porter’s five forces model for maruti suzuki
DESCRIPTION
This presentation discuss about INTRODUCTION, PORTER’S 5 FORCES MODEL, GLANCE ON MARUTI ‘S STRATEGIES.TRANSCRIPT
PORTER’S FIVE FORCES MODELFOR
MARUTI SUZUKI
ByR RAGHAVENDRA ……121568
CONTENT:
INTRODUCTION
PORTER’S 5 FORCES MODEL
GLANCE ON MARUTI ‘S STRATEGIES
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
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.
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
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
MAJOR COMPETITORS
MARUTI SRATEGIES
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.
New Strategy:
- UPGRADED its manufacturing facilities to meet the foreign challenge. (CRDI, VVTI engines)
- BROADENED its product portfolio (LUV- ERTIGA)
- EXPANDED its sales and service network to reach all over India
- VENTURED into new associated businesses
- PROMOTIONAL strategies including price cuts, promotional offers, launching campaigns
- VALUE ADDED SERVICES offering to its customers