Suzuki Motor Corporation, Pakistan

1. Presenter
Haseeb ullah
MBA 5th
5801
Suzuki Motor Corporation, Pakistan

2. Contents
• Introduction
• Vision & Mission
• Objectives & Goals
• Marketing Mix
• Market Segmentation

3. Introduction
• Pak Suzuki Motor Corporation Limited (PSMSL) was found in August 1983
after a joint venture between Pakistan Automobile Corporation Limited
and Suzuki Motor Company, Japan.
• The company’s new plant exists in Bin Qasim and was inaugurated 1989 by
the Pakistan then Prime Minister Banazir Bhutto

4. Vision & Mission
• Vision
• To be excellent all around
• Mission
• To provide automobile of international quality at competitive
price
• To improve skills of valued employees by imparting training
and inculcating them a sense of participation
• To make valuable contribution to social development of
Pakistan through development of industry in general and
automobile industry in particular.

5. Objectives & Goals
1. Maximize market share by producing more cars per year
2. Develop more efficient and innovative engines which give comparative advantage
3. Use efficient CNG system
4. Focus on looks and design of exterior to compete with Honda and Toyota
5. Fund and establish technical institutes to gain more skilled workforce from local
market
6. Maintain quality in affordable price will help to compete with direct competitors
and used imported cars

6. Market Segmentation

7. External Factors Evaluation Matrix (EFE)
OPPORTUNITIES Weight Ratings Weighted Score
1. Increasing Demand for Cars 0.15 4 0.60
2. Efficient EFI Engines 0.10 3 0.30
3. Large Market to operate 0.10 3 0.30
4. Global spare parts market 0.05 2 0.10
5. Small size CNG Cylinders 0.12 3 0.36
THREATS
1. Tough Competitors like Toyota and Honda 0.14 2 0.28
2. Inflation Rate 0.08 3 0.24
3. Heavy Taxes 0.08 3 0.24
4. Cheaper Imported Cars 0.10 4 0.40
5. Increase in Fuel Prices 0.08 2 0.16
Total Weighted Score 1.0 2.98

8. Internal Factors Evaluation Matrix
(IFE)
STRENGTHS Weight Ratings Weighted Score
1. Highest Market Share 0.20 4 0.80
2. Low Price Vehicles 0.10 4 0.40
3. Large Distribution Channels 0.12 4 0.48
4. Easy availability of spare parts 0.08 4 0.32
5. Highly Innovative and deep product line 0.12 4 0.48
WEAKNESSES
1. Scarcity of raw material 0.08 2 0.16
2. Lack of coordination and linkage with Govt.
bodies
0.05 2 0.10
3. Less focus on Looks and design 0.10 1 0.10
4. Less Technical Training Institutes 0.05 1 0.05
5. Less distribution channels in sub urban areas 0.10 1 0.10
Total Weighted Score 1.0 2.99

9. SWOT Matrix
Strength Weaknesses
•Highest Market Share
•Low Price Vehicles
•Large Distribution Channel
•Easy availability of spare parts
•Scarcity of Raw Materials
•Less focus on Looks and design
•Less Technical Training Institutes
•Less distribution channels in sub-urban areas
Opportunities Threats
•Increasing Demand for cars
•Large Market to Operate
•Small Size CNG Cylinder
•Global Spare Parts Market
•Tough Competition
•Inflation Rate
•Heavy Taxes
•Cheapest Imported Cars

10. •Strengths •Weaknesses
SWOT/TOWS Matrix
•Highest Market Share
•Low Prices Vehicle
•Large Distribution Channel
•Spare Parts Easily Available
•Scarcity of Raw Material
•Less Focus on New Design
•Less Technical Training Ins
•Less Distribution Channel in Sub-
Urban Areas
•Opportunities •S-O Strategies •W-O Strategies
•Increasing Demand for Cars
•Large Market to Operate
•Small Size CNG Cylinder
•Global Spare Parts Market
•Maximize market share by
producing more cars per year
(S1,S2,O1,O4)
•Develop more efficient and
innovative Engine which gives
comparative advantage (S4,O2)
•Use efficient CNG systems
(S4,S5,O4)
•Focus on Looks and Design to compete
with Honda and Toyota (W3,O1,O3)
•Fund and establish technical institutes to
gain more skilled workforce (W4,O3,O1)
•Threats •S-T Strategies •W-T Strategies
•Tough Competition
•Inflation Rate
•Heavy Taxes
•Cheapest Imported Cars
•Maintain quality in affordable price
will help to compete with
competitors and imported cars
(S2,S4,T1,T4)
•Develop fuel efficient engines to
gain edge and eliminate threat of fuel
•Enhance distribution to avoid threat from
second hand imported cars (W5,T4)

11. Suggested Strategies By SWOT
Product Development
Market Development
Forward Integration
Backward Integration

12. BCG Matrix
Stars
Question Mark
Cash Cows
Dogs
High
Low
High Low
Alto
Cultus
Jimmy
Mehran
Ravi
Liana
APV
Bolan
Market
Growth
Market
Share
SWIFT

13. JIMMY
ALTO
CULTUS
MEHRAN
RAVI
LIANA
APV
BOLAN

14. Suggested Strategies by BCG
Market Development
Concentric Diversification
Integration both Forward and Backward

15. SPACE Matrix
Financial Position (FP)
• Return on Investment +5
• Working Capital +6
• Leverage +6
• Cash Flow +3
• Working Capital +4
• Liquidity +5
FPAverage 4.8
Environmental Stability (ES)
• Technological Changes -2
• Rate of Inflation -2.5
• Demand Variability -2
• Price Range of Competing Firms -2
• Barriers to Entry -2
• Competitive Pressure -1
• Price Elasticity of Demand -1
• Ease of Exit from the Market -1
• Risk Involved in in Business -2
ES Average 1.72

16. SPACE Matrix………….Contd
Competitive Advantage (CA)
• Market Share -1
• Product Quality -2
• Product Life Cycle -2.5
• Customer Loyalty -2
• Technological Know How -2
• Control Over Suppliers and Distributors -2
CAAverage -1.91
Industry Strength (IS)
• Growth Potential +6
• Financial Stability +5
• Ease of Entry to the Market +3
• Resource Utilization +4
• Profit Potential +5
IS Average 4.6

18. Suggested Strategies by SPACE Matrix
Market Development
Horizontal Diversification
Market Penetration

19. CPM Matrix
Firm's Name Suzuki Toyota Honda
Critical Success Factors Weight Rating Score Rating Score Rating Score
Market Share 0.14 5 0.7 4 0.56 3 0.42
Brand Reputation 0.10 4.5 0.45 5 0.50 4 0.4
Financial Position 0.12 5 0.6 4.5 0.54 4 0.48
Parent Company Support 0.08 4.7 0.37 4 0.32 4 0.32
Low Cost Structure 0.09 4.8 0.43 4.2 0.37 4 0.36
Location of Facilities 0.11 4 0.44 4.9 0.53 4.5 0.49
R & D 0.13 5 0.65 3 0.39 4 0.52
Suppliers 0.07 4.5 0.31 4 0.28 3.8 0.26
Distributors 0.08 4.5 0.36 4.2 0.33 4 0.32
Total 1.00 4.31 3.82 3.57

20. Suggested Strategies by CPM
Market Penetration
Product Development

21. General Electric (GE) Model
Market Attractiveness
• Market Share
• R & D
• Market Growth Rate
• Impact of Technology, Energy
• Environmental Impact
• The Nature of Competition, and its
Intensity
Strengths of the SBU
• Sale
• Margin
• Demand
• Brand Image
• Market Share
• Quality
• Product Innovation

22. High Medium Low
High
Medium
Low
Strategic Business Unit
MarketAttractiveness
33%

23. Suggested Strategies by GE Model
Market Development
Market Penetration

24. Summary of the Strategies
S/NO Type of Strategy TOWS BCG SPACE CPM GE Total
1 Product Development 1 1 2
2 Market Development 1 1 1 1 4
3 Market Penetration 1 1 1 3
4 Concentric Diversification 1 1
5 Backward Integration 1 1 2

25. QSPM Matrix Fixed Positive
Internal Factors Weight PD MD MP CD BI
Market Share 4 3 4 3.5 2 2.4
Low Price 4 3.8 4 3 3 4
Distribution Channel 4 2.3 3.5 4 4 3.2
Scarce Raw Material 4 4 3.8 3 2 2
Less Focus on Design 4 2 4 4 2.2 3
Technical Training 4 3 3.5 3.2 3.1 4
Less Distribution Channel 4 2 4 4 2 1
External Factors 4 1 3.9 3.5 1 3
Incremental Demand 4 2.2 4 3.6 2.4 2
Market to Operate 4 4 4 4 2 3
Small Size CNG Cylinder 4 2.2 3.7 3.2 1.5 1.8
Global Spare Parts Market 4 2.4 3.4 3.2 3 3
Tough Competition 4 4 4 4 2 3
Inflation Rate 4 2 3.5 3.4 2.1 2.6
Heavy Taxes 4 2 4 3 3 4
Cheap Imported Cars 4 3 4 4 2 3
Total 40.9 61.3 56.6 35.3 45

26. QSPM Matrix Fixed Negative
Internal Factors Weight PD MD MP CD BI
Market Share 4 1 0 0.5 2 1.6
Low Price 4 .20 0 1 1 0
Distribution Channel 4 1.7 0.5 0 0 .8
Scarce Raw Material 4 0 0.2 1 2 2
Less Focus on Design 4 2 0 0 1.8 1
Technical Training 4 1 0.5 0.8 0.9 0
Less Distribution Channel 4 2 0 0 2 3
External Factors 4 3 0.1 0.5 3 1
Incremental Demand 4 1.8 0 0.4 1.6 2
Market to Operate 4 0 0 0 2 1
Small Size CNG Cylinder 4 1.8 0.3 0.8 2.5 2.2
Global Spare Parts Market 4 1.6 0.6 0.8 1 1
Tough Competition 4 0 0 0 2 1
Inflation Rate 4 2 0.5 0.6 1.9 1.4
Heavy Taxes 4 2 0 1 1 0
Cheap Imported Cars 4 1 0 0 2 1
Total 19.3 2.7 7.4 26.7 19

27. QSPM Variation Method Positive
Market Development Market Penetration
External Factors Weight
Attractive
Score
Total
Attractive
Score
Total
Increasing Demand for Cars 0.10 4 0.40 4 0.40
Efficient EFI engines 0.06 4 0.24 4 0.24
Large Market to operate 0.08 4 0.32 4 0.32
Global Spare parts market 0.04 3 0.12 2 0.08
Tough competitors 0.08 4 0.32 2 0.16
Inflation 0.06 3 0.18 1 0.06
Cheaper Imported cars 0.08 4 0.32 4 0.32
Increase in fuel prices 0.10 4 0.40 4 0.40
Internal Factors
Highest Market share 0.08 3 0.24 4 0.32
Low price vehicles 0.10 4 0.40 4 0.40
Large distribution channel 0.06 3 0.18 3 0.18
Easy availability of spare parts 0.02 3 0.06 3 0.06
Innovative and deep product line 0.06 4 0.24 3 0.18
Less focus on style and design 0.04 4 0.16 4 0.16
Scarcity of human resource 0.04 3 0.12 4 0.16
Totals 1.0 3.7 3.44