Pakistan Fertilizer Industry

FERTILISER INDUSTRY AND PORTERS 5 FORCES MODEL The factors include in the Porters five Forces Model as applicable to Fertilizer Industry of Pakistan are follow: entranceway: The entry barriers for this manufacture are high and thus do non allow too much flow into the sector. mountain up a plant requires huge amount of enceinte and expertise. The return on the investments is collected and more profitable in long-term. That is the reason why we see only a handful of players in the application. SUPPLIERS: The main Raw material for the industry is methane, which is obtained from innate atom smasher. It is supplied by the local botch up industry to the factories. Gas is apply as both feed and fuel stock, thus wizard can image the significance of this raw material for this industry. Since gas is the main ingredient therefore there is supplier queen present. There is no other substitute present for gas. If the gas comp either/industry is privatized, it will be more possessive over the fertilizer industry. BUYERS: Farmers are the main buyers in this industry, as they are the ones in need of fertilizers for better productivity of their crops. and then they end up paying the amount the fertilizers are priced without any negotiations.

The main problem facing the industry is that they can enlarge the price of the end product to meet their costs of work to a certain extent as the farmers are not well-off enough to afford the costly fertilizers. So the industry has a certain price limit. SUBSTITUTE PRODUCTS: Fertilizer has no substitute as it is essential for the crops growth and health. If the fertilizers are not used so the farmers suffer loss. Therefore this industry has no threat of a substitute so far. This means that the industrys product has an advantage and a say of its ingest in the market. INDUSTRY COMPETITON: The industry is well organized and consists of good for you(p) competition. The two major competitors are Engro chemicals and FFBL, they have the highest market shares and... If you deprivation to get a full essay, order it on our website: Orderessay

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