SWOT Analysis on INDIAN ELECTRONIC MARKET

SWOT Analysis

India Consumer Electronics Market SWOT
Strengths	§     The domestic market is entering a rapid growth phase, with projected double-digit growth of key products such as notebook computers and mobile handsets. §     Low rates of penetration for key products such as computers (2%) and mobile phones (43.5%). §     Rising incomes and GDP growth are increasing affordability.
Weaknesses	§     Low incomes and huge digital inequalities. §     Large 'grey' market for illegal products. §     Relatively low level of demand for higher end products such as LCD TV and 3G phones. §     Infrastructure deficiencies, with only 20% of Indian houses capable of receiving broadband.
Opportunities	§     Rapid growth in mobile subscriber penetration to 145% by 2015 will drive booming mobile handset market. §     Big opportunity for expansion in underpenetrated semi-urban and rural areas. §     Hardware sector set to grow faster after a number of government measures to encourage domestic manufacturing and new investment incentives under consideration. §     The government's efforts to get India connected to the modern world will provide the frame for electronics market development over the next few years. The ultimate goal of government policy is for 1bn computers connected to the internet -- equivalent to the total number of PCs in the world today.
Threats	§     Global economic slowdown may affect consumer spending. §     Moves to stimulate the hardware sector having mixed results. §     Falling prices.

India Electronics Industry SWOT
Strengths	§     Electronic hardware production of US$21bn in 2008, with growth set to be driven by emerging domestic market for electronics devices. §     Government support and incentives for hardware manufacturing, with new IT Amendment Bill currently under consideration by parliament. §     Growing foreign investment with proposed investment in manufacturing facilities in the region of INR155,000 crore. §     Abundant availability of skilled and technically qualified manpower. §     A further range of incentives, such as tax advantages and subsidies for semiconductor manufacturers, which have already attracted US$7bn in investments.
Weaknesses	§     Intellectual property rights problem and piracy. §     Consumption of hardware is currently estimated to be about double the level of domestic production. §     Despite the government's ambitions, India still has not emerged as a significant semiconductor manufacturing centre. §     Domestic consumer electronics market dominated by foreign brands, with few Indian brands competitive in most product categories.
Opportunities	§     State and federal level reforms to encourage more investment into the sector and encourage domestic manufacturing. §     India emerging as a centre for chip design services, with the market worth about US$5bn, and embedded software. §     More than US$18bn invested in hardware manufacturing. §     Colour TV computers and mobile phones. §     LCD TV, with government digitalisation policy having potential to drive spending.
Threats	·                     Slowdown in global computer and consumer electronics applications markets. ·                     Moves to stimulate the hardware sector having mixed results.