A brief presentation about Ambassador's decline from being the most coveted car in India to oblivion

2. • First Indian automobile co. to start production in 1942
• Part of the Birla Group
• Market leader till 40 years after inception
• Ambassador- first ever car made in India.

3. • Modelled after the British Morris Oxford series III
• Suited for Indian roads and conditions
• Until the 1980s the highest selling car in India
• Almost every car sold was an Ambassador
• Driven on the Indian roads for the longest period of time
• Fondly called ‘The King Of Indian Roads’
• Choice of bureaucrats and politicians

4. • Launch of Maruti 800 by Maruti Suzuki in 1983
• Significant cheaper price of Maruti 800- blow to
Ambassador’s position
• Drop in market share from 75% to 20% from 1984 to 1991
• Indifferent to demand for modern technology and style

5. Strength
• Large Distribution
network
• Sturdy car
• Spacious
• Authentic Indian car
• Recognized brand
Weakness
• Low technological
innovations
• High price
• Slow decision
making process
• Resistance to
change
Opportunities
• Expand export base
• Invest in
technological
advancement
Threats
• Increased
competition
• Changing consumer
demand

6. New
entrants
• Entry of MUL with cheaper car and entry of foreign competitors after
liberalization in 1991
Suppliers
• Increased due to increase in other players in the market
• MUL
Buyers
• As the number of options available to consumers had increased. They had
cheaper and more advanced products available in the market
Substitute
s
Competitor
s
• There were cheaper substitute available like two wheelers
• Increased sales of foreign competitors led to downfall of HML due to
product differentiation and price leadership

7. Strength
• Aesthetic looks
• Fuel efficient
• Compact
• Affordable
• Latest technology
Weakness
• Inexperienced
• No diesel variant
Opportunities
• Untapped hatchback
market
• Price sensitive
customers
• Growing middle class
Threats
• HML launching a
similar variant

8. Existing
competition
Threat of
new
entrants
Bargaining
power of
buyers
Threat of
substitutes
Bargaining
power of
suppliers

9. Value
Rare
Inimitable
Organisation

10. • Design- aerodynamic
• Market components
• Improve customer service
• Refurbish Ambassador

12. Top Gear hails Ambassador as the
best taxi
Top Gear video