Prepared by: Kehar Singh (BLR1107039053) Dinesh (BLR1107039027)

To: Mr. Nirmaalya B Biswas

Table Contents
Sr No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Topic Executive Summary Introduction About the company SWOT Analysis Critical Success factors Competitive Advantage PESTAL Analysis Porter 5 forces Industry Life Cycle Market Analysis External Factor Evaluation (EFE Matrix) Competitive Profile Matrix Internal Factor Evaluation (IFE Matrix) Quantative Strategic Planning Matrix BCG Matrix TOWS Matrix Conclusion Bibliography Page No 3 3 3 4 5 5 6 6 7 8 9 10 12 13 15 16 17 17

Executive Summary: - Maruti Suzuki is a car manufacturing company in India and

internationally. Maruti Suzuki is the joint venture between Maruti Udyog and Suzuki which is a Japanese automobile manufacturing company. In this report we studied and analysis the internal and external environment. We have studied SWOT & TOWS analysis of Maruti Suzuki. There is some critical success factor which is important for every company. Maruti Suzuki also has some critical success full factor which makes company success full we have studied all these critical success factors. In this report we have studied Company PESTAL analysis, market analysis, Porter five forces, and industry analysis. Market share and profit is very important for every company in market analysis we have analysis the market share with the competitors. According to the competitive matrix Maruti Suzuki having the more market share and profit in the market in compression of competitors. We have studied and analysis in BCG matrix where this company come and which product come there are four step Question marks, Star. Cash Cow, Dog. Maruti Suzuki have different product in different step in the BCG matrix. So we can say that Maruti Suzuki is good company and growing fast. Maruti Suzuki is getting maximum profit and market share in the economy.

Introduction:Maruti Suzuki India limited is a secondary company of Japanese automobile and motorcycle manufacturer Suzuki. The company manufactures complete range of cars and bikes like in starting Maruti offers Maruti 800, Alto, Ritz, A-Star, swift, Wagon-R, Estillo and Sports Utility vehicle Grand Vitara etc. Maruti Udyog Limited Company establish in 1981. The headquarters of Maruti udyog Limited is in New Delhi in India. Shinzo Nakanishi is the Managing Director and CEO of Maruti Udyog Limited. It was the first company to sell millions cars and mass production in India.

Vision & Core Values:The leader in the India Automobile Industry, Creating Customer Delight and shareholders Wealth, a Pride of India. Creativity and Innovation Good Networking and partnership Openness & learning Fast, Flexible & First Mover

Mission:To provide maximum value for money to their customers through continuous improvement of products and services.

Objective & Goals: Good Customers relations Provide Good quality product and services Become a global leader in automobile

SWOT Analysis:Opportunities:
Distribution network is well established Indian markets are well analyzed and understood Capability to devise products with differentiating features Brand image is well established They have experience and are updated with the technology

Threats:
Second hand cars are the competition Threats from Chinese car production units Stiff competition from local and other country players There is a rise in the customers expectations Raw material rising cost

Strength:
Improved purchasing capacity of Indian Middle class category Government tax benefits There is low labor cost Monetary assistance is provided by the government There is a huge potential market

Weakness:
Low experience with foreign market Poor infrastructure Comparatively new to diesel car making unit Investments are low in the research and development Low in production

Key success factors:a) Technology b) Research & Developing, Innovating, Applying new features and Japanese collaboration. Internationally well known for small cars. Introducing of world class best Quality cars

ManufacturingManufacture Excellence have around four bases there are i. Cost:- Cost manager is controls the cost of product ii. Quality:-Production of cars with good Quality, Without any complaints. Different models are designing for Indian market. Cost leadership in the market due to efficient value chain and manufacturing plants.

c) Distributions Companys vast dealership network. From outlets increased to 600 car sales. Largest organized pre-owned car sales network in India. Entry level with Maruti 800, Alto to stylish hatchback A-Star etc. Advertisement is totally to the need of Indian culture.

d) Marketing-

e) Skills and Capability

Service network had many outlets including dealer workshop as well as Maruti authorized service stations covering 1220 cities.

Competitive Advantages:A. Dealer network across the country :

Dealership can do service customer. 500 sales outlets that covers 312cities. Customer can resale their car to company like exchange with getting new Maruti car.

B. True value operations: C. Presence across segments:

Different manufacturing models a presence across various segments.

External Analysis:PESTEL Analysis: Political Factor:

Government concessions Government regulation and support Suzuki holding 54.2% Maruti made IPO New player entry 6.8 Millions population annual income is greater than 12 Lakh life style differences in urban India Technological transfer Development of new models change in environmental R&D Activity Relatively high import duties Indian automotive regulations are closely aligned to world standards on emission & safety. Proximity to major export markets

Economic Factor:

Social factor: Technological factor:

Legal Factor:

Environmental Analysis:

Porter 5 Force Analysis: Threat of new Entrants:

Result: Unfavorable

The bargaining power of buyers/customers:

Result: Unfavorable

The threat of substitute products:

Result: Unfavorable

The bargaining power suppliers have:

Result: unfavorable

The rivalry among competitors:

Result: unfavorable 6

Corporate Governance:
It has good corporate governance. They worked towards develop the trust with shareholders, suppliers, customers, employees based on the integrity, principles of good corporate governance, transparency, fairness, disclosure, Accountability and commitment to values.

CSR:

It is serves corporate social responsibility, Road safety Vocational training

Industry life Cycle:- In the Industry life cycle Maruti Suzuki stands at the Growth stage.

Maruti Suzuki

Market Analysis:Leader of Indian Automobile Market shares are followings A) Maruti Udyog Limited (35%) B) Tata Motors (22%) C) Hyundai Motors (15%) D) Mahindra & Mahindra (10%) E) Toyota (10%) F) Others (8%)

Indian Automobile Market Share(%)

8% 10% 35% 10% Maruti Udyog TATA Moters Hyundai Mahindra & Mahindra Toyota 15% 22% Others

Net Sales & Profit:-

Net Sales Rs millions

400,000 300,000 200,000 100,000 0 2006-07 2007-08 2008-09 2009-10 2010-11 145,922 178,603 203,583 Net Sales 289,585 361,282

Profit Rs Millions
30,000 25,000 20,000 15,000 10,000 5,000 0 24,976 15,620 17,308 12,187 Profit Rs Millions 22,886

2006-07

2007-08

2008-09

2009-10

2010-11

According to the bar chart Maruti Suzuki has a highest net sales in the year 2010-11 the data shows it has earned Rs 361,282 Million and total profit in the year of 2010-11 is 22,886 Million so company is growing fast and getting highest profit.

Source: - http://www.marutisuzuki.com/company-at-a-glance.aspx EFE Matrix (External Factor Evaluation):-

OPPURTUNITY Distribution network is well established Indian markets are well analyzed and understood capability to devise products with differentiating features Brand image is well established They have experience and be updated with the technology THREATS

WEIGHT .11 .12

RATING 4 3

WEIGHTED SCORE .44 .36

.1

.2

.08 .16

4 3

.32 .48

WEIGHT

RATING

WEIGHTED SCORE .1 .15

Second hand cars are the competition Threats from Chinese car production units Stiff competition from local and other country players There is a rise in the customers expectations Raw material rising cost

.1 .05

1 3

.08

.16

.05

.1

.15

.15

TOTAL WEIGHTED SCORE

= 1.00

2.46

Note: Poor = 1, below average = 2, Average = 3, Superior = 4 9

The EFE Matrix being a method of strategic managing tools to evaluate the current business situation. The matrix reveals prioritize the opportunity and threats that organization is facing. The rating is given 14 in EFE Matrix where 1poor and 4 superior. The total weighted score is 2.46 its above the average line. So the organization is growing well in the market.

Competitive Profile Matrix:The Competitive Profile Matrix we have compares three companies Maruti Suzuki, TATA, Hyundai Maruti Suzuki Critical Success Factor Market Share Product Quality Management Financial Position Global Expansion Advertising Customer Service Price Competitiveness Customer Loyalty Sales Distribution Production Capacity Total Weight Rating .15 .15 .08 .08 .07 .05 .08 .12 .06 .07 .09 = 1.00 4 4 3 3 2 1 2 3 2 2 2 Score .6 .6 .24 .24 .14 .05 .16 .36 .12 .14 .18 2.83 TATA Weight Rating Score .18 .18 .05 .05 .10 .05 .06 .11 .09 .07 .06 = 1.00 4 4 2 2 2 2 3 1 1 1 3 .72 .72 .1 .1 .2 .1 .18 .11 .09 .07 .18 2.57 Hyundai Weight .13 .12 .11 .10 .12 .11 .10 .07 .06 .05 .03 = 1.00 Rating Score 3 3 2 1 2 1 1 2 1 1 1 .39 .39 .22 .1 .24 .11 .1 .14 .06 .05 .03 1.83

Note: The ratings are Major Strength = 4, Minor Strength = 3, Minor weakness = 2, Major weakness = 1. According to competitive profile matrix Maruti has given more priority to the market share, product quality, Management and Financial position compare to the other companies like Hyundai and TATA. So the market share is the major factor, and they have more in the product quality and the other key factors like management and also managing the finances. As the result shows in the competitive profile matrix Maruti Suzuki have more critical success factor because the total weighted score is high compare to TATA and Hyundai. The score is 2.83 TATA score being 2.57 and Hyundai score being 1.83. The price competitiveness is high score for Maruti Suzuki because they have good pricing strategy for high facility vehicle to lower facility vehicle. So we can say that Maruti Suzuki is going well.

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Internal Analysis:Core competence: Wide range of models. National presence

Core values: Costumer obsession Fast, Flexible Innovation and Creativity Networking and Partnership Openness & learning

Resource: A.

Tangible:
Raw materials. Different model cars are producing for that model has different cost. Big Infrastructure Buildings Good Financial Resource because of No.1 selling car company in India

B.

Good & high Machineries to produce the car with limited time Intangible:
Services. Experienced Employs. Good skilled good skilled employs.

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Internal Factor Evaluation (IFE) Matrix:-

Key Internal Factors Strength Improved Purchasing capacity of Indian middle class category Government tax benefits There is low labor cost Monetary assistance is provided by the government There is a huge potential market Weakness Low experience with foreign market Poor infrastructure Comparatively new to diesel car making unit Investments are low in the research and development Low in production Total

Weight

Rating

Weighted Score 0.36 0.15 0.48 0.15 0.64

.09 .05 .12 .05 .16

4 3 4 3 4

.15 .10 .08 .1 .1 1.0

2 2 3 1 1

0.3 0.2 0.24 0.1 0.1 2.72

According to the internal factors evaluation Matrix Company is performing well & good in the market. In this matrix company have some strong internal strength like potential market and low labor cost but they also have some weakness which they have to come out from their weakness like comparatively new to diesel car making unit. They have the low investment in the research and development they have to come out from their weakness. Overall company is getting 2.72 total weighted score which shows that company is going well and performing better in the market.

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Quantative Strategic Planning Matrix (QSPM):Key External factors Weight X Strength Improved Purchasing capacity of Indian middle class category Government tax benefits There is low labor cost Monetary assistance is provided by the government There is a huge potential market Weakness Low experience with foreign market Poor infrastructure Comparatively new to diesel car making unit Investments are low in the research and development Low in production Total OPPURTUNITY Distribution network is well established Indian markets are well analyzed and understood capability to devise products with differentiating features .11 .12 4 3 .44 .36 3 2 0.33 0.24 .15 .10 .08 .1 .1 1.0 2 2 3 1 1 0.3 0.2 0.24 0.1 0.1 2.72 1 1 2 1 1 0.15 0.1 0.16 0.1 0.1 1.99 0.0 - 1.0 .09 .05 .12 .05 .16 Global Expansion Global 14 4 3 4 3 4 Local Expansion Local 14 3 2 3 2 3

Total X * Global 0.36 0.15 0.48 0.15 0.64

Total X * Local 0.27 0.1 0.36 0.1 0.48

.1

.2

0.1

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Brand image is well established They have experience and be updated with the technology THREATS Second hand cars are the competition Threats from Chinese car production units

.08 .16

4 3

.32 .48

2 2

0.16 0.32

.1 .05

1 3 2

.1 .15 .16

1 2 1

0.1 0.1 0.08

Stiff competition from local and other country .08 players There is a rise in the customers expectations Raw material rising cost .05 .15

2 1

.1 .15

1 1

0.05 0.15

TOTAL WEIGHTED SCORE

1.00

2.46

1.63

According to the QSPM matrix we have analysis the internal and external factor and give the Weightage and global expansion and local expansion. After that we multiply the weight with global expansion rating with weightage and local expansion to weightage. At the end we got some total score that mean for global total internal and external factor are strong which show 2.46 and local expansion which show 1.63. It means company has to focus and go for the global because they have more strength.

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BCG matrix:This is BCG matrix explain about the Company products which place in the market according to this below diagram.

STAR: High market growth & market share , Maruti Suzuki have many products, SWIFT,
SWIFT DESIRE AND ZEN ESTILO this products are good in market and this products are growing fast . QUSTION: Market growth is high and market share will be low , which products newly entered into the market those position will be Question mark , MARUTI SX4, GRAND VITARA, ASTAR this products . DOG: Market share & market growth is low those products are BALENO, OMINI, VERSA. COW: Market share is high but the market growth is low and products are MARUTI 800, ALTO AND WAGNOR, ZEN ESTALIO and A STAR.

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TOWS Matrix:STRENGTHS - S Improved purchasing capacity of Indian Middle class category Government tax benefits There is low labor cost Monetary assistance is provided by the government There is a huge potential market WEAKNESSES - W Low experience with foreign market Poor infrastructure Comparatively new to diesel car making unit Investments are low in the research and development Low in production

OPPORTUNITIES - O Distribution network is well established Indian markets are well analyzed and understood Capability to devise products with differentiating features Brand image is well established They have experience and are updated with the technology

SO STRATEGY To capture untapped rural and yongistan market. With the help of distribution network Maruti Suzuki can increase their demand. In Indian market there is tax benefit so they can increase sale, import and export. Everybody can Identifies and gives most preference for this.

WO STRATEGY To Bring new and innovative models To Improve the research and development To improve the technology Any small mistake from customers it will collapse the customer relationship.

THREATS - T Second hand cars are the competition Threats from Chinese car production units Stiff competition from local and other country players There is a rise in the customers expectations Raw material rising cost

ST STRATEGY To launch a car like CERVO Low cost of our country products. First preference for local country company. Company products price also increased

WT STRATEGY To Change brand positioning Economic rate will decline They cant invent more technology Buyers will decreases

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In this TOWS matrix we analysis we have analyze the all opportunity, threats strength and weakness. Then we come out with some suggestion that what company can do what strategy company should use

Conclusion:
After observing all the different factors like SWOT analysis, TOWS analysis, PESTEL analysis and porters five force model, EFE Matrix, BCG matrix, IFE matrix Comparative profile matrix, and Market analysis we conclude Maruti Suzuki is performing well in all the factors like technology, cost and their market penetration to all kinds of customers. In this report we have analysis three companies Maruti Suzuki, TATA and Hyundai. According to competitive profile Matrix Maruti Suzuki weighted score is more than others company. Maruti Suzuki has given more preference in market share and product quality. Maruti Suzuki is focusing to provide better service and innovative product for the customers. Maruti Suzuki is performing well in all the factors affecting the success.

Bibliography:Books Preferred 1. Business Policy and Strategic Management By Vipin Gupta, Kamala Gollakota, R. Srinivasan. 2. Strategic Management and Business Policy By Thomas L. wheelen. 3. Gupta V. et al (2009). Business policy and Strategic management: Concepts and Applications, Revised second edition, PHI Learning Private Ltd, New Delhi. 4. Porter, M.E., & Kramer, M.R. (2006). Strategy & society: The link between competitive

advantage and corporate social responsibility. Harvard Business Review. Dec 2006. p 78 92. 5. Thomson, A.A. & Strickland, A.J. (2007). Strategic management Concepts and cases. McGraw-Hill. 6. Class Presentation By Nirmaalya B Biswas.
Others Resources:1) http://www.authorstream.com/Presentation/aSGuest85141-817402-mktg-str-of-marutisuzuki/. 2) http://www.authorstream.com/Presentation/kamilshah_1986-140555-passenger-car-industyrkamil-education-ppt-powerpoint/. 3) http://www.scribd.com/doc/20110215/Evaluation-of-Strategies-Followed-by-Maruti-SuzukiIndia-Ltd. 4) http://www.slideshare.net/ashish4485/tata-moters-5851008. 5) http://www.moneycontrol.com/annual-report/marutisuzukiindia/directors-report/MS24.

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