BUSINESS PROBLEM AND LITERATURE REVIEW 1Business Problem and Literature Review for Maruti Suzuki India Southern New Hampshire University
BUSINESS PROBLEM AND LITERATURE REVIEW 2Business Problem and Literature Review for Maruti Suzuki IndiaMaruti Suzuki India Ltd. (MSIL) begin operation in 1983 due to the fact India’s government and Suzuki Motor Corporation started a joint venture to sell automobiles. Ever sincethen MSIL has been dominated the automotive industry in India (Mukherjee, Mathur & Dhar, 2015). The company used to be called Maruti Udyog Limited (Mukherjee et al., 2015). The car market is divided into four categories; the hatch, the sedan, the sport utility vehicle/ the multiutility vehicle and the van (Mukherjee et al., 2015). The hatch category is further divided into the entry-hatch, mid-size-hatch and premium-hatch segment (Mukherjee et al., 2015). MSIL begin to see a declined in its market share between 2008 to 2013 when Hyundai Motor India Limited, Tata Motors Limited, General Motor India Limited, and Honda Cars India Limited begin moving in the A-segment (Mukherjee et al., 2015). But MSIL still seems to be the favorite out of the other manufacturers but if MSIL wants to keep its advantage something must be done. Business Problem Research ProblemWhen other automotive companies started to produce automobiles in the A-segment, MSIL market share declined from 61 percent to 49 percent (Mukherjee, 2015). Even though automotive sales in India were predicted to grow to 4.7 million units and 2.4 million units for it’s A-segment annual (Mukherjee et al., 2015). Out of all of MISL competition Hyundai and Tata Motors are the most competitive (Mukherjee et al., 2015). Hyundai already had a successful automobile in India and it helps that Hyundai products cater to the changing life of India consumers (Mukherjee et al., 2015). Tata Motors “was trusted across different consumers product and had a good presence in the transport vehicle segment,” with most of its consumers experiencing how Tato product ride from taking buses riding around India (Mukherjee et al.,
BUSINESS PROBLEM AND LITERATURE REVIEW 320015). In March of 2013 MSIL went to the drawing board to come up with a new product development, which will take them about five years to get the product to the public (Mukherjee et al., 2015). StakeholdersThe stakeholders that will be affected with MSIL decision are the shareholders in the company, the dealerships owners, and the salespeople. The shareholders because they will be funding the new product development. If the new design does not go well with consumers then itwill just be a waste of the shareholder’s money. The dealership owner because they will take the hit if the dealership company is not able to sell the new product to consumers. And the
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- Winter '16
- Hyundai, Suzuki, Automobile industry in India, Mukherjee