The document analyzes Maruti Suzuki's position using Porter's Five Forces model, highlighting its market leadership in the Indian automotive sector since its establishment in 1982. It discusses the competitive landscape, including threats from new entrants, rivalry within the industry, and shifting consumer expectations, while emphasizing the company's strategies to enhance operational efficiency and expand its product offerings. Key strategies include upgrading manufacturing facilities, broadening the product portfolio, and venturing into related businesses to maintain market competitiveness.

1. PORTER’S FIVE FORCES MODEL
FOR
MARUTI SUZUKI
By
R RAGHAVENDRA ……121568

2. CONTENT:
 INTRODUCTION
 PORTER’S 5 FORCES MODEL
 GLANCE ON MARUTI ‘S STRATEGIES

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

5. 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.

6. 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

7. 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

8. MAJOR COMPETITORS

9. MARUTI SRATEGIES

10. 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.

11. 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