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Strategic Management Presentation Report onMaruti Suzuki India limited

Submitted by,

BHARATI1225111207

DINESH1225111220

MUTHU KUMARI1225111232

KUMAR -1225111236

NARENDRA1225111237

BALAJI - 1225111243


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1. Introduction

2.

External analysis

3. Industry analysis4. Competitors analysis5. Company analysis

(a)SWOT analysis(b)Porters 5 forces

6. Strategy formulation(a)BCG matrix(b)GE matrix

7. Conclusion8. References


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1. IntroductionMaruti Suzuki India (MSIL) was established in 1981 as Maruti Udyog,

Ltd.In 1982, the company signed a license and joint venture agreement with theGovernment of India and Suzuki Motor Corporation (SMC) of Japan. In 1983, thethen Prime Minister of India, IndiraGandhi released the first vehicle for sale. The company began exporting its firstcars to Hungary, in 1987. In 1992, SMC increased its stake in the company to 50%.

Maruti Suzuki India (MSIL), a partial subsidiary of Suzuki Motor,manufactures and distributes motor vehicles and spare parts. The company'sproduct suite consists of luxury cars, sports utility vehicles and multi purposevehicles.

Maruti Suzuki India (MSIL) is engaged in the manufacturing anddistribution of passenger cars and spare parts. It is a majority owned subsidiary of

Suzuki Motor (SMC) of Japan. The company offers a range of spare parts andaccessories of all the vehicles. It was formerly known as Maruti Udyog Limited.MSILs business segments comprise primary segment and other activities. ThecompanyManufactures purchases and sells motor vehicles and spare parts(automobiles).The other activities of the company comprise facilitation of pre-owned car sales, fleet management and car financing. The company has twomanufacturing facilities; one at Gurgaon and the other at Manesar in India. Boththe facilities have a combined capability to produce over a 1.2 million passengercar units annually.MSIL's facility in Gurgaon comprises three fully integrated plants with a totalinstalled capacity of 350,000 cars per year. The facility also includes `K' Engineplant, which has an installed annual capacity of 500,000 engines. In FY2010, thecompany produced 1,027,879 passenger cars and light duty utility vehicles.The Manesar facility manufactures models such as Swift, A-star, SX4 and DZire.The plant is under a joint venture company, called Suzuki Power train IndiaLimited (SPIL) in which SMC holds a 70% equity the rest is held by MSIL. InFY2010, the company started work on an additional plant of 250,000 cars perannum capacity at Manesar.

The company offers luxury cars, sports utility vehicles and multi purpose vehicles.


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Vision:

leader in the Indian automobile industry, creating customer delight and

shareholders wealth; a pride of India.

Mission:

To provide a wide range of modern, high quality fuel efficient vehicles in

order to meet the need of different customers, both in domestic and export market.

Key employees:

Shinzo Nakanishi - Managing Director and Chief Executive Officer

Tsuneo Ohashi - Director and Managing Executive officer production

Keiichi Asai - Director and Managing Executive Officer, Research and

Development

Shuji Oishi - Director and Managing Executive Officer, Marketing and Sales

R. C. Bhargava - Chairman

Products and Services:

Maruti Suzuki India (MSIL), a subsidiary of Suzuki Motor Corporation,manufactures and distributes motor vehicles and spare parts. The company's keyproducts, services and brands include the following:Products:Motor vehicles:Luxury carsSports utility vehiclesMulti purpose vehiclesParts and accessories


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Services:Maruti InsuranceMaruti FinanceVehicle leasing, maintenance, convenience servicesSale and purchase of pre-owned cars.

Brands:AltoGrand VitaraGypsyMaruti 800OmniSwiftSX4

VersaWagonREstiloEecoKizashi

Revenue size and profit:

Maruti Suzuki India (MSIL) recorded revenues of INR321,805 million ($6,793.3million) during FY2010, an increase of 38.1% over FY2009. For FY2010,

domestic, the company's largest geographic market, accounted for 85% of the totalrevenues. MSILs derived revenues from two segments vehicles (which accountedfor 93.9% of the total revenues in FY2010) and spare parts/dies andmoulds/components (6.1%) Revenue by sales During FY2010, the sale of vehiclesrecorded revenues of INR 298,534 million ($6,302.1 million), an increase of37.8% over FY2009.The sale of spare parts/dies and moulds/components recordedrevenues of INR 19,539 million ($412.5 million) in FY2010, an increase of 37%over FY2009. Revenue by geography Domestic, MSIL's largest geographicmarket, accounted for 85% of the total revenues in FY2010. Revenues from the

domestic market reached INR 275,934 million ($5,825 million) in FY2010, anincrease of 26.4% over FY2009. Overseas accounted for 15% of the total revenuesin FY2010. Revenues from the overseas market reached INR 48,785 million($1,029.9 million) in FY2010, as compared to the revenues of INR 17,497 million($369.4 million) in FY2009.


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Major markets served:Maruti Suzuki exports, entry-level models across the globe

to over 120 countries and the focus has been to identify new markets. Someimportant markets include Latin America, Africa, South East Asia and Oceana.

Number of employees:The Company primarily operates in India, where it is

headquartered in New Delhi and employs around 7,600 people

Domestic and exports sales:

Net sales:


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2. External analysis:Political:

Maruti Suzuki entered into by a political decision taken by the Indiangovernment in the year 1981. Initially government had a stake of 13% in thecompany.55 % by Suzuki Corporation and the remaining by the Maruti Udyogprivate limited. Later in the year 2002, government withdrew the stake from thecompany.

Apart from this the political decisions taken by the government like increase inthe tax rake are affecting the company performance.

Economical:

The global meltdown has certainly hit the Indian car industry hard. Theindustry posted a growth rate of 11 per cent in the year 2007 which has

fallen to 3 per cent this year.

Maruti now plans to tap the rural market, 60 per cent of which runs on cash Maruti has appointed 2,000 sales executives to target customers in the rural

areas.

Social:

Welfare Camps Medical support & welfare Education to underprivileged Road Safety Maruti Driving Schools Greening of Supply Chain Adopting energy saving technologies Reducing water wastage Green Growth

Technological: Launched CNG kit for Alto, its highest selling small car. The company as a proactive move is all set to make its entire fleet of cars

adheres to end of life vehicles (ELV) specifications by 2010 by doing


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away. with the usage of hazardous substances during production of carsand their components

The company is involved with the development of small and fuel-efficient car engines. In future, the company has high plans to increase the engine developmentwork in India along with other R&D operations.

Environmental:Maruti Suzuki recognizes global warming and climate changes as global

issues, the effects of which are of concern both for the environment and humanlife.

The challenge faced by the society is how to meet the needs of the present,without compromising the ability of future generations to meet their own needs.

Maruti Suzuki strongly believes that an investment in environment friendlyproducts and manufacturing facilities is in the best interest of the society as well asthe business. The last 25 years of our journey has reinforced the belief thatenvironment friendly initiatives make products more acceptable to customers andhelp Maruti Suzuki grow profitably in every sphere.

Since Maruti Suzuki started operations, conserving environment and naturalresources has been an integral part of our systems and processes. The concept of"Reduce, Reuse, Recycle" (3R's) has been our driving principle. This three

pronged strategy or the 3 R's has been promoted in all our manufacturing facilities,supply chain and logistics operations.

Maruti Suzuki also follows the Philosophy of "Smaller, Fewer, Lighter, Shorterand Neater". This Philosophy has helped Maruti Suzuki in optimal utilization ofresources and cost savings.

Legal:

Follows highest standards of Corporate Governance Customer can contact the Secretarial & Legal Department for any

questions/clarifications.The board periodically reviews reports of compliance with all laws applicable

to the Company, as well as steps taken by the Company to rectify instances of non-compliances.


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The Company has developed comprehensive legal compliance scheduling andmanagement software by which specific compliance tasks are assigned to eachindividual. The software enables in planning and monitoring all complianceactivities across the Company.

T he newly formed Maruti Suzuki Workers' Union is pressing for a higher revisionof wages at the Manesar plant of the company that has been struggling to bounceback after the prolonged labor unrest last year. Labor unrest at Maruti's plants innorth India during September and October 2011 had dented the company's marketshare and damaged its sales.The latest demand for wage hike reportedly poses a fresh challenge to the MarutiSuzuki management, which is also negotiating with the Gurgaon-based MarutiUdyog Kamgar Union that has already demanded double-digit pay increase. The30-year-old union had won a 6% raise for its 3,000 plus members in 2009, report

suggested.Report added that the Manesar-based union, however, believes the salaries of its1,200 members should be raised more substantially because they handle a moreautomated plant that requires a greater skill set

3. Industry and Competitors analysis:

The following companies are the major competitors of Maruti Suzuki IndiaLimited. Tata Motors Limited Hyundai Motor Co. Ford Motor Company Mahindra & Mahindra Limited Honda Motor Co., Ltd. General Motors Company Fiat S.p.A. Mitsubishi Motors Corporation Nissan Motor Co., Ltd. Renault SA Toyota Motor Corporation Volkswagen AG


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Market share:

Maruti44.9%

Hyundai18 %

Tata13 %

Ford4.81%

Honda2.97%

Volks wagen2.61%

General motors4.4%

Others9.31%

Analysis of Top 3 companies:

HYUNDAI MOTOR INDIA LIMITED

Hyundai Motor India Limited (HMIL) is a wholly ownedsubsidiary of Hyundai Motor Company, South Korea and is the second largest andthe fastest growing car manufacturer in India. HMIL presently markets over 25


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variants of passenger cars in six segments. The Santro in the B segment and Getzin the B+ segment.

HYUNDAI SANTROWe are mainly going to concentrate on the various marketing and positioningstrategies of Hyundai Santro as against that of Maruti Zen and Alto and HyundaiGetz as against Maruti Swift.

POSITIONING OF SANTROThe old positioning of the Santro was that pf a family car, this positioning

strategy was changed in around 2002 and Santro was repositioned as to that of asmart car for young people. The target age group for the car had now shifted from30-35 years to 25-30 years. The repositioning followed the face-lifts the car hasbeen getting from time to time in the form of engine up gradation, new power

steering, automatic transmission, etc, to keep the excitement around it alive in thehighly competitive small car market. The repositioning also comes ahead of thepossible launch of a new design Santro, and the super B-segment car Getz,sometime in 2003.The Santro was given a fresh new positioningfrom a complete family car to asunshine car denoting a fresh new attitude and a changing your life positioning.As the average age of a car owner has declined from around 30-35 three years agoto 25-30, primarily because of changing lifestyles, cheap and easily availablefinance, etc. the company thought that instead of promoting the Santro as a familycar, it should be promoted as a car that can change the life of a young person sincemany of the buyers were young buyers.

HYUNDAIS PRICING STRATEGY

With the launch of Maruti Swift recently a price war was expected to kick in .Immediately after maruti raised prices on its debutante Hyundai Motor India hitback with a Rs 16,000-19,000 markdown on three new variants of Santro Xing.The company has introduced the XK and XL variants at a lower tag of Rs 3,26,999

and Rs .3,45,999 respectively.The new price variants are likely to give Marutisexisting B-segment models, Zen and WagonR a run for their money. Hyundai hasalso launched a new non-AC variant of the Santro at Rs 2.79 lakh, a tad higherthan what the existing non-Ac Santro costs. The next offensive is due from Maruti.With the Santros new price positioning, Zen and particularly WagonR may be duefor a correction, or at least a limited-period subvention.Hyundai is positioning its new variants on the tech platform.


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TATA MOTORS

Established in 1945, Tata Motors is India's largest and only fully integrated

automobile company. Tata Motors began manufacturing commercial vehicles in1954 with a 15-year collaboration agreement with Daimler Benz of Germany.

TATA INDICATata motors flagship brand

The company's passenger car range comprises the hatchback Indica, the Indigosedan and the Marina, its station wagon variant, in petrol and diesel versions. TheTata Indica, India's first indigenously designed and manufactured car, waslaunched by Tata Motors in 1999 as part of its ongoing effort towards giving Indiatransport solutions that were designed for Indian conditions. Currently, thecompany's passenger cars and multi-utility vehicles have a 16-per cent marketshare.

POSITIONING OF INDICA

Tata has positioned Indica as `more car per car'. The new car offers more space,more style, more power and more options. Emphasizing the delivery of world classquality. They have tried to redefine the small car market as it has been understoodin India.TATA MOTORS

Established in 1945, Tata Motors is India's largest and only fully integratedautomobile company. Tata Motors began manufacturing commercial vehicles in1954 with a 15-year collaboration agreement with Daimler Benz of Germany.

TATA INDICATata motors flagship brand

The company's passenger car range comprises the hatchback Indica, the Indigosedan and the Marina, its station wagon variant, in petrol and diesel versions. TheTata Indica, India's first indigenously designed and manufactured car, was

launched by Tata Motors in 1999 as part of its ongoing effort towards giving Indiatransport solutions that were designed for Indian conditions. Currently, thecompany's passenger cars and multi-utility vehicles have a 16-per cent marketshare.

POSITIONING OF INDICA:


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Tata has positioned Indica as `more car per car'. The new car offers more space,more style, more power and more options. Emphasizing the delivery of world classquality. They have tried to redefine the small car market as it has been understoodin India. True to its "More car per car" positioning, the Indica CNG offers all thecore benefits of the Indica combined with the advantage of CNG. One of the mostpopular advertisements on television currently, is the one where the guy portrayedas the loveable liar, gets socked every time he lies ; but not when he speaks aboutthe Indica thus implying- must be true. Elaborating on the campaign, the new adwas launched with the intention of giving the Indica V2 brand a touch ofyouthfulness.

TATAS PRICING STRATEGY

After the price war being triggered off by Hyundai being the first company to

introduce what came to be known as, pricing based on customer's valueperceptions , all others followed suit. Telco's Indica came in the range of Rs 2.56lakh to Rs 3.88 lakh with 4 models. The price-points in the car market werereplaced by price-bands. The width of a price-band was a function of the size ofthe segment being targeted besides the intensity of competition.

Porters Five Forces of Competitive Analysis framework:


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Threats of new entrants: high

Most of the major global players are present in the Indian market; few moreare expected to enter.

Financial strength assumes importance as high are required for buildingcapacity and maintaining adequacy of working capital.

Bargaining power of customer: Low

Increased awareness among consumers has increased expectations. Thus theability to innovate is critical

Product differentiation via new features, improved performance and after-sales support is critical

Increased competitive intensity has limited the pricing power ofmanufacturers


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Bargaining power of suppliers: Low A large number of automotive components suppliers. Automotive players are rationalizing their vendor base to achieve

consistency in quality.

Threats of substitute products: Low

Substitutes might be two wheelers as the increase in the fuel prices mayaffect sales. They tend to purchase two wheelers which will replace the car.

The threat to substitute product might be low as once they feel like buyingthey will buy.

Rivalry among firms industry competitiveness: High

Industry competitiveness is very high. As many international brands areentering into India like Hyundai, Volkswagen, Honda, etc. all are targetingthe small car segment only. i.e maruti is been targeting .

As New multinational players entered the market.

Industry trends:

India is presently ranked 11th amongst auto car manufacturing countries inthe world.

India is poised to become third largest auto car manufacturing hub in theworld by 2020.

The small car market counts for about 73 percent of the overall car marketwithin India, which is densely populated with motor vehicles.

Problems in industry:

Over the last few years the face of the Indian automobile industry hasundergone a sea change. The growth of the industry has surpassed all previous


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records. However there are certain factors that stand as challenges before theIndian automobile industry.

The development of the industry has been attributed to a coupleof factors. One of these was the liberalization of the economy in the early 1990sand the rise in disposable income and standard of living. Liberalization of theeconomy meant a decrease in import tariffs, equity regulations, liberalization inbanking norms and relaxation of the foreign exchange. Since then there has beenno looking back and the automobile industry has continued to grow at a consistentrate of 25%

SWOT ANALYSIS:

Strengths: Strong domestic player Understanding of the Indian market Brand image Strong distribution network Ability to design products with differentiating features Strong domestic player Heavy dependence on India Robust brand image Product recalls Strong distribution network Strong parent backing

Weaknesses: low interior quality design Management and company labor unions. Younger generations are attracted towards foreign brands. Heavy dependence on India

Opportunities:

R & D on electric cars New product launches increase in economic growth Growing automotive market in India

Threats:

Competition


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CHINA in Indian market External changes (government) Price wars Increasing competition Environmental regulations Increase in the prices of raw materials

Strengths:

Strong domestic playerMSIL, a subsidiary of Suzuki Motor (SMC) of Japan, is India's largest passengercar company, accounting for over 53% of the Indian passenger car market. Morethan half the cars sold in India are MSIL cars. In FY2010, MSIL was the sole

player in the Indian market to manufacture and sell over a million vehicles. Thecompany offers 14 brands and over 150 variants ranging from entry level Maruti800 and Alto to the higher end cars including hatchback Ritz, A star, Swift, WagonR, Estilo and sedans DZire, SX4 and Sports Utility vehicle Grand Vitara. Sinceinception, the company has produced and sold over 7.5 million vehicles in Indiaand exported over 500,000 units to Europe and other countries. Since its launch in1983, Maruti 800 was the best selling car till 2004.The Maruti Suzuki Alto thenfollowed as the largest selling car in India. Additionally, MSIL exports entry-levelmodels across the globe to over 100 countries in Latin America, Africa and SouthEast Asia. A strong market position gives the company significant bargainingpower and benefits it with the economies of scale.

Robust brand image:

The company has built up a strong brand image over the years. During the year, thecompany received reputed awards and accolades for its products and services fromindependent expert groups, media houses and research agencies. For instance,MSIL was named the manufacturer of the year 2010 by CNBC Overdrive. In

FY2010, for the 10th consecutive time, MSIL was ranked the highest in JD PowerAsia Pacific 2010 India Customer Service Index (CSI) study. Further in September2010, the Economic Times Brand Equity Survey 2010 named the company as themost trusted brand in the automobile sector. Strong brand image enables thecompany to gain more customers, strengthen its customer base, and as a result, itwill help in boosting the overall sales.


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Strong distribution network:

MSIL has a strong distribution network. It has unparalleled sales and servicenetwork in India. In FY2010, the company had a sales network of 802 dealershipsacross 555 towns and cities in India. In addition, it provides service support tocustomers at 2,740 workshops in over 1,335 towns and cities. MSIL has 30 expressservice stations on 30 national highways across 1,314 cities in India. Otherautomobile companies have not been able to match this benchmark set by MSIL.Furthermore, the company is planning to expand the number of dealerships to1,500 by 2015. Strong distribution network helps MSIL to improve its sales and tostrengthen its market position in the growing Indian automotive market.

Strong parent backing:

MSIL is a majority owned subsidiary of Suzuki Motor (SMC), a Japan-basedcompany, engaged in the manufacturing and marketing of motorcycles,automobiles, marine and power products, motorized wheelchairs, electro seniorvehicles, and houses. SMC is a pioneer and market leader in small carmanufacturing segment in Japan. Its mini car section rolled out innovative yeteconomical passenger car for the masses. The company operates in more than 190countries across the world. Its trademark is recognized throughout the world.Brand recognition allows SMC to charge premium prices than its competitors andthus register relatively higher margins. Hence, SMC's strong brand image givesMSIL a significant competitive advantage and helps it to register higher salesgrowth in domestic, as well as in international markets.

Weakness:

Heavy dependence on India:

MSIL depends on the Indian market for majority of its revenue. The

company generated almost 85% of its revenue from the Indian market duringFY2010. This over-dependence on India could have a dampening effect on thecompany's revenues if the economy and/or the company's sales in the country donot grow as expected. By contrast, competitors like Tata Motors have a significantgeographic presence. The concentration of operations in a particular countryincreases the company's exposure to country specific factors such as labor strikes,changes in economic conditions, and most importantly, increasing competition


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from other players in the market. Therefore, overdependence on one geographicregion makes it susceptible to changes associated with the economic and politicalsituation of the country. Concentrated operations could also make MSILuncompetitive against rivals who have globally diversified operations.

Opportunities:

New product launches:MSIL launched several new models in FY2010. For instance, in August

2010, the company launched its CNG engine technology, 'intelligent-Gas PortInjection' or i-GPI on five of its models. The models include Eeco, Alto, Estilo,Wagon R and Sx4. During the same month, MSIL launched another version ofBrand Alto, named Alto-K10, equipped with a K-series, 998 cc engine. Similarly,in April 2010, the company launched all-new WagonR in three variants Lx, Lxi

and Vxi and seven colors. In addition, MSIL announced its plans to launch itsluxury sports sedan, Kizashi, in February 2010. New and improved products arelikely to drive the company's organic sales growth. It will also help the company torevamp its aging model line up.

Growing automotive market in India:

The outlook of the automotive industry in India remains positive. It is primarilydue to the higher disposable incomes and easier vehicle financing options availablein the country. India is the seventh largest auto market in the world. The passengercar segment, truck and bus, commercial vehicle, two wheeler, three-wheeler andthe tractor, almost all of these segments are showing exponential growth forseveral months in a row. According to the Society of Indian AutomobileManufacturers, annual car sales are projected to increase up to 5 million vehiclesby 2015 and more than 9 million by 2020. By 2050, India is expected to top theworld in car volumes with approximately 611 million vehicles on the nation'sroads. The economic liberalization in India that happened in 1991 brought in anincrease in competitiveness and a relaxation in restrictions. Post 1991, the Indiancar market has been displaying steady growth

Many Indian automotive majors like M&M, MSIL and Tata Motors expanded theirbase both in India and abroad. The Indian automobile sector's healthy andfinancially viable growth led to internal development and also gave rise tonoteworthy India-specific investments by multinational car makers. Major globalplayers like General Motors, Ford, Mercedes-Benz, Volkswagen, Suzuki, Honda,


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Fiat, Hyundai, Porsche, Audi and more are active in the country, so does in allother segments of the automotive industry. MSIL is a dominant player in thepassenger car segment of automotive market in India. In FY2010, the company hada market share of over 53% in the Indian passenger car market. Hence, theCompany can leverage its strong position and exploit the growing automotivemarket in India

Threats:

The global automotive industry is intensely competitive and competition is likelyto intensify further in light of continuing globalization and consolidation in theworldwide automotive industry. Factors affecting competition include productquality and features, innovation and product development time, ability to controlcosts, pricing, reliability, safety, fuel economy, customer service, and financing

terms. MSIL face intense competition from its domestic as well as foreigncompetitors including General Motors, Honda Motor, Tata Motors, MitsubishiMotors, Fiat, and Ford, among others. Competition is expected to intensify furtheras Indian automotive manufacturers obtain greater access to debt and equityfinancing in the international capital markets or gain access to more advancedtechnology through alliances. Additionally, in recent years, the Government ofIndia has permitted automatic approvals for foreign equity ownership of up to100% in entities manufacturing vehicles and components in India. With thegradual liberalization of the automobile sector, the number of manufacturingfacilities in India has grown progressively. These changes have led to noticeablyincreased competition in product offerings by all the auto manufacturers in India.Increasing competition would adversely impact the company's market share andprofitability.

Environmental regulations:As an automobile company, MSIL is subjected to extensive governmentalregulations regarding vehicle emission levels, noise, safety, and levels of pollutantsgenerated by its production facilities. These regulations are likely to become morestringent and compliance costs may significantly impact the company's future

results of operations. While MSIL is pursuing various technologies in order tomeet the required standards in the various countries in which it sells its vehicles,the costs for compliance with these required standards can be significant to thecompany's operations. This may adversely impact the company's financialcondition and results of operations.


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Increase in the prices of raw materials:

Steel, aluminum, and copper form the key raw materials for any automotivemanufacturing company including MSIL. The prices of these key raw materialshave been volatile in recent years. For instance, hot dipped galvanized coil priceincreased by 12% to reach INR 36,965 ($780.3) per tonne in September 2010compared to INR33,000 ($696.6) per tonne in September 2009. Similarly, the coldRolled coil price increased by 11% to reach INR 34,400 ($726.2) per tonne inSeptember 2010 compared to INR31,000 ($654.4) per tonne in September 2009.Steelmakers are increasing the prices so as to shift the burden of the increasing rawmaterials costs which they incur. It is forecasted that the steel prices would furtherincrease in FY2011. Similarly, the aluminum prices increased from around $2,000per tonne in November 2009 to $2,295.5 per tonne in the first week of December2010. Furthermore, due to the shortage of tyre in India, car companies are looking

at importing tyres to make up for the shortages that are impacting their 2011Production plans. The abnormal increase in prices of raw material prices in 2010created several production problems to the Indian tyre sector. The increase innatural rubber prices has forced domestic tyre companies to divert more supplies toused market that fetch higher margins.

BCG MATRIX:

STAR:The Company has long run opportunity for growth and profitability. They

have high relative market share and high GROWTH.

SWIFTAlto wagon RA star

QUESTION MARK:There are also called as wild cats that are new products with potential for

success but there cash needs are high and cash generation is low. In auto industry


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has been improving the organization reputation. As they want successful not onlyin Indian market but as well as in global market.

Kizashi Grand vitara

CASH COW:

It has high relative market share but compete in low growth rate as theygenerate cash in excess of their needs.They generate both cash and profits.

swift desireZen EstilloRITZ SX 4

DOG:The dogs have no market share and do not have potential to bring in much

cash. There business have liquidated and trim down thus the strategies adopted arethat are harvest, divest and drop.

gypsyBaleno OMNI


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STARS

SWIFTAlto wagon RA star

QUESTION MARKs

KIZASHI GRAND VITARA

CASH COWS

swift desire

Zen EstilloRITZ SX4

DOGS

gypsy

Baleno OMNI

G.E matrix:

Factors influencing G.E matrixIndustry attractiveness

Market growth rate market size demand variability industry profitability industry rivalry global opportunities PEST

business unit strength market share growth in market share brand equity distribution channel production capacity

HIGH MARKET SHARE LOW MARKET SHARE

HIGH

MAR

KET

GRO

WTH

RAT

E

LOW

MAR

KET

GRO

WTH

RAT


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profit margin relating to competition

2

The products are been kept in the order.

1.

SWIFT2. WAGON R3. SWIFT DZIRE4. ALTO5. OMNI6. KIZASHI

1

3

4

6

Business unit strength

Strong Medium Low

Industry

Attractive

ness

2

High

Medium

Low


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Success factors of Maruti Suzuki:

The Quality Advantage A Buying Experience Like No Other Quality Service Across 1036 Cities One Stop Shop The Low Cost Maintenance Advantage Lowest Cost of Ownership Technological Advantage

Future challenges:

Perception change Growing competition in compact cars. Rise in petrol prices and growing popularity of other substitute fuels New emission norms

Conclusion:

Maruti Suzuki is the no 1 player in the Indian passenger car market due tolow cost and quality advantage.

Marker share of Maruti Suzuki has slipped from 70% to 44% because ofcompetition from foreign and national players.

It is setting up its research and development in India. Its a good sign as itcan become much closer.

References:

www.marutisuzuki .com

www.gitam .edu

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