Maruti suzuki STRATEGIC MANAGEMENT

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Maruti suzuki STRATEGIC MANAGEMENT

  1. 1. Company’: Maruti Suzuki India Limited (MSIL, formerly known as Maruti UdyogLimited) is a subsidiary of Suzuki Motor Corporation, Japan. MSIL has been the leader ofthe Indian car market for over two and a half decades. The company has twomanufacturing facilities located at Gurgaon and Manesar, south of New Delhi, India. Boththe facilities have a combined capability to produce over a 1.2 million (1,200,000) vehiclesannually.Maruti Udyog Limited (MUL),INDIA’s finest and Asia’s largest automobile industry wasestablished in 1981 by an act of parliament.MUL, the first automobile company in theworld to be honored with an ISO 9000:2000 certificate, is a subsidiary of Suzuki MotorCorp (holds a 54% equity stake). The Government of India remains a significant equitystakeholder (10%).With its early mover advantage in Indian market; Maruti retains adominant Market share despite increasing competition.The company offers a wide range of cars across different segments. It offers 15 brandsand over 150 variants - Maruti 800, people movers, Omni and Eeco, international brandsAlto, Alto-K10, A-star, WagonR, Swift, Ritz and Estilo, off-roader Gypsy, SUV GrandVitara, sedans SX4, Swift DZire and Kizashi. In an environment friendly initiative, inAugust 2010 Maruti Suzuki introduced factory fitted CNG option on 5 models acrossvehicle segments. These include Eeco, Alto, Estilo, Wagon R and Sx4.The company plans to expand its manufacturing capacity to 1.75 million by 2013.Mr. Shinzo Nakanishi is the current CEO of Maruti Suzuki.
  2. 2. OWNERSHIP Government Suzuki IPO OTHERSGovernment 18.28%Suzuki 54%IPO 21%OTHERS 6.72%
  3. 3. BRAND MODEL’S
  4. 4. YEAR NET SALES YEAR NET SALES2005-2006 1,20,034 2006-2007 1,45,9222007-2008 1,78,603 2008-2009 2,03,5832009-2010 3,01,198 2010-2011 3,61,282
  5. 5. VISSION STATEMENT“The Leader in the Indian Automobile Industry,Creating Customer Delight1 and ShareholdersWealth2; eventually become a pride of India”MISSION STATEMENT.:- Modernization of the Indian Automobile Industry.- Developing cars faster and selling them for less.- Production of fuel-efficient vehicles to conserve scarce resources.- Production of large number of motor vehicles which was necessary foreconomic growth.- Market Penetration, Market Development Similarly ProductDevelopment and Diversification.- Partner relationship management, Value chain, Value deliverynetwork .
  6. 6. Competitive position of the company
  7. 7. Analysis of competitive advantage of the firm
  8. 8. EFE MATRIXThe total weighted score of 2.98 shows that company is responding above average to its external factors.They are trying to grab maximum opportunities available there and avoiding the threats to their best
  9. 9. INTERNAL FACTORES EVALUARTION MATRIXThe score 2.99 shows that company has solid internal position, its strengthsare overcoming the weaknesses
  10. 10. Strategy FormulationINTERNAL ASSESSMENT• SWOT ANALYSIS: Consists of analysis of internal environment (Strength and weakness) and external environments STERNGHTHS: Contemporary technology. Japanese Management practices (that had captured Japan over USA to the status of top Auto manufacturing country in the world)Early mover advantages. Recruitment is done in very tedious manner ensuring talent and best professionals, Working culture, after sale services , distribution, diversification, R&D WEAKNESS: Still depends upon SUZUKI COPORATION, Japan For tech. support, 10% components are manufactured outside India. Though MUL has launched luxury cars as well it’s still considered as poor man’s brand. Diversification is not supported with all India presence of Manufacturing Units. Bureaucracy, Technological disadvantages, Decades of isolation, inertia and subservience to the whims of government bureaucrats have made MUL unaccustomed to international standards or keen competition. OPPURTUNITY: first company to roll out suitably designed cars before 2008 as per Govt.’s Proposal of new ethanol (renewable)mixed fuel. Other companies lacks economy of scale, so market is still open. Importing new technology is controlled by Govt. so there is plenty of untapped market and with increase in Income scale, Demand is rising. THREAT: Numbers of new Technology driven players and manufactures are in market. Government .reducing support and cutting down the Gas supply quota.
  11. 11. SWOT ANALYSIS:
  12. 12. Porter’s Five Force ModelFORCESRESULTS
  13. 13. GERERIC COMPATATIVE STRATEGY
  14. 14. CURRENT STATUS OF COMPANY Sales GOING UP GIONG DOWN REMAIN CONSTANT SalesGOING UP 65GIONG DOWN 32REMAIN CONSTANT 3
  15. 15. GROWTHQ1 Q2 Q3 Q4 FY
  16. 16. Maruti Suzuki financial results Q3 FY 2011-12• Q3: Oct-Dec (2011-12 Vs 2010-11) The Company registered Net Sales (net of excise) of Rs. 76,636 Million, a decline of 17.4 per cent over same period in the previous year. Net Profit during the quarter stood at Rs 2,056 Million, a fall of 63.6 per cent• 9 Months: Apr-Dec (2011-12 Vs 2010-11) The Company registered Net Sales (net of excise) of Rs. 235, 210 Million, a decline of 10.4 per cent over same period in the previous year. Net Profit during the period stood at Rs 9,953 Million, a fall of 38.9 per cent. During this period, the company sold 684,892 units in the domestic market as compared to 820,350 units during same period in last year. In exports, the Company sold 88, 469 units.
  17. 17. •Future direction for the company MAJOR FUTURE STRATEGIES PHASING OUT Ertigo MARUTI PLANS FOR A BIG DIESEL FORAY MARUTI PLANS FOR A NEW ENGINE AND TRANSMISSION PLANT
  18. 18. FUTURE CHALLENGESTo meet Future challenges of growing car market, Indias biggestcarmaker Maruti Suzuki India Ltd. (MSIL) is focussing on two keyareas — capacity expansion and research and design (R&D)capabilities. With more global auto majors like Honda, Toyota,Volkswagen, Ford, Skoda, and General Motors besides Hyundai andTata Motors eyeing a major pie of the small car segment, MSIL isgearing up to maintain its leadership position.•Maruti Suzuki Sets the Pace for Future Green Cars Maruti Suzuki develops products for the new generation and changeable lifestyles, constantly creating new technologies and applying them to products with affluent imagination. The team covers a wide range of latest advances in energy, environment, electronics, communication, information and control applications.
  19. 19. Maruti Suzuki has a strategy for the future• The companys annual report also emphasized its growing focus on the export market. Maruti Suzuki is looking to make India an exclusive base to manufacture small cars for Europe. "We want to export 2 lakh units annually by 2012- 2013.• Maruti Suzuki which controls slightly over half of the domestic car market in the country has said that it would design small cars suitable for the Indian conditions as a strategy to beat the stiff competition with the entry of global auto makers.• It would be launching compact cars with more features to meet the needs of the customers locally.
  20. 20. NEW RELEASE Maruti Suzuki Grand Vitara Maruti Suzuki ERTIGO Maruti Suzuki XA AlphaMaruti Suzuki CERVO

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