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Threat of New

Entrants

Moderate

Bargaining Competition Bargaining


Power of from Rivals Power of Buyers
Suppliers

Moderate Moderate Low

Threat of
Substitutes

Low
• Govt. fixed production limits, prices and distribution channels
• Cost plus pricing strategy enforced by Govt. included freight cost
Total Govt.
Control (till 1982) • Freight pooling to encourage plants to be setup in regions across India

Partial Decontrol
(1982 to 1989)

Full Decontrol
(after 1989)

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