PROJECT REPORT ON

MARUTI SUZUKI

Subject : - Strategic Management

Submitted to : - Prof. Rahul Sir

Submitted By : - Bharati Jain

Roll No :- 15

Maruti Suzuki is one of India's leading automobile manufacturers 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. The Indian government held an initial public offering of 25% of the company in June 2003. As of May 10, 2007, Govt. of India sold its complete share to Indian financial institutions. With this, Govt. of India no longer has stake in Maruti Udyog.

History :

Maruti Udyog (MARUTI), incorporated in 1983, is India`s largest automobile company. The company is a subsidiary of Suzuki Motor Corporation. The other activities of the company comprise facilitation of pre-owned car sales, fleet management and car financing. It is the market leader in the passenger car segment with a share of 60%.

MARUTI has three fully-integrated production facilities in Gurgaon, Haryana with a combined capability of 500,000 units per annum. On an average, the company rolls out two vehicles from its factory every minute. The product range includes ten basic models with 50 variants. It has operations in over 100 cities with more than 150 outlets and also exports around 30,000 vehicles per anum to 50 countries.

MARUTI has subsidiaries, namely, Maruti Insurance Brokers, Maruti Insurance Distribution Services, True Value Solutions, Maruti Insurance Agency Solutions, and Maruti Insurance Agency Network. During 2005, the company established a new company Maruti Suzuki Automobiles India in collaboration with Suzuki Motor Corporation for setting up a plant with a total investment of Rs 15,242 million.

MARUTI has plans to manufacture diesel engines, petrol engines and transmission assemblies for four-wheelers in collaboration with Suzuki Powertrain India at an investment of Rs 17.5 billion. It is also planning to increase its purchase of steel from domestic companies to prune production cost and compensate for increase in steel prices

Maruti Udyog Limited (MUL) was established in February 1981, though the actual production commenced in 1983 with the Maruti 800, based on the Suzuki Alto keycar which at the time was the only modern car available in India, its' only competitors- the Hindustan Ambassador and Premier Padmini were both around 25 years out of date at that point. Through 2004, Maruti has produced over 5 Million vehicles. Marutis are sold in India and various several other countries, depending upon export orders. Cars similar to Marutis (but not manufactured by Maruti Udyog) are sold by Suzuki in Pakistan and other South Asian countries.

The company annually exports more than 30,000 cars and has an extremely large domestic market in India selling over 500,000 cars annually. Maruti 800, till 2004, was the India's largest selling compact car ever since it was launched in 1983. More than a million units of this car have been sold worldwide so far. Currently, Maruti Alto tops the sales charts.

Due to the large number of Maruti 800s sold in the Indian market, the term "Maruti" is commonly used to refer to this compact car model. Till recently the term "Maruti", in popular Indian culture, was associated to the Maruti 800 model.

Maruti Suzuki India Limited, a subsidiary of Suzuki Motor Corporation of Japan, has been the leader of the Indian car market for over two decades.

It’s manufacturing facilities are located at two facilities Gurgaon and Manesar south of New Delhi. Maruti’s Gurgaon facility has an installed capacity of 350,000 units per anum. The Manesar facilities, launched in February 2007 comprise a vehicle assembly plant with a capacity of 100,000 units per year and a Diesel Engine plant with an annual capacity of 100,000 engines and transmissions. Manesar and Gurgaon facilities have a combined capability to produce over 700,000 units annually.

More than half the cars sold in India are Maruti cars. The company is a subsidiary of Suzuki Motor Corporation, Japan, which owns 54.2 per cent of Maruti. The rest is owned by the public and financial institutions. It is listed on the Bombay Stock Exchange and National Stock Exchange in India.

During 2007-08, Maruti Suzuki sold 764,842 cars, of which 53,024 were exported. In all, over six million Maruti cars are on Indian roads since the first car was rolled out on December 14, 1983.

Maruti Suzuki offers 10 models, ranging from the people’s car, Maruti 800, for less than Rs 200,000 ($ 5000) ex-showroom to the premium sedan SX 4 and luxury SUV, Grand Vitara.

Suzuki Motor Corporation, the parent company, is a global leader in mini and compact cars for three decades. Suzuki’s technical superiority lies in its ability to pack power and performance into a compact, lightweight engine that is clean and fuel efficient.

Maruti is clearly an “employer of choice” for automotive engineers and young managers from across the country. Nearly 75,000 people are employed directly by Maruti and its partners.

The company vouches for customer satisfaction. For its sincere efforts it has been rated (by customers)first in customer satisfaction among all car makers in India for seven years in a row in annual survey by J D Power Asia Pacific.

Maruti Suzuki was born as a government company, with Suzuki as a minor partner, to make a people’s car for middle class India. Over the years, the product range has widened, ownership has changed hands and the customer has evolved. What remains unchanged, then and now, is Maruti’s mission to motorize

PRODUCTS AND SERVICES

MARUTI SUZUKI 800

For years Maruti 800 has remained the right opening car for people who look for low cost of ownership and fuel efficiency. It is a car perfectly made for the Indian roads. It goes in any location, be it in town, around town, highways, busy streets, narrow lanes... anywhere and everywhere.

In order to make the car more attractive, new engine has been installed in M800. The M800 E 2 AC has been a major success.

Striking Features

Sleek Slim dimensions. Short turning radius of 4.4 m. Unbeatable purchase price. Hassle-free maintenance.

MARUTI SUZUKI ALTO

Maruti Suzuki Alto, one of the hottest selling compact cars in the Indian market, is a car with minimum number of problems - 93 per 100 vehicles in the B-segment according to JD Power Asia Pacific 2005 India awards. It has

thundering MPFI engine, with 4 valves per cylinder and 16 bit computer to tackle all challenges.

The car has high tensile steel side door beams to guard against the front, rear and side collision impact. The looks are tough but accommodating, having more Boot Space than other cars. The AC of the vehicle is ideal for India's tropical climate.

Striking Features

Clear Lens Headlamps Dynamic Front Grill & Bumper Sparkling Tail Lamps Vibrant Colors Rotary Control for AC Stylish Fabric

MARUTI SUZUKI ZEN ESTILO

Maruti Suzuki has launched a new model to replace the existing Zen with a new name Estilo which has been derived from Spanish word 'style'. Estilo is all set to compete against the Hyundai Santro, Tata Indica and possibly can eat into the sales of its own model, the Swift. It will be somewhere between 3 and 4 lakh. Maruti Udyog launched the Zen to cater to a slightly upmarket customers then that of the Maruti 800 had. Estilo will also capitalise on the same formula.

Justifying its name 'style', Zen Estilo wears an aerodynamic body in unique bean shape with stunning body line complimented nicely with sizzling color options. The interiors of Estilo boasts a rich fabric upholstery, ergonomically designed seats that adds up to the comfy driving pleasure for all occupants. Just step inside Zen Estilo which is soft-plush from inside and sleek-dynamic from outside, would shape your world in new dimension of comfort, style and performance.

Striking Features of Maruti Suzuki Zen Estilo

All new body line up in bean shape Seats with adjustable head restraint 3 spoke Electronic Power Steering wheel Side door beams and rear door child lock Highly efficient Air conditioning with heating ventilation Soft touch rich upholstery Electrically adjusted rear view mirrors Advanced engine technology and DDLI ignition system

MARUTI SUZUKI OMNI

Maruti Suzuki Omni, from India's leading car maker Maruti Suzuki India Limited, is trendy in design, sporty in looks, powerful in performance and very roomy in space. Available in variants of five & eight seater with the fuel option of LPG, Maruti Suzuki Omni is a perfect family car suitable for picnics

and other family outings. Maruti Udyog has also launched the Ambulance and the Cargo models of Omni fitted with LPG kit.

Thoughtfully designed interiors of Maruti Omni offer ample leg & head space for driving pleasure and with the sporty front grille the exterior looks trendy. Technologically Maruti Suzuki Omni is equipped with host of features like Bharat-III compliant engine, radial tyres, enhanced safety, disc brakes, headlamp leveling device, that provides optimum efficiency without compromising the safety of its occupants.

Powered by a 37 bhp eco-friendly Bharat-III engine, Maruti Omni, with its performance and spaciousness, is among the most successful Utility Vehicle (UV) on roads.

Available in number of cool color options Maruti Omni is having a price range starting from Rs. 2.0-2.50 lacs.

MARUTI SUZUKI SWIFT

Maruti Suzuki Swift, the car of the year, was launched in May 2005. It is a new kind of compact car with a fresh approach to design and development. The Swift is more eye-catching, more spacious, more refined and more

user-friendly. It is a whole lot of enjoyable to drive than anything else in the compact-car category.

Striking Features

Dynamic European styling. Rally based suspension system. All-Aluminium 16 valve 32 bit hypertech engine. Automatic climate control.

Maruti Suzuki A-Star

India's largest automaker Maruti Suzuki India Limited has unveiled its much awaited hatchback car, A Star in the Indian auto market. A Star was first showcased in the Indian auto expo in New Delhi, as a

concept car and after launch A Star from Maruti would be its fifth car model slated to be exported in the International market as well. Maruti Suzuki A Star, the all new entrant into the hatchback car segment in India, promises to become the most fuel-efficient car in its category with an exceptional mileage of 20 kmpl. The launch of A Star Car, which is the eighth consecutive car launch by Maruti, denotes the key positioning of the market leader in the A2 car segment with 55% market share.

The all new Maruti Suzuki A Star features a sporty-designer looks and equipped with state-of-the-art technology that promises to deliver a wonderful driving experience. A Star houses a brand new KB series 998 cc engine under its hood that delivers 67 PS @ 6200 rpm and an exceptionally good torque of 90 Nm @ 3500 rpms. Being light in weight this engine lowers the vibration or noise and provides more fuel-efficiency in every litre. The A Star has been launched as the next generation model of Alto car and would be built completely at the company's facility at Manesar,

A Star comes equipped with modern safety features including sound body teamed with lightness of the structure, the airbags and ABS for diversion of

aftermaths in case of the collision. It reflects the Total Effective Control Technology (TECT) that absorb the shocks generated during the collision and keeps it away from the reach of the occupants. The striking new A-Star is available for sale in nine sizzling colors, three variants with the price range starting from Rs. 3.47 Lacs

Striking Features of Maruti Suzuki A-Star

Powered with new-generation three-cylinder, light-weight aluminum K10B engine Small turning radius of 4.5 meters All-round gas damped suspension Front suspension frame for better handling Lightweight and Highly rigid body structure Airbags and ABS Comes with an integrated music system Digital Console, Sporty Steering and short throw 6 gear shift Available in nine sizzling colors

MARUTI SUZUKI SX4

In an attempt to strengthen its position in the of Sedan cars market, Maruti Udyog Ltd. has launched its premium model bearing name SX4. After Maruti Suzuki Swift, SX4 is the second international model being launched in India. Suzuki SX4, is an A3 segment sedan car, with a

perfect combination of style, performance, safety and comfort. There are two versions of Suzuki SX4: Vxi and Zxi that gets power from latest and efficient 1.6-litre M-Series engine delivering impressive 102 BHP of power.

Maruti Suzuki SX4 is packed with strong features like independent suspension system, Anti Lock Braking System (ABS), matching color bumpers, electrically adjustable outside mirrors, fine quality fabric seats, power windows, rear seat center armrest and adjustable head rests in the front and rear seats are few to name for a smooth, comfortable and safe ride.

Having the price tag of between Rs. 6-6.5 Lacs, Maruti Suzuki SX4 will provide tough competition to its rivalry models like Ford Fiesta, Hyundai Verna, Honda City, and Indigo XL

MARUTI SUZUKI ESTEEM

In the mid-sized sedan cars of India, Maruti Suzuki Esteem holds a prominent place for its host of power packed performance and safety features. Maruti Esteem wears a fresh look with smooth lining sophisticated body structure which has been complimented nicely with the comfy and spacious interiors. Plush fabric upholstery, center console box, molded floor carpets, remote operated fuel tank lid, door pockets, air flow controls, convenient lighting arrangements, sporty looking instrument panel are among the most catchy features in this offering from Maruti Udyog Ltd.

Maruti Suzuki Esteem is available in three versions with number of cool color options bearing a price range starting from Rs. 4.50-5.00 lacs. The Power of 85 bhp @ 6000 rpm, advanced safety features, eye-soothing body line up of Maruti Esteem have always attracted the sedan car lovers to itself. For its customer satisfaction Maruti Suzuki Esteem has been awarded with best entry mid-size car award.

Striking Features of Maruti Suzuki Esteem

Chrome plated front grille Tubeless tyres Body coloured bumpers Pockets on both front doors and front seats back Convenient lighting system in centre, driver's cabin and trunk Power steering (in LXi & VXi variants only) Plush fabric upholstery Moulded floor carpets

MARUTI SUZUKI BALENO

Maruti Baleno is a fantastic car to drive. The comfort of the vehicle is more than expected, smoothness and handling is excellent. It delivers 94 horsepower at 6000 rpm with 1.6 litre, 4 cylinder, 16 valve SOHC all

aluminum engine. The vehicle has an unique Multi Point Fuel Injection (MPFI) that gives even fuel distribution. As an aftermath there is an increase in fuel efficiency and enhances power performance.

The Baleno has a monocoque body that distributes the impact of collision throughout the vehicle body and the affected portion of the body collapses progressively along the in-built crumple zones. This on the other hand enables the car to absorb the shock and save the passengers from injury.

MARUTI SUZUKI GRAND VITARA

Maruti Suzuki Grand Vitara XL-7, a car for those who want to live life grand size. It is the latest generation of Suzuki SUV. The vehicle is a completely built unit (CBU) import. It is built in Hamamatsu in Japan, small car capital of Japan. The same vehicle is sold in all the markets of world.

Equipped with the latest safety features, the Grand Vitara XL-7 is the biggest, most powerful, most luxurious and most expensive vehicle in Suzuki's line-up. It is a large and powerful 2.7 litre V6 powering a 1.6 tonne vehicle.

Striking Features

The inside of the Grand Vitara are the best of any Suzuki. Tall gearing and loads of torque makes the vehicle an effortless cruiser. Effortless to drive and quicker than most SUVs. Interior has lots of useful storage space

MARUTI SUZUKI VERSA

Maruti Versa, a multi utility vehicle, is a mini-van with a look of a car to drive you to work and also to take out your family and friends for a picnic. The vehicle has a most powerful and responsive 16 valve, 1298 cc engine

that generates 82 bhp at 6000 rpm and is controlled by a 16-bit Engine Management System.

Versa has flexiseat to adjust space as per requirement, twin AC (DX2 variant) for uniform all round cooling, and many other innovative features

SERVICES

Maruti Suzuki achieves an overall CSI score of 820 on a 1,000-point scale. Overall customer satisfaction with dealer service for the industry improves slightly in 2008-up by 3 points since 2007, with six of the 11 ranked brands demonstrating gains. While ranking below the industry average, Tata and Mahindra emerge as the most improved brands, respectively, particularly in the areas of service initiation, quality of service advisors and in-service experience.

"Maruti Suzuki has effectively implemented simple procedures that improve satisfaction with the value of work performed and perceptions of the fairness and honesty of the dealer, such as greeting service customers quickly upon arrival and fully explaining charges and repairs," said Mohit Arora, senior director at J.D. Power Asia Pacific, Singapore. "Instituting these low-effort, yet high-impact practices helps to foster trust among customers, which is critical to building loyalty for future service and sales opportunities."

The study finds that the proportion of vehicles brought in and serviced within the same day has increased to 55 percent this year from 49 percent in 2007. Quick completion of service is a key source of customer delight, particularly for customers who visit the dealer for routine maintenance.

"Quick service turnaround induces a feeling of convenience and comfort for customers, especially as life styles become more fast paced," said Arora. "Dealers that provide expedient service not only delight their customers but also benefit from greater dealership profitability as a result of high levels of asset utilization."

The study also finds that customer-reported costs of operation for petrol-powered vehicles have risen by seven percent since 2007, primarily due to rising fuel costs. In contrast, owners of diesel-powered vehicles report a minimal increase in operating costs in 2008, compared with 2007. The overall cost of vehicle operation is an aggregation of three components: fuel; repair and maintenance; and tire expenses.

"Consumers in India have traditionally exhibited higher sensitivity to the costs of vehicle operation, compared with consumers in other international markets," said Arora. "In India, customer intent to recommend a model or repurchase a make is strongly influenced by satisfaction with vehicle operating costs."

The study finds that overall advocacy rates have declined, with 77 percent of owners in 2008 reporting that they "definitely would" recommend their vehicle make, compared with 82 percent in 2007. Customer loyalty rates have remained stable from 2007, with

64 percent of owners in 2008 saying they "definitely would" repurchase their vehicle make, compared with 63 percent in 2007. However, the study also finds that rates of advocacy and loyalty are much higher among highly satisfied customers (those with satisfaction scores averaging above 867) than among customers with lower levels of satisfaction. Approximately 94 percent of highly satisfied customers say they "definitely would" recommend their vehicle make, and 84 percent report they "definitely would" repurchase their vehicle make. In contrast, among customers with the lowest levels of satisfaction (averaging below 709), only 55 percent of customers "definitely would" recommend, and only 43 percent report that they "definitely would" repurchase their current vehicle make.

The 2008 India Customer Satisfaction Index (CSI) study is based on responses from more than 5,594 owners of nearly 41 different vehicle models. The study was fielded from May to August 2008 and includes customers who serviced their vehicles at authorized service facilities between November 2006 and August 2007+

Maruti on road service

Even with the most stringent quality measures, complex machines like cars can sometimes malfunction. Just call our 24 Hour Maruti On-road Service (MOS) centre during an emergency and help will be on its way to you.

The MOS ensures:

Round-the-clock services in most of the cities A computerized call-monitoring system dispatches a mobile MOS

van to you at the earliest All MOS vans are manned by qualified Maruti Authorised Dealers /

MASS technicians who are trained by Maruti in problem diagnosis You are charged only Rs.100 on labour and spares The charges do not apply provided vehicle is under warranty and

the defect is covered under warranty. For detailed warranty policy, kindly refer to owner's manual provided with the vehicle.

KEYS STEP TOWARDS STARTEGIC PLAN

Mission:

To develop life time relationship with our customers by ensuring outstanding purchase experience and to provide safe, reliable and responsive after sales services.

Vision:

To achieve market leadership, to provide security to the company and its employees while maximizing return on investments of our shareholders

OBJECTIVE

the company's objective would to be to take its mission forward and become a global player. "Now we want to be a global player in every sense, from research and development and designing cars to manufacturing; we want to be among the best in the world,"  

CORE value

The leader in the Indian automobile industry, creating customer delight and shareholder wealth a pride of India.

We believe our core values drive us in every endeavour.

Goal

According to maruti vision statement its goals include maintaining leadership in the Indian automobile industry, creating customer delight, increasing shareholder wealth and being “a pride of India.” Customers have shown their approval, ranking Maruti high in customer satisfaction for six years in a row according to the J.D. Power Asia Pacific 2005 India Customer Satisfaction.

Strategies

A) TURNAROUND STRATEGIES MARUTI FOLLOWED

Maruti initiated strategic responses to cope with India’s liberalization process and began to redesign itself to face competition in the Indian market. Consultancy firms such as AT Kearney & McKinsey, together with an internationally reputed OD consultant, Dr. Athreya, have been consulted on modes of strategy and organization development during the redesign process. The redesign process saw Maruti complete a Rs. 4000 mn expansion project which increased the total production capacity to over 3,70,000 vehicles per annum. Maruti executed a plan to launch new models for different segments of the market. In its redesign plan, Maruti, launches a new model

every year, reduce production costs by achieving 85-90% indigenization for new models, revamp marketing by increasing the dealer network from 150 to 300 and focus on bulk institutional sales, bring down number of vendors and introduce competitive bidding. Together with the redesign plan, there has been a shift in business focus of Maruti. When Maruti commanded the largest market share, business focus was to “sell what we produce”. The earlier focus of the whole organization was "production, production and production" but now the focus has shifted to "marketing and customer focus

PROGRAMME

1981

Maruti udyog was incorporated under the provision of the Indian companies ACT156

The government of India selected Suzuki motor corporation as the joint venture partner .

1983

Maruti 800 a 796cc hatchback. India first affordable car launched. The company went into production in a record time of 13 months

1984

During a time when business was booming and people needed better ways to transport, maruti omini provided a great advantage it was very spacious, yet stylish enough to carry people too.

1985

India was evolving and so did the people maruti gypsy was India first off road vechicle and is still the best to do the raided himalaya

1987

In its bid to go international way back in 1987, maruti set its ist lot of 500 cars to hungary.

First lot of 500 car exported to hungary 1990

1992

Maruti become more important to Suzuki in the agenda for growth Suzuki motor corporation increase its stake in maruti to 50 per cent .

1993

One of India most favourite cars the maruti zen captured the imagination of people when it was launched. The 993 cc hatchback outlived its lifecycle by many years and still continue to be a favourite car of many.

1994

Esteem 1.3l (1298cc, 3 box car ) launched .1997

Maruti service master launched as model workshop in India achieved highest customer satisfaction index .

2000

Company reported a loss of rs 269 crores . JD power customer satisfaction award was given . Maruti alto was launched . First car company in India to launch a call centre .

2001

Turn around with profits rs 104.5 crore . Maruti versa was launched .

2003

Maruti get listed on BSE and NSE . New zen launched .

2004

A new esteem launched .2005

Swift launched first world strategic model from Suzuki motor corporation .2006

Launched DIL SE a special program for Indians living abroad to facilitate them to gift maruti cars online to friends and relatives back at home .

Maruti launched wagnar Duo with LPG kit . New Zen estilo launched in nov 2006 .

2007

Swift diesel lauched . SX4 luxury sedan launched with the tag line men are back . Maruti launched grand vitara . The comoany changed from maruti udyog limited to maruti Suzuki India limited.

2008

World premier of concept A star at 9th auto expo, new delhi. Maruti won car manufacture of the year . Alto crosses one million mark . Swift crosses the 25000 sale unit . Swift desire was launched . Launched of maruti800 LPG . MSIL launched fifth world strategic model A STAR .

KEY SUCCESS FACTORS

(1)The Quality Advantage

Maruti Suzuki owners experience fewer problems with their vehicles than any other car manufacturer in India (J.D. Power IQS Study 2004). The Alto was chosen No.1 in the premium compact car segment and the Esteem in the entry level mid - size car segment across 9 parameters.

(2)A Buying Experience Like No Other

Maruti Suzuki has a sales network of 307 state-of -the-art showrooms across 189 cities, with a workforce of over 6000 trained sales personnel to guide MUL customers in finding the right car.

(3)Quality Service Across 1036 Cities

In the J.D. Power CSI Study 2004, Maruti Suzuki scored the highest across all 7 parameters: least problems experienced with vehicle serviced, highest service quality, best in-service experience, best service delivery, best service advisor experience, most user-friendly service and best service initiation experience.

92% of Maruti Suzuki owners feel that work gets done right the first time during service. The J.D. Power CSI study 2004 also reveals that 97% of Maruti Suzuki owners would probably recommend the same make of vehicle, while 90% owners would probably repurchase the same make of vehicle.

(4)One Stop Shop

At Maruti Suzuki, customers will find all car related needs met under one roof. Whether it is easy finance, insurance, fleet management services, exchange- Maruti Suzuki is set to provide a single-window solution for all car related needs.

(5) The Low Cost Maintenance Advantage

The acquisition cost is unfortunately not the only cost customers face when buying a car. Although a car may be affordable to buy, it may not necessarily be affordable to maintain, as some of its regularly used spare parts may be priced quite steeply. Not so in the case of a Maruti Suzuki. It is in the economy segment that the affordability of spares is most competitive, and it is here where Maruti Suzuki shines.

(6)Lowest Cost of Ownership

The highest satisfaction ratings with regard to cost of ownership among all models are all Maruti Suzuki vehicles: Zen, Wagon R, Esteem, Maruti 800, Alto and Omni.

(7) Technological Advantage

It has introduced the superior 16 * 4 Hypertech engines across the entire Maruti Suzuki range. This new technology harnesses the power of a brainy 16-bit computer to a fuel-efficient 4-valve engine to create optimum engine delivery. This means every Maruti Suzuki owner gets the ideal combination of power and performance from his car.

External Factors

Internal Factors

Strengths Weaknesses

Opportunities

Established distribution and after

sales network

Understanding of the Indian

market and ability to liaison with

the government

Ability to design products with

differentiating features

Brand image

Experience and know how in

technology

Increase purchasing power of

Indian middle class category

Government subsidiary

Tax benefit

Foreign collaboration

Threats

Lack of experience with the foreign market

In experience with foreign

workforce

Heavy import tariff s

Threats from Chinese

manufactures

Indian as well as foreign

competitors

KEYS TO BUSINESS STRATEGIES ( i.e. SWOT analysis )

Swot analysis of maruti :

STRENGTH

Established distribution and after sales network Understanding of the Indian market and ability to liaison with the government Ability to design products with differentiating features Brand image Experience and know how in technology

WEAKNESS

Lack of experience with the foreign marke In experience with foreign workforce Heavy import tariff s

OPPORTUNITY

Increase purchasing power of Indian middle class category Government subsidiary Tax benefit Foreign collaboration

THREATS

Threats from Chinese manufactures Indian as well as foreign competitors

BCG matrix

BCG matrix was develop by bruce hendersen in 1970 to help organization and with analyzing their business unit or product line.

BCG product are identify as

Question mark - quadrant I

Stars - quadrants II

Cash Cow - quadrants III

DOGS - quadrants IV

BCG MATRIX of MARUTI SUZUKI

Question mark - there are also called as wild cats that are new product with potential for success but there cash needs are high and cash generation is low. In auto industry of maruti SX4, Grand Vitara , Astar there has been improve the organization reputation

Stars

SWIFT

SWIFT DESIRE ZEN ESTILO

Question mark

GRAND VITARA A STAR

Cows

ALTO WAGNOR

Maruti 800

Dogs

Baleno Omini Versa

as they want become sucessful not only in the indian market but as well as in global market. Thus they adopt strategies such as harvest, divest , or drop.

STARS - The organization has long run opportunity for growth and profitability. They have high relative market share and high growth rate. Swift, Swift dezire, Zen estlio are the fast growing and have potential to gain substantial profit in the market. strategies adopted are integration take over and amalgamation.

CASH COW - it has high relative market share but compete in low growth rate as they generate cash in excess of their needs.Maruti800, ALTO and WAGNOR have fallen to lader 3 & 4 due to introduction of ZEN ESTILO and A STAR. Strategies try to maintain market dominance and leadership in the market and use excess cash and try to satisfy the needs of middle class people

DOGS – The dogs have no market share and do not have potential to bring in much cash. , Baleno, Omini, Versa there business have liquidated and trim down thus the startgies adopted are that are harvest, divest and drop.

PRODUCT LIFECYCLE

The product life cycle goes through many phases, involves many professional disciplines, and requires many skills, tools and processes. Product life cycle (PLC) has to do with the life of a product in the market with respect to business/commercial costs and sales measures

To say that a product has a life cycle is to assert four things: 1) that products

have a limited life, 2) product sales pass through distinct stages, each posing different challenges, opportunities, and problems to the seller, 3) profits rise and fall at different stages of product life cycle, and 4) products require different marketing, financial, manufacturing, purchasing, and human resource strategies in each life cycle stage.

The different stages in a product life cycle of BAJAJ AUTO are as follows

INTRODUCTION STAGE :

In the introduction stage, the firm seeks to build product awareness and develop a market for the product. The product of Baja auto in this stage are SX4 Grand vitara& Astar these product are introduce newly to the market and have a potential for cash generation .

GROWTH STAGE :

In the growth stage, the firm seeks to build brand preference and increase the market share. Bajaj auto products in this stage are swift & swift desire Zen estilo they have high demand in market and they provide good return to the company

MATURITY STAGE :

AT maturity, the strong growth in sale diminishes. Competition may appear with similar product. The primary objective at this point is to defend market share while maximizing the profit. Bajaj auto product in this stage are MAruti 800, Alto & wagnor there is low growth of this product due to low level of innovation. There is a price reduction due to increase in competition thus profit is decline

DECLINE STAGE :

omini ,versa, baleno market get new substitute product and new technologies thus the demand goes down in these stage thus the company can plan following strategies such as turnaround divest etc. here are profit very low and the product remain un change.

GE MATRIX

The GE matrix is an alternative technique used in brand marketing and product management to help a company decide what product(s) to add to its product portfolio, and which market opportunities are worthy of continued investment. Also known as the 'Directional Policy Matrix,' the GE multi-factor model was first developed by General Electric in the 1970s.

Strong medium weakness

strong

medium

weakness

The nine cells G>E Matrix are groome grouped on the basis of Low-High industry attractiveness and weak to strong business or competitive position.

Zones are made each indicating different combinations that are as follows

1.The upper left corner indicate strong SBU’s i.e Swift, dezire& Alto in which the company should invest or grow with strategic decisions such as market development or expansion.

2.the diagonals cells stretching from lower left to upper-right indicate SBU’s that are A star,SX4 & Grand Vitara Medium in overall attractiveness indicating hold and maintain current strategies.

SWIFT

ALTO

A STAR

SWIFT DEZIRE

SX4 BALENO

WAGNOR VERSA

OMINI

3.The 3 cells in the lower right corner indicate SBU’s that are low in overall attractiveness that are baleno, omini, versa indicating retrenchment strategies of divestment and closure adopting turnaround strategies.

7.s mckinsey model frame work

Hard skills

1.strategy

The direction and scope of company for a long term is called a strategy. MUL enjoyed a near-monopoly status, until the Government of India liberalized the economy in 1991.now, . MUL began to introduce new models, and upgrade its existing models in response to market demand. After their fall in market share they redesigned their strategies and through their parent company Suzuki they learned a lot.The organizational learning of Maruti was moderately successful, the cost was relatively inexpensive as Maruti had its strong Japanese practices to fall back upon. With the program of organizational re The confidence of our network partners in our capabilities is evident from the fact that majority of design, rationalization of cost and enhanced productivity our new showrooms & workshops are coming from existing dealers.

2 structure

The basic organization of the company entitles the structure of the organization. Post 1999, the market structure changed drastically. Just before this change, Maruti had wasted two crucial years (1996-1998) due to governmental interventions and negotiation with Suzuki of Japan about the break-up of the share holding pattern of the company. There was a change in leadership, Mr. Sato of Suzuki became the Chairman in June 1998, and the new Mr.J. Khatter was appointed as the new Joint MD. Khatter was a believer in consensus decision making and participative style of management.As a result of the internal turmoil and the changes in the external environment, Maruti faced a depleting market share, reducing profits, and increase in inventory levels, which it had not faced in the last 18 years.

3 System

The formal and informal procedure that govern the everyday activity covering from MIS. The plant had an open office system and practiced on-the-job training, quality circles, kaizen activities, teamwork and job- rotation. Near-total transparency was introduced in the decision making process. There were laid-down norms, principles and

procedures for group decision making. These practices were unheard of in other Indian organizations but they worked well in Maruti.

Soft skills

4.Skills:

The capabilities and competencies that exist within the company to do the best for the organization. teamwork and recognition that each employee’s future growth and prosperity is totally dependent on the company’s growth and prosperity (b) strict work discipline for individuals and the organization (c) constant efforts to increase the productivity of labor and capital (d) steady improvements in quality and reduction in costs.Even with the most stringent quality measures, complex machines like cars can sometimes malfunction. Just call our 24 Hour Maruti On-road Service (MOS) centre during an emergency and help will be on its way to you.

5.Shared value:

A value and belief of company that ultimate guide employee towards value behavior. Thus to implement simple procedures that improve satisfaction with the value of work performed and perceptions of the fairness and honesty of the dealer, such as greeting service customers quickly upon arrival and fully explaining charges and repairs.

6.Staff :

The co. people resources the way in which they are developed, trained and Motivated. . Maruti adopted the norm of wearing a uniform of the same color and quality of the fabric for all its employees thus giving an identity. All the employees ate in the same canteen. They commuted in the same buses without any discrimination in seating arrangements. Employees reported early in shifts so that there were no time loss in-between shifts

The Dealer Sales Executive, who is the first interaction medium with the Maruti customer when the customer walks in Maruti showroom, is trained on greeting etiquettes. Maruti has proper customer complain handling cell under the CRM department. The Maruti call center is another effort which brings Maruti closer to its customer.

7.Style

Leadership approach of top management and co.s approach entitles an organizations style towards the success of the company. Maruti’s style of management was essentially to follow Japanese management practices.

still remains the leader not only in terms of market share but also in customer satisfaction surveys - it has consistently topped J. D. Power quality surveys, including 2005.

"Quick service turnaround induces a feeling of convenience and comfort for customers, especially as life styles become more fast paced.

Corporate governance

In India, 'Corporate Governance' standards for listed companies are stipulated by Securities and Exchange Board of India ( SEBI) through a special provision- Clause 49 of the Listing Agreement.

As a conscious and vigilant organization, Maruti Suzuki had initiated good 'Corporate Governance' practices even before Clause 49 became applicable and these practices form an integral part of the company’s governance culture.

The Company strives to foster a corporate culture in which high standards of ethical behavior, individual accountability and transparent disclosure are ingrained in all its business dealings and shared by its Board of Directors, Management and Employees

The Company has established systems & procedures to ensure that its Board of Directors is well-informed and well-equipped to fulfill its overall responsibilities and to provide the management strategic direction it needs to create long-term shareholder value.

On its Board, the Company has four non-Executive- Independent Directors of high stature from varied backgrounds, who bring with them rich experience and high ethical standards.

In recent years, the Company has evolved a Control Self Assessment mechanism to evaluate the effectiveness of internal controls over financial reporting.

Key internal controls over financial reporting were identified and put to self assessment by control owners in the form of Self Assessment Questionnaires through a web based online tool called "Control Managers" .

With the successful implementation of the online Controls Self Assessment framework, the Company has become one of the few companies in India to have a transparent framework for evaluating the effectiveness of internal controls over financial reporting. The initiative further reinforces the commitment of the Company to adopt best corporate governance practices

Corporate governance and upholding the highest business standards in conducting business. Being a value-driven organization, the Company has always worked towards building trust with shareholders, employees, customers, suppliers and other stakeholders based on the principles of good corporate governance, viz., integrity, equity, transparency, fairness, disclosure, accountability and commitment to values. The Company fosters a culture in which high standards of ethical behavior, individual accountability and transparent disclosure are ingrained in all its business dealings and shared by its Board of Directors, Management and Employees. The Company has established systems and procedures to ensure that its Board of Directors is well-informed and well-equipped to fulfill its overall responsibilities and to provide the management with the strategic direction needed to create long-term shareholder value. The Company has a multi-tier management structure, comprising the Board of Directors at the top and followed by Managing Executive Officers, Executive Officers and Divisional Heads. Through this, it is ensured that:

CONCLUSION

The company's change in strategy and emphasis on developing effective marketing communications began to yield results. In the J.D. Power Asia Pacific 2004 India APEAL study, WagonR and Zen were ranked first and third in the premium compact segment; Esteem was picked as the best entry level car in the mid-size category.

MUL also topped the J.D. Power Asia Pacific 2005 India Sales Satisfaction Index in terms of customer satisfaction with the new vehicle sales process.

As per the J.D. Power Asia Pacific 2005 India Customer Satisfaction study , MUL ranked highest in customer satisfaction with after-sales service for the sixth consecutive year.

"Maruti's consistent performance in the study over the past several years has resulted in a steady increase in the percentage of its customers who say they intend to remain loyal to the brand," said Mohit Arora, India director, J.D. Power Asia Pacific...