STRATEGIC MARKETING

MANAGEMENT

CASE STUDY:
Indian Auto Industry Turns Global

GROUP MEMBERS
FAHAD ALI ABBASI (9043)
IQRA SULEMAN (8546)
ZANOBIA JAVED (8562)
 INDUSTRY
STRUCTURE
• India is the second largest producer of two-wheelers in the world.

• Two-wheelers are the most popular and highly sought out medium of transport in India. The trend of
owning two-wheelers is due to its-
Economical price
Safety
Fuel-efficient
Comfort level
• Large varieties of two wheelers are available in the market, known for their latest technology and
enhanced mileage
 Question no 1:
Identify and discuss the impact of changing environment on the
competitive structure of the industry

• As India opens up to globalization, the competition for the best customers, suppliers, and
talent is going up.  Firms in India are asking how it can become more competitive. 
• In order to improve their competitiveness there are numerous strategies that leaders can use
directly to improve the competitive position of their organizations which may include
Changing their portfolio of businesses.
Reducing costs.
Accessing new resources.
Developing alliances.
Changing the rules of the game.
• In order to achieve sustainable competitiveness in long run the Individual firms, the
Government and the Industry associations have to take certain measures individually and
collectively.
 IMPACT OF CHANGING ENVIORNMENT ON
COMPETITIVE STRUCTURE OF THE INDUSTRY

• The capabilities of existing companies have increased

• Competition has increased
• Increase in flow of investments from developed countries to developing
countries,
• This can be used for economic reconstruction.
• There is an International market for companies and for consumers there are a
wider range of products to choose from.
• Domestic companies have started assessing their procedures and processes to
compete with
• Multi-national companies
• As competitive influence has increased, Indian companies have started to
improve their quality standards.
• Joint venture takes place
 Question no 2:
Discuss the core competencies of major competitors in the industry.

• The industry represents an oligopolistic form of market structure.

• In order to sustain brand equity, players spend large percentages of their revenues in advertising and brand
building activities.
• The case represents the two categories of players, one is the domestic players and other is global players.
• The major players in the industry includes:
– ESS BEE Company
• The presence of the competition has led to an increase in the capabilities of the existing players. ESS BEE
Company has also used its resources and capabilities as competitive advantage which it has never used before.
• It has Core Competencies in large network of distribution and service across the country
• Research and Development Areas

– Hero Honda
• The number one largest player of two-wheeler industry in India having market share of 41%.
• It has core competencies in greater understanding of local taste and preference.
• Ability to produce least cost and fuel-efficient environmental friendly two-wheelers.
• Also, Company has core competencies of fuel conservation, safety riding courses and mobile workshops which
helps them to widely distribute wide across the country.

– Satum Automobiles
• It has core competencies of having highly skilled and trained workforce have recently established wide network
of dealers.
 Question no. 3
What is your perception about Resource-Based View? How could such a view help
domestic companies to compete with multinational companies in local market?

• Resource-Based View
– Resource-based view is a business management tool used to identify strategic resources
available to a company.
– RBV is beneficial in getting market share, customer satisfaction and return on
investment.
– Resource-based view reflects the significance of having appropriate organizational
processes and systems, information and skills to achieve competitive edge over others.
– RBV helps in creating following:
• It creates and sustains competitive advantage.
• It generates cost or differentiation advantage
• It helps in value creation.
 HOW RESOURCE BASED VIEW HELPS DOMESTIC COMPANIES TO
COMPETE WITH MULTINATIONAL COMPANIES.

• Resource-based view creates hold on internal resources and capabilities which will
automatically generate competitive advantage for the company which can help
domestic companies to compete with multinational companies in following ways:
– Domestic company may have distinctive products that appeal to local tastes,
which global companies may be unable to produce cost effectively.
– Domestic companies can join local business networking or social groups to
create wide area of network.
– Domestic companies can prosper by selling only in their local markets
because multinational can’t compete simply by selling standardized products
at lower cost
– By analysis of strength and weakness and utilizing them properly. Domestic
company should use their strength in order to compete and should focus and
work on their weaknesses.
– The company’s should redesign their works, jobs and business process in their
organization.
– Domestic companies should redesign their works, jobs and business
processes in order to make them more effective and responsive.
– Domestic companies should use the tool of reengineering the business
process so that they can modify their existing systems and procedures by
redesigning, rethinking, and retooling which will help in structuring the
company in different way, focusing the aims and objectives, and enhancing
the performance of company by making use of existing technology.
 CONCLUSION

CONCLUSION