Cummins Industry Overview

INDUSTRY OVERIEW:

Cummins is supported by the industry that is capital goods. The overview of the industry can be stated as the through the annual report of the company during the financial year 2011-2013:

* The industry trends remain positive for Cummins

* The Company is positioned at a profitable position

* The Global Economy was not so supportive ( the economy has slowed down in the subsequent years)

* Countries like China and India show slower growth or economy

* The resource industry had troubles in providing the material to Cummins.

* The changes in the emission standards were quickly implemented in the Europe , Brazil and U.S but delayed in India and China

The Company Cummins has been successful in implementing few future strategies:

* Strong execution in launching the new products in the markets

* Gaining share in competitive markets

* Excellent quality and lower warranty costs

* As well as gained competitive strength

* Supply chain in the industry also improved where they reduced the cost by 50 basis points ( helped in logistics and warehousing)

Hence the key notes in the Industry Overview of Cummins:

* Macro trends in the industry of Capital goods drive strong growth opportunities

* Strengthening of the market position by launch of new products in the markets from low segment to the high segment

* Investment in distribution- Cummins invests in new emerging economies like India and China as well as Africa. Explore more in the power generation profitability

GENERIC STRATEGIES OF CUMMINS:

Strong and diverse Businesses:

* Cummins has introduced a lot of new products in various sectors like healthcare, power generation, generators and power engines etc.

* The company has a strong product portfolio for different business units.

Now the generic strategies of Cummins can be explained as:

* Extending into low HP range: Cummins here is focusing on Best Cost Provider...