India Aerospace & Defense Industry - Porterís Five Forces Strategy Analysis

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Sep 2012 20 Aruvians Rsearch ASDR-35901

Indiaís aerospace and defense industry has had a smooth take-off ever since the government initiated its open skies policy a few years ago. After encountering some initial turbulence, it is now cruising smoothly across clear blue skies. India is today one of the fastest expanding aerospace markets in the world, as a growing number of airlines and corporates are expected to acquire about a thousand planes over the next 20 years.

Aruvian's R'search analyzes India Aerospace & Defense Industry in Michael Porterís Five Forces Analysis. It uses concepts developed in Industrial Organization (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of a market. Porter referred to these forces as the microenvironment, to contrast it with the more general term macro-environment. They consist of those forces close to a company that affect its ability to serve its customers and make a profit. A change in any of the forces normally requires a company to re-assess the marketplace.

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