Abstract
Global companies work on strategies to capture their position in the marketplace, operating on their market share to understand the demand supply equation of the spare parts. Buyers focus remains on the warranty period of the parts, till it exists they get it exchanged or purchase them. Once the warranty expires the purchase frequency transforms to spurious spare products as they get monetary advantage over others. Spurious markets have strong market share and position in fulfilling demands of the spare parts of the earth moving equipment. They produce imitated products which reassemble the original products, sell them to the vendors in spurious markets. To estimate the assessment on market share of spurious spare parts of ABC Earth Moving Equipments Pvt. Ltd, market research was carried out in the wholesale market selling and purchasing spurious earth moving spare parts. The outcome indicates that there is a notable influence on the profits of the company due to sale of the spurious spare products.
TopLiterature Review
India’s growth story of construction equipment industry has seen a positive direction since decades. India at time of independence was an import dependent economy, unlikely in 1964 when Bharat Earthmovers Ltd.; a public sector entity took the initial step towards being self reliant in construction equipment and this move was followed by series of international joint ventures. The growth of construction equipment industry, construction industry and infrastructural development goes hand in hand which over decades have been showing signs of growth with minor downward trends. Researchers and consultants all over the world have been studying on the how infrastructural development in an economy, macroeconomic condition, existence of parallel markets and competition impacts the profitability and market share of the companies that form one of the largest employing industries.
Key Terms in this Chapter
Spurious Parts: The spurious parts mean unauthentic parts used by the manufacturer.
Quality Service: It is a concept which is attained by comparing the perceived expectations with the perceived performance to achieve customer satisfaction.
Market Share: The portion of the market which is captured by a company. It gives the position of the company vis-à-vis its competitors to the stakeholders, shareholders and prospective investors.
Investment: The proportion of total funds allocated by an investor out of his saving in an asset, company or project with the objective of earning profit.
GDP: Gross Domestic Product is the total proportion of goods and services produced within the domestic territory in an annual year.
Earth Moving Equipment: They are construction equipment’s which are required in the market due to their extraordinary performance and robust construction.
Supply Chain: the sequential process involved in the production by the manufacturer and distribution of final goods and services to the consumer or end buyer.