Executive Summary:
The report gives a detailed strategic analysis of Maruti Suzuki India Ltd. Maruti Suzuki has started in India as Maruti Udyog Ltd aimed at giving India the low end passenger cars. With involvement of Suzuki motors in Maruti, it has excelled its manufacturing capacity and coming up with more variants of Passenger Cars. As part of the Project, we have analyzed the company’s evolution and major milestones and changes in its developing and delivering process. We have analyzed its value creation elements through value chain analysis. Also the market competitors, the driving forces in the industry with the application of Porters Five Force Model has been analyzed. With the detailed study on Competitors key areas, the market share of MSIL has been studied along with its internal financial status. We used Prowess database for the industry and internal financial analysis.
Using the above information, the capabilities & competencies of Maruti have been studied with led through relating the strategy of Maruti Suzuki. Using the business level strategy and its core competencies and the industry related changes in several areas, we came up with few strategic recommendation on where and how Maruti Suzuki can focus its business upon.
Company Background:
Maruti Suzuki India Limited is an Indian car manufacturing company which formed an alliance with Japanese car maker Suzuki Motor Corporation. Maruti Suzuki India Limited also referred as the people’s car maker over the last thirty years, they have changed the face of the car industry in India. Maruti Suzuki India Limited first started out as Maruti Udyog Limited by nationalizing Maruti motors limited in 1981. A joint venture and license agreement was signed between Maruti udyog ...
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...jective of MSIL includes providing wide variety of cars to its customers that reduces the cost of customer ownership, and anticipation and addressing their needs and preferences.
• MSIL focused on providing upgraded models at lower price through its price cutting strategies.
• MSIL has initiated the promotion of business in pre-owned cars, lease and fleet management, and Insurance services.
Service • MSIL ensured proper after sale service by maintaining 2800 workshops, 30 express service stations.
• There are around 2000 Maruti authorized service stations. In addition, it offered 24-hours mobile service under the brand ‘Maruti On-Road service’.
• Maruti has been awarded with J D Power Customer Satisfaction Award for a staggering 13 years in a row.
• It started the initiative of “Anytime Maruti” with a toll free number for addressing the complaints of the customers.
There are many ways in which Harley-Davidson can improve its operations, all of which can be found through conducting a thorough analysis of the strengths, weaknesses, opportunities, and threats the company is presently facing. The executives of Harley-Davidson considered the company’s internal strengths and weaknesses by completing an internal factor analysis summary (IFAS). Next, the external opportunities and threats were analyzed by completing an external factor analysis summary (EFAS). The analysis of these two summaries in turn produced the viable strategic alternatives outlined in the company’s strategic factor analysis summary (SFAS). The resources, capabilities and diverse leadership team of Harley-Davidson have provided the foundation for the company’s continuing ability to be both versatile in its product offerings as well as adaptive to consumer desires. The strategies of adjusting pricing, refocusing the company’s corporate culture and targeting a new consumer market will assist the company in fine tuning its operations over the next several years to ensure Harley-Davidson maintains its position as the leader in the motorcycle industry.
So the discussion on internal and external analysis clearly defines that where the competitive advantage of Ford Motors is and where it is lacking. People who have durability as their first priority will go for Ford but they lack in some of their strategies which the management should consider and work on it. We also came to know that Ford is an innovative company from the very first and also serves local demands with the help of related and supporting industry. But in some points they have taken wrong decisions which compel them to sell some of their brands to others. The good news is they are doing hard job to maintain their performance regarding their star and cash cow products to remain in the competition.
This is background information that gives light to the issues at hand. Exploratory research will clarify problems that will be the foundation for the next step in research design. Another answer to be determined would be what attitudes are strongly associated with purchase intentions of different automobile models. Relationships will vary around the country and knowledge of whether it is definable in certain market segments, and why, is necessary background information. This is so priorities can be identified to prevent misunderstanding of the information to be
The F&I office is an indispensable part of the automobile dealerships. It usually brings in a large proportion of the dealerships profits and in several cases nearly all of the dealership profits. Ironically, the interest rate float and credit insurance no longer provide the majority of the revenue earned by the F&I office at automotive dealerships. Since the late 1970s, a majority of F&I revenues have come from products such as VSC, GAP, Prepaid Maintenance, Appearance Protection, etc. Although a vast majority of the F&I products are still sold at automotive dealerships, other sales channels such as credit unions, direct marketing (call centers plus mail solici...
For assessing the industry profitability, Porter 5 Forces analysis tools were used to analyze one organization evaluation. In this case, the technique were used to analyze 7-Eleven Convenience Store specifically in Malaysia. Porter 5 Forces consists of 5 important area which is Threat of New Entrants, Bargaining Power of customers, Threat of substitute Products and services, Bargaining Power of suppliers, and competitive rivalry within the industry. Theoretically, the more powerful these forces in an industry, the lower its profit potential. The strength of each force differs by industry and changes over time. The competitive advantage that 7-Eleven has using these five forces is it has raised the barrier of entry for other competitors to enter the convenience store market as new competitors will require a huge capital investment in order to implement the information technology in their business in order to be competitive. Also, hypothetically being the first in the market, 7-Eleven could have made contracts with the Malaysia government to not allow other 24-hour convenience stores in the market for a certain time period, such as Astro had done, thus having a monopoly market in the beginning of their operations which will allow them to target a bigger market share.
In a world of free trade, growing competition and accessibility to foreign markets, the need for methodical market analysis and assumptions is steadily rising in today’s business environment. It is just a normal way of thinking to primarily intent to eliminate the financial before entering a new and foreign market. This suggests that enterprises have to develop an overall strategy for their business in order to gain competitive advantage and consequently market share. With the words of Michael E. Porter, professor at Harvard University and leading authority on competitive strategy, this desirable market success is indirectly linked to the individual structure of a market. The unique structure of a single market influences the strategic behaviour and the development of a competitive strategy within a firm. The competitive strategy finally decides whether a company performs successfully on the market or not. Referring to this interpretation of business success, M. E. Porter established his five forces framework that enables directives to gather useful information about the business environment and the competitive forces in industries.
Strategic management Toyota case study. 2013. Strategic management Toyota case study. [ONLINE] Available at: http://www.slideshare.net/ArioArdianto/strategic-management-toyota-case-study-27410014. [Accessed 15 December 2013].
The view from Tata motors perspective would be more central to seek out companies with more business plans and The company has a long term benefit like access to market knowledge and the development of firm presence on the new market and advantage would be that it limits the possibility of technology or knowledge transfer. Market commitment and Decision understand the requirement of a new market also the decision and implementation concerning foreign investment are made incrementally due to market uncertainty. The company have different approaches and implementation which are seen in the background and has different prior knowledge acquisition (Johanson & Vahlne,1977, p.34).Tata motors have understood that the arrangement was based on its acquired about the market and industry dynamics. Consequently the company had to have the commitment to allow constraint in the case of its freedom with the supplier and surrounded technology. Current activities is somewhat fascinating on how precisely the crucial of Tata motors are consistent with Uppsala theory and the result was Tata motors acquisition and in the longer terms is to move up in the value chain as much as possible, with the
Market Segmentation, Positioning and targeting for BMW 1.1 Introduction This report aims to examine the market segmentation, positioning and targeting of BMW (automobile company). BMW will be examined giving information about the company and where it is now and any recommendations that we feel are appropriate. 1.2 BMW Company Profile BMW was formed in 1917, from the merger of two small aero engine makers. Their famous blue and white symbol stems from the colours of the Bavarian Luftwaffe and is said to resemble the view of the one of their plane through a propeller. BMW is renowned for its sporty, sophisticated & luxury image which has been built up since the 1970's with many motor sport victories ranging from Touring Car to Formula 1.
In 1944, Kia Motors Corporation of Seoul, Korea, was founded as a manufacturer of steel and bicycle parts (Kia.com). During the early1950’s, the company changed its name officially to Kia Industries and began production of Korea’s first bicycle (Kia.com). In 1957 Kia began producing Korean’s first motor scooter, the C-100 (Kia.com). Korea’s first truck, the K-130 was introduced in 1962 (Kia.com). In 1971, the Titan, a 4-wheel cargo truck was produced (Kia.com).
Installed systems inside vehicles have become a process of differentiation to understand customers looking for cars with more than just the ability to transport people from one point to another. Introducing of information systems inside vehicles has enabled manufacturers to provide their customers with extra functionality, by means of improving the desirability of the the product towards satisfying customers and at the same time enabling new business style and models through the supplying of efficient services to customers. And this changes the existence of competition in the automobile industry
Introduction: Toyota Motor Corporation is a very successful automobile manufacturer that is recognized globally. They have continued to obtain and retain a competitive advantage over their counterparts, despite recalls over many years. Regardless of recalls, Toyota has been quick to rectify their shortcomings and continue to lead the automotive industry with their innovative measures. In this essay, I will discuss key internal factors for Toyota. Within those factors will include Toyota’s core competencies, which are what they do really well in comparison to their competition, three of their strength’s, which will include their posture within the automobile market and their heavy focus on research and development, and two of their weaknesses.
Pak Suzuki Motors Company Ltd. is known for assembling and distributing Suzuki Japan's automobiles in Pakistan. It has captured the market of Pakistan very quickly because of its low cost strategy. In 1983 the firm was built as an alliance with PAK and Suzuki. Initially Suzuki has almost 25% of the common stocks and they have expanded it rapidly and own 73.09%. Despite it accumulates a far reaching variety of Suzuki vehicles and has target to produce 150, 000 vehicles for every year. Pak Suzuki has the best distribution channel in Pakistan integrated with CRM software.
AutoEdge is facing crisis since millions of its automobiles has had to be recalled due to product quality issues. Many things should be considered in order to implement a proactive response to rectify the situation. As the research analysis, I have been tasked will helping to rebuild AutoEdge’s reputation as well as to reduce and control operating costs. When making any decision on implementing change within the organization market analysis must look at the market structure of the organization. Market structure is made up of the relationship that exists between buyers, sellers, competition, product differentiation, and ease of entry into and exit from the market. The article “Review of Market Structure” (n.d.) defines market structure as the “microeconomic characteristics of different markets” and include such elements as competition level, high versus low entry barriers, and scale (Review of Market Structure, n.d.) To make the decision the decision to relocate, AutoEdge must analysis and evaluate of market structure. This report will discuss the four different types of market structures: monopoly, oligopoly, monopolistic competition, and pure competition. Additionally, it will outline the type of market structure AutoEdge fits into, how that market structure impacts the level of competition, elasticity of demand, price, and position in the industry.
The purpose of this essay is to provide a complete analysis of BMW Group. First, some background information about the company will be provided for a better comprehension of this study. Next, BMW will be assessed from a microeconomic point of view: its demand curve, organisational structure, customers, suppliers, strengths, weaknesses and its operating environment. Then, this firm will be reviewed in context of its sector from a macroeconomic perspective and more specifically its market environment, followed by a PEST analysis of other external factors such as GDP, interest rate, cost of raw materials. This study will be further quantified by a ratio analysis in order to evaluate BMW’s financial health. In the end you can find a conclusion and also a bibliography, which can be used as further reading material.