Five Forces in Present Paint Industry:
1. Supply:
Supply exceeds demand in both decorative as well as the industrial paint.
2. Demand:
Demand for decorative paints depends on housing sector and good monsoon. Industrial paint demand is linked to users industries like auto, engineering and consumer durables.
3. Barriers to Entry:
Brand, distribution network, working capital efficiency and technology play a crucial role.
4. Bargaining Power of Suppliers:
Price increase constrained with the presence of the unorganized sector for the decorative segment. Sophisticated buyers of industrial paint also limit the bargaining powers of the suppliers. It is therefore that margin is better in decorative segments.
5. Bargaining Power of Customers:
Bargaining power of customers of paint products is high due to availability of wide choice.
6. Competition:
In both the categories, companies in the organized sector focus on brand building. Higher prices through product differentiation are also followed as a competitive strategy.
1. Supply:
Supply exceeds demand in both decorative as well as the industrial paint.
2. Demand:
Demand for decorative paints depends on housing sector and good monsoon. Industrial paint demand is linked to users industries like auto, engineering and consumer durables.
3. Barriers to Entry:
Brand, distribution network, working capital efficiency and technology play a crucial role.
4. Bargaining Power of Suppliers:
Price increase constrained with the presence of the unorganized sector for the decorative segment. Sophisticated buyers of industrial paint also limit the bargaining powers of the suppliers. It is therefore that margin is better in decorative segments.
5. Bargaining Power of Customers:
Bargaining power of customers of paint products is high due to availability of wide choice.
6. Competition:
In both the categories, companies in the organized sector focus on brand building. Higher prices through product differentiation are also followed as a competitive strategy.