Abstract:
Maruti Suzuki India limited is the leading company in producing passenger vehicles in India. The
company has two manufacturing facilities in Gurgaon and Manesar, and headquartered in New
Delhi, India. These two plants have a pooled annual production capacity of 1.2 million units. It also
builds two more plants in Manesar in 2012-13. The two new plants would be able to produce about
250,000 units per year. The Company hired and integrated 904 people into its workforce in the
2013- 14. The Company has 12,547 regular employees out of which 366 are women. During 2013-
14, the manpower of Company’s R & D has reached to 1300, with the centre of attention, in 2013-
14, to improve the Company’s skill and capability by own job training and working with their own
hands in new model development and also to train a large number of young engineers for
challenging R & D roles in future. Analysis of Maruti’s External Environment Porter’s Five Force
Model currently indicating that; Increasing in Threat of New Entrants and Bargaining power of
buyers, Low in Bargaining power of Supplier and Medium in Threat of Substitutes with high
Competitive Rivalry in the industry.
On the other hand, As far as the BCG Matrix of msil is concerned, swift, swift dezire and zen estilo
are under the category of star, maruti sx4, grand vitara, and ritz under question mark, alto and
wagnor under cash cow and underdog; sx4, omini, and versa has liquidated and trim down. As of
dec.2013, the market share of maruti Suzuki was 49.24% followed by its main competitors of Tata
motors 21.44% and Honda 6.56%. Maruti has its own green pphilosophy and labels the initiatives
under its “Three R’s”, reduce, reuse and recycle, to honor it. Mainly Maruti’s current strategies
comprise of; focusing on small market segment to beat the stiff competition, Develop capabilities
& internal resources to finance its expansion and growth, staying away from ultra-low cost
segment, making India an exclusive small car manufacturing base to leverage frugal engineering
and establish R&D facility in India to produce cars in India starting from design till production
with its own core competencies of; Strong Customer Base & Brand image ,Well-developed sales
and service network throughout India and Very Strong knowledge of Indian market. In sum, maruti
do have key success factors related to Technology, Manufacturing, Distribution, Marketing and
Skills, and Capability in line with some future challenges, allied with the economy, as Increase in
input material prices, higher inflation and increase in fuel prices, Rise in interest rates, and Low
availability of skilled human resources. |
