IUBH of creation. This regular asset assumes a noteworthy

 

IUBH INTERNATIONAL UNIVERSITY OF APPLIED SCIENCE (CAMPUS BERLIN)

 

MANAGERICAL ECONOMICS

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!


order now

FINAL PAPER FOR INDUSTRY ANALAYSIS

 

TITLE

INDUSTRY ANALAYSIS- OVERVIEW OF BAMBOO CRAFT

 

BY:

JAMESON JOSE CHAKKADETH-9170453

NAVEEN KURIAN-9170488

 

SUPERVISOR

Prof. Dr. Jan Pieper

DATE OF SUBMISSION

January 21, 2018

Table
of Contents

 

Table of Contents……………………………………………………………………………………………………. 2
1. Introduction……………………………………………………………………………………………………….. 3
2. Porters five forces ………………………………………………………………………
..4
3. Demand…………………………………………………………………………………………………………………………………….5
4. Supply …………………………………………………………………………………………………………….. 6
5. Elasiticity…………………………………………………………………………………………………………… 7
6. Horizontal
boundiaries ………………………………………………………………………………………… 8
7. Vertical
boundiaries…………………………………………………………………………………………….. 9
8. Conclusion…………………………………………………………………………………………………………. 10
9. References………………………………………………………………………………………………………… 11
10. Appendices…………………………………………………………………………………………………….. 12
      11. Expert
analysis……………………………………………………………………………………………………………………..  13
12.Declaration of
Authenticity……………………………………………………………………………….. 14
 

 

 

 

 

 

1) Introduction

Bamboo based
items are delivered from thin segments of bamboo. There is a wide assortment of
such items and they have been nearly connected with the improvement of human
advancements in bamboo developing locales of the world for some centuries. The
items might be essentially planned for horticultural utilize, for example,
bushels for vegetables or creatures and winnowing plate for grains, or they
might be family unit items, for example, bins, plate, jugs, case, lampshade,
and fans.

 The procedures require significant ability and
experience with respect to the weavers and the outlines require advancement
with respect to the creators. A bamboo based item unit gives wage age and
aptitudes advancement to those that it utilizes. Weaving should be possible on
location or at home in save time or full time. Expanding the utilization of
nearby bamboo assets likewise supports their reasonable administration and
advantages the bamboo cultivators.

There are
different bamboo based items including couch, feasting tables, plate, jugs,
boxes, cases, vases, collapsing screen, models of creatures and figures,
building, furniture, lights and lamps, packs, toys, fans and tangles. The style
of the items frequently shifts as per place of creation. This regular asset
assumes a noteworthy part in the occupation of provincial individuals and in
country industry.

Bamboo is used
for different purposes relying on its properties. It assumes an imperative part
in the everyday life of individuals for house development, agrarian apparatuses
and executes, as sustenance material and weaponry and so forth. Other than
being a helpful wellspring of cellulose for paper make and rayon, it bolsters
various conventional bungalow enterprises. Bamboo based industry is one of the
most seasoned of conventional bungalow businesses in India. The beginning of
this country make is followed from the earliest starting point of the human
progress when men began development of nourishment crops. Individuals began
making bins, mats and numerous different results of families use with bamboo
that was inexhaustibly accessible in close-by timberlands. Afterward, ancestral
and country individuals in the region of bamboo backwoods took up this as
methods for employment. Presently bamboo based ventures are spread in every
single provincial zone of the nation and it bolsters a great many customary
laborers. Bamboo is rising as a noteworthy wellspring of crude material for a
few handled items essentially because of its quick development, wide spread
event and its various employments.

Since
the furniture business in India is very sloppy and interest for furniture’s is
on expanding pattern.

.2) Porter’s
five forces:

A)              
Power
of suppliers:

 Since our items are creates based we have a restricted
provider compel in the business, so their dealing force will be high. They can
apply weight to our business by raising the cost of the merchandise they supply
or by lessening the nature of the items and furthermore by decreasing the
supply or accessibility of products. To defeat this over the long haul we can
do in reverse joining by making creation in house by utilizing these skilled
workers on a month to month wage contracts.

B)               
Power of buyers:

We have an expansive assortment of purchasers and since we
cook specifically to the families we trust that the haggling power through
volume utilization doesn’t have any significant bearing here. Despite the fact
that we have countless as furniture there is a constraint with the quantity of
providers that arrangements create furniture’s and furthermore since the
exchanging cost is high we trust that the haggling energy of purchasers is
restricted to a substantial expand. For whatever length of time that we give
one of a kind created items to our providers we would have the capacity to look
after this.

C)               
Threats
of new entry:

Threat of new
contestants can make the business less appealing what’s more, can diminish the
benefit potential for the organizations as of now contending in the market
inside that industry. This likewise can make the market extremely value
delicate and the purchasers will have more alternatives. To oppose the dangers
of new participants, we should look forward to patent our generation innovation
(Bend bamboo outlines) and furthermore make contracts with the art society. We
are looking toward this path in light of the fact that the boundaries for new
entrance are constrained in the furniture business. This would likewise help us
in long run gainfulness of the market.

D)               
Threats
of substitutes:

For our items,
the fundamental substitutes are the furniture’s in general as everything give a
similar capacity. This makes the focused condition in our industry. The
variables that can isolate us our giving specialty furniture’s almost at the
cost of other wood furniture’s, the wide assortment of items and the esteem handcrafting
makes and over the social effect that we make. Consequently, we trust this
would separate us from others and the request will remain.

E)                
Competitive
rivalry:

Competition
among the art business is low a result of its uniqueness however then again furniture
industry is an exceedingly aggressive one on the grounds that it is a growing
one, exceedingly sloppy (about 85%) and the absence of enormous players who
could have an effect. What separate us from the others would be our uniqueness
of the items generation and the organization. And furthermore, our mergers we
clarified before would help us in maintaining in the business.

       3) Demand

=percentage
in quantity demanded / percentage in price changes

In India, there
are 26.7 million white collar class individuals which would, roughly about 4820000
families. We expect in that we have 600000 families that by furniture when all
is said in done. We accept 2% purchase our furniture which would give us 12000
bamboo furniture purchasers.  When the
normal cost of outfitting the living, room is 50000 to 60000 INR individuals
will go at the cost. At the point when the cost of furnishing raises to 250000 to
260000 INR the demand will lessen.

Demand
in market: The base cost is 50,000 INR and the most extreme is 2,500,000 INR.
As cost extends the demand decreases or vise verse.

i)                   
Refer demand graph no:1 in the appendics

The demand
curve shift’s due to,

·                    
Shifts
right: As
stick and other wood furniture’s are substitute merchandise the expansion in
cost of them will expand the interest for our item. Likewise, the expansion in
pay of individuals or promoting the item through presenting fashioner furniture
or influencing a renowned individual as our image representative to will build
the interest for our furniture. At the point when more individuals begin
acknowledging specialty and its esteem the request will increment. Amid the
time of April to June the request increments as individuals move to urban areas
as new enlistments are finished amid this period and individuals begin settling
down in the region.

·                    
Shifts
left: At
the point when cost of the substitute merchandise like stick and other wood
furniture’s diminishes the interest for our furniture diminishes. At the point
when the other furniture organizations give markdown the same happens. On the
off chance that individuals begin expecting that Bamboo furniture isn’t solid
at that point interest for our furniture will fall also. Likewise, if the
general population land stressed over their position security then the request
will fall as individuals have a tendency to spend less.

4)
Supply

The value
ranges from 50000 or 600000 INR to 250000 or 2600000 INR. At the point when the
cost is 250000 then we are prepared to supply 10,000 units and as the cost goes
down we lessen our supply.

Supply
in market: As we know price increase supply also increase or vise verse.

       ii)     Refer supply graph no:1 in the appendics

Shift
in supply curve because,

·                    
Shift’s
right: At
the point when cost of Bamboo lessens (Input cost) or when government give
endowments we will supply more merchandise as the cost of securing per unit
decreases therefore income increments. When we present new machines in
supporting the craftsman’s to make the furniture, they would supply to us at a
lower cost and along these lines we would have the capacity to supply the
clients with more units at a similar cost.

 

·                    
Shift’s
left: During
the blossoming season the supply of bamboo (Raw material) diminishes which
understudy lessens the aggregate things delivered and thus we now need to
decreases the supply. At the point when government scratches off the
sponsorships the cost of generation increments and henceforth the makers will
lessen the supply and thus we would likewise need to diminish the supply at the
given cost.

 

5)
ELASTICITY

Elasticity refers the degree to which individuals, consumers
or producers change their demand or the amount supplied in response to price or
income changes. It is predominantly used to assess the change in consumer
demand as a result of a change in a good or service’s price.
https://www.investopedia.com/terms/e/elasticity.asp

A)               
Price elasticity of demand

 = % change in quantity / % change in price

iii)  Refer elasticity of demand graph no: 1

·                    
Elastic
Demand: During celebration season on the off chance that we diminish the
cost by 5% the request will be over 5% since individuals have a tendency to
spend additionally amid celebrations and thus making our item flexible amid
that time. Furthermore, accordingly, versatility of interest is > 1

 

·                    
Inelastic
Demand: In the period of March individuals has a tendency to spend less as
it’s the budgetary year end and subsequently a lessening in cost by 5% wouldn’t
build the request over 5%. Or on the other hand amid the period of April to
June when more individuals move to urban region with more openings for work
happening on the off chance that we increment the cost by 5% then the lessening
sought after wouldn’t be over 5% and henceforth we see an inelastic request. In
this way, versatility of interest is < 1   ·                     Cross Elasticity of Demand: The alternative product for bamboo is, Wood, Cane and plastic and hence the price increasing for those products the demand of our bamboo furniture is also increasing.   B)                Price Elasticity of supply   Price elasticity of supply is defined as percentage change in quantity supplied into percentage change in price.   iv)         Refer elasticity of supply graph no:1   ·                     Elastic supply: At the point when the legislature presents dies down for bamboo make items and if there is an expansion in cost by 8% then the providers will be prepared to build supply by over 8% and subsequently the value versatility of supply is > 1.

 

·                    
Inelastic
supply: Bamboo blossoms just once in each 20 to 120 years and blooming
happen together. Amid this blooming time, the bamboo will be extremely delicate
and thus it can’t be utilized for any reasons other than taking it as a
sustenance thing. Along these lines, amid this period and increment in cost by
10% won’t expand the supply over 10%. Furthermore, thus value flexibility of
supply is < 1 6) Horizontal boundaries Bamboo items are give the customer the possibility of acquiring the high caliber and a wide assortment of bamboo creates items which we straightforwardly got from the craftsman's. Level limits of Bamboo create alludes to the quality, amount, and assortments of items it gives. The horizontal boundaries of our industry depends on, ·                     Scales: We go for a level coordination by converging with the organizations that as of now exist in the market giving comparable administrations, for example, Pepperfry in India which as of now have a solid client base and a coordination's therefore helping us to contact a more extensive group of onlookers in the meantime having the capacity to present another fragment in their portfolio to be specific Craft furniture's. ·                     Purchase: By the converging with the organizations (Pepperfry) our acquiring limit will be high, so we get volume rebates, for example, diminished exchange costs per unit and a more prominent haggling energy of an expansive purchaser. ·                     Advertising: Cooperating with the resorts as a feature of their social obligation will help us to promote our organization and its motivation to a more extensive scope of clients. What's more, once we have propelled a more extensive scope of items utilizing Umbrella marking strategy will lessen our expenses as a more extensive scope of items will be publicized. Our organization with IKEA will likewise enable us to achieve a more extensive market. ·                     R: Our connections with an extensive variety of Design foundations and Designers will help in building up the items and additionally the diverse ventures running at various establishments will help in offering thoughts to each other. Hence, better plausibility of an enhance item or another one out and out.   7) Vertical boundaries: ·                     Finished goods from craftsman's: We will have contracts with our bamboo create units in gaining the furniture's. This is on the grounds that each area of bamboo post has its own utilization for various items so in the event that we begin in house creation at first there will be part of wastage. And furthermore, our organization has a mean to inspire the country segments of the Indian people group and consequently we are wanting to outsource the generation to 25 little scale ventures along the rustic territory and by doing as such the work costs are negligible yet our central goal is additionally to give a constant pay to at the very least 100 individuals along the provincial region and furthermore elevate the little scale enterprises in India.   ·                     R& D: The focus on the research and development are mainly , a)                  Completing the new products. b)                  Deduction of the cost. c)                  Upgrade the quality and functionality.   ·                     Customer service & center: The customer service means that to give service before and after the purchase of the products or goods and 24*7 in helping our clients with their quires and problems. ·                     IT department: They are monitoring the website and controlling the installation and maintenance of the computer related problems. ·                     Distribution: To start with the dispersion channel will be outsourced through Blue Dart or DHL as they have leeway of their substantial across the board organize. This will enable us in giving way to step conveyance in a brief span. In the underlying stage, it will give us money saving advantages of high repaired cost in setting stockrooms and distributional personals in various parts of the nation 8) Conclusion: There is various market structures that can portray is an economy. They are monopoly, oligopoly, perfect competition, monopolistic rivalry. To the extent our market is viewed as, our market is extremely tremendous and there are chances for the new contestants to infiltrate to our market. Monopolistic competition  Is defined as a type of imperfect completion such that many producers sell products that are differentiated from one another (e.g. by branding or quality) and hence are not perfect substitutes. In monopolistic competition, a firm takes the prices charged by its rivals as given and ignores the impact of its own prices on the prices of other firms. ·                     We portrayed this under monopolistic rivalry in light of the fact that the furniture advertise is exceptionally disorderly with no huge players and lack of barriers for new entrance. ·                      Our market have a monopolistic completion, We noticed that, there is a decrease demand for our product and the only way to improve the demand and gain higher market share is by giving the high quality product for the best reasonable price in market. 9) References: a.                  http://shodhganga.inflibnet.ac.in/bitstream/10603/104758/8/08_chapter-4.pdf b.                  https://en.wikipedia.org/wiki/Standard_of_living_in_India c.                   https://www.economicshelp.org/wp-content/uploads/2012/02/price-elastic-demand.png d.                  https://en.wikipedia.org/wiki/Monopolistic_competition e.                   https://www.youtube.com/watch?v=33XmkfbzwO8 f.                   https://ccsinternship.files.wordpress.com/2013/05/283_the-bamboo-industry-in-    india_aniket-baksy1.pdf g.                  http://www.environmentportal.in/files/Bamboo%20for%20sustainable%20livelihood.pdf                             10) Appendices                                                                                I.                        Demand graph no: 1                                                                                 II.                        Supply graph no: 1                                                                              III.                        Price elasticity of demand graph no: 1                                                                      IV.                        Price elasticity of supply graph no: 1 10) Expert analysis a) Question 1: Will competition in bamboo market strengthen? Answers: Off course it will be stronger because in the Indian market, present scenario a lot of young people coming to implement there product in bamboo for cheap and its eco friendly. So that lot of costumes also ready to buy with their good smiles, due to this market will be become red ocean in the coming years. b) Question 2: What is the Future of bamboo products?  Answers: Mainly inexpensive, co2 sink, minimal energy, three times stronger than     structural steel, efficient than solid cylinder. c) Question 3: What are the different products of bamboo? There are thousands of application for bamboo some of them are paper, food products, clothing, furniture etc. 4) Question 4: Who is major exporter of bamboo in Indian Market? Answer: boutique, Gandigram handcrafts         Name: Roopesh pithabaran Company name: Gandhigram Handicrafts  Position supervisor Contact number: +91 9747418646     11) Declaration of Authenticity Herewith we confirm that this CET is our own work, which was written without unauthorized assistance and that all references used marked appropriately.   Place: Berlin Date:  21/01/2018 Signature: Jameson Jose & Naveen Kurian