Maruti suzuki STRATEGIC MANAGEMENTPresentation Transcript

1. Company: Maruti Suzuki India Limited (MSIL, formerly known as Maruti UdyogLimited) is a subsidiary of Suzuki Motor Corporation, Japan. MSIL has been the leader ofthe Indian car market for over two and a half decades. The company has twomanufacturing facilities located at Gurgaon and Manesar, south of New Delhi, India. Boththe facilities have a combined capability to produce over a 1.2 million (1,200,000) vehiclesannually.Maruti Udyog Limited (MUL),INDIAs finest and Asias largest automobile industry wasestablished in 1981 by an act of parliament.MUL, the first automobile company in theworld to be honored with an ISO 9000:2000 certificate, is a subsidiary of Suzuki MotorCorp (holds a 54% equity stake). The Government of India remains a significant equitystakeholder (10%).With its early mover advantage in Indian market; Maruti retains adominant Market share despite increasing competition.The company offers a wide range of cars across different segments. It offers 15 brandsand over 150 variants Maruti 800, people movers, Omni and Eeco, international brandsAlto, AltoK10, A-star, WagonR, Swift, Ritz and Estilo, off-roader Gypsy, SUV GrandVitara, sedans SX4, Swift DZire and Kizashi. In an environment friendly initiative, inAugust 2010 Maruti Suzuki introduced factory fitted CNG option on 5 models acrossvehicle segments. These include Eeco, Alto, Estilo, Wagon R and Sx4.The company plans to expand its manufacturing capacity to 1.75 million by 2013.Mr. Shinzo Nakanishi is the current CEO of Maruti Suzuki.

2. OWNERSHIP Government Suzuki IPO OTHERSGovernment 18.28%Suzuki 54%IPO 21%OTHERS 6.72%

3. BRAND MODELS

4. YEAR NET SALES YEAR NET SALES2005-2006 1,20,034 2006-2007 1,45,9222007-2008 1,78,603 2008-2009 2,03,5832009-2010 3,01,198 2010-2011 3,61,282

5. VISSION STATEMENTThe Leader in the Indian Automobile Industry,Creating Customer Delight1 and ShareholdersWealth2; eventually become a pride of IndiaMISSION STATEMENT.:- Modernization of the Indian Automobile Industry.- Developing cars faster and selling them for less.- Production of fuel-efficient vehicles to conserve scarce resources.Production of large number of motor vehicles which was necessary foreconomic growth.- Market Penetration, Market Development Similarly ProductDevelopment and Diversification.- Partner relationship management, Value chain, Value deliverynetwork .

6. Competitive position of the company 7. Analysis of competitive advantage of the firm 8. EFE MATRIXThe total weighted score of 2.98 shows that company is responding above average to its external factors.They are trying to grab maximum opportunities available there and avoiding the threats to their best

9. INTERNAL FACTORES EVALUARTION MATRIXThe score 2.99 shows that company has solid internal position, its strengthsare overcoming the weaknesses

10. Strategy FormulationINTERNAL ASSESSMENT SWOT ANALYSIS: Consists of analysis of internal environment (Strength and weakness) and external environments STERNGHTHS: Contemporary technology. Japanese Management practices (that had captured Japan over USA to the status of top Auto manufacturing country in the world)Early mover advantages. Recruitment is done in very tedious manner ensuring talent and best professionals, Working culture, after sale services , distribution, diversification, R&D WEAKNESS: Still depends upon SUZUKI

COPORATION, Japan For tech. support, 10% components are manufactured outside India. Though MUL has launched luxury cars as well its still considered as poor mans brand. Diversification is not supported with all India presence of Manufacturing Units. Bureaucracy, Technological disadvantages, Decades of isolation, inertia and subservience to the whims of government bureaucrats have made MUL unaccustomed to international standards or keen competition. OPPURTUNITY: first company to roll out suitably designed cars before 2008 as per Govt.s Proposal of new ethanol (renewable)mixed fuel. Other companies lacks economy of scale, so market is still open. Importing new technology is controlled by Govt. so there is plenty of untapped market and with increase in Income scale, Demand is rising. THREAT: Numbers of new Technology driven players and manufactures are in market. Government .reducing support and cutting down the Gas supply quota.