3. A BRIEF INTRODUCTION TO MARUTI SUZUKI
In 1982, Government of India entered into a joint
venture with Suzuki motor corporation of Japan
Plant was established at Gurgaon in Haryana
It was the first company in india to mass produce
and sell more than a million cars
Maruti Suzuki is the on of the india’s leading
automobile manufacturers and the market leader
in the car segment
4.
5. Threat from the new players: Increasing
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Most of the major global players are present in the
Indian market; few more are expected to enter.
Financial Strength assumes importance as high are
required for building capacity and maintaining
adequacy of working capital.
Rivalry with in the industry: High
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There is keen competition in select segments.
(compact and mid size segments).
New Multinational players may enter the market.
6. Market strength of suppliers: Low
- A large number of automotive components
suppliers
- Automotive players are rationalizing their vendor
base to achieve consistency in quality
Market strength of consumers: Increasing
- Increased awareness among consumers has
increased expectations. Thus the ability 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 of manufactures
7. Threat from substitutes: Low to Medium
- Consumer preference is changing (Mini cars are
being replaced by compact or mid size cars)
- Setting up integrated manufacturing facilities may
require higher capital investments than
establishing assembly facilities
- India also is likely to increasingly serve as the
sourcing base for global automotive companies,
and automotive experts are likely to gain
increasing importance over the medium term
- Competition is likely to intensify in the SUV
segment in India following the launch of new
models at competitive price
10. Major Restructuring Exercise:
- The company focused on improving its
OPERATIONAL EFFICIENCY by upgrading
manufacturing using new manufacturing
techniques
- INCREASING CAPACITY, using information
technology in manufacturing
- Focus on NEW PRODUCTS at regular intervals
- Venturing into OTHER RELATED BUSINESSES like
car finance, insurance, buying and selling of used
Maruti cars.
11. New Strategy:
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UPGRADED its manufacturing facilities to meet the foreign
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BROADENED its product portfolio (LUV- ERTIGA)
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EXPANDED its sales and service network to reach all over
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VENTURED into new associated businesses
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PROMOTIONAL strategies including price cuts,
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VALUE ADDED SERVICES offering to its customers
challenge. (CRDI, VVTI engines)
India
promotional offers, launching campaigns