SEBI (DIP) Guidelines.

RIL demerger


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Benefits achieved..

Particulars Amount(Rs.)

24th March 2006

Amount(Rs.)

20th December,2007

Value of the shares heldby a shareholder as onrecord date (25th

Jan,2006) (A)

100 shares @928

92800

Shares in RIL 100 (@708) 70800 (@2700) 270000

Shares in REL 100 (@38) 3800 (@1900) 90000

Shares in RCOL 100 (@290) 29000 (@706) 70600

Shares in RCL 100 (@24) 2400 (@2376) 237600

Shares in RNRL 100 (@23) 2300 (@163) 16300

Total 108300 684500

Net benefit 15500 576200


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VALUATIONVALUATION

VALUATION

An important aspect in M/A/T activity is

valuation aspects. Valuation depends on acquisition

motives-

Financial Taxation/financial restructuring

Expansion/Diversification

Personnel ambitions- desire to grow


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Three Methods of Valuation

Net Asset MethodProfit Earning Capacity

Market Value in case of listed shares


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Others aspects

Cultural aspects


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Strengths, Weaknesses, Opportunitiesand Threats (SWOT).

SWOT analysis is a tool for auditing anorganization and its environment. It is the firststage of planning and helps marketers tofocus on key issues. SWOT stands forstrengths, weaknesses, opportunities, andthreats. Strengths and weaknesses areinternal factors. Opportunities and threats areexternal factors.


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In SWOT, strengths and weaknesses areinternal factors.

For example:

A strength could be: Your specialist marketing expertise. A new, innovative product or service. Location of your business.

Quality processes and procedures. Any other aspect of your business that adds

value to your product or service.


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A weakness could be: Lack of marketing expertise. Undifferentiated products or services (i.e. in relation to your

competitors). Location of your business. Poor quality goods or services. Damaged reputation. In SWOT, opportunities and threats are external factors. For example: An opportunity could be:

A developing market such as the Internet. Mergers, joint ventures or strategic alliances. Moving into new market segments that offer improved profits. A new international market. A market vacated by an ineffective competitor


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A threat could be: A new competitor in your home market.

Price wars with competitors. A competitor has a new, innovativeproduct or service.

Competitors have superior access to

channels of distribution. Taxation is introduced on your product

or service.


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Thanks a lot

ALL THE BEST

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