Maruti Suzuki India Private Limited

Presented by Ch.Srujan

Introduction Maruti Udyog limited established in 1981. First production commenced in 1983 Gurgaon, India Competed to Hindustan motors by launching Maruti 800 in 1984. On 17th September,2001 Maruti Udyog was renamed to Maruti Suzuki India Limited. It is subsidiary of Suzuki Motor Corporation of Japan. Maruti has more than 6 million satisfied customers in India About Maruti has a network of 391 sales outlets across 230 cities all over India. The service network covers 1,113 towns and cities, bolstered by 2,142 authorized service outlets The company's change in strategy and emphasis on developing effective marketing communications was their highlights. Chairman : Mr. R. C Bhargava CEO : Shinzo Nakanishi Vision statement The leader in the automobile industry creating customer delight and share holders wealth eventually become a pride of India. Mission statement Developing of carsfaster and selling them for less Production of fuel efficientvehicles to conserve scarce resources Production of large number of motor vehicles which was necessary for economic growth Business level strategies built Capabilities-------->core competencies----------->businesss level strategy

Capabilities of MSIL

 Manufacturing and production technology Understanding customers needs Developing new designs and models of cars which are fuel-efficient Quality focus Prompt service and customer satisfaction CORE COMPETENCIES 1)MANUFACTURING EXCELLENCE Pioneer in latest technology Lean Manufacturing PMS Quality Control STRONG DISTRIBUTOR NETWORK Most extensive network in India Greater customer satisfaction FORWARD AND BACKWARD INTEGRATION Alliances with suppliers Alliances with dealers OTHER CRM INITIATIVES True Value Anytime Maruti Authorized service centers Insurance Pricing strategy

 Caters to all segments and has a product offering at all price points Their pricing strategy is to provide an option to every customer looking for up-gradation in his car.

Functional level strategy

Primary activities
1)INBOUND LOGISTICS Just-In-Time (pioneered by Toyota) Huge savings on inventory management costs Sound demand management system Implementation of Logistics improvement systems 2)OPERATIONS Eliminates unnecessary costs using Lean Manufacturing Maintains constant prices by using Value Added Value Engineering K-Engine (fuel efficient) Plant used in many models & well received by customers Manufacturing supremacy rests on ideals of Cost each employee works as Costs Manager Quality - Do it right first time Safety- Home or Work place: Safety takes first place 3)OUTBOUND LOGISTICS Presence in 500 cities 300+ distributors 1600+ service stations

 16 warehouses True value dealership model Decent margins to dealers

Secondary activities
1)TECHNOLOGY DEVELOPMENT IT network links vendors across the country & keeps track of order and delivery status. Electronic Data Processing (EDP) Dep't. manages post-sales process & sales analysis. 2)PROCUREMENT Reduced no. of vendors from 370 (2000) to 100 (2005) Quality maintained by periodic quality system audits 3)FIRM INFRASTRUCTURE Plants at Manesar & Gurgaon; 7600 employees Partnership approach with all stakeholders Annual General Meetings 4)HUMAN RESOURCE MANAGEMENT Major component of variable pay ensures alignment of employees with organization Innovation forms a core value & is highly encouraged Company is treated as family with events like Parivar Milan & Family Day Corporate strategies: Maintain status quo due to limited environmental oppurtunities for gaining competitive advantage

 Few employees will have opportunities for advantage Critical that management identify key employees and develop specific HR retention strategies to key them. Strategic gaps MULs entry into the used car market in 2001, allowing customers to bring their vehicle to a Maruti True Value outlet and exchange it for a new car ,by paying the difference. They are offered loyalty discounts in return . This helps them retain the customer. With Maruti True Value customer has a trusted name to entrust in a highly unorganized market and where cheating is rampant and the biggest concern in biggest driver of sale is trust. Maruti knows its strength in Indian market and has filled this gap of providing trust in Indian used car market. Strategic decisions Maruthi Suzuki which controls slightly over half of the domestic car market in the country has said that it would design small cars suitable for the indian conditions as a strategy to beat the stiff competition with the entry of global auto makers It would be launching compact cars with mare features to meet the needs of the customer locally

CONCLUSION MSIL, through its cost leadership approach market leader for 3 decades , 50% market share. Constant innovation to its processes, hence helping it achieve efficiency. Cost advantage by maintaining long term contracts with its suppliers reliable supply of materials Moving towards Integrated cost leadership/differentiation strategy to cater to changing demands of customers and changing environment Sustainability of this strategy in the long run