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Impact of the Sale of Spurious Spare Parts on Market Share of ABC Earth Moving Equipments Pvt. Ltd., India
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Author(s): Susheel Chhabra (Periyar Management and Computer College, New Delhi, India), Kulbir Kaur Bhatti (Periyar Management and Computer College, New Delhi, India)and Hardeepika Singh Ahluwalia (Periyar Management and Computer College, New Delhi, India)
Copyright: 2017
Volume: 4
Issue: 1
Pages: 8
Source title:
International Journal of Civic Engagement and Social Change (IJCESC)
Editor(s)-in-Chief: Susheel Chhabra (Periyar Management and Computer College, India)
DOI: 10.4018/IJCESC.2017010103
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Abstract
In this era of intense competition, both world-wide and domestic, business firms of all sizes and varieties are concerned with the market-share figures they achieve in the marketplace to predict the volume of production and demand forecasts of spare parts. Buyers' purchase frequency varies with time when machines complete their warranty period and subsequently buyers switch towards spurious spare parts for various reasons including cheaper prices. There is a prominent share of un-organized sector (spurious markets) in meeting the demand of spare parts especially in earth moving equipment. They imitate the original parts and sell similar parts of local vendors and supply the same at much cheaper prices. To estimate the impact of spurious spare parts market of ABC Earth Moving Equipments Pvt. Ltd, primary survey of one of the whole sale market of earth moving equipment in Delhi, India selling spurious spare parts was conducted. It was found that there is significant impact in terms of losses to the company due to selling of spurious spare parts by this market.
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