Swot Analysis Oh Indian Textile Industry Essay Example

policies of the Govt.

f India Uneducated people Investors are pulling out their capital from the market quickly Foreign Investments are not coming towards Textile industry These are the factors which are disturbing the textile industry strongly economically. Sociological Factors: Textile industry affecting the society and environment in number of ways, some of them are mentioned below. Polluting the air by pushing out ruins of chemicals. Different gases in air react with these ruins which become dangerous for human beings.

No proper system to throw out the useless materials and chemicals.

Most of the useless materials and acids are thrown into the fields which are react or disturb the agricultural products seriously. Since the cost of the production and labor cost are increasing day by day. That’s why the final product cost is also increasing that’s why people are buying low quality products and not spending too much to purchase. Textile companies are firing the labors and employees as well because of high production cost and salaries that’s why the unemployment rate is increasing day by day which is not good for the industry as well as for the country.

Technological Factor: The technology has been improved and updated in the textile industry of India and some of the companies in textile industry are acquiring these technologies. By using new technology not only they improve their quality and efficiency but also improve their production as well as reducing the cost of production. PORTER Analysis: Bargaining power of Buyer: It has been seen from last 3 years that buyers are becoming anger and having problems to purchase the desired products from textile industry of India. The

bargaining power of buyers is increasing day by day.

The buyers are demanding more and improved quality in very cheaper prices, whether customers are from foreign or are from local markets.

The competition at international level has been increased too much. If we look at a glance to USA exports of textile industry from all over the world and especially from Asian countries then we can easily found that India is offering most less export prices to USA which is 1. 91 US dollars per meter. But other countries are getting more than these prices and in these countries; Bangladesh is on top that is getting 3.

15 US dollars per meter from USA. 5 Bargaining power of Suppliers: Bargaining power of suppliers is increasing of textile industry day by day. The Govt. of India is playing very important role in this activity. As we all know that inflation rate is running upwards like a rocket and utility costs are also increasing day by day.

Couple of days ago, Govt. increased the prices of Gas . Now the cost of petroleum has also been increased due to which affecting the manufacturing costs of the companies. The costs of Yarns and chemicals which are used to dye the cloth and for sizing process have also been increased.

Textile companies are bearing too much manufacturing costs, if they come to increase their prices then there is a major threat that customers can move to other companies weather it is foreign marker or local market. Rivalry: The competition in the textile industry is becoming very tough. The Textile mills are competing with each other on the basis of

their prices they offer, the quality which they produce. Competition at international level is very furious for India textile industry. In international Market:

China India Vietnam Bangladesh Korea Pakistan Iran And India is offering the lowest prices to USA as well as to other countries.

But still India is lacking its quality and also loosing its customers. Foreign customers are moving to other countries for the best quality. Although their prices are high but they are exporting best qualities of their products. From these countries, Bangladesh is on the top that is getting 3. 15 US dollars per meter. 27 Threats of new Entrants: There is no threat of now entrance.

If some one wants to enter in this industry, that company has to face number of competitors which are the big giants of that industry. On the other hand they have to purchase the latest technology, Fuel prices, high labor costs, opportunity cost etc. and major issue is that inflation is increasing day by day and instability of India Govt. Threat of Substitutes: There is no threat of substitute.

Because Textile products and cloths are the basic necessity of the human life and customers cannot move to other products by leaving textile regards Deepak agrawal