Competitors and Nature of Market Competition
Essay by awais111 • November 18, 2017 • Business Plan • 1,533 Words (7 Pages) • 1,206 Views
Competitors and Nature of Market Competition
Nishat being a textile manufacturing company based in Pakistan exhibits function such as spinning, combing, weaving, bleaching, dyeing, printing, stitching, buying and selling of textiles. Yet there are others dealing in the very same market that competes with Nishat at one level or another as the category of functions is quite vast. The company also deals in yarn, linen, cloth derived from raw cotton, synthetic fiber and cloth.
List of immediate competitors:
- Crescent
- Amtex
- Arzoo
- Sitara
- Al Karam
- Kohinoor
- Firdous
- Chenab
Main Competitors:
- Crescent Textile Mills
- Chenab Textile
The immediate competitors tackle Nishat one way or another and can be seen engaged in similar functions which Nishat as a company carries out. The intensity of competition that these listed companies present varies from company to company and the magnitude with which they try to break Nishat’s market share can be seen notably with their active marketing strategies going head to head with that of Nishat’s.
Crescent Textile Mills: The Crescent Textile Mills Limited, just like Nishat is involved in the processes of Spinning, Weaving, Processing and Home Textile, Power Generation, and Cold Storage. The company’s activities include spinning, combing, weaving, dyeing, bleaching, printing, stitching, buying, selling, and dealing in yarn, cloth and other goods, and fabrics made from raw cotton and synthetic fiber. The company is a big force in the textile marketing with notable achievements under its belt that have been accomplished over the course of time. The experience which lies in this company is significant as it has been around for a great amount of time and has earned itself a distinct place in the market. The company acts as one of the biggest rivals for Nishat it has acquired a large chunk of the textile industry market share through years of production and manufacturing. The target market for both these textile giants is pretty much the same and both of these companies have been noted to create strategies to counter the influence of one another.
Chenab Textile Mills: Another big name in the textile industry has to be Chenab. The company has soared through the market at many occasions and has developed a reputation for itself for being a leading example of incorporating the latest technology and amalgamating it within its production processes leading to highly beneficial outcomes often resulting in awards from the textile community. Chenab is another big competitor for Nishat and is always seen fighting its way through the big three of Pakistani textile industry.
Two giants alongside numerous growing companies present a challenge for Nishat. All these companies hold a distinct place in the market and go head to head with Nishat based on personal capacity. The competition for the textile industry toughens every year as new entries take place with barely any exits. The growing demand for textile products encourages all these companies to beat one another all the while developing a reputation while earning a loyal customer base. Nishat is a threat to all these companies as well and keeping in mind the statistics, the company seems to be going strong despite all odds.
CPM |
| NISHAT MILLS | GUL AHMAD | FIRDOUS | ||||
Critical success factor | Weight | Ratings | Score | Rating | Score | Rating | Score | |
Advertisement | 0.1 | 4 | 0.4 | 3 | 0.3 | 2 | 0.2 | |
Product range | 0.5 | 4 | 2 | 4 | 2 | 2 | 1 | |
Product quality | 0.1 | 3 | 0.3 | 3 | 0.3 | 3 | 0.3 | |
Brand Image | 0.1 | 4 | 0.4 | 3 | 0.3 | 3 | 0.3 | |
Financial Position | 0.05 | 4 | 0.2 | 3 | 0.15 | 2 | 0.1 | |
Customer Loyalty | 0.05 | 3 | 0.15 | 4 | 0.2 | 2 | 0.1 | |
E-Commerce | 0.05 | 2 | 0.1 | 3 | 0.15 | 2 | 0.1 | |
Market Share | 0.05 | 3 | 0.15 | 3 | 0.15 | 1 | 0.05 | |
Total | 1 | 3.7 | 3.55 | 2.15 |
COMPETITIVE PROFILE MATRIX
Industry trends
Economic
The economic condition of Pakistan has relatively remained stable despite several events that has in one way or another forced the government to reallocate resources that have slowed down growth in some sectors. Along with that the inflation rate has been rising rapidly which has resulted in unfavourable interest for the foreign investment. The inflation rate makes the cost of production high which therefore reduces the profit margin of the investors and the stakeholder. Moreover With high prices the purchasing power has decreased and so people aren’t able to afford products as they wish.
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