Table of Contents Introduction 3 Maruti – Company Profile 3 Industry Analysis 4 Evolution 4 Current Scenario 4 Background of the Indian Automobile Industry 4 Research Objective 5 The Issues at Maruti 5 Analysis of the Issues 6 GAP Analysis 6 Process Flow Analysis 10 Porter’s 5 Forces analysis 11 Proposed Strategies and Reccommendations 11 Strategies to maintain Market Leadership 11 Perception change 11 Defensive Warfare Strategy 12 Platform Strategy 13 Modular Manufacturing System 14 Reccomendations to evolve out of the current issues 14 Labour issues – Bring in Industrial Democracy 14 Global Manufacturing locality 14 Reduce dependency on Entry-level Models 15 Others 15 Summary 15 References 16
Introduction
Maruti – Company Profile
Maruti Suzuki India Limited is a subsidiary company of Japanese automaker Suzuki Motor Corporation. It has been the leader of Indian car market for over two decades. Its manufacturing facilities are located at Gurgaon and Manesar with an installed capacity of 350000 units per annum and 100000 units per annum respectively. Both its plants Manesar and Gurgaon, account for half of Suzuki’s worldwide output and Maruti Suzuki owns a 50% share of the Indian Car Market (2).
Suzuki Motor Corporation, the parent company, is a 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 Suzuki offers 12 models, Maruti 800, Omni, Alto, Versa, Gypsy, A Star, Wagon R, Zen Estilo, Swift, Swift Dzire, SX4, and Grand Vitara(2).
It was the first company in India to mass-produce and sell more
References: 1. CNBC TV 18, 2012. Business News. [Online] Available at: http://www.moneycontrol.com/news/business/maruti-sees-11-sales-fallfy12_660566.html [Accessed on 10 February 2012]. 2. Maruti Corporate website, 2012. [Online] Available at: http://www.marutisuzuki.com/maruti-cars-home.aspx [Accessed on 10 February 2012]. 3. The Economic Times, 2012. Maruti labour unrest spoils Suzuki Motor Corp 's 11-year track record. [Online] Available at: http://articles.economictimes.indiatimes.com/2012-02-03/news/31021283_1_manesar-maruti-suzuki-india-mayank-pareek [Accessed on 10 February 2012]. 4. Indbank Merchant Banking Services Ltd, November 04, 2011. Maruti Suzuki India Ltd. 5. Winning in the Marketplace, 2nd Edition by Thompson, Gamble and Strickland, Globalizing Volkswagen Pg C-449 6. Local Brand Vs Global Brand Syndrome, A Study with Reference to Indian Car Industry by I Natarajan P. and Thiripurasundari U. Dept. of Commerce, School of Management. Pondicherry University 7. The Indian Mid-Segment Passenger Car Industry, Nitin Gupta and Vaibhav Shekhar 8. Tom Hawes, 15-04-2009. Competitive Intelligence, Early Warning.