STRATEGIC ANALYSIS

OF

BY:
DEEPIKA BAJAJ
202011014
SECTION A
 BASIC INFORMATION

Maruti Suzuki was founded in 1983 as a joint venture between Govt. of India
and Suzuki Motor Corporation, Japan with a motto of motorizing India.
ABOUT
Maruti Suzuki India Limited (MSIL) is currently a leading manufacturer of 4- THE
wheelers in India with its two manufacturing units located at Gurugram and
Manesar and employees more that 75,000 in number.Maruti Suzuki has its COMPANY
strong domination in Indian market as well as in exports; company sold over
1.64 million vehicles taking its market share to 50% approx. in the domestic
market. They exported 4-wheelers to more than 120 countries globally and
became the largest passenger cars exporter from India in 2017, dethroning
Hyundai Motors India Ltd.
 VISION STATEMENT
Leader in Indian automobile industry, creating
customer delight and shareholder's wealth.

MISSION STATEMENT
To create exceptional automotive value for
customers by harmoniously blending safety,
quality and efficiency.
 SWOT ANALYSIS
Internal & External Factors Analysis

STRENGTHS WEAKNESSES OPPORTUNITIES THREATS

Highest market Scarcity of raw Increasing demand Tough
share material for cars competitors like
Low price vehicles Lack of coordination Efficient EFI Toyota & Honda
Large distribution & linkage with Govt engines Inflation Rate
channels bodies. Large market to Heavy taxes
Easy availability of Less focus on looks operate Cheaper imported
spare parts & design Global spareparts cars
Highly innovative Less technical market Increase in fuel
& deep product training institutes Small sized CNG prices
line Less ditribution cylinders
channels in suburban
 PORTER'S GENERIC
STRATEGY

Cost Leadership Differentiation Focus

COST LEADERSHIP STRATEGY

Preserve market leadership position through efficient value

chain management.
Expand the market share by targeting the middle class, which
makes the largest portion of overall consumer market mix.
Focuses on affordability and easy accessibility of its produce
across the globe, which leads towards high brand awareness
and high sales growth.
Offers discounts and coupons to achieve sales target and
handle the competitive pressure by its closest ribal. The
outcome is to increase brand populaarity and encourage
consumption.
DIFFERENTIATION STRATEGY
Expand the customer base by emphasising over the unique
product features.
Differentiate by embedding the innovation and address the
consumers' growing health concerns.
Position its product offerings in a way to stand out, be
different and reduce the pressure from other alternatives.
Heavy investment on marketing, advertisement and celebrity
endorsement is made just to differentiate from other brands.
Extensive experience - Oldest brand and strong presence are
the factors highlighted in marketing strategies.
Unique and distinctive brand logo established a strong image
in consumers' mind.
FOCUS STRATEGY

This strategy encourages companies to concentrate their

resources on expanding the narrowly targeted segments.
MSIL adopts the focus strategy both in terms of low cost and
offering the best value.
Best value focus strategy is adopted by emphasising over
taste, size & design of the products.
Low-cost focus strategy is adopted by serving the needs of a
niche market segment at the lowest possible price.
By fosuing on product attributes, MSIL revises its branding
strategies and brings continuous changes in the product
designing and packaging to satisfy customers.
 5C MODEL

Company Customers Competitors Collaborators Context

COMPANY
QUALITY OF HUMAN RESOURCES TO CREATE & MANAGE EFFECTIVE CAMPAIGNS
Attracts some of the best talentsin its industry and skill level of existing workforce is very high.

FINANCIAL POSITION & AVAILABILITY OF RESOURCES FOR MARKETING

MSIL can afford to spend a significant amount of resources on marketing - for launching new
products and to better position existing brands.

BRAND EQUITY
MSIL has strong brand equity both among the existing customers & potential customers.
CUSTOMERS
TARGET CUSTOMERS
Should target niche market as it is highly profitable

MARKETING STRATEGY
Should meet 2 broad objectives - selecting target market & carefully positioning in hearts and minds
of the target customers.

LEVEL OF BRAND AWARENESS AMONG TARGET CUSTOMERS

Can leverage on it to build sub brands for niche segments within the target market and ajdacent
segments.
COMPETITORS
INTENSITY OF RIVALRY AMONG EXISTING PLAYERS
Marketing efforts are often barriers to entry in the industry and new entrants not only have to have
huge marketing resources to compete with the incumbents but also need high level of marketing
know how.

FUTURE GROWTH & COMPETITION

Technology innovations can result in making present positioning less profitable - needs to
continuously innovate and look for new opportunities.
THREATS OF SUBSTITUTES
Often arise either from economic cycle or technological innovation. May require repositioning of
certain brands in certain markets.
COLLABORATORS
POSITION AND BARGAINING POWER IN THE VALUE CHAIN
If the collaborators have strong bargaining power then they will not able to sustain higher margins
even with higher marketing expenditure.

MANAGING DELIVERY AND SERVICES IN TIMES OF UNCERTAINTY

Diversifying rapidly to reduce delivery and supply chain risks.

RISKS TO INTELLECTUAL PROPERTY RIGHTS AND PATENTS

Operating in international markets can expose them to theft of Patents, Copyrights and other
Intellectual Property Rights.
CONTEXT
ECONOMIC
Consumer behaviour during boom time & recession time is often totally different so MSIL has to
decide how the consumers will behave in the present economic situation.

FOREIGN EXCHANGE EXPOSURE

International operations not only bring risks of marketing strategies that are not relevant to specific
market but also risk of foreign exchange exposure

INFLATION & DIVERSIFICATION

Inflation impacts the pricing strategy as high inflation can result in lower income from the present
sales.
 INBOUND LOGISTSICS
1. To improve quality & generate economies of scale, MSIL reduced
number of vendor components in India.
2. Vendors are linked through Internet based information network, whic
maintains information regarding order status & delivery instructions.
VALUE 3. "One Component One Gram" program for weight reduction of one gram
for every component.
CHAIN
OPERATIONS
ANALYSIS 1. Manufacturing facility consists of fully integrated plants with flexible
assembly lines.
2. Implemented production management system - a strategy to achieve
Manufacturing Excellence evolved through participative approach.
3. "Challenge 50:30" - a program to reduce cost by 30% and improve
productivity by 50%.
 MARUTI SUZUKI
"TRUE VALUE"
"To empower both the pre-owned car buyers & sellers
through a methodical integration of technology and
industry experience".
High-quality & reliable pre-owned cars, digitally
evaluated on 376 checkpoints
Fair & transparent prices on pre-owned cars from
multiple brands
Exemplary services & convenient processes for both the
buyers & sellers
Only the highest quality of pre-owned cars are presented
to customers for a safe and exciting car-owning
experience.
 GOALS

Modernization of Production of Invest approx. Rs Focus on Opening more

the Indian fuel-efficient cars 69,000 crore in promoting hybrid outlets &
automobile to conserve research and vehicles in its stimulating
industry scarce resources. development of range, and demand in rural
electrification introduce a full areas, and
solutions for its electric vehicle increasing the
future models. level of
digitisation.
 MSIL DURING
COVID-19
1. Extended the free services, warranty and extended
warranty for customers.
2. Extended the maintenance shutdown at its manufacturing
plants.
3. To diversify its customer base, the company is actively
engaging with other carmakers. Recently, it has started
providing around 6,000 kits every month to Renault.
 REFERENCES

https://www.marutisuzukitruevalue.com/about-maruti-suzuki
https://timesofindia.indiatimes.com/business/india-business/next-goal-3-million-units-
by-2025-maruti-suzuki/articleshow/65132372.cms
https://economictimes.indiatimes.com/markets/stocks/news/diversification-and-auto-
growth-to-benefit-subros/articleshow/51183362.cms?from=mdr
https://www.marutisuzuki.com
https://www.marutisuzuki.com/corporate/about-us/strength
https://www.indiatoday.in/auto/cars/story/covid-19-pandemic-maruti-suzuki-extends-
free-service-warranty-period-for-vehicle-owners-1801841-2021-05-12
THANK
YOU