SG7001: Thermax Ltd Analysis - PEST, Porter's Five Forces, Survival

This report provides a strategic analysis of Thermax Ltd, a global company headquartered in Pune, India, using the PEST and Porter's Five Forces frameworks. The report examines the external environment by analyzing political, economic, socio-cultural, and technological factors impacting the company. It also assesses the competitive landscape through Porter's Five Forces, evaluating industry rivalry, threats of substitutes, supplier and buyer bargaining power, and the threat of new entrants. The analysis highlights the importance of technological advancement for Thermax and suggests strategies to improve its competitiveness, including restructuring its technological infrastructure and promoting a quality culture through employee training. The report concludes by summarizing key findings and emphasizing the need for strategic adaptation to ensure Thermax's continued success in the market.

MANAGING STRATEGY,
OPERATIONS AND
PARTNERSHIPS SG7001

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................2
MAINBODY...................................................................................................................................2
Pest Analysis................................................................................................................................2
Porter’s five force........................................................................................................................3
Develop survival and success factors for the industry.................................................................4
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5
Appendix..........................................................................................................................................6

INTRODUCTION
Management of strategies refers as a series of techniques for directing and controlling a
business to gain projected goals and objectives within timeframe. There is an example of
Thermax Ltd company which is headquartered in Pune, India and offers worldwide product
services to the customer. In this report will analyse external environment and competitive
environment of the proposed company with the support of analytical tools i.e. pest analysis and
porter’s five force model.
MAINBODY
Pest Analysis
It is analytical tool that is used for analysing external environment of business (Perera,
2017). This model is used for the Thermax Limited to identify major issue of the company with
different external factors.
 Political factor: Instability of government is a political factor, but this factor does not
have any impact on Thermax Ltd because it offers different kind products to the customer
across the world.
 Economical factor: Economy slow down is the economical factor that impacts on
company’s performance for example it increases interest rate due to this company unable
to invest money in improving advancement in existing technology.
 Socio-cultural factor: Demographical change is one of the major socio-cultural factor but
it do not get any impact from this factor because it mostly sell it’s product through B2B
model.
 Technological factor: Development of new technology is considered technological factor
that impacts on organization’s profitability and performance in it’s sector. For example it
has less advancement in technology due to this it gets negative impact on it’s selling
infrastructure.

From the above discussion can be analysed that company is facing less advancement in
existing technology issue due to this it unable to improving demands of it’s product line in the
domestic markets.
Porter’s five force
 Industry Rivalry: Company has high industry rivalry because there are various other giant
companies i.e. BHEL who already has captured large market share and posses’ highly
advanced technology and offers them to customer across the word.
 Threats of Substitutes: Threats of substitutes is moderate because all engineering
companies i.e. Thermax Ltd, BHEL already are posses’ advanced equipment’s. So, no
company can offer alternative equipment which can compare Thermax’s equipment.
 Supplier’s bargaining power: Bargaining power of suppliers is moderate in Indian market
there are various suppliers who are ready to work on lower prices. Thus, it gets high
quality raw material at lower cost (Porter, Dhami and Mukherjee, 2017).
 Buyer’s bargaining power: High availability of domestic companies i.e. BHEL, Suzlon
which posses’ similar product line like Thermax in that state Chinese imports puts
pressure on price.
 Threats of new entrants: Threats of new entrants is very low because it is not too much
attractive market. So, company gets opportunity to expand its business in global market.
Develop survival and success factors for the industry
 Thermax Ltd needs to develop and restructure technology infrastructure that will support
company to enhance their technological competitiveness as well as capabilities.
 It is required to upgrade technological capabilities of capital goods SMEs then it can
improve demands of product in domestic market ()Huang, 2019).
 Company should promote quality culture by developing technical education and training
facilities through employees will enable to improve their technical skills.

CONCLUSION
This report has been summarized different analytical tools i.e. pest and porter’s five force
model that applied to determine issue of the company in it’s market.

REFERENCES
Books and Journals
Perera, R., 2017. The PESTLE analysis. Nerdynaut.
Porter, H., Dhami, N.K. and Mukherjee, A., 2017. Synergistic chemical and microbial
cementation for stabilization of aggregates. Cement and Concrete Composites. 83.
pp.160-170.
Huang, Y., 2019, December. Strategic Environment Analysis of Logistics Enterprise based on
SWOT-PEST-Michael Porter's Five Forces Model--Taking SF Express as an Example.
In 2nd International Symposium on Social Science and Management Innovation (SSMI
2019). Atlantis Press.

Appendix
External factors Impact on Thermax Ltd.
Political factor No impact on Thermax Ltd.
Economical factor Economy slow down, due to increase interest rate of bank that
pays by company that impacts on economical infrastructure.
Socio-cultural factor No social impact because mostly use B2B model
Technological factor Less advancement technology: decrease demand of product in
domestic market.