1. Strategic Management Study Group 1 Aayush Arora Ashay Jain
Eshita Singh
Luke Noronha
Utkarsh Kapur
PGDM(M)

2. INTRODUCTION
Subsidiary company of Japanese automaker Suzuki Motor Corporation
CEO – Kenichi Ayukawa
Started in 1983 in Gurgaon
Market share of 48.2% in the Indian car market
Domestic market sale is more than car per year

3. Vision and Core values “To be a leader in the Indian automobile industry creating customer delight and shareholder wealth, A pride of India”

4. External Audit

5. PEST Analysis POLITICAL Banning of more than 10 years old vehicle
Meeting emission standard of vehicles
Increased taxes on luxury vehicles
ECONOMICAL
Announcement of demonetization
Difference in sales of developed and developing countries
Increase in import duty.
SOCIAL
Introduction of small SUV shaped cars by ford
Replacing Maruti Jeep with Safari strong for military
TATA entering into SUV segment
TECHNOLOGICAL
Investment in low emission and environment friendly vehicles
Introduction of driverless cars
Introduction of electric cars

6. Threat of substitute production Bargaining power of buyer
Threat of new entrant
New companies coming up with better technologies
Threat of substitute production
Mini cars bring replaced by cheap sedan cars
Bargaining power of buyer
Increased competition has limited the pricing power of manufacturers
Bargaining power of supplier
Rationalization of vendor base to achieve consistency in quality
Rivalry among existing firms
Huge competition in compact and mid size segment

8. Analysis Used to analyze current business conditions
Used to analyze whether or not a firm can exploit it’s opportunities and overcome it’s threat
Score is i.e, score > 2.50
Maruti Suzuki can exploit it’s opportunities and overcome it’s threats as well
Future condition seems to be bright

9. Internal Audit

11. Automation, and many more
Analysis
Shows various elements of different departments of an organization
Helps in figuring out, on which factors company has competitive advantage
Maruti Suzuki has competitive advantage on:
Innovation
Affordability
Brand value
Advertising
Automation, and many more
Shows how well company is using it’s internal resources to compete with competitors
Shows the company’s ability to sustain in dynamic world

13. Analysis
Used to examine the strengths and weaknesses in the functional business areas
Score is i.e, score > 2.50
Functional areas of Maruti Suzuki is strong
Future growth
Company has the potential to overcome it’s weaknesses using it’s strengths

14. VRINE MODEL 1.Wide range of affordable cars
VALUE
RARE
INIMITABLE
NON-SUBSITUTABLE
1.Wide range of affordable cars
1.Even during demonetization Maruti Suzuki shot up its shares by launching various models
1.New technology like introduction of robots
1.Low prices or affordability of Maruti Suzuki cars helps it keeping itself one step ahead
2.Automation of processes
2.Brand value of Maruti Suzuki
3.Career growth

15. Analysis
Used to analyze the firm’s capability to maintain sustainable competitive advantage using it’s internal resources
Model shows that Maruti Suzuki has Valuable, Rare, inimitable and Non-substitutable internal resources
Maruti Suzuki has a competitive advantage
Result in sustainable growth of the company

16. Strategic Models

18. Analysis It shows: the current and targeted performance of the company
Monitors organization’s performance towards strategic goals
It shows:
the current and targeted performance of the company
department responsible
time period to achieve the target
Maruti Suzuki is mid-way in achieving the set targets
Balanced score card keeps the company directed towards achieving the set targets

19. TOWS Matrix Strengths Weaknesses Opportunities Threats
Robotic Manufacturing
Innovation
Product Portfolio
Automation
Customer loyalty
Affordable pricing
Capital Budgeting
Opportunities
Product portfolio
Brand value
Value proposition
Robotic Manufacturing
Trained staff
Market share
Advertising
Threats

21. Analysis Company’s present as well as future performance
Degree of responsiveness of company towards emerging markets and industry
Company’s present as well as future
performance
Score is 3.47, i.e, Score > 2.50
Maruti Suzuki is competitive enough for emerging markets in the industry
Capability to exploit growth opportunities with it’s strengths
Capability to come over the threats in the external environment

22. Internal Strategic Position External Strategic Position
Financial Position
Stability Position
Return on Investment (+3)
Cash flow (+5)
Net Sales (+3)
Inventory turnover (+2)
Earning per share(+4)
Technology Change (-1)
Demand variability (-2)
Barrier to entry in new market (-3)
Price range of competing products(-2)
Competitive pressure(-2)
Average = 3.4
Average = -2
Competitive Position
Industry Position
Innovation (-3)
Affordability(-2)
Brand value(-1)
Advertising(-3)
Customer Satisfaction(-2)
Increase in population (+3)
Market Expansion(+5)
Untapped rural markets(+4)
Intense competition(+5)
Volatility in fuel prices(+3)
Average = -2.2
Average = 4
Coordinates (1.8,1.4)

24. Analysis The company lies in the first quadrant of the graph
Aggressive strategies need to be used
Suggested strategies are market development and product development
Company has competitive position in the market with rapid growth

25. Business growth rate Relative market share BCG Matrix Star
Question mark
Swift
Swift Desire
Maruti Suzuki SX4
Grand Vitara
Baleno
Cash cow
Dogs
Maruti 800
Alto
Wagon R
Omni
Versa
Zen Estilo
High
Business growth rate
Low
High
Low
Relative market share

27. 4 3 2 1 I II
III IV V VI
VII
VIII IX C A 3 B F H 2 E G 1 D

28. Analysis
Shows the products which the company should invest in
Maruti Suzuki could continue to invest in Swift, Swift Dzire and Baleno
Maruti Suzuki could hold and watch, for the investment, in, Alto, Zen Estillo
Maruti Suzuki could stop investments in Grand Vitara, Maruti 800 and Omni