This document provides a strategic analysis of Pak Suzuki Motor Company Limited (PSMC). It includes an overview of PSMC's products, mission, vision, and values. Internal and external analyses were conducted to identify strengths, weaknesses, opportunities, and threats. Various matrices were used to evaluate factors and recommend strategies. PSMC's market share leadership in Pakistan was noted, though it struggles to compete in luxury segments against Toyota and Honda. Product development was recommended to help PSMC expand.
This document provides a strategic analysis of Pak Suzuki Motor Company Limited (PSMC). It includes an overview of PSMC's products, mission, vision, and values. Internal and external analyses were conducted to identify strengths, weaknesses, opportunities, and threats. Various matrices were used to evaluate factors and recommend strategies. PSMC's market share leadership in Pakistan was noted, though it struggles to compete in luxury segments against Toyota and Honda. Product development was recommended to help PSMC expand.
This document provides a strategic analysis of Pak Suzuki Motor Company Limited (PSMC). It includes an overview of PSMC's products, mission, vision, and values. Internal and external analyses were conducted to identify strengths, weaknesses, opportunities, and threats. Various matrices were used to evaluate factors and recommend strategies. PSMC's market share leadership in Pakistan was noted, though it struggles to compete in luxury segments against Toyota and Honda. Product development was recommended to help PSMC expand.
P a g e | 2 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, Ma(am #ahira A)am, 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" P a g e | - EXECUTIVE SUMMARY #his $ro+ect is about the strategic Analsis of Pa% Su)u%i Motor Com$an" During the $ro+ect, we(*e done the detailed stud of Pa% Su)u%i Motor Com$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 S,I/#, .IA0A, C1.#1S, M234A0, AP5 etc6 ,ith the hel$ of Internal and 27ternal analsis, I(*e sorted out some of their strengths, wea%nesses and the o$$ortunities and threats $re*ailing in the mar%et" Also the P2S# analsis was conducted to obser*e the e7ternal factors that ma influence the $erformance of the com$an" #hen we did $re$are the 27ternal 2*aluation Matri7, which scored 2"89 that means com$an is tring best to utili)e their o$$ortunities b a*oiding the threats" And Internal 2*aluation Matri7 which scored 2"88 shows that com$an has solid internal strengths and the are o*ercoming the wea%nesses :uite well" #hen the #;,S matri7 hel$ed us to suggest some of the strategies to the com$an which can be hel$ful for them in future outloo%" #he <CG matri7 hel$ed me to stud the im$ortant $roducts of the com$an; we did identif in which stage the $roducts are and tried to do the S<1 analsis for each $roduct" ,ith the stud of Pa% Su)u%i Motor Com$an .imited, we(*e learned that the are doing well in the Pa%istani mar%et and are leading mar%et shareholder" #he are $roducing Cars at affordable $rices for the low income to middle income $eo$le" <ut the are unable to com$ete with Corolla and 3onda in .u7ur and semi= lu7ur cars" #he need $roduct de*elo$ment strateg to follow so the tried to get into the 3onda and Corolla mar%et b introducing Su)u%i .IA0A but that couldn(t ma%e its s$ace" 0ow the ha*e again tried that b launching Su)u%i S,I/# which is a >-??cc full loaded car" we recommend Product De*elo$ment strateg for PSMC to $ursue in order to com$ete with 3;0DA and #;@;#A" #hen the will be able to grow their mar%et share and growth" P a g e | A TABLE OF CONTENTS Sr. no. Contents Pae ! > Introduction B 2 Product Mi7 C - Internal and 27ternal Analsis >? A S,;# Analsis >? B P2S# Analsis >> D 27ternal /actor 2*aluation Matri7 &2/2' >- C Internal /actor 2*aluation Matri7 &I/2' >A 9 S,;# Matri7 >B 8 <CG Matri7 >C >? Internal 27ternal Matri7 >9 >> S$ace Matri7 2? >2 Grand Strateg Matri7 2> >- ESPM Matri7 22 >A Conclusion 2- >B 4ecommendations 2A >D 4eferences 2B P a g e | B INTRODUCTION Pa" S#$#"% Motors Co&'an( Lt). is a com$an assembling and distributing Su)u%i !a$anFs cars in Pa%istan" Currentl the are one of the most successful motor com$anies in Pa%istan" #he firm was founded in >89- as a +oint *enture between PAG and Su)u%i, formali)ing the arrangement b which A,AMI Auto .td" had $roduced the Su)u%i SS9? from >892" Su)u%i originall owned 2BH of the stoc%, and has graduall increased their holding; the now own C-"?8H" #he com$an now assembles a wide range of Su)u%i *ehicles and aims to $roduce >B?,??? *ehicles $er ear" &2??B $roduction was >??,???' O#r V%s%on #o be 27cellent All Around O#r M%ss%on #o $ro*ide automobile of international :ualit at com$etiti*e $rice
#hese are Mission and 5ision Statement of Pa% Su)u%i, and the alwas tr to im$ro*e s%ills of em$loees b im$arting training and inculcating in them a sense of $artici$ation" #o achie*e ma7imum indigeni)ation and $romote the automobile *ending industr" #o contribute to Pa%istani societ through de*elo$ment of industr in general and automobile industr in $articular" P a g e | D State&ent o* Et+%,s an) B#s%ness Pra,t%,es 3ere are the code of ethics and <usiness Practice of Pa% Su)u%i Motors Com$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 -" 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$$l of $roducts is contradictor to com$an(s business code of conduct" A" Pa% Su)u%i belie*es in trans$arenc in business transaction and the are to be recorded accuratel and fairl in boo%s of accounts in accordance with standard $rocedure" B" Pa% Su)u%i e7$ects its em$loees to act in com$an(s best interest while holding confidential information" Com$an e7$ects its em$loees neither to solicit internal information from other nor to disclose com$an(s data or an other material information to an un= authori)ed $ersonIbod" D" Pa% Su)u%i belie*es in indi*idual(s res$ects and growth" Its em$loment $olicies do not discriminate on basis of race, religion, gender or an other factor" C" Pa% Su)u%i does not belie*e in $olitical affiliation" Cor'orate Strate( Pa% Su)u%i is built on the idea of a res$onsible cor$orate citi)enshi$ thereb managing en*ironmental, safet J occu$ational health matters as an integral $art of our business" In fulfilling this res$onsibilit Pa% Su)u%i adheres to the following $rinci$lesK >' ,e are committed to $ro*ide to$ :ualit $roducts to the satisfaction and re:uirement of our customers" 2' ,e conduct our o$erations in com$liance with a$$licable en*ironmental, occu$ational health J safet laws and regulations" -' ,e recogni)e the interrelationshi$ between energ and the en*ironment, and we $romote the efficient use of energ throughout our sstem" P a g e | C A' ,e ensure safe dis$osal of waste generated from our facilit B' ,e minimi)e the discharge of waste materials into the en*ironment b utili)ing res$onsible $ollution control $ractices" D' ,e will continuousl see% o$$ortunities to im$ro*e our adherence to these $rinci$les" As it is clearl mentioned in their 5ision Statement that to be e7cellent all around, and the alwas o$erate in 2n*ironment friendl" And their Product will alwas be the en*ironment friendl" ,ith the globali)ation of mar%ets, greater foreign com$etition, and the reduction of entr barriers, it becomes all the more im$ortant to benchmar% a com$an(s financial indicators on a worldwide basis" ,orld stoc% mar%ets ha*e recentl witnessed a return to fundamental financial analsis" Sound management as o$$osed to h$e will in the long run generate shareholder *alue" PRODUCT MIX /ollowing are some *arieties of Cars with their and PricesK SWIFT -./00,,1 Pr%,e2 4s" >,?A8,???I= #he 2uro$ean ins$ired e7terior gi*es Swift a distincti*e loo%" A uni:ue stlish and design that turns a head where ou go" #he s$irited engine ma%es for e7hilarating dri*e and gi*es ou ultimate freedom where the road ta%es ou" Co3ors2 Pearl 4ed, Gra$hite Gre, Solid white, Indigo, Sil% Sil*er, A:ua <lue, 2minent <lue LIANA -./00 4 .500 ,,1 P a g e | 9 Pr%,e2 4s" >,2-?,???I= #he Su)u%i .iana a*ailable in >-?? cc manual transmission and >D??cc automatic transmission ta%es ou out of ordinar and into the realm" .iana is entirel different car, its stle, dimension and comfort will ins$ire ou to see e*er da as an o$en door to a new age"
Co3ors2 Pearl 4ed, Gra$hite Gre, Solid white, Indigo, Sil% Sil*er, A:ua <lue, 2minent <lue CULTUS -.000,,1 Pr%,e2 4s" 98C,???I= C1.#1S is the blend of s$ace and craft" Its trim bod Conceals am$le s$ace J fle7ibilit for both $assenger and storage" C1.#1S ensures e*erone, e7ce$tional 5alue and :ualit" Co3ors2 Pearl 4ed, Gra$hite Gre, Solid white, Indigo, Sil% Sil*er, A:ua <lue, 2minent <lue ALTO -.000,,1 Pr%,e2 4s" DD2,???I= Alto has a bright, room and comfortable cabin which %ee$s bod rela7 and strong and lighter bod shell resulting in smooth dri*e due to reduction of un$leasant noise harshness and *ibration" Its small turning radius and com$act bod ma%e $ar%ing a bree)e" Co3ors2 ;li*e Green, Pearl 4ed, Gra$hite Gre, Solid white, Indigo, Sil% Sil*er, A:ua <lue, 2minent <lue ME6RAN -700,,1 Pr%,e2 4s" B>A,???I= P a g e | 8 1nri*alled in its class, M234A0 is Pa%istan(s 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%" /unctional econom, $ea% $erformance or unmatched fuel efficienc, M234A0 5L4 is the leader" Co3orsK Pearl 4ed, Gra$hite Gre, Solid white, Sil% Sil*er, 2minent <lue APV -.800,,1 Pr%,e2 4s" >,CCB,???I= AP5 >B?? cc &Im$orted' #he 0ew AP5 gi*es ou e*erthing ou e*er wanted in our *ehicle" S$acious interior for comfort, tough engine to carr large loads and $lent of room for $assengers to en+o a comfortable da long ride" Co3ors2 Pearl 4ed, Gra$hite Gre, Solid white, Indigo, Sil% Sil*er, A:ua <lue, 2minent <lue 9IMNY -./00,,1 Pr%,e2 4s" >,9B?,???I= !IM0@ ALA !22P >-??cc &Im$orted' Stead, sturd and smart, Su)u%i !IM0@ with new wide tread brings ou the ultimate $leasure of a real A=wheel dri*e" It has got all the s$orting s$irit to go along for ad*enturous free souls" Co3ors2 Solid white, Sil% Sil*er P a g e | >? EXTERNAL 4 INTERNAL ANALYSIS SWOT Ana3(s%s Strent+s2 3ighest Mar%et Share .ow Price 5ehicles 4esale of .ocal Assembled Cars .arge Distribution Channels 4ising $er ca$ita income with changing demogra$hic distribution 3ighl Inno*ati*e and dee$ $roduct line 3ighl maintained su$$l chain ,ell Managed and highl com$etiti*e staff ,ell defined and bureaucratic organi)ational structure Com$lete understanding between Distributors 2as a*ailabilit of s$are $arts Wea"ness2 Scarcit of raw material .ac% of coordination and lin%age with Go*ernmentIsemi go*ernment su$$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 2fficient 2/I engines P a g e | >> .arge Mar%et si)e to o$erate Global s$are $art mar%et S$ace sa*ing Small si)e C0G clinders T+reats2 #ough Com$etitors li%e #oota and 3onda /oreign In*estment and setu$ $roduction facilities Smuggling of Auto Parts Inflation rate 3ea* #a7es Com$etition from chea$er im$orted cars Increase in /uel Prices PEST Ana3(s%s 1ncontrollable en*ironment are those e7ternal factors which can create hurdles between us and our business" It is also called $est analsis, which is as followK Po3%t%,a3 En:%ron&ent Pa%istan has to face lots of $olitical u$s and downs since its inde$endence" So man go*ernments ha*e been o*erta%en b militar $ersonnel and most of the time martial law was im$osed on Pa%istan" In this scenario no entre$reneur was willing to in*est in Pa%istan e7ce$t few" Due to such conditions, mar%et en*ironment wasn(t hel$ful in Pa%istan" #he Pa%istani go*ernment has ne*er been trustworth for an in*estor" Lea3 En:%ron&ent As all countries, Pa%istan also has some legislation about each sector" <ut li%e de*elo$ing countries it is hardl being im$osed b authorities" #he corru$tion, smuggling and blac% mar%eting ha*e been su$$orted b Go*ernment related officials" #he undue fa*or is gi*en to those business men who ha*e been $oliticall affiliated and hardl an legal suite is carried on against them" Such unethical acti*ities destro all law and legislation. E,ono&%, En:%ron&ent Pa%istan, an im$o*erished and underde*elo$ed countr, has suffered from decades of internal $olitical dis$utes and e7ternal ongoing conflict with India" 3owe*er, IM/ a$$ro*ed the P a g e | >2 go*ernment $olicies, encourages b different foreign assistance and renewed access to global mar%et since 2??>" < 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" <ut 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" <ut now the $eo$le who ha*en(t 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*en(t control on it" #echnolog is grooming with the $assage of time" Peo$le also want that the $roduct that the ha*e is full of technolog" ,e ne*er control on technolog for e7am$le ou launched the $roduct last ear and our sale *olume on that time is *er high but after sometime due to latest in*ention a lots of substitute e7ist in mar%et which affect on our business so ou can(t hold on it" P a g e | >- EXTERNAL FACTOR EVALUATION MATRIX -EFE1 OPPORTUNITIES We%+t Rat%ns We%+te) S,ore >" Increasing Demand for Cars ?">B A ?"D? 2" 2fficient 2/I 2ngines ?">? - ?"-? -" .arge Mar%et to o$erate ?">? - ?"-? A" Global s$are $arts mar%et ?"?B 2 ?">? B" Small si)e C0G Clinders ?">2 - ?"-D T6REATS >" #ough Com$etitors li%e #oota and 3onda ?">A 2 ?"29 2" Inflation 4ate ?"?9 - ?"2A -" 3ea* #a7es ?"?9 - ?"2A A" Chea$er Im$orted Cars ?">? A ?"A? B" Increase in /uel Prices ?"?9 2 ?">D Tota3 We%+te) S,ore ..0 <.=7 Rat%ns2 > M Poor - M Abo*e A*erage 2 M <elow A*erage A = Su$erior #he total weighted score of <.=7 shows that com$an is res$onding abo*e a*erage to its e7ternal factors" #he are tring to grab ma7imum o$$ortunities a*ailable there and a*oiding the threats to their best" 9#st%*%,at%on o* Rat%ns2 >" #he com$an is $roducing the ma7imum number of cars in com$are with other com$etitors and therefore grabbing the o$$ortunit to meet the increasing demand" 2" Pa% Su)u%i has introduced new 2/I engine in its C1.#1S model which is a >???cc car" #he 2/I engine technolog is ne*er introduced before in below >-??cc cars" -" #he dealer networ% of Pa% Su)u%i is almost all around the countr which hel$ them to ma7imi)e their sales and reach in e*er corner of the countr" A" In new C0G fitted cars, the Su)u%i is introducing new com$act C0G clinders which ta%e less s$ace and are lighter than their e:ui*alent a*ailable in the mar%et" B" #he ma+or threat Su)u%i Com$an could ha*e is from #oota and 3onda, as Su)u%i is still unable to meet them in >-??cc and abo*e categor of cars" #he new $roduct S,I/# is not gi*ing the res$ond which was e7$ected" P a g e | >A INTERNAL FACTORS EVALUATION MATRIX -IFE1 STRENGT6S We%+t Rat%ns We%+te) S,ore >" 3ighest Mar%et Share ?"2? A ?"9? 2" .ow Price 5ehicles ?">? A ?"A? -" .arge Distribution Channels ?">2 A ?"A9 A" 2as a*ailabilit of s$are $arts ?"?9 A ?"-2 B" 3ighl Inno*ati*e and dee$ $roduct line ?">2 A ?"A9 WEAKNESSES >" Scarcit of raw material ?"?9 2 ?">D 2" .ac% of coordination and lin%age with Go*t" bodies ?"?B 2 ?">? -" .ess focus on .oo%s and design ?">? > ?">? A" .ess #echnical #raining Institutes ?"?B > ?"?B B" .ess distribution channels in sub urban areas ?">? > ?">? Tota3 We%+te) S,ore ..0 <.== Rat%ns2 > M Ma+or ,ea%ness - M Minor Strength 2 M Minor ,ea%ness A M Ma+or Strength #he score <.== shows that com$an has solid internal $osition, its strengths are o*ercoming the wea%nesses" 9#st%*%,at%on o* Rat%ns2 >" Pa% Su)u%i Motor Com$an has large mar%et share herein and also the largest $roducers of Cars which is a ma+or strength" 2" #heir $rices are *er affordable in the same :ualit that is another ma+or strength" -" #he large distribution channel is another ma+or strength which hel$s them to achie*e their desired sales targets" A" #he inno*ation is another %e strength of Pa% Su)u%i and the e7am$le is new Su)u%i S,I/#" B" #he s$are $arts a*ailabilit is a critical issue which cars, Su)u%i has com$arati*e ad*antage in s$are $arts a*ailabilit as most of them are being manufactured in Pa%istan" D" #he ma+or wea%ness which I felt is the non=a*ailabilit of s%illed engineers and wor%force" And the reason behind is lac% of technical institutes under their banner" C" #he should also focus on sub=urban areas li%e Southern Pun+ab and Interior Sind which their distribution networ%" P a g e | >B SWOT MATRIX SWOT > TOWS Matr%? STRENG6TS WEAKNESSES >" 3ighest Mar%et Share >"Scarcit of 4aw Materials 2" .ow Price 5ehicles 2" .ac% of coordination with Go*t" <odies -" .arge Distribution Channel -" .ess focus on .oo%s and design A" 3ighl Inno*ati*e J Dee$ $roduct line A" .ess #echnical #raining Institutes B" 2as a*ailabilit of s$are $arts B" .ess distribution channels in sub=urban areas OPPORTUNITIES S;O Strate%es W;O Strate%es >" Increasing Demand for cars .. Ma7imi)e mar%et share b $roducing more cars $er ear &S>,S2,;>,;A' <. De*elo$ more efficient and inno*ati*e 2ngine which gi*es com$arati*e ad*antage &SA,;2' /. 1se efficient C0G sstems &SA,SB,;A' @. /ocus on .oo%s and Design to com$ete with 3onda and #oota &,-,;>,;-' 8. /und and establish technical institutes to gain more s%illed wor%force &,A,;-,;>' 2" 2fficient 2/I engines -" .arge Mar%et to ;$erate A" Small si)e C0G Clinder B" Global S$are $arts mar%et T6REATS S;T Strate%es W;T Strate%es >" #ough Com$etitors 5. Maintain :ualit in affordable $rice will hel$ to com$ete with com$etitors and im$orted cars &S2,SA,#>,#A' A. De*elo$ fuel efficient engines to gain edge and eliminate threat of fuel $rices increase &SA,SB,#B,#2' 7. 2nhance distribution to a*oid threat from second hand im$orted cars &,B,#A' 2" Inflation 4ate -" 3ea* #a7es A" Chea$er Im$orted Cars B" Increase in /uel $rices Pro'ose) Strate%es >" Ma7imi)e mar%et share b $roducing more cars $er ear 2" De*elo$ more efficient and inno*ati*e engines which gi*e com$arati*e ad*antage -" 1se efficient C0G sstem A" /ocus on loo%s and design of e7terior to com$ete with 3onda and #oota B" /und and establish technical institutes to gain more s%illed wor%force from local mar%et D" Maintain :ualit in affordable $rice will hel$ to com$ete with direct com$etitors and used im$orted cars C" De*elo$ fuel efficient engines to gain edge and eliminate threat of fuel $rices increase P a g e | >D 9" 2nhance distribution to a*oid threat from second hand im$orted cars BCG MATRIX Dos B#est%on Mar" Star Cas+ CoCs 6%+ LoC LoC 6%+ Mar"et GroCt+ Mar"et S+are ME6RAN ALTO CULTUS RAVI LIANA APV 9IMNY BOLAN SWIFT P a g e | >C SBUs Ana3(s%s ME6RAN2 M234A0 has the highest growth rate in automobile sector in Pa%istan" Pa% Su)u%i alwas changes the different $arts of M234A0 either e7terior or interior whene*er it comes to its maturit le*el" M234A0 is attracti*e the $eo$le who ha*e salaries within 2?,??? to -?,??? $er month" #he oungsters also $refer the M234A0 because of its si)e and economical $rice" Small business $eo$le also $refer M234A0 because of its low maintenance cost" M234A0 also attracts $eo$le who mo*e from bi%e to the cars" LIANA2 .iana is a lu7urious and highest $rice car of Pa% Su)u%i" It was built to com$ete with Pa% Su)u%i(s biggest com$etitors li%e #oota and 3onda" .iana has the same features which are a*ailable in Corolla and Ci*ic but still it couldn(t ma%e its mar%et as com$are to both these cars" .iana has re$laced the Pa% Su)u%i(s <A.20; in 2??B=?D, since Pa% Su)u%i tried se*eral was to establish its $osition but failed to do so" SWIFT 9IMNY BOLAN ME6RAN ALTO CULTUS RAVI LIANA APV P a g e | >9 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 >-??cc car in !an 2??8" Swift has all the latest features li%e $ower steering, central loc%ing, Auto #ransmission and the A<S" All the >-??cc cars in Pa%istan ha*e $rice range of >-????? to >A?????, while Swift was introduced at 888??? and recentl it was increased at >?A8???" It has still ad*antage of $rice com$etition as com$are to other >-??cc cars in Pa%istan" RAVI2 4a*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$es are loal customers to 4a*i" Although the S323N;42 has ca$tured some of its mar%et share but still 4a*i is much famous and mar%et leader in its t$e" P a g e | >8 INTERNAL EXTERNAL MATRIX 2/2 Matri7 Scores I/2 Matri7 Scores Strong A*erage ,ea% A - 2 > Strong A I ii iii - A*erage I* * *i 2 ,ea% 5ii *iii i7 > #he I2 matri7 score for Pa% Su)u%i Motor Com$an .imited &PSMC.' is 2"88 and for 2/2 matri7 is 2"89 therefore our I2 matri7 falls more around Oi*( cell" #he com$an should ado$t growth and built strategies and I recommend Mar%et De*elo$ment and Product De*elo$ment Strategies" P a g e | 2? SPACE MATRIX F%nan,%a3 Strent+ -FS1 4eturn on In*estment PA ,or%ing Ca$ital P- Short #erm Assets PA #otalK P>> In)#str( Strent+ -IS1 .arge Mar%et to o$erate PB Increasing $er Ca$ita Income P- Consum$tion ;riented Culture PA #otalK P>2 Co&'et%t%:e A):antaes -CA1 3igh Eualit Products =- Slee% and Stlish Designs =A /amous <rand 0ames =- #otalK =>? En:%ron&enta3 StaD%3%t( -ES1 #ough Com$etition =2 Change in Go*t" rules and regulations =- Im$orted 4efurbished Cars =A .aw and ;rder Situation =2 #otalK =>> A:erae S,ores2 /S Q >>I- Q -"DC IS Q >2I- Q A CA Q =>?I- Q =-"-- 2S Q =>>IA Q =2"CB L=a7is Q ISPCA Q A=-"-- Q ?"DC P a g e | 2> @=a7is Q /SP2S Q -"DC=2"CB Q ?"82 Space Matrix In s$ace matri7 we(*e obser*ed that com$an will $ursue aggressi*e strategies" ,e consider the %e factors of /inancial Strengths, Industr Strengths, Com$etiti*e Ad*antages and 2n*ironmental Stabilit" < assigning them *alues as $er their im$ortance worst to best, we calculated the score which lead us to the decision that com$an will $ursue Aggressi*e strategies" And I would suggest Mar%et De*elo$ment and Product De*elo$ment strategies will wor% best for PSMC" Aggressi*e Strategies P a g e | 22 GRAND STRATEGY MATRIX #he grand matri7 hel$s us to determine the strateg that firm must $ursue, based on its com$etiti*e $osition and mar%et growth" #he Pa% Su)u%i Motor Com$an .imited has strong com$etiti*e $osition against its ma+or com$etitors and the mar%et growth is health and at increasing $ace" <ut the still need to do lot to get themsel*es at to$" As $er m +udgment, the fall under Euadrant > and the should follow aggressi*e strategies li%e Mar%et De*elo$ment and Product De*elo$ment" 4a$id Mar%et Growth E> E2 E- EA Slow Mar%et Growth ,ea% Com$etiti*e Position Strong Com$etiti*e Position P a g e | 2- BSPM MATRIX Mar"et De:e3o'&ent Pro)#,t De:e3o'&ent E?terna3 Fa,tors We%+t Attra,t%:e S,ore Tota3 Attra,t%:e S,ore Tota3 Increasing Demand for Cars ?">? A ?"A? A ?"A? 2fficient 2/I engines ?"?D - ?">9 A ?"2A .arge Mar%et to o$erate ?"?9 A ?"-2 A ?"-2 Global S$are $arts mar%et ?"?A - ?">2 2 ?"?9 #ough com$etitors ?"?9 A ?"-2 2 ?">D Inflation ?"?D > ?"?D > ?"?D Chea$er Im$orted cars ?"?9 A ?"-2 A ?"-2 Increase in fuel $rices ?">? A ?"A? A ?"A? Interna3 Fa,tors 3ighest Mar%et share ?"?9 - ?"2A A ?"-2 .ow $rice *ehicles ?">? > ?">? A ?"A? .arge distribution channel ?"?D 2 ?">2 - ?">9 2as a*ailabilit of s$are $arts ?"?2 - ?"?D - ?"?D Inno*ati*e and dee$ $roduct line ?"?D A ?"2A - ?">9 .ess focus on stle and design ?"?A A ?">D A ?">D Scarcit of human resource ?"?A - ?">2 A ?">D Tota3s ..0 /..5 /.@@
< com$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 $resent macro en*ironment" P a g e | 2A CONCLUSION #he following are the findings of the stud of Pa% Su)u%i Motor Com$an .imited" E?terna3 Fa,tor E:a3#at%on Matr%? S,ore2 2"89 Interna3 Fa,tor E:a3#at%on Matr%? S,ore2 2"88 BCG Matr%?2 StarK !IM0@, <;.0A Euestion Mar%K S,I/# Cash CowsK M234A0, C1.#1S, A.#;, 4A5I DogsK AP5, .IA0A Interna3 E?terna3 Matr%?2 Growth and <uilt Strateg S'a,e Matr%?2 Euadrant >, Aggressi*e Strategies Gran) Matr%?2 Euadrant >, Aggressi*e Strategies Mar%et De*elo$ment, Product De*elo$ment BSPM Matr%?2 Mar%et De*elo$mentK -">D Product De*elo$mentK -"AA C+osen Strate( %s Pro)#,t De:e3o'&ent. P a g e | 2B STRATEGIC RECOMMENDATIONS Pro)#,t De:e3o'&ent is the selected strateg at this $oint of time for Pa% Su)u%i Motor Com$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$e of Su)u%i .IA0A, which was not able to meet the e7$ectations and couldn(t hold the mar%et it was made for" <ut com$an didn(t sto$ its +ourne there, and now Su)u%i S,I/# has recentl been launched in the mar%et, which seems to be an attracti*e offer for the mar%et in the >-??cc class" <ut still com$an has nothing to com$ete with 3;0DA and #;@;#A" #he Su)u%i needs to enter into the >D??cc and >9??cc mar%et to e7$and its mar%et share and mar%et growth" <ut for that $ur$ose the need to $ut more efforts of $roduct de*elo$ment as the new $roduct must ha*e all the re:uired features and technolog that is needed to com$ete with giant com$etitors" And of course, PSMC has com$etiti*e ad*antage in local assembling and manufacturing of $arts and the can utili)e that ad*antage to $roduce chea$er cars in the categories mentioned abo*e" #he PSMC has recentl recei*ed ac%nowledgement from Prime Minister of Pa%istan for being the onl car manufacturers for the lower and middle income $eo$le of Pa%istan" <ut the should also need to get into the line of 3;0DA and #;@;#A, to achie*e that target the need to de*elo$ more technologicall chea$ and efficient" P a g e | 2D REFERENCES http://www.paksuzuki.com.pk http://www.we.com.pk http://www.maxi-pedia.com