- The document analyzes demographic trends, economic factors, and technology that will impact the watch industry in the future. It notes that currently youth are the main market but future focus will be on kids, corporations, and tech enthusiasts.
- It discusses Porter's 5 forces model and states that threats from new entrants and competitors can affect the company's profitability. However, suppliers have little bargaining power. Buyers of youth-oriented watches can easily switch brands while elite buyers focus more on brand.
- Mobile phones are substitutes but watches make more of a fashion statement. The document concludes any new company can enter the market through differentiation, posing a threat, but capital requirements are a restricting factor.
12. INCREASING GDP The GDP of India is increasing ( Presently it is 7.9%) Purchasing power has increased drastically. Huge potential market for our product.
23. THREATS Any slight reduction in the prices. New and innovative products of competitors Attractive advertisements These factors can help the competitors to attract our customers
25. Number of suppliers in the market for the raw material is large They can’t exert power to raise the prices of the raw material as we can easily shift to other suppliers.
26. buyers LLEST YUVA: Higher bargaining power. They have many options. SO YOUTH CAN EASILY SHIFT TO OTHER BRANDS LLEST STYLE: Elites are particular about their choice. They are brand conscious SO THEY DON’T EASILY SHIFT TO OTHER BRANDS
28. BUT WATCHES MAKE A FASHION STATEMENT AND EASY TO CARRY. SO IT HAS A NEUTRAL EFFECT ON OUR SALES
29. Threats from new entrants No government regulations. Easy for any new company to enter Differentiation can be done through Branding, style, fashion, variety. Easy for any new company to enter High capital requirement. The only factor which can restrict the new entrant in the market.
30. ACCORDING TO THESE FACTORS, ANY NEW COMPANY CAN EASILY ENTER THE MARKET AND CAN AFFECT THE PROFITABILITY OF OUR COMPANY.