Strategy Final PPT.pptx - Strategy Analysis of Maruti Suzuki India Limited Aditya 03 Rajat 33 Taranpreet 45 Vaibhav 48 Mani 50 Contents \u2022 Strategic

Strategy Final PPT.pptx - Strategy Analysis of Maruti...

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Unformatted text preview: Strategy Analysis of Maruti Suzuki India Limited Aditya 03, Rajat 33, Taranpreet 45, Vaibhav 48, Mani 50 Contents • Strategic analysis • Internal Analysis • External Analysis • Business level strategy • Competitive Analysis • Corporate Level strategy • Challenges faced • Recommendations EXTERNAL ANALYSIS : PESTLE Political Economical Social Technological • Make in India initiative • Rise in protectionism features for business opportunities • Positive development in global economy a healthy sign for export sales • Economic growth of domestic market • Enhanced customer requirements and perceived social value • Rise in carpooling and shared mobility • Increase in embedded technologies driving safely and performance and implementation of green technologies Legal • Greater attention and more initiatives to reduce environmental impact due to automobiles • More legal compliance measures to increase passenger safety Environmental • Growing criticism towards environmental pollution created by vehicles EXTERNAL ANALYSIS : Porters 5 forces Rivalry with the industry Keen competition in select segments (compact and mid-size segments) Entry of New multinational players Threat from the new players Increasing Threat from the new players Major global players Few more are expected to enter High Financial strength required Strength of Suppliers Large number of suppliers consistency in quality Strength of Suppliers Low Rivalry with the industry High Threats from Substitutes Threats from Consumer preference is changing Substitutes higher capital investments Mfg Low to Medium Sourcing base for global automotive companies The launch of new models at competitive price Strength of consumers Increasing Strength of consumers Increased consumers awareness Increased expectations Product differentiation improved Increased competitive intensity has limited the pricing power of manufacturers. INTERNAL ANALYSIS : SWOT Analysis Strengths 1. Improved business performance and leading market presence 2. Huge product portfolio and successful new product launches 3. Strong marketing through NEXA and high customer satisfaction level Weakness 1. Body interiors and features to improve to compete with foreign brands 2. Less market command over premium vehicles and SUV segment 4. Improving financial performance and rising EPS Opportunities 1. Improving economic scenario in domestic market Threats 1.Foreign players setting manufacturing facilities in India 2.Increase in interest rates 3.Infaltion of price of raw material and labor MSIL Philosophy: Providing good and modern products to the Indian customer at an affordable price . Indian Car Market: 75% of cars sold are below 4 meters in length and cost under 6.5 lakhs Corporate Level Strategies Corporate Strategy Diversification Strategy Integration Strategy Vertical Horizontal Forward Strategic Alliances Backward Mergers Acquisitions Concentric Conglomer ate Cont… • Suzuki strategic alliance with Toyota – Share of production facilities – Develop more sustainable technologies in future like EVs’ • Vertical Backward integration – JVs with Caparro,JBML,SKH,MSP for smooth material supply • Vertical Forward integration – MSIL are purchasing land and giving land to dealers on lease • Diversification into customer centric ventures – Maruti Finance – Maruti Insurance – Maruti Suzuki Genuine Accessories – Maruti Suzuki Genuine Parts – True Value – N2N Leasing and Fleet Management System – Maruti Driving School Business Level Strategies • Cost Leadership – Localisation with global standard of quality and technology – Hedging activities helping in reducing the impact of weakening rupee – R and D , Improving design and spec leading to cost reduction – Kaizens and quality circle activities by workers led to improvement in quality and reduction in cost • Innovation and Technology – World class R&D facility in Rohtak – Heartect platform offers 6-8% lower CO2 emissions Cont… • Extensive Sales and service network – Sales outlets -3282 ( Dual channel strategy) – Service workshops-3475 To minimize the effort customer has to make to buy and maintain his car • Multi Location Plants – 3 plants in Gurgaon, Manesar, Gujarat and a new plant in Sohna (in discussion) To grow and de-risk business Competitive Advantage 7 out of top 10 selling cars in India is of Maruti Challenges faced • Increase in crude oil prices as rupee is dropping record low • Trade war between US ad China • Affordability of Electric vehicles • Infrastructure for charging stations • Strict environmental norms • Adherence to safety norms • Cluster of government’s mobility policies • Self driving cars being developed by players like Google,Apple,Uber Recommendations • Invest in new technologies like EVs’,Hybrids,CNG,Methanol and ethanol • Adoption of “Factories of future approach “ – Industry 4.0 • The industrial internet • 3D printings • Advanced analytics • Block chain • Connected cars • Technology tie up with universities and research organizations • Start thinking of other modes of transportation like drones and driverless cars Thank You ...
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  • Fall '14
  • Management, Gurgaon, Suzuki, Maruti, Automobile industry in India

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