maruti suzuki india ltd
-
date post
11-Sep-2014 -
Category
Business
-
view
6.581 -
download
2
description
Transcript of maruti suzuki india ltd
![Page 1: maruti suzuki india ltd](https://reader034.fdocuments.net/reader034/viewer/2022052211/5411f8e28d7f7295728b4677/html5/thumbnails/1.jpg)
MARUTI SUZUKI
![Page 2: maruti suzuki india ltd](https://reader034.fdocuments.net/reader034/viewer/2022052211/5411f8e28d7f7295728b4677/html5/thumbnails/2.jpg)
Maruti Suzuki India ltd.
Presented By:-Praveen Sharma
Sec-C 147NDIM
![Page 3: maruti suzuki india ltd](https://reader034.fdocuments.net/reader034/viewer/2022052211/5411f8e28d7f7295728b4677/html5/thumbnails/3.jpg)
Content
Introduction
Michael Porter’s 5 Forces Model for Industry
PESTLE Analysis
Glance on Maruti’s Strategies
![Page 4: maruti suzuki india ltd](https://reader034.fdocuments.net/reader034/viewer/2022052211/5411f8e28d7f7295728b4677/html5/thumbnails/4.jpg)
Introduction( Brief) Maruti Udyog Limited (MUL) was
established in February 1981, though the actual production commenced in 1983 with the Maruti 800
Maruti Suzuki is India's number one leading automobile manufacturer and the market leader in the car segment, both in terms of volume of vehicles sold and revenue earned
Until recently, 18.28% of the company was owned by the Indian government, and 54.2% by Suzuki of Japan. Later Indian Govt. Sold its shares to F.I.I.’s .
![Page 5: maruti suzuki india ltd](https://reader034.fdocuments.net/reader034/viewer/2022052211/5411f8e28d7f7295728b4677/html5/thumbnails/5.jpg)
Industry Competitors
Rivalry among existing firms
New Entrants
Buyers
Substitutes
Suppliers
Threat of New Entrants
Bargaining Power
of Buyers
Threat of Substitutes
Bargaining Power
of Suppliers
Fig.Michael Porter’s 5 Forces Model for Industry Competitiveness
![Page 6: maruti suzuki india ltd](https://reader034.fdocuments.net/reader034/viewer/2022052211/5411f8e28d7f7295728b4677/html5/thumbnails/6.jpg)
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 within the industry: High
• There is keen competition in select segments. (compact and mid size segments).
• New multinational players may enter the market.
![Page 7: maruti suzuki india ltd](https://reader034.fdocuments.net/reader034/viewer/2022052211/5411f8e28d7f7295728b4677/html5/thumbnails/7.jpg)
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 manufacturers
![Page 8: maruti suzuki india ltd](https://reader034.fdocuments.net/reader034/viewer/2022052211/5411f8e28d7f7295728b4677/html5/thumbnails/8.jpg)
Threat from substitutes : Low to medium
• Consumer preference is changing (Mini cars are being replaced by compact or mid sized cars)
• Setting up integrated manufacturing facilities may require higher capital investments than establishing assembly facilities
• India is also likely to increasingly serve as the sourcing base for global automotive companies, and automotive exports 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 prices
![Page 9: maruti suzuki india ltd](https://reader034.fdocuments.net/reader034/viewer/2022052211/5411f8e28d7f7295728b4677/html5/thumbnails/9.jpg)
Exteral Environmentn
![Page 10: maruti suzuki india ltd](https://reader034.fdocuments.net/reader034/viewer/2022052211/5411f8e28d7f7295728b4677/html5/thumbnails/10.jpg)
Political Environment The policies & objectives laid down by the Indian
Government regarding the automobile sector are: Exalt the sector as a lever of industrial growth and
employment and to achieve a high degree of value addition in the country
Promote a globally competitive automotive industry and emerge as a global source for auto components
Establish an international hub for manufacturing small, affordable passenger cars and a key center for manufacturing Tractors and Two-wheelers in the world
Ensure a balanced transition to open trade at a minimal risk to the Indian economy and local industry
![Page 11: maruti suzuki india ltd](https://reader034.fdocuments.net/reader034/viewer/2022052211/5411f8e28d7f7295728b4677/html5/thumbnails/11.jpg)
ECONOMIC ENVIRONMENT
Sales of Passenger car has been increased to 8.45% per year.
Maruti now plans to tap the rural market, 60 per cent of
which runs on cash .
Maruti has appointed 2,000 sales executives to target
customers in the rural areas.
The manufacturing sector has grown at 8– 10 per cent per
annum in the last few years.
More than 70 per cent of the VEHICLES purchase is on
credit.
Finance availability to CV buyers has grown in scope during
the last few years.
![Page 12: maruti suzuki india ltd](https://reader034.fdocuments.net/reader034/viewer/2022052211/5411f8e28d7f7295728b4677/html5/thumbnails/12.jpg)
SocialWelfare Camps Medical support & welfare Education to underprivileged Road Safety Maruti Driving SchoolsGreening of Supply ChainAdopting energy saving technologies Reducing water wastageGreen Growth
![Page 13: maruti suzuki india ltd](https://reader034.fdocuments.net/reader034/viewer/2022052211/5411f8e28d7f7295728b4677/html5/thumbnails/13.jpg)
TECHNOLOGICAL ENVIRONMENTLaunched CNG kit for Alto, its highest
selling small car.The company as a proactive move is
all set to make its entire fleet of cars adhere to ‘end of life vehicles’ (ELV).
The company is involved with the development of small and fuel-efficient car engines.
In future, the company has high plans to increase the engine development work in India along with other R&D operations
![Page 14: maruti suzuki india ltd](https://reader034.fdocuments.net/reader034/viewer/2022052211/5411f8e28d7f7295728b4677/html5/thumbnails/14.jpg)
The company uses next generation KB series Engine in its new Hatchback car A-star.
The company added Virtual Design Review to its R&D activity to enable virtual validation to reduce cycle time and development cost.
In the field of alternate fuel technology, the company developed LPG/CNG/HYBRID system for MPI engine.
![Page 15: maruti suzuki india ltd](https://reader034.fdocuments.net/reader034/viewer/2022052211/5411f8e28d7f7295728b4677/html5/thumbnails/15.jpg)
Ecological Environment Practicing 3 R
3R- reduce, reuse, and recycle.
Continuous process of promoting 100% recyclable and reusable car parts.
Targets reducing fresh water consumption and implement rain water harvesting.
Physical infra structure such as roads and bridges affect the use of automobiles. If there is good availability of roads or the roads are smooth With the development or evolution of alternate fuels, hybrid cars have made entry into the market.
![Page 16: maruti suzuki india ltd](https://reader034.fdocuments.net/reader034/viewer/2022052211/5411f8e28d7f7295728b4677/html5/thumbnails/16.jpg)
Legal Environment Follows highest standards of Corporate Governance
Customer can contact the Secretarial & Legal Department for any questions/clarifications.
Legal compliance reporting The board periodically reviews reports of compliance
with all laws applicable to the Company, as well as steps taken by the Company to rectify instances of non-compliances.
The Company has developed comprehensive legal compliance scheduling and management software by which specific compliance tasks are assigned to each individual. The software enables in planning and monitoring all compliance activities across the Company.
![Page 17: maruti suzuki india ltd](https://reader034.fdocuments.net/reader034/viewer/2022052211/5411f8e28d7f7295728b4677/html5/thumbnails/17.jpg)
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
![Page 18: maruti suzuki india ltd](https://reader034.fdocuments.net/reader034/viewer/2022052211/5411f8e28d7f7295728b4677/html5/thumbnails/18.jpg)
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.
![Page 19: maruti suzuki india ltd](https://reader034.fdocuments.net/reader034/viewer/2022052211/5411f8e28d7f7295728b4677/html5/thumbnails/19.jpg)
New Strategy PROMOTIONAL strategies including
price cuts, promotional offers, launching campaigns
VALUE ADDED SERVICES offering to its customers
![Page 20: maruti suzuki india ltd](https://reader034.fdocuments.net/reader034/viewer/2022052211/5411f8e28d7f7295728b4677/html5/thumbnails/20.jpg)
Upgrading manufacturing facilities The company started its new car plant &
diesel engine facility at Manesar In 2008,Maruti increased its
manufacturing capacity from 800,000 to one million units annually.
The company inaugurated the new fuel efficient KB engine plant at Gurgaon.
In April 2009 Maruti launched K12M engine.
In addition, it also increased its diesel engine manufacturing capacity by 100,000 units annually.
![Page 21: maruti suzuki india ltd](https://reader034.fdocuments.net/reader034/viewer/2022052211/5411f8e28d7f7295728b4677/html5/thumbnails/21.jpg)
Large product portfolio Maruti decided to cater all the
segments of Indian car market. The company launched new models
and also upgraded its existing model at a faster pace.
Maruti launched Alto in 2000. In 2001,it launched a new model
Maruti Versa. In 2003 ,New Zen and New Esteem
were launched.
![Page 22: maruti suzuki india ltd](https://reader034.fdocuments.net/reader034/viewer/2022052211/5411f8e28d7f7295728b4677/html5/thumbnails/22.jpg)
Large product portfolio Maruti’s strategy to offer product at every price point meant it had a product whenever a customer wanted to upgrade his car.
The consumer did not have to buy a competitor’s product , as Maruti already a product at the relevant price
![Page 23: maruti suzuki india ltd](https://reader034.fdocuments.net/reader034/viewer/2022052211/5411f8e28d7f7295728b4677/html5/thumbnails/23.jpg)
Expanding business portfolio Maruti also expanded its business portfolio
by starting new but related businesses such as
-Maruti Driving School -Maruti True Value -Maruti Finance -Maruti Insurance Maruti plans to invest Rs-700 million by
2010 in the institute of Driving Training & Research.
In 2001 Maruti established Maruti True Value.
![Page 24: maruti suzuki india ltd](https://reader034.fdocuments.net/reader034/viewer/2022052211/5411f8e28d7f7295728b4677/html5/thumbnails/24.jpg)
Promotional Strategies In 2000, in an effort to regain its
market share, maruti slashed the prices of three ot its models Maruti 800 ,Omni , Wagon R.
The company also offered vehicle Insurance for Rs one only.
The company also started rewarding its customers by giving them loyalty bonus between Rs 8000 & Rs 25000 if they exchange their cars for Zen,Wagon R,Alto or Baleno.
![Page 25: maruti suzuki india ltd](https://reader034.fdocuments.net/reader034/viewer/2022052211/5411f8e28d7f7295728b4677/html5/thumbnails/25.jpg)
Promotional strateges Maruti started marketing Maruti
800 in small towns targeting two wheeler owners who could upgrade their two wheelers to cars.
In 2004 Maruti started ‘2599’offer in which consumers could buy Maruti 800 by paying an EMI of Rs 2599 for seven years.
![Page 26: maruti suzuki india ltd](https://reader034.fdocuments.net/reader034/viewer/2022052211/5411f8e28d7f7295728b4677/html5/thumbnails/26.jpg)
Distribution Network
In 2001 it started an initiative called ‘Non stop Maruti express highway’.
Maruti developed 250 customer service outlets along 20 highway routes by 2001-02
The company also started ‘express service facility’ to ensure service in minimum time.
It also offered a shuttle service and pick & drop facility when the car was given for servicing.
![Page 27: maruti suzuki india ltd](https://reader034.fdocuments.net/reader034/viewer/2022052211/5411f8e28d7f7295728b4677/html5/thumbnails/27.jpg)
Distribution Network….. ( contd)
it was the distribution network of Maruti which set the company ahead from its competitors.
In 2008-09,the service network of Maruti covered 1314 cities across India.
Maruti has plans to cover 1700 cities by 2010,and also to increase the number of service stations & workshops to over 3800 by 2010.
![Page 28: maruti suzuki india ltd](https://reader034.fdocuments.net/reader034/viewer/2022052211/5411f8e28d7f7295728b4677/html5/thumbnails/28.jpg)
sold over 10million
cars.. !!!!Thank you