PORTER’s five forces model for MARUTI SUZUKI

13,353 views

Published on

This presentation discuss about INTRODUCTION, PORTER’S 5 FORCES MODEL, GLANCE ON MARUTI ‘S STRATEGIES.

Published in: Education, Business, Automotive
0 Comments
8 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
13,353
On SlideShare
0
From Embeds
0
Number of Embeds
10
Actions
Shares
0
Downloads
921
Comments
0
Likes
8
Embeds 0
No embeds

No notes for slide

PORTER’s five forces model for MARUTI SUZUKI

  1. 1. PORTER’S FIVE FORCES MODEL FOR MARUTI SUZUKI By R RAGHAVENDRA ……121568
  2. 2. CONTENT:  INTRODUCTION  PORTER’S 5 FORCES MODEL  GLANCE ON MARUTI ‘S STRATEGIES
  3. 3. A BRIEF INTRODUCTION TO MARUTI SUZUKI  In 1982, Government of India entered into a joint venture with Suzuki motor corporation of Japan  Plant was established at Gurgaon in Haryana  It was the first company in india to mass produce and sell more than a million cars  Maruti Suzuki is the on of the india’s leading automobile manufacturers and the market leader in the car segment
  4. 4. Threat from the new players: Increasing - - Most of the major global players are present in the Indian market; few more are expected to enter. Financial Strength assumes importance as high are required for building capacity and maintaining adequacy of working capital. Rivalry with in the industry: High - There is keen competition in select segments. (compact and mid size segments). New Multinational players may enter the market.
  5. 5. Market strength of suppliers: Low - A large number of automotive components suppliers - Automotive players are rationalizing their vendor base to achieve consistency in quality Market strength of consumers: Increasing - Increased awareness among consumers has increased expectations. Thus the ability to innovate is critical - Product differentiation via new features, improved performance and after sales support is critical - Increased competitive intensity has limited the pricing power of manufactures
  6. 6. Threat from substitutes: Low to Medium - Consumer preference is changing (Mini cars are being replaced by compact or mid size cars) - Setting up integrated manufacturing facilities may require higher capital investments than establishing assembly facilities - India also is likely to increasingly serve as the sourcing base for global automotive companies, and automotive experts are likely to gain increasing importance over the medium term - Competition is likely to intensify in the SUV segment in India following the launch of new models at competitive price
  7. 7. MAJOR COMPETITORS
  8. 8. MARUTI SRATEGIES
  9. 9. Major Restructuring Exercise: - The company focused on improving its OPERATIONAL EFFICIENCY by upgrading manufacturing using new manufacturing techniques - INCREASING CAPACITY, using information technology in manufacturing - Focus on NEW PRODUCTS at regular intervals - Venturing into OTHER RELATED BUSINESSES like car finance, insurance, buying and selling of used Maruti cars.
  10. 10. New Strategy: - UPGRADED its manufacturing facilities to meet the foreign - BROADENED its product portfolio (LUV- ERTIGA) - EXPANDED its sales and service network to reach all over - VENTURED into new associated businesses - PROMOTIONAL strategies including price cuts, - VALUE ADDED SERVICES offering to its customers challenge. (CRDI, VVTI engines) India promotional offers, launching campaigns

×