The Ethics of Microsoft Taking on End User in China :: Piracy Technology Software Essays

The Ethics of Microsoft Taking on End User in China Background ( Microsoft vs Beijing Yadu Science and Technology Group.) The case of Microsoft Corporation ( China), Ltd. V. Beijing Yadu Science and Technology Group is considered a landmark court case in which the Beijing First Intermediate People’s Court (BFIPC) handed down its decision on Microsoft’s complaint against Beijing Yadu Science and Technology Group. The company Yadu was found to be in possession of a dozens of pirated copies of Microsoft products installed in its computer computers. 1 The case was eventually dismissed in December 17, 1999 not because it did not have merit, but rather on the technicality that Microsoft misidentified the defendant in its allegation. 1 Even though the case was dismissed on technicality, it sparked much debate among the Chinese legal community about the ambiguity within the existing law in China with regard to this matter. More significantly, it created an even more hotly debated issue about the ethics of software infringement. Introduction Software piracy in the year 2002 was estimated to have cost U.S. software companies world wide an estimated 9.2 billion dollars as a result of revenue loss. Of all the hundreds of countries world wide, China is by far the biggest contributor to this revenue loss at an estimated figure of 1.85 billion dollars. 2 Thus not surprisingly, law suits over the issue of software infringement is so prevalent in China today. In December of 1999, Microsoft, the world’s largest and most dominant software company set a new legal precedence in China in the landmark case of Microsoft Corporation ( China), Ltd. V. Beijing Yadu Science and Technology Group. The law suit caused an uproar among numerous Chinese consumers because for the first time in China, â€Å"a major foreign software manufacturer went directly after an end user for copyright infringement in China† instead of just the people who manufactures and sells the counterfeit software. 3 At first glance, it is easy for many Americans in the United States to simply say this case is nothing more than a matter of right and wrong, black and white. The obvious argument would seem to be that if you use something without paying for it, then it constitute stealing. Without a doubt, stealing is universally regarded as wrong in every country and in every culture. However, in a case such as this, we are not dealing straight forward laws.

Ways to Generate Awareness Among the People

Oil Conservation Fortnight (OCF) – 4th  Ã¢â‚¬â€œ 19th  January Petroleum or crude oil is a non renewable energy source that means it is present in the limited amount. If the use of oil will continue with the careless nature it is going to exhaust definitely at one day. Hence conservation of this valuable resource is the need of the hour. Therefore in order to generate awareness among the masses about the urgency of conserving petroleum products, the celebration of an Oil Conservation Week (OCW), with the participation of the Petroleum Conservation Research Association (PCRA) and the entire oil industry under the guidance of the Ministry of Petroleum & Natural Gas (MPNG), began in January, 1991. Considering the overwhelming response and enthusiasm generated by OCW in the country, and to further increase the reach as well as the effectiveness of the oil conservation campaign, the duration of the program was increased to a fortnight from the year 1997 onwards. During this fortnight, the entire oil industry undertakes various kinds of activities to emphasize the need and importance of the conservation of petroleum products and environment protection. This is carried out through print and electronic media, training programs, kisan or farmer melas, technical meets and distribution of literature in national as well as vernacular languages all over the country. The activities are carried out by the State Level Coordinators (SLCs) of the oil industry in each State under the direction of the Regional Level Coordinators (RLCs). Awards are given to Large, Medium & Small industries, State & Regional Level Coordinators, State Transport Undertakings, Energy Auditors, Upstream & Refining oil. Companies for outstanding performance in oil conservation activities. The State/ National level Essay Competition Awards for students & teachers are also given. Oil & Gas Conservation: Oil and gas conservation means their better and more efficient use with regard to economic, social or environmental costs and benefits, resulting in attainment of higher energy use efficiencies, minimization of wasteful practices and wastage and protection of the environment. Petroleum is the primary energy source in India and a preferred swing fuel. Its consumption has been increasing at a very steep rate from 3. 5 MMT in 1950-51 to 84. 3 MMT in 1997-98 and reached 130 MMT in 2001-02 and 175 MMT in 2006-07. The current estimate of natural gas reserves is about 100 million metric tons in the world. At current usage levels, this supply will last an estimated 100 years. In India, the power and fertilizer sector are major users of natural gas. In India, production of Natural gas increased from 17998 Million Cubic Metres in 1990-91 to 32274 Million Cubic Metres in 2007-08. Accordingly Strategy of Promoting Oil Conservation: Government has initiated various steps to promote conservation of petroleum products in the transport, industrial, agricultural and domestic sectors. These include adoption of measures and practices which are conducive to increase fuel efficiency and training programme in the transport sector; modernization of boilers, furnaces and other oil operated equipments with efficient ones and promotion of fuel efficient practices and equipment in the industrial sector; standardization of fuel efficient irrigator pump-sets and rectification of existing pump-sets to make them more energy efficient in the agricultural sector and development as well as promotion of the use of fuel efficient equipment and appliances like kerosene and LPG stoves in the household sector. These activities are promoted and coordinated by the Petroleum Conservation Research Association (PCRA) and Oil Marketing Companies under the guidance and supervision of Ministry of Petroleum & Natural Gas. The following specific activities are taken up from time to time. * Multi Media Mass Awareness Campaign Effective and result-oriented conservation methods adopted by the upstream undertakings in the oil sector like reduction of gas flaring by re-injection of gas to underground reservoir, installation of waste heat recovery systems, utilization of non-conventional energy sources and close monitoring of all conservation efforts by ONGC. * Energy audits, efficiency upgradation of equipment and appliances; substitution of diesel with Natural Gas, deployment of solar-powered illumination panel, battery operated vehicles, Bio-gas etc. * Compressed Natural Gas (CNG) is used as a fuel in transport sector in many countries. Its advantage is being safe and clean burning fuel, besides being environment friendly fuel. * Blending ethanol (5%) / methanol (3%) with Petrol for using in vehicles without any modification of engine. All these steps are certainly playing a major role in conserving Oil and Gas resources which are available to us in a limited amount. Let us be a part of this national activity by using natural resources wisely! What Organization Can Do? Whenever you save energy, you not only save money, you also reduce the demand for such fossil fuels as coal, oil, and natural gas. Less burning of fossil fuels also means lower emissions of carbon dioxide (CO2), sulphur dioxide (SO2), Oxides of Nitrogen (NOX), Carbon monoxide (CO), particulate matter, Lead (Pb) etc. Lower emissions of CO2  which is a green house gas contributes to reduce the impact of global warming. Similarly, lower emission of particulate matter and other pollutant help to reduce their harmful impact on the environment. For generating awareness: * A School Children's Rally for awareness * Organizing Film Festival, Seminars, exhibitions emphasizing value of natural resources ; need for their conservation. Organizing State/ National level Essay, Painting, Speech Competition about oil conservation especially emphasizing that children could be a beacon of light to guide the elders in the family and society on how to conserve oil. * Introducing â€Å"Publicity Van† which will go all over the city spreading the message of â€Å"oil conservation. † * Organizing â€Å"Street playsâ₠¬ - with the objective to project the routine oil conservation messages in a different way. * Use of Solar Street lights. * In the rural sector, use of gobar gas plants, would be excellent fuel conservation technique. This awareness campaign should not end at the end of the fortnight, but should continue in the hearts of all of us. What we Can Do in our day today life for Oil Conservation * While cooking use wide bottom vessels with covers. * Allow food articles taken out of the refrigerators to attain room temperature before cooking them. * Soak cereals and dals for sometime before cooking them to reduce the cooking time as well as the fuel consumption. * Use just sufficient water for cooking. * Pressure cookers used with separators lead to substantial fuel saving. * Try to eat together to avoid repeated warming of food. This not only saves fuel but also preserves the nutritional value of food. * Light the flame only after all preparations have been made and the vessel is ready to be put on the stove. * Use hot water from solar water heaters for cooking if the facility is available. * Try to use a solar cookers, solar lanterns. * The first rule of fuel conservation would be to travel judiciously and curtail wasteful driving. * Wherever possible/ available and convenient, use public transport instead of using personal transport. * Matching the size of the vehicle to your need would also go a long way in conserving fuel. For instance if you have the option of a personal car and a scooter, then use the scooter when only two persons have to travel, and the car if more persons have to travel or heavy luggage needs to be transported. * Emphasis should be given on reducing the use of petroleum products in our day to day life and act accordingly. This can be achieved by adopting car-pooling like practices. Car pooling will not only conserve fuel but will also improve social relations with your colleagues. * Use of solar lanterns in rural areas instead of kerosene based lamps. As far as possible, avoid idling the vehicle between red and green signal, be it a car, scooter or any other mechanized transport. * Try to buy fuel efficient vehicles. * There is no substitute for timely attention, servicing and tuning of the vehicle in fuel conservation and emission control. This should include checking of injectors and spark plugs, correct tire pressure, re-greasing, topping up or renewal of lubricants for engine a nd gear boxes. * Correct driving habits are important for fuel conservation. Try to avoid sudden Speeding, braking ; stopping, clutch riding, idling, over- speeding, and over-loading. All these small deeds will lead to fuel conservation and pollution control, which is our moral duty as citizens of India. It is the time we inculcate these measures to become a part of our daily routines. Only by practicing and preaching these conservation tips we can think of future progress. Given the difficult times ahead, it becomes our responsibility to spread this awareness, particularly amongst the youth who will be citizens of tomorrow. Good habits taught early will salvage the oil shortage to a great extent. This awareness campaign should not end at the end of the fortnight, but should continue in the hearts of all of us.

Five forces Analysis of Two-wheeler industry Essay

As shown above, the business model is formulated as input ïÆ'   process ïÆ'   output. For a two wheeler industry, The inputs to the OEM constitutes of 1. Import of parts: the basic ingredients for model building are the parts such as drive chains, engines, components, transmissions etc. 2. Auto Component Manufacturer: There are 300+ players in the industry which manufacture auto parts components and perform tasks such as castings, forgings, tires etc 3. Raw material Supplier: This forms the initial requirement for the development of any vehicle. The raw material of which it is composed of consists of sheet metal, aluminium etc. The processing involves: 1. Manufacturer Original Equipment Manufacturer(OEM): The industry is highly concentrated with 3 players constituting 80% of the market share, namely Hero Moto, Bajaj Auto & Honda Motors. This industry has a turnover of 55K Cr by producing over 13.33mn units in the FY 2011. 2. Dealership Network Dealer: In the Indian domestic market, the dealer are numbered over 2000 Sub- Dealer: The sub dealers, also known as the touch points are over 12000. This dealership network forms the competitive advantage of a company in the market Service Centers: These provide after sales service for the two wheeler industry and form the part of maintenance and helps in building customer loyalty. The output part of the business model comprises of 1. Domestic Customers: There is a low penetration in the domestic market with coverage in rural market as low as 7%. 2. International Customers: The major markets for two wheelers are Africa, Latin America & South East Asia INDUSTRY ANALYSIS The industry is highly concentrated and there is a strong foothold by 3 major players in the industry namely Hero Moto constituting 39% of the market share, Bajaj Auto constituting 27% of the market share and finally Honda Motors with 14% market share. So, these 3 major players sum to 80% of the total industry market share. The Indian Auto sector had a volume growth of 13% CAGR over the last 5 years- Driven by two wheelers which account for 80% of the total volumes Two wheeler sales reached INR 55K Cr and volumes reached 13.3 mn units clocking a CAGR of 15% and 13% respectively over 2006-2011. This works to an average realization – Rs 42000 or 1.2x the real per capita GDP of India. Domestic volume growth has been strong over the past five years growing at 11% CAGR Exports have been a significant factor to contribute to overall volumes with a growth of 27% CAGR over the last 5 years. Year to date, the volume sales growth in two wheelers has surpassed all other automobile segments. FIVE FORCES ANALYSIS What is it? Five Forces Analysis is a tool that enables managers to study the key factors in an industry envi ­ronment that shape that nature of competition: (1) rivalry among current competitors, (2) threat of new entrants, (3) substitutes and complements, (4) power of suppliers, and (5) power of buyers. When do we use it? In a strategic analysis, Five Forces Analysis is an excellent method to help you analyze how competi ­tive forces shape an industry in order to adapt or influence the nature of competition. Collectively, the Five Forces determine the attractiveness of an industry, its profit potential, and the ease and attractiveness of mobility from one strategic position to another. Because  of this, the analysis is useful when firms are making decisions about entry or exit from an industry as well as to identify major threats and opportunities in an industry. Why do we use it? This analysis was originally developed by Michael Porter, a Harvard professor and a noted author ­ity on strategy. While all firms operate in a broad socioeconomic environment that includes legal, social, environmental, and economic factors, firms also operate in a more immediate competitive environment. The structure of this competitive environment determines both the overall attractive ­ness of an industry and helps identify opportunities to favorably position a firm within an industry. Porter identified five primary forces that determine the competitive environment: (1) rivalry among current competitors, (2) threat of new entrants, (3) substitutes and complements, (4) power of sup ­pliers, and (5) power of buyers. 1. Rivalry Among the direct and obvious forces in the industry, existing competitors must first deal with one another. When organizations compete for the same customers and try to win market share at the others’ expense, all must react to and anticipate their competi ­tors’ actions. 2. Threat of Entrants New entrants into an industry compete with established companies placing downward pressure on prices and ultimately profits. In the last century, Japanese automobile manufacturers Toyota, Honda, and Nissan represented formidable new entrants to the U.S. market, threatening the market position of established U.S. players GM, Ford, and Chrysler. The existence of substantial barriers to entry helps protect the profit potential of existing firms and makes an industry more attractive. 3. Substitutes and Complements Besides firms that directly compete, other firms can affect industry dynamics by providing substitute products or services that are functionally similar (i.e., accomplishing the same goal) but technically different. The existence of substitutes threatens demand in the industry and puts downward pressure on prices and margins. While substitutes are a potential threat, a complement is a potential opportunity because customers buy more of a given  product if they also demand more of the complementary product. For example, iTunes was established as an important complement to Apple’s iPod, and now the firm has leveraged connections among its suite of products including iPhone, iPad, and the like. 4. Power of Suppliers Suppliers provide resources in the form of people, raw materials, com ­ponents, information, and financing. Suppliers are important because they can dictate the nature of exchange and the potential value created farther up the chain toward buyers. Suppliers with greater power can negotiate better prices squeezing the margins of down ­stream buyers. 5. Power of Buyers Buyers in an industry may include end consumers, but frequently the term refers to distributors, retailers, and other intermediaries. Like suppliers, buyers may have important bargaining powers that dictate the means of exchange in a transaction. According to Porter, successful managers do more than simply react to this environment; they act in ways that actually shape or â€Å"enact† the organization’s competitive environment. For example, a firm’s introduction of substitute products or services can have a substantial influence over the competitive environment, and in turn this may have a direct impact on the attractiveness of an industry, its potential profitability, and competitive dynamics. I. Bargaining power of buyers: High Who are the buyers of this industry: Individual customers who purchase and use two wheelers for the purpose of transportation. This category of customers considers two wheelers as a necessity than a luxury. In a developing country like India, especially in tier 2 and tier 3 cities, two wheelers are extremely popular amongst families and students. Scooters are considered to be utility vehicles transporting a family of 2-3 at a time and providing good mileage. Bikes on the other hand come in a variety of segments. They can cost less, acting as utility vehicles. They can be costing very high, acting as luxury products for their owners. The  following points can be aggregated to determine the relative bargaining power of buyers against the automobile manufacturing firms. The bargaining power in this case would mean to what extent the buyers can negotiate prices of the two wheelers. This buying power would determine the market price of the two wheelers in the long run. It also indicates the intensity of rivalry amongst the existing firms in the market. Product Differentiation: Low The features in two-wheelers produced by the Indian manufacturers like Bajaj, Honda, TVS etc. are very close to each other. These features include appearance, Price, Quality and other functional features. This implies that: The buyers can shift from one product to another, as they do not have affinity for any specific product Information Availability: High High availability of information over the internet, leads to higher bargaining power with the buyer to compare the various features and price of products thus leading to lower bargaining power with the manufacturing firms. Type of Economy: Developing India being a Developing economy, is a big hub for two wheeler manufacturers. A two wheeler is a necessity in small towns even today. The large number of customers lowers their bargaining power to some extent. However, this is offset by the large number of suppliers. This is good news for the automobile firms as their product is going to remain in demand for a while at least and they don’t have to worry about declining sales for some time in India. Number of Suppliers: High The number of companies manufacturing automobiles is high in India. With each major player opening showrooms in not only Tier I but II and III cities, the consumers have a wide variety of options to choose from. The number of buyers and sellers in market is high. These two effects offset each other. This implies that: The bargaining power of consumers is high because of this effect as the consumers have the option of going to another brand if they do not like the functional features or price of one brand. In case of utility  vehicles manufacturing category, Rohtak alone has two showrooms of the major players in the market. This implies an empowered consumer. Switching Cost: Moderate The switching costs are higher than FMCG goods however are low compared to many other high involvement products. A basic two wheeler starts from about Rs 40,000. This cost maybe high for some people and not so significant for others. However as two wheelers hardly have any associated products, which would require compatibility with the product, the switching cost is low. Also due to a well-established second hand market in India, the vehicles can be easily resold these days. This also covers up for the switching costs to some extent. II. Bargaining Power of the Supplier : LOW Organizations would be at a disadvantage if their suppliers are powerful. They should preferably not be dependent on any supplier. Now suppliers can be powerful if the number of firms providing thie particular service or product are few in number( eg. A monopoly, oligopoly).The number of the firms determine their bargaining power. The power gets by the increase in existence of switching costs for the various firms. Moreover, firms in an industry have power if they have many alternative sources of supply or if they have a credible threat of integrating backward to provide their own sources of supply. So even supply chain management is particularly important in industries where the potential power of suppliers is high. Now, for a 2 wheeler Industry there would be various suppliers which can be broadly classified into 4 broad categories:- 1)Steel industry 2)Tyre industry 3)Auto components industry 4) Battery industry Steel Industry The 2 wheeler industry in India mostly imports all the automotive steel. Around 65% of the steel is imported for automobiles. The cheap import duty helps the 2 wheeler industry to import high quality steel. So the prices of  steel is determined by mostly international markets, so the bargaining possibility is less for the steel suppliers. Demand for automotive steel such as inner components and outer body parts comprises just 7-8 million tonnes (mt) a year out of India’s total production of about 78 mt, but is growing at 10-20% a year even as overall demand growth lags economic growth. The companies in India which develop automotive steel have now decided to expand in this area and many companies have entered into joint ventures with various international companies like Sumitomo + Bhushan Steels, Jfe+jsw, Tata+Nippon joint ventures. So the 2 wheeler industry has a lot of vendors both nationally and internationally to choose from. Thus, the bargaining power of the supplier is low. Auto components and Battery Industry Both the Auto Components industry and the Battery industry in India are highly fragmented .There suppliers highly outnumber the 2 wheeler companies. Examples of a few companies which provide auto components in the automobile industry are Rico Auto Industries Ltd, JBM Group, Sona Koyo Steering Systems and Lumax Industries, Indication Instruments Ltd Aisin Seiki Co.,BorgWarner,Continental, Delphi, Denso Corporation, Eaton, FAG, Faurecia, GKN,Honda Foundry Co. Ltd., Honeywell,Knorr Bremse, Koyo,Magna,Magneti Marelli, Mando Corporation, Meritor,Mitsuba Corporation, NHK Spring,Robert Bosch,Showa Corporation, Sumitomo Wiring Systems, Toyoda Gosei, USHIN, Valeo, Visteon,Yazaki and many more. Amaron ,exide,luminous,kaycee ,sumangal,action,tata batteries are just a few examples of the Battery Companies in India.Thus, since the number of suppliers is huge the bargaining power they enjoy is low. Tyre Industry It can be clearly seen in the pie chart below that for tyre industry in India, 53% of the tyre consumption is by the 2 wheeler industry. The benefits are given to them as they are buying in bulk and the relation gives the tyre firms a strong brand association. At present there are 40 listed companies in the tyre sector in India.Major players are MRF, JK Tyres, and Apollo Tyres & CEAT, which account for 63 per  cent of the organized tyre market. The other key players include Modi Rubber, Kesoram Industriesand Goodyear India, with 11 per cent, 7 per cent and 6 per cent share respectively. Dunlop,Falcon, Tyre Corporation of India Limited (TCIL), TVS-Srichakra, Metro Tyres and Balkrishna Tyres are some of the other significant players in the industry. Thus , with so many players in the market and also with the power to give tyre companies brand association, the 2 wheeler industry is at a huge advantage and the bargaining power of the tyre suppliers is low. III. Threats of Substitutes : LOW Number of Substitutes: High Substitutes can be cars, electrical vehicles, public transport and rickshaw/taxi. There are many players in the market for four-wheelers. Also, in metros and some of the tier-II cities, public transport facility is quite good. Thus, this can be a negative factor for two-wheeler industry. But two-wheeler may be a better option for 2 people in the same price range. Flexibility is also high compared to public transport. These facts nullify the negative effect of this factor. Public Transport Infrastructure: Moderate As of today, public transport is not very well developed in India but its developing day by day. In tier-1 cities, people have started preferring public transportation for routine tasks but people in other regions don’t have an option. Scope of Differentiation: High There is a high scope of innovation in this industry as the technologies are ever changing. Customization according to the customer needs is important and attracts consumers’ attention towards one vehicle from another. Lifestyle in India: Changing Common Man’s lifestyle is changing in India and number of people working in a family are increasing. Most of them prefer one vehicle per head to commute. For a middle class family, two wheeler is the only feasible option in such cases looking at its flexibility and affordability. Thus, changing lifestyle  is a positive sign for this industry. Cost of Switching to Substitutes: High People switch to substitutes for a reason. Given below are some of the reasons why people switch to substitutes. Cars: Comfort, status Symbol, safety Public Vehicles : Affordability, Safety, Cost, Pollution, Time saving Electrical Vehicles: Environmental friendly, Maintenance cost Here is the negative side of switching to substitutes. Public transport vehicles are not readily available for transportation within the city/town/village except in a few cities in India. For the regions where public transports are not available, only four-wheeler or electrical vehicles remains the substitute to a two-wheeler. Electrical vehicles at present not competitive with respect to present petrol running vehicles. No established player is offering Electrical vehicles. Switching cost from a two-wheeler to a four-wheeler is quite high as investment will be needed to switch the product. Also running cost is more for a four wheeler. The above table shows the calculation of running cost of a two-wheeler and a four-wheeler per km. The numbers are rationally assumed for reaching to quantified figures. As we can see from above calculations, running cost of a four-wheeler is almost 3.5 times more than that of a two-wheeler. Thus, we conclude that the cost of switching to substitutes is LOW in the case of two-wheelers. Seeing all the five factors contributing to Threats of Substitutes, it can be safely concluded that this threat is LOW. Lower running costs, higher addressable market and lack of public transport make two wheeler industry attractive. IV. Threat of New Entrants : MODERATE-WEAK Capital requirements: Moderate High capital requirements mean a company must spend a lot of money in order to compete in the market. The investment made by the company depends upon the type of expansion. High capital requirements positively affect 2 Wheeler Industry India. â€Å"High Capital Requirements (2 Wheeler Industry India)† is an easy qualitative factor to overcome, so the investment will not have to spend much time trying to overcome this issue. Easy to overcome this disadvantage High sunk costs High sunk costs make it difficult for a competitor to enter a new market, because they have to commit money up front with no guarantee of returns in the end. High sunk costs positively affect 2 Wheeler Industry India. This statement will have a short-term positive impact on this entity, which adds to its value. â€Å"High Sunk Costs Limit Competition (2 Wheeler Industry India)† will have a long-term negative impact on this entity, which subtracts from the entity’s value. â€Å"High Sunk Costs Limit Competition (2 Wheeler Industry  India)† is an easy qualitative factor to overcome, so the investment will not have to spend much time trying to overcome this issue. 5 Forces analysis: High negative impact in the long run High positive impact in the short run Easy to overcome this disadvantage Strong brands If strong brands are critical to compete, then new competitors will have to improve their brand value in order to effectively compete. Strong brands positively affect Two Wheeler Industry India. The 3 major players contribute to 80% of the market share Hero Moto, Bajaj Auto, Honda Motors. Advanced technologies Advanced technologies make it difficult for new competitors to enter the market because they have to develop those technologies before effectively competing. The requirement for advanced technologies positively affects Two Wheeler Industry India. Economies of scale Economies of scale help producers to lower their cost by producing the next unit of output at lower costs. When new competitors enter the market, they will have a higher cost of production, because they have smaller economies of scale. Economies of scale positively affect Two Wheeler Industry India.†Industry Requires Economies of Scale (Automobile Industry India)† has a significant impact, so an analyst should put more weight into it. â€Å"Industry Requires Economies of Scale (Two Wheeler Industry India)† will have a long-term negative impact on this entity, which subtracts from the entity’s value. This force has significant impact High negative impact in long run Patents Patents that cover vital technologies make it difficult for new competitors, because the best methods are patented. Patents positively affect Two Wheeler Industry India. Customer Loyalty It takes time and money to build a brand. When companies need to spend resources building a brand, they have fewer resources to compete in the marketplace. These costs positively affect Two Wheeler Industry India. High learning curves When the learning curve is high, new competitors must spend time and money studying the market before they can effectively compete. High learning curves positively affect profits for industry. High switching costs High switching costs make it difficult for customers to change which products they normally purchase, due to costs. High switching costs positively affect Two Wheeler Industry India. High Switching Costs for Customers has a significant impact, so an analyst should put more weight into it.†High Switching Costs for Customers will have a long-term positive impact on this entity, which adds to its value. This statement will have a short-term positive impact on this entity, which adds to its value. This force has significant impact High positive impact in long run High positive impact in short run Strong distribution networks Weak distribution networks mean goods are more expensive to move around and some goods don’t get to the end customer. The expense of building a strong distribution network positively affects Two Wheeler Industry India. â€Å"Strong Distribution Network Required † has a significant impact, so an analyst should put more weight into it. â€Å"Strong Distribution Network Required – Two Wheeler Industry India† will have a long-term positive impact on this entity, which adds to its value. â€Å"Strong Distribution Network Required – Two Wheeler Industry India† is a difficult qualitative factor to defend, so competing institutions will have an easy time overcoming it. This force has significant impact High positive impact in long run Difficult to defend advantage High entry barriers When barriers are high, it is more difficult for new competitors to enter the market. High entry barriers positively affect profits for Two Wheeler Industry India. So to sum it all, for the two wheeler industry the threat of new entrants is moderate to weak. INTENSITY OF RIVALRY AMONG EXISTING COMPETITORS : MODERATE Among the direct and obvious forces in the automobile industry, existing competitors must first deal with one another. When organizations compete for the same customers and try to win market share at the others’ expense, all must react to and anticipate their competitors’ actions. There are 3 main factors along which the intensity of rivalry amongst existing players in the automobile industry have been identified 1. Number Of Competitors:- The number of competitors within an industry is a direct correlation to the intensity of competition, all else being equal. The industry concentration was studied using Hirschman-Herfindahl Index. The data for studying HHI was obtained from the Centre for Monitoring Indian Economy. Yearly sales volume data for various brands of two-wheelers in the three segments were obtained for the period 2008- 2012 and was computed. The above figure shows that the 2 Wheeler Industry is oligopolistic in nature and there is less competition even after deregulation of the Indian Economy. The Motorcycle segment is characterised by a few large players who have established their presence. The leading player is Honda Motorcycles with almost 50% market share. The Moped industry is a monopoly and TVS is the only player which has been able to capture the entire market. The scooter industry has crossed the shakeout phase post 2004 when the Activa type models were being imitated by all major players across the segments. This too has a HHI of .309 indicating less competition. 2. Incentive to Fight:- The incentive to fight is primarily related to finding out how competitors  fix prices i.e whether they engage in price wars, or engage in aggressive activities with the aim of increasing market share. This shall further be explored among 3 other parameters. A. Growth In Automobile Industry There has been substantial growth in the automobile industry in India and it has already crossed the 25 Billion Rupee mark and has had a 13.7% CAGR over the past 5 years. Over the medium term, the 2W industry is expected to report a volume CAGR of 9-11% to reach a size of 24-26 million units by 2016-17. This will be due to the (a) favourable demographic profile, (b) increasing personal income as well as (c) moderate penetration in relation to other Emerging Markets. Therefore there is substantial opportunity for growth leading to less competition. B. Demand – Supply Gap Most two wheeler have idle capacity as the supply exceeds demand. Moreover as many players are planning to increase manufacturing operations, it is estimated that the total supply will exceed demand by almost 15 to 20%. This problem has been compounded by the fact that foreign entrants are planning to enter India as growth in European and American markets have stagnated. This will lead to more competition. C. Nature of Demand The nature of demand is highly cyclical in nature. In times of high growth in the Indian Economy there is corresponding revenue growth for all 2 wheeler companies. This can be seen more from the growth of the 2 Wheeler Industry during recession which slowed substantially. In fact the motorcycles segment had dipped to negative growth during that period. Our group believes that after evaluating the three factors, there will soon be a tendency for the firms to engage in fierce competition as the stakes are increased manifold. This will ultimately lead to more competition for existing players and international players who are thinking of venturing into the industry. 3. Coordination between competitors According to the Indian Constitution, â€Å"The Competition Act, 2002, as amended by the Competition (Amendment) Act, 2007, follows the philosophy of modern competition laws. The Act prohibits anti-competitive agreements, abuse of dominant position by enterprises and regulates combinations (acquisition, acquiring of control and Merger and Acquisition), which causes or likely to cause an appreciable adverse effect on competition within India† which prevents firms from colluding implicitly or explicitly colluding. Till now there has been no tendency amongst firms of colluding, hence the market is still competitive in terms of the coordination between competitors. Considering all the factors, the competitive landscape within the industry is still not yet clearly defined. Even though firms are capacity constrained, there is still ample room for growth. Therefore our group believes that the competition is still low. The way ahead With consumers becoming increasingly aware about products and buyer power increasing, the manufacturers will have to differentiate their products. Then comes the era of green vehicles which will be powered by battery or green fuels and will provide mileage of 100 km/Rs 8. The relationship between suppliers and manufacturers is nasty at this point of time. It needs to be reworked. This will provide room for improved consumer feedback mechanism which will lead to improved product for consumers The projected sales of two wheelers in India in FY15 are 18MN. There is scope in the unisex category of scooters as already there are plenty of motorbike owners in the country. Companies could leverage on that. Another scope is there in rural areas and tier II, III cities. This market is relatively untouched by two wheeler marketers and hence this should be explored and custom made vehicles should be designed for people residing in these areas. Since the purchasing capacity of these people is low it should be kept in mind while making utility products for them.

Causes of the boom years in the 1920s Essay

Causes of the boom years Employers were working fewer hours however were being paid more. This therefore meant industrial goods produced were also increasing. American’s had more time for leisure and more money so electrical labour-saving devices were being introduced becoming affordable by many people. Motor cars eased travel to and from work as well as for leisure pursuits. It was the golden age for cinema and sport attracted vast crowds. Reasons for prosperity: government policies Calvin Coolidge stated ‘the chief business of the American people is business.’ This was his government policy to let business operate as far as possible, free of regulation. Andrew Mellon and him believed wealth filtered down naturally to all classes and to ensure increased living standards for all was to allow the rich to continue make money to invest in industrial development which therefore meant more job opportunities, more wage earners, more consumption etc. this policy was laissez-faire but the government intervened to support business in 4 ways: High tariffs: Fordney-McCumber Act 1922 à ¯ raised tariffs to cover difference between domestic and foreign production costs Cheaper to buy goods from USA than abroad Tariff level à ¯ foreign goods more expensive than USA even though produced cheaper in USA Foreign trade reduced = domestic demand for goods high Tax reductions: Government reduced federal taxes – 1924, 1926 and 1928 (benefited wealthy) Mellon à ¯ handed out tax reductions Coolidge à ¯ operated on surplus Aim à ¯ reduced national debt, federal tax cuts = meant little to poor as not able to pay taxes Fewer regulations: Federal Trade Commission à ¯ unable and unwilling to operate effectively causing businesses unhindered Foreign policies: Coolidge à ¯ avoided involvement in foreign affairs due to budget cutting an recognition that Americans didn’t want to see troops getting caught up in foreign disputes. This meant that investors would favour profit ever over ethical concerns Technical advances: Technical advances in industrial production made increases in quantity and variety of products Motor vehicle industry: This industry grew dramatically in the 1920s. It was the largest for commodities. Previously cars had only been for the wealthy but Ford wanted the ordinary to be able to afford one Effects of growth in car ownership: Ford thought this would strengthen traditional American values but it led to: Road deaths à ¯ 20,000 per year By 1929, motor industry employed 7% of all workers and paid them 9% of all wages Closure of Ford à ¯ factor to recession of 1927 Loss of business by companies providing components to Ford real problems in economy Road building: Breaking of laissez-faire à ¯ federal government expend on road building in 1920s Federal Highway Act 1921 à ¯ responsibility for road building to central government and highways. Construction = 10,000 miles per year by 1929 Chief Designer in Bureau of Public Roads 1936 à ¯ roads built unfit for use because of amount of traffic Motor vehicles à ¯ new service industries e.g. garages, petrol stations etc. Improved transportation = new opportunities for industry Electrical consumer goods: New technology = large scale development of labour saving devices as cheaper to produce Serious over production = problems in economy New business methods: Growth of huge corporations Large corporations manufacturing business = could invest in and exploit raw materials of USA on vast scale Large corporations could dominate industry by: Operating cartel (group of companies agreeing to fix output and prices to reduce competition and maximise profits). Although illegal, government accepted which involved exploitation of raw materials, retail outlets etc. Some organisations were able to adapt to holding companies which resulted in firms competing against each other Management science: Increased size of businesses à ¯ complex to manage = different management roles by different people in administration Growth of business schools Management science, occupation for upper class = indication harder to start own company Increased production Advertising and salesmanship: Cinema Millions of cinema-goers to copy lifestyle of stars meant potential for advertising was enormous Radio: Began with KDKA station which announced results in 1920 elections Radio’s controlled by 2 companies with a vast audience Constant need to create demand: Growth in industrial production needed a continuous market in order to fuel the boom as people needed to be convinced to buy things frequently. An aspect of a campaign needed to be bought in which would differentiate between one’s product and that of the competitors to promote unique selling point. Advertising techniques worked for many consumers. Easy credit: Massive consumer boom was financed largely by easy credit facilities 1929 à ¯ $7 billion goods were sold on credit – 75% of cars and half of major household appliances Availability of credit meant borrowers took on debts which they could not repay Influence in foreign countries: High tariffs were used to protect US markets however the government also encouraged businessmen to develop extensive interests abroad in terms of raw materials that fuelled technological developments. US exported vast amounts of manufactured products. In the 1920s with almost full employment, low inflation, high tariffs keeping foreign goods out of USA, benevolent government policies and a consumer boom the prosperity would go on forever.

Group Dynamics Essay Example | Topics and Well Written Essays - 500 words

Group Dynamics - Essay Example This was primarily about assessing how serious they were in their passion for music, whether the group and its members loved the kind of music that I loved, and whether they were at par with me in their knowledge and skills about music. I could see that there was some imbalance between the kinds of behavior I expected and the kinds I actually received. But I could rectify this imbalance considerably by my efforts to prove myself before the other members and also sometimes by demanding what I felt, I deserved. I could prove to them that I was seriously passionate about music and that I have serious knowledge and skill in the subject as well. All the same, I could feel that the group and its members were evaluating me as well in the same way. I could feel they concluded their evaluation with a positive note and thus I also became an accepted and trusted member of the band. It was out of this whole experience that I became closely emotionally attached to the group. I also felt that by r emaining in this group, I could gain personally in future also. Thus I became totally committed to this group. I was the only keyboard player in this group and thus I could contribute to our dream to become a winner in the prestigious national level competition.

Article Analysis Essay Example | Topics and Well Written Essays - 500 words - 4

Article Analysis - Essay Example Likewise, the author proceeded with the discourse by expounding on accountability in organizations and emphasizing that it starts on the very top of the hierarchy. Building a framework of accountability was disclosed to require knowing one’s people well and encouraging open communication. Finally, Morris cited author and business thought-leader John Spence’s guidelines and principles for accountability in organization where a culture of accountability must be established to maximize the organization’s full potentials. Conclusions: Morris concluded that there is a need to upgrade the potentials of the organization’s human resources to maximize their strengths and facilitate the achievement of organizational goals. Through the enforcement of cultural norms and harnessing the competencies of people, accountability would be improved. As noted, â€Å"just like people, admired organizations are those that keep their promises- promises to customers, suppliers, employees and shareholders† (Morris, 2012, p. 73). Analysis: The article’s strength lies in the manner by which the author effectively structured his line of thinking and relayed the message intended for the audience. By using simple and straightforward language, Morris was able to assist in enhancing the understanding of readers from various backgrounds regarding the topic of accountability. Likewise, he supported his arguments through citing other review of related literatures and from works of people known to have established credibility on the topic being discussed. In addition, his credibility as a coach, mentor and as president and chief executive officer of an organization, assisted in providing viable arguments based on personal and professional experiences. However, one of the weaknesses noted was the failure to clearly list the authoritative references at the end of the discourse to determine their applicability from the date their respective literary works were published. Also,

Qatar Airways Essay Example | Topics and Well Written Essays - 1250 words

Qatar Airways - Essay Example This has led to many of its global achievements and awards. Management strategies help to identify new opportunities for growth, like the merger between the American Airlines and US Airways which provides an exciting opportunity for further growth American Airlines and US Airways provides an exciting opportunity for further growth American Airlines and US Airways provides an exciting opportunity for further growth and connecting of customers to North America. The airline has also refocused its capacity to Africa in response to market and competition developments. During the recent years the airline has launched various global networks and destinations covering from Europe, South Asia the Middle East, Africa, Asia Pacific, North America and South America with a modern fleet and cargo aircrafts. It has made plans for its expansion with an additional frequency ad capacity to both existing and new destinations. The addition of airlines provides a major increase in the number of passengers and networks. Qatar Airways is one of the launch customers of the twin-deck super jumbo recognized for its luxurious design and as the world’s biggest aircraft capable of carrying capacity of 555 passengers. The first aircraft was delivered in 2014. The company also operates corporate jets for its executive subsidiary launched in 2009. The use of modern technology is a major advantage in the airline industries; it plays a key role in enhancing efficiency and customer services, the Qatar airways has partnered with Wipro Infotech in order to conceptualize their growth strategies. This gives them a competitive edge as they will be able to utilize Wipro’s highly technical resources, research and development centers to explore and take advantage of new technological solutions. Hamad International Airport opened I April 2014 is a project undertake y Qatar Airways designed to help shape Doha as one of the greatest regional and international aviation hub. The