Presenter

Haseeb ullahMBA 5th

5801

Suzuki Motor Corporation, Pakistan

Contents

• Introduction

• Vision & Mission

• Objectives & Goals

• Marketing Mix

• Market Segmentation

Introduction

• Pak Suzuki Motor Corporation Limited (PSMSL) was found in August 1983 after a joint venture between Pakistan Automobile Corporation Limited and Suzuki Motor Company, Japan.

• The company’s new plant exists in Bin Qasim and was inaugurated 1989 by the Pakistan then Prime Minister Banazir Bhutto

Vision & Mission

• Vision

• To be excellent all around

• Mission

• To provide automobile of international quality at competitive price

• To improve skills of valued employees by imparting training and inculcating them a sense of participation

• To make valuable contribution to social development of Pakistan through development of industry in general and automobile industry in particular.

Objectives & Goals

1. Maximize market share by producing more cars per year2. Develop more efficient and innovative engines which give comparative advantage3. Use efficient CNG system4. Focus on looks and design of exterior to compete with Honda and Toyota5. Fund and establish technical institutes to gain more skilled workforce from local

market6. Maintain quality in affordable price will help to compete with direct competitors

and used imported cars

Market Segmentation

External Factors Evaluation Matrix (EFE)

OPPORTUNITIES Weight Ratings Weighted Score

1. Increasing Demand for Cars 0.15 4 0.60

2. Efficient EFI Engines 0.10 3 0.30

3. Large Market to operate 0.10 3 0.30

4. Global spare parts market 0.05 2 0.10

5. Small size CNG Cylinders 0.12 3 0.36

THREATS

1. Tough Competitors like Toyota and Honda 0.14 2 0.28

2. Inflation Rate 0.08 3 0.24

3. Heavy Taxes 0.08 3 0.24

4. Cheaper Imported Cars 0.10 4 0.40

5. Increase in Fuel Prices 0.08 2 0.16

Total Weighted Score 1.0 2.98

Internal Factors Evaluation Matrix

(IFE)

STRENGTHS Weight Ratings Weighted Score

1. Highest Market Share 0.20 4 0.80

2. Low Price Vehicles 0.10 4 0.40

3. Large Distribution Channels 0.12 4 0.48

4. Easy availability of spare parts 0.08 4 0.32

5. Highly Innovative and deep product line 0.12 4 0.48

WEAKNESSES

1. Scarcity of raw material 0.08 2 0.16

2. Lack of coordination and linkage with Govt.

bodies

0.05 2 0.10

3. Less focus on Looks and design 0.10 1 0.10

4. Less Technical Training Institutes 0.05 1 0.05

5. Less distribution channels in sub urban areas 0.10 1 0.10

Total Weighted Score 1.0 2.99

SWOT Matrix

Strength Weaknesses

•Highest Market Share

•Low Price Vehicles

•Large Distribution Channel

•Easy availability of spare parts

•Scarcity of Raw Materials

•Less focus on Looks and design

•Less Technical Training Institutes

•Less distribution channels in sub-urban areas

Opportunities Threats

•Increasing Demand for cars

•Large Market to Operate

•Small Size CNG Cylinder

•Global Spare Parts Market

•Tough Competition

•Inflation Rate

•Heavy Taxes

•Cheapest Imported Cars

•Strengths •Weaknesses

SWOT/TOWS Matrix

•Highest Market Share

•Low Prices Vehicle

•Large Distribution Channel

•Spare Parts Easily Available

•Scarcity of Raw Material

•Less Focus on New Design

•Less Technical Training Ins

•Less Distribution Channel in Sub-

Urban Areas

•Opportunities •S-O Strategies •W-O Strategies

•Increasing Demand for Cars

•Large Market to Operate

•Small Size CNG Cylinder

•Global Spare Parts Market

•Maximize market share by

producing more cars per year

(S1,S2,O1,O4)

•Develop more efficient and

innovative Engine which gives

comparative advantage (S4,O2)

•Use efficient CNG systems

(S4,S5,O4)

•Focus on Looks and Design to compete

with Honda and Toyota (W3,O1,O3)

•Fund and establish technical institutes to

gain more skilled workforce (W4,O3,O1)

•Threats •S-T Strategies •W-T Strategies

•Tough Competition

•Inflation Rate

•Heavy Taxes

•Cheapest Imported Cars

•Maintain quality in affordable price

will help to compete with

competitors and imported cars

(S2,S4,T1,T4)

•Develop fuel efficient engines to

gain edge and eliminate threat of fuel

prices increase (S4,S5,T5,T2)

•Enhance distribution to avoid threat from

second hand imported cars (W5,T4)

Suggested Strategies By SWOTProduct Development

Market Development

Forward Integration

Backward Integration

BCG Matrix

Stars

Question Mark

Cash Cows

Dogs

High

Low

High Low

Alto

Cultus

Jimmy

Mehran

Ravi

Liana

APV

Bolan

Market

Growth

Market

Share

SWIF

T

JIMMY

ALTO

CULTUS

MEHRAN

RAVI

LIANA

APV

BOLAN

Suggested Strategies by BCG

Market DevelopmentConcentric Diversification

Integration both Forward and Backward

SPACE Matrix

Financial Position (FP)

• Return on Investment +5

• Working Capital +6

• Leverage +6

• Cash Flow +3

• Working Capital +4

• Liquidity +5

FP Average 4.8

Environmental Stability (ES)

• Technological Changes -2

• Rate of Inflation -2.5

• Demand Variability -2

• Price Range of Competing Firms -2

• Barriers to Entry -2

• Competitive Pressure -1

• Price Elasticity of Demand -1

• Ease of Exit from the Market -1

• Risk Involved in in Business -2

ES Average 1.72

SPACE Matrix………….Contd

Competitive Advantage (CA)

• Market Share -1

• Product Quality -2

• Product Life Cycle -2.5

• Customer Loyalty -2

• Technological Know How -2

• Control Over Suppliers and Distributors -2

CA Average -1.91

Industry Strength (IS)

• Growth Potential +6

• Financial Stability +5

• Ease of Entry to the Market +3

• Resource Utilization +4

• Profit Potential +5

IS Average 4.6

Suggested Strategies by SPACE Matrix

Market DevelopmentHorizontal Diversification

Market Penetration

CPM Matrix

Firm's Name Suzuki Toyota Honda

Critical Success Factors Weight Rating Score Rating Score Rating Score

Market Share 0.14 5 0.7 4 0.56 3 0.42

Brand Reputation 0.10 4.5 0.45 5 0.50 4 0.4

Financial Position 0.12 5 0.6 4.5 0.54 4 0.48

Parent Company Support 0.08 4.7 0.37 4 0.32 4 0.32

Low Cost Structure 0.09 4.8 0.43 4.2 0.37 4 0.36

Location of Facilities 0.11 4 0.44 4.9 0.53 4.5 0.49

R & D 0.13 5 0.65 3 0.39 4 0.52

Suppliers 0.07 4.5 0.31 4 0.28 3.8 0.26

Distributors 0.08 4.5 0.36 4.2 0.33 4 0.32

Total 1.00 4.31 3.82 3.57

Suggested Strategies by CPMMarket Penetration

Product Development

General Electric (GE) Model

Market Attractiveness

• Market Share

• R & D

• Market Growth Rate

• Impact of Technology, Energy

• Environmental Impact

• The Nature of Competition, and its

Intensity

Strengths of the SBU

• Sale

• Margin

• Demand

• Brand Image

• Market Share

• Quality

• Product Innovation

High Medium Low

High

Medium

Low

Strategic Business Unit

Mar

ket

Att

ract

ive

nes

s

33%

Suggested Strategies by GE ModelMarket Development

Market Penetration

Summary of the Strategies

S/NO Type of Strategy TOWS BCG SPACE CPM GE Total

1 Product Development 1 1 2

2 Market Development 1 1 1 1 4

3 Market Penetration 1 1 1 3

4 Concentric Diversification 1 1

5 Backward Integration 1 1 2

QSPM Matrix Fixed Positive

Internal Factors Weight PD MD MP CD BI

Market Share 4 3 4 3.5 2 2.4

Low Price 4 3.8 4 3 3 4

Distribution Channel 4 2.3 3.5 4 4 3.2

Scarce Raw Material 4 4 3.8 3 2 2

Less Focus on Design 4 2 4 4 2.2 3

Technical Training 4 3 3.5 3.2 3.1 4

Less Distribution Channel 4 2 4 4 2 1

External Factors 4 1 3.9 3.5 1 3

Incremental Demand 4 2.2 4 3.6 2.4 2

Market to Operate 4 4 4 4 2 3

Small Size CNG Cylinder 4 2.2 3.7 3.2 1.5 1.8

Global Spare Parts Market 4 2.4 3.4 3.2 3 3

Tough Competition 4 4 4 4 2 3

Inflation Rate 4 2 3.5 3.4 2.1 2.6

Heavy Taxes 4 2 4 3 3 4

Cheap Imported Cars 4 3 4 4 2 3

Total 40.9 61.3 56.6 35.3 45

QSPM Matrix Fixed Negative

Internal Factors Weight PD MD MP CD BI

Market Share 4 1 0 0.5 2 1.6

Low Price 4 .20 0 1 1 0

Distribution Channel 4 1.7 0.5 0 0 .8

Scarce Raw Material 4 0 0.2 1 2 2

Less Focus on Design 4 2 0 0 1.8 1

Technical Training 4 1 0.5 0.8 0.9 0

Less Distribution Channel 4 2 0 0 2 3

External Factors 4 3 0.1 0.5 3 1

Incremental Demand 4 1.8 0 0.4 1.6 2

Market to Operate 4 0 0 0 2 1

Small Size CNG Cylinder 4 1.8 0.3 0.8 2.5 2.2

Global Spare Parts Market 4 1.6 0.6 0.8 1 1

Tough Competition 4 0 0 0 2 1

Inflation Rate 4 2 0.5 0.6 1.9 1.4

Heavy Taxes 4 2 0 1 1 0

Cheap Imported Cars 4 1 0 0 2 1

Total 19.3 2.7 7.4 26.7 19

QSPM Variation Method Positive Market Development Market Penetration

External Factors Weight Attractive

Score Total

Attractive

Score Total

Increasing Demand for Cars 0.10 4 0.40 4 0.40

Efficient EFI engines 0.06 4 0.24 4 0.24

Large Market to operate 0.08 4 0.32 4 0.32

Global Spare parts market 0.04 3 0.12 2 0.08

Tough competitors 0.08 4 0.32 2 0.16

Inflation 0.06 3 0.18 1 0.06

Cheaper Imported cars 0.08 4 0.32 4 0.32

Increase in fuel prices 0.10 4 0.40 4 0.40

Internal Factors

Highest Market share 0.08 3 0.24 4 0.32

Low price vehicles 0.10 4 0.40 4 0.40

Large distribution channel 0.06 3 0.18 3 0.18

Easy availability of spare parts 0.02 3 0.06 3 0.06

Innovative and deep product line 0.06 4 0.24 3 0.18

Less focus on style and design 0.04 4 0.16 4 0.16

Scarcity of human resource 0.04 3 0.12 4 0.16

Totals 1.0 3.7 3.44