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Strategic Management - Essay Example

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They are the automobile & the industrial sectors. The automobile sector is the major growth driver for OEM market, which accounts about 45% of the total bearing market. Engineering section is…
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Strategic Management
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Strategic Management

Download file to see previous pages... Increase in vehicles in developing countries like Asia, Africa, Latin America regions overtakes the demand in US, Western Europe & Japan. China is the largest market in international market as the country develops as economic superpower in manufacture & fixed investing activity hub. Market develops in India, Thailand, Taiwan & Russia.
Sales increases with good economic conditions & high income levels which lead to growth in manufacturing activity, boosting combined with the demand in bearing market. Australia & Canada is the most intensive user of bearing products which reflects the advanced industrial & technically nature of the economies.
As bearing industry is rapidly increasing in the global market, developing countries like Russia, Japan etc, are importing the bearing products. Countries of Asia Pacific regions call for 42% of the total demand in the international market. Hence, in future also, bearing industry will be growing in the other developing regions of the world.
Political - In political terms, bearing industry like Indian bearing industry collaborated with SKF so that the bearings made at India are exported to SKF and specialized bearings which are not manufactured in India are imported through the other industries. Without the bearing Industry, automobile sectors & industrial sectors will be at a loss. Due to the collaboration, friendly atmosphere develops between the nations.
Economical - Duty rates are reduced therefore many countries like China, Russia, Eastern Europe dump their production at a low rate due to which price differs in local & international market by about 40-50%, which encourages imports. Demand of bearings in international market is projected to rise about 5% annually to about $ 40 billion in the year 2010.
Technological - There are various types of bearings and technology to equip depends on the type of bearings. Specialized type of bearings is not manufactured in India ...Download file to see next pagesRead More
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