Investor Choices

  Porter 5 Forces Analysis Cement Industry (India)   India is the second largest producer of cement after china. Total production of cement is approx 350 mn tonnes since the past couple of years. Cement industry is a kind of ' cyclical industry ' which is dependent on expansion and contraction of the economy. Let's take a look how it depends. For example if the economy is growing only then there will be construction activities like Housing construction, Commercial Constructions or Industrial Constructions. Government initiatives are also helpful for the boost in this sector. If we pay attention, the government has taken initiatives by allowing expenditure outlay of approx  25,000 cr out of which 13,000 cr is allocated for the project of 98 smart cities.  Which is somehow creating opportunity in the sector. This sector is majorly controlled and supervised by the government which interferes with its price. It is a kind of concentrated sector as we can see on...

How to analyse the Industry?   What is "Porter 5 Forces Model" and how can it be used?   Before any kind of investment in the share market it becomes necessary for us to analyse the Industry. For industry analyses we have a model called “Porter 5 Forces Model". This model basically works on 5 key parameters which should be considered before any kind of investment. Remember investment always does not mean Equity, it can be Debt or you want to start your own business also. So these are those 5 key parameters.   1) Threats of New Entrants  2) Bargaining Power of Buyers  3) Bargaining Power of Suppliers  5) Threats of Substitute  5) Rivalry among Existing Customers    1 Heavy Capital Requirement? 2 Economy Of Scale (Can Business produce High volume with Lower Cost)? 3 Business Differentiation (Which makes t...