This presentation discuss about INTRODUCTION, PORTER’S 5 FORCES MODEL, GLANCE ON MARUTI ‘S STRATEGIES.

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