Outinord Case Study Summary

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companies have successfully proved their model in major projects and have established a firm base in growing Indian infrastructure market. Bargaining power of suppliers: The bargaining power of suppliers are high with reference to the development of new product (European standard) for which there has to be quality approval, mainly for products which Outinord wants to Export to other countries in Europe and North and South America. Bargaining power of buyers: Bargaining power of buyers are high, as explained before because of the availability of cheap labor, alternative products/form works. The projects which are quoted by Outinord are usually overpriced when compared with their Indian counter parts. The buyer has got several options of which many are economical and has proven track records. Outinord is yet to prove its efficiency in Indian market and yet to gain confidence in Indian market. Rivalry …show more content…

In general the forces seem to be medium as there is huge demand for construction equipment due to Infrastructure development all across India. As the bargaining power of buyers is higher Outinord has to focus on applying a price strategy to win few projects initially to setup their mark in Indian market. Best solution here would be to get the feedback of orders lost to Indian competitors and check for the price difference between Outinord and other companies to ensure the same mistake is not made while quoting against the same competitor for a different project. As per the analysis the bargaining power of supplier seems to be higher as most of the materials manufactured are of European standards and not of readily available Indian standards which reduces the number of suppliers and hence increases the price due to less competition among suppliers. Best solution is to adapt the design based on readily available Indian materials to save time &

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