The document discusses a case study on Apollo Tyres. It provides background on the company, outlining that it is a leading Indian tire manufacturer founded in 1976. It discusses the strategy head's concerns about factors in the changing Indian macroeconomic environment like GDP, inflation, and infrastructure that could impact the tire industry. The document also summarizes a BCG report on the Indian tire industry that examines industry trends, the relationship between transportation and economic growth, and how these influence demand for tires.
The document discusses a case study on Apollo Tyres. It provides background on the company, outlining that it is a leading Indian tire manufacturer founded in 1976. It discusses the strategy head's concerns about factors in the changing Indian macroeconomic environment like GDP, inflation, and infrastructure that could impact the tire industry. The document also summarizes a BCG report on the Indian tire industry that examines industry trends, the relationship between transportation and economic growth, and how these influence demand for tires.
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The document discusses a case study on Apollo Tyres. It provides background on the company, outlining that it is a leading Indian tire manufacturer founded in 1976. It discusses the strategy head's concerns about factors in the changing Indian macroeconomic environment like GDP, inflation, and infrastructure that could impact the tire industry. The document also summarizes a BCG report on the Indian tire industry that examines industry trends, the relationship between transportation and economic growth, and how these influence demand for tires.
Copyright:
Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online from Scribd
How to track or identify opprtunities and threat in macro-environment How to assess the importance of demographic,economic,political and technological factors How to sustain,survive and grow in the changing business milieu or environment
History of Apollo Tyres
Apollo Tyres Ltd is a high-performance company and the leading Indian tyre manufacturer. Head quartered in Gurgaon, Registered as a company in 1976, Its first plant was commissioned in Perambra in Kerala state. It commenced its production in 1977 under the leadership of Raunaq Singh.Apollo Tyres Ltd is the fastest growing tyre manufacturer, with annual revenues of over US$ 1.8 billion (200910).. In 2006, the company acquired Dunlop Tyres International of South Africa. The company now has four manufacturing units in India, two in South Africa and two inZimbabwe.
What made the strategy head of Apollo tyres worried?
The changing environment of Indian economy which includes macro factors like: GDP Inflation Infrastructure Population Agricultural Production IIP Savings Monsoon Transport Interest rate
Contents of BCG Report
Methodology The Indian tyre industry The Indian Economy Relationship b/w transport and economy Demand for tyres
The Indian Tyre Industry
The 13000 crore industry Depends on Agricultural production, Industrial performance,Transportation needs and production of vehicles. Mainly dominated by Organized Sector 2.61 lakh villages,6.23 lakh kms metalled and 9.81 lakh kms unmetalled roads Major players are MRF,Apollo tyres,Ceat and JK industries which accounts for 63% of market share Free import of new tyres but import of retreaded tyres is resticted
The Indian Economy
Economic reforms in 1991, in reaction to severe foreign exchange crisis Reforms include liberalized foreign investment and exchange regimes Significant reduction in tarrifs and other trade barriers Adjustments in govt. monetary and fiscal policies Effect : Higher growth rate,lower inflation,increase in foreign investment, increase in GDP from 5% in 1997-98 to 6.8% in 1998-99.
Relationship b/w transport and economy
Strong relationship b/w economic development and transport demand Economic growth implies increase in goods and passenger transport Transport is a major contributor to economy Economic growth increases transport requirement which impacts demand for tyres
Demand for Tyres
As Indian Economy is one of the fastest growing economy in the world which means that there is increasing flow of money creating more and more jobs increasing the purchasing power of people and good infrastructure resulting to economic growth hence leads to increase in demand of transportation needs which means demand for more tyres.Demand for tyres is mainly from segments like original equipment makers and replacement and exports.
Example: Maruti Suzuki to set up a plant in manesar
to meet its rising demand which could also result in demand for tyres.