Page 17 - Steel Tech India eMagazine Volume January 2023

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consultancy fulcrum to large corporate houses in right HႇHFWV )RU PDWKHPDWLFDO LOOXVWUDWLRQ SXUSRVH DQ
hand side (RHS) of the fulcrum for various service humble attempt has been made to testify the universal
portfolios. The market in which engineering consultants hypothesis H0, that when entry barrier (s) decrease and
operate is B2B industrial market, which is more rational ease of doing business (EDB) increase, the number of
than emotional. Client’s procurement decision making competitors increases.
SURFHVV LV EDVHG RQ ZHOO DQDO\]HG IDFWV ¿JXUHV K = Ae (-Q/RT) …………….(1), Where,
FRQVXOWDQW¶V SDVW FUHGHQWLDOV PHHWLQJ SUH TXDOL¿FDWLRQ
(PQ) criteria, combined quality cum cost based selection K = Number of competitors
(CQCCBS) score, standard operating procedure (SOP), Q = Entry barriers
etc. The service portfolios may encompass industrial T = EDB parameters or business friendliness parameters,
PDUNHW VXUYH\ SURGXFW PL[ VHOHFWLRQ WHFKQR which are external to the organization, say, market
economic feasibility reports (TEFR), detailed project potential (a product of number of clients in the market,
UHSRUWV '35 (,$ (03 UHSRUWV WKLUG SDUW\ LQVSHFWLRQ WKHLU ZLOOLQJQHVV WR SURFXUH IURP FRQVXOWDQW WKHLU
73, FRPSXWHUL]DWLRQ LQGXVWULDO DXWRPDWLRQ SODQW ability to pay the fees), technology awareness level of
KHDOWK VWXGLHV LQGXVWULDO SODQW PDFKLQHU\ DVVHW PDUNHW FOLHQW UDZ PDWHULDO DYDLODELOLW\ IUXJDO UHOLDEOH
valuation, techno-economic viability (TEV) studies, electricity at low LCOE (Levelized Cost of Electricity),
due diligence studies, residual life assessment (RLA), low turnaround time of rolling stock, Government’s
lender’s independent engineer (LIE), mine planning, ore industrial-infrastructural development policies like Gati
body modeling, selection of MDO (mine development Shakti or National Infrastructure Master Plan; National
RSHUDWLRQ DJHQF\ WUDQVDFWLRQ DGYLVRU\ VHUYLFHV Logistics Policy (NLP), Government’s encouragement
(TAS), technology up-gradation studies, productivity schemes like production linked incentives (PLI),
HQKDQFHPHQW VWXGLHV HQHUJ\ RSWLPL]DWLRQ DXGLW LQYHVWPHQW FDSLWDO LQMHFWLRQ LQ WKH PDUNHW IRUHLJQ WUDGH
XWLOLW\ RSWLPL]DWLRQ DXGLW WUDQVPLVVLRQ GLVWULEXWLRQ SROLF\ SURPRWLRQDO VXSSRUWV LQFHQWLYHV IUHH WUDGH
system studies, productivity enhancement studies, agreements, economic condition of market, political
KHDOWK VDIHW\ HQYLURQPHQW +6( VWXGLHV PHUJHU VWDELOLW\ ODZ RUGHU VLWXDWLRQV HWF HWF
acquisition studies, turnaround strategies, dismantling
UHORFDWLRQ RI SODQW HTXLSPHQW EDVLF GHWDLOHG A = Numerical Constant
HQJLQHHULQJ SURFXUHPHQW FRQWUDFW PDQDJHPHQW e = Euler’s number = 2.7182
FRQVWUXFWLRQ SURMHFW PDQDJHPHQW (3& H[HFXWLRQ R = Universal Constant = 8.314
etc. etc., just to name a few. The biggest challenge
for large engineering consultancy organizations who 1RZ GLႇHUHQWLDWLQJ K w. r. t. Q, (i.e. rate of change
in number of competitors due to intensity change in
are on the RHS of the fulcrum is mushrooming of
consultants of varying magnitude on the LHS having barriers), we get,
GHVLUHG FUHGHQWLDO SUH TXDOLI\LQJ FULWHULD EXW ZLWK ORZHU G. G4 $H 4 57 ; 57 «« «
¿[HG RSHUDWLQJ FRVWV DQG RXWVRXUFLQJ PRGHOV IRU FHUWDLQ As the RHS in equation (1) contains e, we take Natural
service portfolios, which compels them to bid cautiously Logarithms (instead of Common Logarithm) on both
DW VZRUG HGJH IRU WKH DYDLODEOH OLPLWHG RSSRUWXQLWLHV VLGHV IRU VLPSOL¿FDWLRQ 7DNLQJ 1DWXUDO /RJDULWKPV ZH
Business entry barriers being external in nature, a clear thus obtain,
in-depth understanding is an essential pre-requisite for /Q . /Q $ ± 4 57 «««
formulating market-client centric marketing strategy for
business success. Or, Ln K = Ln A – Q 57««« 6LWXDWLRQ ZKHQ
1
1
barriers are higher.
Low entry barriers (cause) LQÀXHQFH QDWXUH UDWH DQG Or, Ln K = Ln A – Q 57 « 6LWXDWLRQ ZKHQ
2
2
degree of competition H௺HFW . This phenomenon of barriers are relatively low (Q <Q1)
&DXVH (ႇHFW FDQ EH XQGHUVWRRG TXDQWLWDWLYHO\ XVLQJ 2
PDWKHPDWLFDO GLႇHUHQWLDO HTXDWLRQ 7KH FDXVH DQG LWV Subtracting equation (4) from equation (5), we get,
FRUUHVSRQGLQJ HႇHFW FDQ EH DSSUR[LPDWHO\ UHSUHVHQWHG Ln K – Ln K = (Q -Q 57 «««
2 1 1 2
by equation (1) mentioned below. The equation is Or, Ln (K . ) = (Q -Q 57
analogous to Arrhenius equation in Chemical 2 1 1 2
Kinetics ZKLFK GHVFULEHV WKH HႇHFW RI DFWLYDWLRQ Or, K = K e(Q -Q 57 ««««««
2
1
2
1
energy and temperature (causes) on reaction kinetics +\SRWKHVLV 7HVWL¿HG From equation (7), it is evident
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