aspects and stages of car ownership(MARUTI SUZUKI refers to this as the “360 degree customer experience” 5. Service Aims to enhance or maintain the value of the product, such as installation, repair, training, and parts supply and product adjustment. Maruti Over the last few years, the company strengthened the existing practices and experimented with many new initiatives by way of Kaizens to delight its customers. There are more than 400 Maruti dealer workshops &more than 1500 Maruti Authorized Service Stations, covering more than 900 cities in India. It has service stations also on highways in India under the brand “Express Service Stations” Secondary activities at Maruti Suzuki (Supportive) 1. Procurement This is function of purchasing the raw materials and other inputs used in the firm’s value creating activities. About 3/4 th of the car, by value is outsourced. Any improvement in the car in terms of technology and design, quality or cost has to essentially include the company’s vendors and their support 13
The second focus area for component cost reduction is raw material yield improvement across all manufacturing processes like sheet metal, casting, forgings and machining. 2. Research & Development (R&D) Specific areas in which R&D has been carried out by the company: Building Full mode change Capability Vehicle Design and development 3. Human Resource Management The company’s key strength is its human capital. The company has during 2007-08, spent about Rs. 10Crores on training its employees The company goes further and trains its dealers and vendors workforce It strengthened the concept of Stay Interviews to understand employee aspirations, delight factors and areas for improvement 4. Firm Infrastructure This consists of general management, planning, finance, accounting, legal, government affairs and quality management The company has been awarded ISO: 27001 certification by STQC directorate, Ministry of Communications and Information Technology, Government of India after re-assessment Maruti Suzuki has two state of the art manufacturing facilities in India 3.3 IFE (INTERNAL FACTOR EVALUATION) IFE matrix is a strategic management tool for auditing or evaluating major strengths and weaknesses in functional areas of a business.IFE matrix also provides a basis for identifying and evaluating relationships among those areas. The Internal Factor Evaluation matrix or short IFE matrix is used in strategy formulation IFE Matrix for Maruti Suzuki STRENGTHS Weight Rating s Weighted score Highest Market Share 0.2 4 0.8 Low Price Vehicles 0.1 4 0.4 Large Distribution Channels 0.12 4 0.48 14
Easy availability of spare parts 0.08 4 0.32 Highly innovative and deep product line 0.12 4 0.48 WEAKNESSES Younger generation affinity towards new foreign brands 0.08 2 0.16 Lack of co-ordination & linkage with government bodies 0.05 2 0.1 Less focus on looks and designs 0.1 1 0.1 Lapses in product quality 0.05 1 0.05 Less Distribution channels in sub urban areas 0.1 1 0.1 Total Weighted average 1 2.99 3.4 BCG MATRIX STAR: The Company has long run opportunity for growth and profitability. They
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- Fall '16
- Suzuki, Maruti, Maruti Suzuki India Limited