pak suzuki strategic analysis

8/13/2019 Pak Suzuki Strategic Analysis

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StrategicAnalysisPak Suzuki Motor Company Limited

Muazzam Imtiaz

Roll Number: 22

MBA (Morning) 4th A


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ACKNOWLEDGMENT

In the name of Allah, Most Gracious, Most Merciful

Praise be to Allah, the Cherisher and Sustainer of the worlds;

Most Gracious, Most Merciful;

Master of the Da of !udgment"

#hee do we worshi$, and #hine aid we see%"

#he wa of those on whom #hou hast bestowed #h Grace, those

whose &$ortion' is not wrath, and who go not astra"

Ameen

I am heartil than%ful to our Strategic Management teacher, Sir

Shahid (a)oob, whose encouragement, guidance and su$$ort from

initial to the final le*el enabled us to de*elo$ the sub+ect Strategic

Management" ith his dedicated lectures we were able to $racticall

understand and a$$l what we ha*e learned in the classes"

Strategic Analsis - Pa% Su.u%i Motor Com$an /imited"

#he Islamia 0ni*ersit of 1ahawal$ur - ahim (ar 3han Cam$us


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EXECUTIVESUMMARY

#his $ro+ect is about the strategic Analsis of Pa% Su.u%i MotorCom$an" During the $ro+ect, I5*e done the detailed stud of Pa%

Su.u%i Motor Com$an /imited li%e their com$an $rofile, mission,

*ision and cor$orate *alues" #hen I obser*er the some of the ma+or

$roducts manufactured and assembled b the Pa% Su.u%i Motor

Com$an limited which include SI6#, /IA7A, C0/#0S,

M89A7, AP: etc ith the hel$ of Internal and 8


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TABLEOFCONTENTS

Sr. no. Contents Pae !

Introduction

2 Product Mi< E

4 Internal and 8 S?# or #?S Matri<

= 1CG Matri< F

B S10 Analsis E

Internal 8

2 S$ace Matri< =

4 Grand Matri< 2

SPM Matri< 22

Conclusion 24

F ecommendations 2

E eferences 2




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INTRODUCTION

Pa" S#$#"% Motors Co&'an( Lt). is a com$an assembling and distributing Su.u%i

!a$anHs cars in Pa%istan" Currentl the are one of the most successful motor com$anies in

Pa%istan"

#he firm was founded in =>4 as a +oint *enture between PA3 and Su.u%i, formali.ing the

arrangement b which AAMI Auto /td" had $roduced the Su.u%i SS>B from =>2" Su.u%i

originall owned 2 of the stoc%, and has graduall increased their holding; the now own

E4"B=" #he com$an now assembles a wide range of Su.u%i *ehicles and aims to $roduce

B,BBB *ehicles $er ear" &2BB $roduction was BB,BBB'

O#r V%s%on

#o be 8


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State&ent o* Et+%,s an) B#s%ness Pra,t%,es

9ere are the code of ethics and 1usiness Practice of Pa% Su.u%i Motors Com$an,

" Pa% Su.u%i insists on integrit and honest of its em$loees in doing business" An

unfair or corru$t $ractices to solicit business is fundamentall inconsistent with

business codes of com$an

2" Pa% Su.u%i belie*es in com$liance to regulator obligation

4" Pa% Su.u%i belie*es in free and fair business $ractices and o$en com$etiti*e mar%ets"

De*elo$ing an association with com$etitors to distort the $ricing and su$$l of

$roducts is contradictor to com$an5s business code of conduct"

" Pa% Su.u%i belie*es in trans$arenc in business transaction and the are to berecorded accuratel and fairl in boo%s of accounts in accordance with standard

$rocedure"

" Pa% Su.u%i e


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' e ensure safe dis$osal of waste generated from our facilit

' e minimi.e the discharge of waste materials into the en*ironment b utili.ing

res$onsible $ollution control $ractices"

F' e will continuousl see% o$$ortunities to im$ro*e our adherence to these $rinci$les"

As it is clearl mentioned in their :ision Statement that to be e


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Pr%,e2 s" ,24B,BBBJ@

#he Su.u%i /iana a*ailable in 4BB cc manual

transmission and FBBcc automatic

transmission ta%es ou out of ordinar and into

the realm" /iana is entirel different car, its

stle, dimension and comfort will ins$ire ou

to see e*er da as an o$en door to a new age"

Co3ors2Pearl ed, Gra$hite Gre, Solid white,

Indigo, Sil% Sil*er, A)ua 1lue, 8minent 1lue

CULTUS -000,,1

Pr%,e2 s" >=E,BBBJ@

C0/#0S is the blend of s$ace and craft"

Its trim bod Conceals am$le s$ace K

fle


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Pr%,e2 s" ,BBBJ@

0nri*alled in its class, M89A7 is

Pa%istan5s largest selling car" More smart

features li%e head turning lam$, matching

front grill and a two s$o%e steering wheel

gi*es it the tid loo%" 6unctional econom,

$ea% $erformance or unmatched fuel

efficienc, M89A7 : is the leader"

Co3orsL Pearl ed, Gra$hite Gre, Solid

white, Sil% Sil*er, 8minent 1lue

APV -800,,1

Pr%,e2 s" ,EE,BBBJ@

AP: BB cc &Im$orted' #he 7ew AP:

gi*es ou e*erthing ou e*er wanted in

our *ehicle" S$acious interior for comfort,

tough engine to carr large loads and $lent

of room for $assengers to en+o a

comfortable da long ride"

Co3ors2 Pearl ed, Gra$hite Gre, Solidwhite, Indigo, Sil% Sil*er, A)ua 1lue,

8minent 1lue

9IMNY -/00,,1

Pr%,e2 s" ,>B,BBBJ@

!IM7( !88P 4BBcc &Im$orted'

Stead, sturd and smart, Su.u%i !IM7(with new wide tread brings ou the ultimate

$leasure of a real @wheel dri*e" It has got all

the s$orting s$irit to go along for

ad*enturous free souls"

Co3ors2Solid white, Sil% Sil*er




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EXTERNAL4 INTERNALANALYSIS

SWOT Ana3(s%s

Strent+s2

9ighest Mar%et Share

/ow Price :ehicles

esale of /ocal Assembled Cars

/arge Distribution Channels

ising $er ca$ita income with changing demogra$hic distribution

9ighl Inno*ati*e and dee$ $roduct line

9ighl maintained su$$l chain

ell Managed and highl com$etiti*e staff

ell defined and bureaucratic organi.ational structure

Com$lete understanding between Distributors

8as a*ailabilit of s$are $arts

Wea"ness2

Scarcit of raw material

/ac% of coordination and lin%age with Go*ernmentJsemi go*ernment su$$orting

bodies

/ess focus on /oo%s and Design

/ess #echnical #raining Institutes

/ess distribution channels in sub urban areas

O''ort#n%t%es2

Increasing Demand for Cars

8fficient 86I engines




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/arge Mar%et si.e to o$erate

Global s$are $art mar%et

S$ace sa*ing Small si.e C7G clinders

T+reats2

#ough Com$etitors li%e #oota and 9onda

6oreign In*estment and setu$ $roduction facilities

Smuggling of Auto Parts

Inflation rate

9ea* #a


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go*ernment $olicies, encourages b different foreign assistance and renewed access to global

mar%et since 2BB"

1 following these $olicies go*ernment succeed to re*erse the situation of econom during

last fi*e ears.

So,%o;C#3t#re En:%ron&ent

Pa%istan has strong culture bac%ground and it has been follow in some $articular region of

Pa%istan strictl" 1ut with the $assage of time it is going to change" #houghts of $eo$le,

choices, taste and stle has been totall changed" If we tal% about the trans$ortation source in

Pa%istan, Peo$le use buses, $ic%u$s etc for +ourne" #he also ha*e their own biccle and

bi%es and lots of $eo$le are $edestrian" 1ut now the $eo$le who ha*en5t an source of

trans$ortation the also want something for their con*enience because the wants to sa*e

their time as much as the can" Peo$le want to use such *ehicle which loo%s beautiful and

also affordable"

Te,+no3o%,a3 En:%ron&ent

#echnological factor also *er im$ortant and we ha*en5t control on it" #echnolog is

grooming with the $assage of time" Peo$le also want that the $roduct that the ha*e is full of

technolog" e ne*er control on technolog for e


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EXTERNALFACTOREVALUATIONMATRIX-EFE1

OPPORTUNITIES We%+t Rat%ns We%+te) S,ore" Increasing Demand for Cars B" B"FB

2" 8fficient 86I 8ngines B"B 4 B"4B

4" /arge Mar%et to o$erate B"B 4 B"4B

" Global s$are $arts mar%et B"B 2 B"B

" Small si.e C7G Clinders B"2 4 B"4F

T6REATS

" #ough Com$etitors li%e #oota and 9onda B" 2 B"2>

2" Inflation ate B"B> 4 B"2

4" 9ea* #a


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INTERNALFACTORSEVALUATIONMATRIX-IFE1

STRENGT6S We%+t Rat%ns We%+te) S,ore

" 9ighest Mar%et Share B"2B B">B

2" /ow Price :ehicles B"B B"B4" /arge Distribution Channels B"2 B">" 8as a*ailabilit of s$are $arts B"B> B"42

" 9ighl Inno*ati*e and dee$ $roduct line B"2 B">

WEAKNESSES

" Scarcit of raw material B"B> 2 B"F

2" /ac% of coordination and lin%age with Go*t" bodies B"B 2 B"B

4" /ess focus on /oo%s and design B"B B"B

" /ess #echnical #raining Institutes B"B B"B

" /ess distribution channels in sub urban areas B"B B"B

Tota3 We%+te) S,ore .0


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SWOT MATRIX

SWOT > TOWS Matr%?

STRENG6TS WEAKNESSES

" 9ighest Mar%et Share "Scarcit of aw Materials

2" /ow Price :ehicles2" /ac% of coordination with

Go*t" 1odies

4" /arge Distribution Channel4" /ess focus on /oo%s and

design

" 9ighl Inno*ati*e K Dee$

$roduct line

" /ess #echnical #raining

Institutes

" 8as a*ailabilit of s$are

$arts

" /ess distribution channels in

sub@urban areas

OPPORTUNITIES S;OStrate%es W;OStrate%es

" Increasing Demand for cars .Ma


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>" 8nhance distribution to a*oid threat from second hand im$orted cars

BCG MATRIX



Dos

#est%on Mar"Star

Cas+ Cos

6%+

Lo

Lo6%+

Mar"et

Grot+

Mar"et S+are

ME6RAN

ALTO

CULTUS

RAVI

LIANA

APV

9IMNY

BOLANSWIFT


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SBUs Ana3(s%s

ME6RAN2

M89A7 has the highest growth rate in automobile sector in Pa%istan" Pa% Su.u%i

alwas changes the different $arts of M89A7 either e


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It was made for a $eo$le of high income grou$ but due to high $rices in which the mar%et

was alread gi*ing names li%e corolla and ci*ic who has their strong brand name and

customer loalt, liana was failed to ca$ture the mar%et"

SWIFT2

Due to failure of /iana Pa% Su.u%i introduced another 4BBcc car in !an 2BB=" Swift

has all the latest features li%e $ower steering, central loc%ing, Auto #ransmission and the

A1S" All the 4BBcc cars in Pa%istan ha*e $rice range of 4BBBBB to BBBBB, while Swift

was introduced at ===BBB and recentl it was increased at B=BBB" It has still ad*antage of

$rice com$etition as com$are to other 4BBcc cars in Pa%istan"

RAVI2

a*i is for the $eo$le doing small business es$eciall cargo ser*ices li%e home

deli*er ser*ices, #CS and mar%et deli*er" All $eo$le doing business of these t$es are

loal customers to a*i" Although the S989N?8 has ca$tured some of its mar%et share but

still a*i is much famous and mar%et leader in its t$e"




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INTERNALEXTERNALMATRIX

868

Matri

#ough com$etitors B"B> B"42 2 B"F

Inflation B"BF B"BF B"BF

Chea$er Im$orted cars B"B> B"42 B"42

Increase in fuel $rices B"B B"B B"B

Interna3 Fa,tors

9ighest Mar%et share B"B> 4 B"2 B"42

/ow $rice *ehicles B"B B"B B"B

/arge distribution channel B"BF 2 B"2 4 B">

8as a*ailabilit of s$are $arts B"B2 4 B"BF 4 B"BFInno*ati*e and dee$ $roduct line B"BF B"2 4 B">

/ess focus on stle and design B"B B"F B"F

Scarcit of human resource B"B 4 B"2 B"F

Tota3s .0 /.5 /.@@

1 com$aring both Mar%et De*elo$ment and Product De*elo$ment, we obtained more

weighted attracti*e score for Product de*elo$ment" #hat means com$an should follow the

$roduct de*elo$ment which is $art of aggressi*e strategies" #his strateg is going to hel$ the

firm in eliminating its threats and grab the o$$ortunities to be successful in the $resent macro

en*ironment"




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CONCLUSION

#he following are the findings of the stud of Pa% Su.u%i Motor

Com$an /imited"

E?terna3 Fa,tor E:a3#at%on Matr%? S,ore22"=>

Interna3 Fa,tor E:a3#at%on Matr%? S,ore22"==

BCG Matr%?2

StarL !IM7(, 1?/7A

uestion Mar%L SI6#

Cash CowsL M89A7, C0/#0S, A/#?, A:I

DogsL AP:, /IA7A

Interna3 E?terna3 Matr%?2Growth and 1uilt Strateg

S'a,e Matr%?2uadrant , Aggressi*e Strategies

Gran) Matr%?2uadrant , Aggressi*e Strategies

Mar%et De*elo$ment, Product De*elo$ment

SPM Matr%?2

Mar%et De*elo$mentL 4"F

Product De*elo$mentL 4"

C+osen Strate( %s Pro)#,t De:e3o'&ent.




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STRATEGICRECOMMENDATIONS

Pro)#,t De:e3o'&ent is the selected strateg at this $oint of timefor Pa% Su.u%i Motor Com$an /imited that we obser*ed from our

strategic analsis of the firm"

In $roduct de*elo$ment strateg we recommend the com$an to

focuses on ha*ing the highest le*el of $roduct $erformance, the

highest le*el of functionalit or functions and features, the latest

technolog or the highest le*el of $roduct inno*ation"

#his strateg might ha*e some ris% for the com$an as inno*ati*e

$roducts are in*ol*ed but $ro$er research and de*elo$ment will cater

the ris% and com$an can $ursue with the strateg to be the mar%et

leaders and get on to$"

?ne ma+or setbac% to PSMC was in the sha$e of Su.u%i /IA7A,

which was not able to meet the e


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REFERENCES

http://www.paksuzuki.com.pk

http://www.we.com.pk

http://www.maxi-pedia.com

And various news paper articles, research findings and blogs, which helped me indirectly to

build up my mind about ak !uzuki "otor #ompany $imited and figure out their %xternaland &nternal 'actors which were involved in the pro(ect.




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)*eal !trategic change re+uires inventing

new categories, not rearranging old ones.

!aid,Henry Mintzberg

pak suzuki strategic analysis

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