2)Company Environment Analysis (Pest Analysis) Political Factors Indian Jewelry Industry is getting strong government support in form

of incentivesand formation of SEZs, According to (Gujarat Government Industrial policy 2009),Gujarat government gives scheme for insurance coverage. Gems & Jewellery Parkshave been set up to promote investments in this sector.(India Extension Bureu, 2009) By Stable macroeconomic policies of India, International watch companies areentering in Indian watch Industry. (Tax Management India, 2010) 100% FDI is allowed in the Gems & Jewellery sector and Watch sector through theautomatic route. (Investment Communication, n.d.) Government provide excise duty free zone where companies establish theirmanufacturing units and obtain policy benefit.(Example Titan assemble his manufacturing unit in Uttrakhand which is exciseduty free zone) (India Extension Bureau, 2009) Economical Factors India the largest consumer and importer of gold in the world, it is projected toimport around 500-550 tonnes of gold in 2010.(Investment Communication, n.d.) Macroeconomic indicators, higher disposable incomes, emerging middle class,investment friendly policies and progressive reform process all contribute towardsIndia being an appropriate choice for investors.(India In Business, n.d.) Social Factors Gift trend of watches and jewellery in special occasions in India support watch and jewellery sector. Indian Life style is improving which is supportive for Jewellery and watch sector. The Indian gems and jewellery market is set to cross US$ 26 billion by 2012, on theback of getting better lifestyle and availability of skilled labour.(Investment Communication, n.d.) Indian consumer views jewellery purchase as an investment. India is the largestconsumer of gold jewellery in the world, utilizing 20% of global gold (Gold, 2010). As per a report by the Automotive Component Manufacturers Association of India(ACMA), the turnover of the auto component industry is being estimated at around US$19.2 billion in 2009-10. (Investment commission, n.d.b) Indian Diamond Institute (IDI), National Institute of Design (NID), National Institute of Jewellery Design (NIJD) and National Institute of Fashion Technology (NIFT) have had asubstantial impact on development of the jewellery sector in India. Technological Factors Companies are using innovation to establish their brand in the market (ex-Titanproduce world slimmest watch). Innovative technologies certify the finest use of gold in the electronics sector. Japanese companies have come to Indian market with their highly technologicalwatches 3) Swot Analysis Strength Tata is finest and reliable group of companies name in India and Titans collaboration with Tata has helped them to establish their brand in the market. Titan is market leader of watch industry in India with 60% market share.(Titan, 2009) Titan has efficient customer touch point ( 300 exclusive World of Titan' showrooms,

740 after-sales-service centres, 113 Tanishq boutiques and Zoya stores, 28 Gold Plusstores, 88 Titan Eye+ stores) (Titan, 2009) Titan has capable Production capacity they have 11 manufacturing units in India.(Titan, 2009 Weakness Poor market share in high cost watches. Less number of low priced products. High prices jewellery comparison to local players. Opportunity Titan can venture into different sector, as Titan doing innovation in their serviceswhere they launch design studio where they did designer work for titan watches,Tanishq jewellery, and fastrack gogals and bag. In 2009 Titan launched Titan trophywhere they made trophies for various companies. Titan has developed foreign potential market, as now they are exporting watches in 32countries. In India on every 1000 people, only 25 have watches. (World amazing records, n.d.) The estimated annual watch market size is around USD 195 million. The averagegrowth rate is 10 -15 percent per year. (World amazing records, n.d.) In India more than 58% of the population is under 25 years and more than 80% of thepopulation is below 45 years of age. (World amazing records, n.d.) Expected to grow at 40% p.a. to US$2.2 billion by 2010, India is the fastest increasing jewellery market in the world. Estimated jewellery export revenue of up to us $ 25-30billion in next five year (Investment Communication of India, n.d.a) The auto component industry in India has possibility to grow at a CAGR of 13% toreach US$40 billion by 2015. (Investment Communication of India, n.d.b Threaths Swiss automatic, stylish and super premium watches & Japnese automatic and newtechnological watches have increased the competition. Too many players will dilute the market & the profit margin. Low priced China watches are also a concern. Mobile phones are also a threat for watches in mass market. People prefer 1000rsmobile in which they get calculator and alarm watch. 4) Current Financial Data (These Financial data is According to Titan Industries Limited annual report) In Titan silver jubilee year (2009-10) growth rate is 22.2%. Company revenue Rs. 4703.12 Crores. Watch segment sales grew by 13% to Rs.1052.78 crores The Jewellery segment sales grew by 26.8% to Rs. 3,504.19 crores. Other segment (Eyewear and Precision Engineering) rose by 11.4% toRs.151.76crores. Net profit Rs. 250.32 crores company grew by 57.5%.International Operations The Company export turnover of Rs.101 crores during the year. Exports include saleof watches and precision engineered components(Titan, 2009b)) Challenges Titan Industries Ltd experienced In 1998-99, Titan tried to tap kids watch segment with a brand Dash. But Dash failed to catch the market. Dash was withdrawn in 2003. Experts say that Dash was too earlyfor the Indian consumers. During that time,

parents were not that interested inspending on kid's accessories like Watches.Now Titan feels that the market is ready for a brand like Zoop. The Company has re-entered the childrens watch segment. Zoop is being positioned as a cool, fancyaccessory for kids. 6) Competitors Top competitorsAccording to Datamonitor (2010) these are main competitors in watch and jewellerysector. HMT Ltd. Timex Group India Ltd. Gitanjali Gems Ltd. Su-Raj Diamonds and Jewellery Ltd. Vaibhav Gems Ltd Porters Five forces Analysis (Industry Analysis) ( Diagram of Porters five forces) Threat of new entrants - More global and local players Increase in competition in all segments Super premium segment : Swiss brands Premium segment : Global fashion House / Japanese brands Mass market : Local/regional, Chinese Watches Power of buyers - Emergence of different consumer segments Defined consumer segments around distinct purchasing factors More awareness of brands and global trends among rich urban consumers Threat of substitutes - Emergence of new channels Emergence new retail outlets emerging (Dept. stores/malls) Existing outlets (MBOs) getting attractive looking Unorganized retail network for mass market Power of suppliers - Shift in structure of demand Volume growth driven by the mass market Value growth driven by premium segment(Nag, 2008, P.226)