By, Sahitya Urs (0911369) Kiran Raj (0911371)

Vast hydroelectric potential (150,000 MW). Large pool of highly skilled technical personnel. Impressive power development in absolute terms Enabling framework for private investors. Potentially, one of the largest power markets in the world

Present 2.4% of the overall world energy output 6th largest energy user, comprising about 3.3% of the overall global energy expenditure per year. The gross electricity production capability of Indian Power Sector is placed at around 111 GW. Future Exponential demand growth Capacity Enhancement Increased significance of the role of the private players and foreign investments New strategies and reforms Increased significance of renewable sources of energy

Factors

Threat from Competitors (Present) High Moderate       Low

Threat from Competitors (Future) High       Moderate Low

Number of Competitors Buyers switching Costs Industry Growth Competitors Fresh Moves Excess capacity Cost Structure of firms Degree of product differentiation among sellers? Brand Loyalty to existing customers?

High Can firms adjust to prices quickly Use of fascilitating prices Exit Barriers  

Moderate 

Low

High 

Moderate

Low

 

Factors

Threat of New Entrance (present) High Moderate Low

Threat of New Entrance (Future) High    Moderate Low

Capital Requirement Profit Margin Economies of Scale Switching Cost Government Restriction Access of favorable locations

     

  

Access to technology know how Access to Raw materials

 

 

Demand side advantages to incumbents from large installed base

Government protection

Factors

Threat of Substitution (present)

Threat of Substitution (future) High Moderate Low

High

Moderate

Low

Availability of Substitutes Price, Performance and quality of services of Substitutes Switching cost

   

   

Cost factor

Factors High

(present) Moderate Low High

(future) Moderate Low

Do buyers purchase in large volumes? Can buyers for can find

substitutes

industrys

product? Do firms in industry make relationship specific investments to support transactions with specific buyers? Is price elasticity of demand of buyers product high or low?

Factors High

(present) Moderate Low High

(future) Moderate Low

Do firms in industry purchase relatively small volumes relative to others customers of supplier? Few substitutes for suppliers input Do firms in industry make relationship specific investments to support transactions with specific suppliers? Are suppliers able to price discriminate among prospective Customers according to ability/willingness to pay for input?