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"Where success is a burden"
- 1. CASE STUDY: ”Where success is a burden” ABHIJITH BABU AJU VARGHESE ANEETTA MERIN KURIEN ANSU MARY VARGHESE CHINNU MERIN JOHN Mar Athanasios College for Advanced Studies ,Tiruvalla(MACFAST)
- 2. SUMMARY • Maruti Suzuki India Ltd. (MSIL), formerly known as Maruti Udyog Ltd. • MSIL is a subsidiary of Suzuki Corporation, Japan. • MSIL has been a leader in the Indian car market for over two and a half decades. • MSIL has a capacity to produce over 1.2 million vehicles per annum and has plants to expand the capacity to 1.75 million by 2013. • The popular cars of MSIL are Maruti 800, Alto, Swift, Ritz, SX4 etc. • Sales turnover of MSIL has been rising year over year and has been listed both in BSE and NSE.
- 3. • Maruti Udyog Ltd. Was incorporated on February 24, 1981 as a fully-owned government company. • The govt. has decided that the company to increase its production and to source and secure foreign technology. • The company became a joint-venture enterprise between the govt. of India and the Suzuki Motor Corporation , Japan.
- 4. What made MSIL tick? • MSIL is one of the biggest car maker. • The firm has a strong R&D establishment with 1110 scientist and engineers. • Maruti has 80 odd vendors and the company works closely with tier 1 and tier 2 vendors to help them upgrade on several fronts, including talent , productivity, and R&D • Maruti has 2000 dealers in 800 cities. • The company is tying up with PSU banks and RRBs to finance car puchase by vilagers.
- 5. • MSIL has evolved unique HR policies by introducing common uniform for all its employees from managing director to the janitor. • MSILs management took initiatives in promoting a union MUEU (Maruti Udyog Empoyees Union). • The importance of the union was higlighted by ensuring that the president and the general secretary of the union were seated on the dais at every Maruti function. • The company introduced an attractive suggestion scheme in1984. • Many of the HR practices of MSIL have been replicated by the Indian private sector.
- 6. Weaknesses Multiply • Major weakness of MSIL is its own success which has become a big burden on it. • Complacency is showing off in the declining market share. • Competition is becoming tougher by day as more and more auto giants are making their presence felt on Indian roads. • MSIL is deeply entrenched in the no-frills value-for-money segment.
- 7. Q.Why has MSIL’s management not tried to enter foriegn markets via fdi route? • MSIL is a govt. owned company. • Lead to job loses. • Avoid foreign monopoly. • Big threat to small indian companies. • Prevent the develepment of small companies
- 8. Q.What can MSIL do to regain its near monopoly position in the Indian market? • MSIL has to focus on two main areas- capacity expansion and R&D capabilities • Both the management and employees of MSIL should have an attitude of striving for vibrancy, initiative and innovation. Focus to become more creative and cost-efficient • MSIL must gear up to maintain its leadership position in spite of tough competition from global auto majors like Honda, Toyota, Volkswagen, Ford etc by designing small cars suitable for the Indian conditions. • It should set pace for future green cars. • To launch more of compact cars with more features to meet the needs of the customers locally.
- 9. REFERENCES • International Business K.Aswathappa,6th edition • Internet • International Business by subb Rao • Competing in global market by mc grew hill • Etc.