NAME- SHAMBHAVI VERMA

ROLL - 20202337

BUSINESS POLICY AND STRATEGY – END TERM

Ans.A) The existing competitive landscape in Indian passenger car industry:

Volume Growth
Homegrown automobile expanded at 2.36% CAGR between FY16-FY20 with 26.36 million
vehicles being produced in the country in FY20. In general, homegrown autos deals
expanded at 1.29% CAGR between FY16-FY20 with 21.55 million vehicles being sold in
FY20.
In October 2021, the production of passenger car, reached 2,214,745 units.
Major Segments in Indian car Industry

The Indian automobile market can be divided into four main segments – two
wheelers (motorcycles, geared and ungeared scooters), three-wheelers, passenger
vehicles (cars and utility vehicles), and commercial vehicles (light, medium and heavy).

Bikes and traveller vehicles rule the homegrown Indian car market and record for 81%
and 13% of complete unit deals, separately. Traveller vehicle deals are overwhelmed by
little and medium sized vehicles.

India is the fourth biggest car market on the planet. It is likewise the biggest maker of bikes
and the seventh biggest producer of business vehicles on the planet.
Growth Drivers
Rising pay and more noteworthy accessibility of credit and financing choices have been
the key development drivers for the area. Additionally, the interest for business vehicles
driven by an undeniable degree of movement in the foundation area has helped development.
India's set up auto auxiliary industry additionally offers the necessary help to support
development in the area.
Recent happenings
The 8.7 trillion (US$ 118 billion) Indian car industry is relied upon to arrive at 16-18 trillion
(US$ 251-282 billion) by 2026 with solid arrangement support from the public authority.
Drives like Make in India and Automotive Mission Plan 2026 by the public authority are
relied upon to give an enormous lift in income to the area.
The Indian car industry is gradually moving its concentration to electric vehicles determined
to decrease emanations. The Union Cabinet has endorsed the proposition for the execution of
the second period of Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicles
(FAME-II) in India which is relied upon to help up to 1 million bikes.

Ans.B) The worth, solace capacity, productivity, availability, aspiration and need are the
elements influencing the needs and preferences of customer towards Hatchback segment.
Indian customer buying choices are impacted by non-cost-based factors. It is expected to their
mix of contemporary plan, eco-friendliness, after-deals administration, development quality
and value that goes a long way past proposal of different players in the hatchback portion
The major factor influencing the purchase decisions of the customers are car design, and
word of mouth communication, Technology and durability, Feature and money value, Brand
and services
Customer Behavior mixes components from brain science, social science, social humanities,
showcasing and financial aspects. It endeavors to comprehend the dynamic cycles of
purchasers, both exclusively and in gatherings, for example, what feelings mean for
purchasing conduct.
Needs of the Customer towards hatchback segment are:
Value for money, safety and driving comforts top the rank in terms of customer requirement;
whereas perceived quality by customers mainly depends on brand image.

Ans.C) Porter’s five-forces framework to analyse the Indian automobile sector:

Threat of new entrants: Weak

It is hard for new brands to enter the auto business which is a direct result of the huge
speculation needed for setting up a vehicle brand. At the underlying stage, a tremendous
venture will be needed to set up the assembling offices, dispersion organization and for
recruiting gifted staff. Another significant obstruction is the degree of rivalry from the current
brands. Except if another brand carries an imaginative and separated item to the market,
opportunities to acquire a critical portion of the overall industry are low.

Bargaining power of suppliers: Weak

The dealing force of providers in the auto business is feeble for the greater part of them are
little players. Just not many of them are huge in size. The danger of forward incorporation is
least from the providers for the reasons examined in the principal classification. These
providers need to play as per the principles set by the vehicle brands. The vehicle brands like
BMW, Ford, Toyota and VW hold colossal clout in light of the fact that the unrefined
substance is generally accessible in bounty and changing starting with one provider then onto
the next is easy for them. Thusly, the dealing force of providers is significantly low.

Bargaining power of buyers: Moderately strong

A huge piece of the purchasers are the little individual purchasers that purchase single
vehicles. In any case, there are organizations and government offices that purchase armadas
of vehicles. Such purchasers are in a situation to can foresee lower costs. Regardless of
whether little or enormous purchasers can without much of a stretch change to another brand.
There are no enormous costs engaged with changing to another brand or to an elective
method of transportation. The purchasers are value touchy generally and would change to one
more brand that offers a superior item at lower cost.

Threat of substitutes: Weak

A huge piece of the purchasers are the little individual purchasers that purchase single
vehicles. In any case, there are organizations and government offices that purchase armadas
of vehicles. Such purchasers are in a situation to can foresee lower costs. Regardless of
whether little or enormous purchasers can without much of a stretch change to another brand.
There are no enormous costs engaged with changing to another brand or to an elective
method of transportation. The purchasers are value touchy generally and would change to one
more brand that offers a superior item at lower cost.

Competitive Rivalry in the industry: Very strong

The quantity of perceived and powerful brands is low and the leave hindrances exceptionally
high. Any brand attempting to exit would need to bear enormous misfortunes. The degree of
client unwaveringness is high and keeping in mind that the business is enormous, it has
developed. This heightens the opposition for piece of the pie. Notwithstanding, various
brands target different market fragments yet they cross-over. Brands contend based on value,
plan, quality, innovation, client wellbeing and a few different focuses. Generally, rivalry in
the vehicle business is a solid power or rather exceptionally solid.

Ans.E) The showcasing plan for the presentation of the KWID, another item from Renault.
Renault picked a plan idea that addressed unique presentation, tough strength, and a feeling
of experience, which was a change from the Maruti 800. It set up a neighborhood inventory
network with sellers who could develop and give parts and parts at serious evaluating. The
arrangement was to focus on the mass market bunch, which can possibly get a lot of cash.
Explicitly made for the Indian market. Renault has settled on a hybrid body shape for the
KWID, which is accepted to be a blend of a tall-kid hatchback and a super reduced SUV. In
India, the most serious section with the most specific customers is the smaller than usual
vehicle portion.
Vehicle clients are fragmented into little vehicles, SUVs, Hatchbacks, and Sedans.
Money managers, Families, and Young Executives are the objective gatherings. Intended to
oblige the requirements of more youthful demographic.
Ans.F) Strategies that should be adopted by Maruti Suzuki and Hyundai motor Corp
company in response to the success of the Renault KWID are:
 Green Cars
 Car Expo
 Development of item, plan, highlights and innovation.
 Customized and applicable client experience
 Reasonableness
 An alternate technique according to the designated region
  Change in Marketing methodologies.
 Wellbeing
Ans.02) It's a system for deciding business sector and item development plans for
organizations. Obviously, this instrument is valuable for huge organizations, yet in addition
for little firms and new companies.
Various quadrants with model are as per the following: -
1. Market entrance in Ansoff lattice The Ansoff Matrix system with the least danger is this
one. It centers around amplifying the worth of a current item in a current market.
Subsequently, a partnership utilizes any of these to attempt to sell a greater amount of its
items in its present market.
2. Item improvement in Ansoff grid to meet shopper needs, the organization utilizes this
strategy to fabricate more items in its current market. For this situation, you as of now have a
client base for a specific item, however the market has arrived at immersion.
Model In the Ansoff Matrix, item improvement is exhibited by cell phone organizations like
Apple and Samsung delivering new telephone models at regular intervals.
3. Market improvement an association can utilize the Ansoff network method to contact
another market section with current things that have as of now won portion of the overall
industry in another. For instance, a few organizations continue on subsequent to setting up
public market infiltration in one region to contact customers in different nations where they
haven't yet settled a presence.
They started their administration in the United States and have now developed to incorporate
different nations. Another model is Apple, which delivered the iPod, a costly music-playing
gadget. They delivered the iPod mix, which is more affordable and focused on clients who
appreciate music yet are reluctant to spend an exorbitant cost for it.
4. Expansion When organizations utilize the Ansoff grid procedure, they can acquaint new
items with another market. The Ansoff grid is moved two quadrants since the company is
putting resources into both another market and another item. Therefore, it is the most
hazardous strategy. Enhancement techniques might possibly be connected. There is an
association and, in this way, conceivable cooperative energy between the organizations in
connected regions.
Reasonable behind such choices are-
1. Start by deciding qualities So presently we know what the Ansoff Matrix is and the way
that successful it tends to be in helping organizations in their development. Organizations
with unremarkable items yet extraordinary advertising endeavors ought to think about market
infiltration or even turn of events. Organizations who have a shown history of delivering
quality items (regardless of whether their advertising procedure hasn't forever been spot on)
are better situated to seek after an item advancement or expansion plan.
2. Presently it's an ideal opportunity to sort out what level of hazard you're willing to take -
You might need to drive yourself further away from your assets assuming that you have a
high danger hunger. The danger factors of the Ansoff Matrix resemble this overall:
Generally safe/LOW RETURN-Market infiltration
HIGH RISK/HIGH RETURN-Diversification
3. At long last, make an arrangement It's an ideal opportunity to build up a procedure since
you've chosen what part of the Ansoff Matrix to attack. Start by composing a short vision
proclamation that exemplifies your objectives.
The Ansoff Matrix's broadening quadrant is generally alluded to as the "self-destructive cell"
in light of the great measure of peril included. Notwithstanding, whenever applied accurately,
this procedure might bring about higher pay for the organization.