Swot Analysis Of Textile Industry

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INDUSTRY OVERVIEW
Textile Industry is one of the biggest industries in India serving millions of people with clothing and furnishing. Confederation of Indian Textile Industry says as on 2012 this sector contributes “11% to industrial production, 14% to the manufacturing sector, 4% to the GDP and 12% to the country 's total export earnings ”. Playing an important role in the Indian economy, the industry employs about 35 million people , which is the second largest behind Agriculture. Apart from this, about 54.85 million people are indirectly employed through the allied activities.
The major raw materials for the production of textile are Cotton, Silk, Jute and Wool. India is ranked among the top four in the world in the production of all 4
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The new entrants and performers have to develop some kind of consumer base along with the new formations to get established in the industry . Although the raw materials are available at a cheaper rate and India has abundant labour, skilled labour is required for the processes required for textile manufacturing, which is lacking in this country. As most of the skilled labour will be utilized by already existing players, it will create shortage of skilled labour for entrants. Hence the new entrants will be required to increase the wages in order to attract them to their firms. This will lead to increase in production cost and the major part of it will be labour…show more content…
Also, a price sensitive buyer always has greater bargaining power than another buyer who doesn’t have any such reservations, and this is true for an average Indian buyer.
A look at the textile industry and its buyers presents the following picture, when looked at from the perspective of the end user:
• The switching costs are low. It doesn’t take much for a customer to switch from one company to another owing to the large number of players with competitive products.
• The products of this industry are pretty much standardised or undifferentiated, i.e., customers’ perception of the various products offered by different companies doesn’t vary too much. So, buyers always have the option to look out for other vendors.
• For an average Indian buyer, the products of the textile industry are something that are bought infrequently, and represent a significant portion of their total spending. So, the customers as a whole are price

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