Strategy Maruti Suzuki
Strategy Maruti Suzuki
Strategy Maruti Suzuki
• Established in 1983
• Subsidiary of Suzuki Motor Corporation Japan
• Manufacturing plant at Gurgaon and Manesar
• Largest market share in passenger car
segment (>50%)
• 15 models of cars and UV’s
• Recently launched “Kizashi” in A4 segment
External environment
analysis
Porters 5
PEST
force
analysis
analysis
P E
T S
• The custom duties and excise duties
announced by the central government
greatly affects the financial performance of
the company
Political • Excise duty is levied on all the cars
produced in India and Custom Duty is
levied on KD parts, CKD parts and CBU
units brought by MSIL
Rivalry
Threat of Bargaining Bargaining
Threat of between
new power of power of
substitutes existing
entrants suppliers buyers
players
Threat of new entrants
The break-
The cost of The cost to even is Very large Presently BS
setting up a set up R &D achieved sales and IV norms are
plant to facilities or only when service prevalent in
manufacture transferring the network is India, and
passenger the latest production required to this , which
cars is very technologies volumes, meet the increases
high in is very high this is due customer the
passenger in passenger large demand and production
car segment car segment amount of expectations costs
fixed cost
Suppliers Pressure
Large no of Increase in
cannot from OEMs
suppliers international
forward to reduce
(600+) vendors
integrate price
Bargaining
Threat of power of
substitutes buyers
Internal Environment
Analysis
Resources Capabilities
RESOURCES
• Maruti has net assets worth of Rs 12,656.5 Cr.
The passenger car sales has increased over the years for Sales
Maruti, it has able to capture over 50% of the market share
Strategic Groups
Rivalry
Threat of Bargaining Bargaining
Threat of between
new power of power of
substitutes existing
entrants suppliers buyers
players
Threat of new entrants
Cost of CBU
The cost of The cost to
setting up attracts
setting up a set up R &D Economies
of scale is exclusive 110%
plant is facilities is
low showrooms custom
high high
is high duty
Pose a
Dominated The
threat of
by few products
forward
companies are unique
integration