STRATEGIC ANALYSIS OF

Yash Bhandari
202221074
Section D
ABOUT COMPANY
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.

Maruti Suzuki India Limited (MSIL) is currently a leading

manufacturer of 4- 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 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.
 MISSION
To create exceptional automotive value
for customers by harmoniously blending
safety, quality and efficiency.
 VISION
Leader in Indian automobile industry,
creating customer delight and
shareholder's wealth.
 SWOT ANALYSIS
STRENGTHS WEAKNESS OPPORTUNITY THREATS
Scarcity of Raw
Highest Market Increasing Demand Tough
Material
Share for Cars Competitors like
Lack of Coordination
Low Price Vehicles Efficient EFI Toyota & Honda
and linkage with
Large Distribution Engines Inflation Rate
Government bodies
Channels Large Market to Heavy Taxes
Less focus on Looks& 2021
Easy Availability Operate Cheaper
Design
of Spare Parts Global Spareparts Imported Cars
Less Technical
Highly Innovative Market Increase in fuel
Training Institutes
and Deep Product Small sized prices
Less Distribution
line CNGCylinders
Channels in
Suburban
PORTERS GENERIC STRATEGY
 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 rival. The
outcome is to increase brand popularity and encourage
consumption
 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 focusing on product attributes, MSIL revises its branding
strategies and brings continuous changes in the product
designing and packaging to satisfy customers.
 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.
 5G MODEL

Company Customers Competitors Collaborators Context

 COMPANY
QUALITY OF HUMAN RESOURCES TO CREATE & MANAGE EFFECTIVE CAMPAIGNS Attracts
some of the best talents in 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.
 VALUE CHAIN ANALYSIS

INBOUND LOGISTSICS OPERATIONS

To improve quality & generate Manufacturing facility consists
economies of scale, MSIL reduced of fully integrated plants with
number of vendor components in flexible assembly lines.
India. Implemented production
Vendors are linked through management system - a strategy
Internet based information to achieve Manufacturing
network, whic maintains Excellence evolved through
information regarding order status participative approach.
& delivery instructions. "Challenge 50:30" - a program to
"One Component One Gram" reduce cost by 30% and improve
program for weight reduction of productivity by 50%.
one gram for every component.
 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 carowning experience.
FINANCIALS
 COMPANY'S
GOALS

Modernization of the Indian automobile industry

Production of fuel-efficient cars to conserve scarce resources.
Invest approx. Rs 69,000 crore in research and development of electrification
solutions for its future models.
Focus on promoting hybrid vehicles in its range, and introduce a full electric vehicle
Opening more outlets & stimulating demand in rural areas, and increasing the level
of digitisation
 REFERENCES

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