The five principles used by Jaypee cement are:
1. Barriers to entry : the Jaypee cement has invested huge capital and has incurred long gestation period. So new firms entering into market will face high intensity conpetcompe and will eventually leave .
2. Oligopoly market: Jaypee industry works in a oligopoly market. Along with it there are few players in the market of cement industry. As a result Jaypee cement has relative power to decide price of cement in the market.
3. Less labour intensive: Jaypee industry uses automated machinery. It uses limited amount of labour.
4. Homogeneous product: The product of Jaypee cement industry is homogeneous.
5. Direct relationship with economic development: Cement consumption per capita increases when there is huge construction going on in the country.
1. Barriers to entry : the Jaypee cement has invested huge capital and has incurred long gestation period. So new firms entering into market will face high intensity conpetcompe and will eventually leave .
2. Oligopoly market: Jaypee industry works in a oligopoly market. Along with it there are few players in the market of cement industry. As a result Jaypee cement has relative power to decide price of cement in the market.
3. Less labour intensive: Jaypee industry uses automated machinery. It uses limited amount of labour.
4. Homogeneous product: The product of Jaypee cement industry is homogeneous.
5. Direct relationship with economic development: Cement consumption per capita increases when there is huge construction going on in the country.
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