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Question No 2. How successful has their strategy been [ie the one
you identified in your answer to Question 1] ?
ANS:
New hybrid strategy of Maruti proved very successful in competitive
new liberalized market era. Before adopting new strategy, Maruti was in
dilemma of changing market dynamics, interference of government forced
them to work in a conventional style. They lose their market share in early
years of liberalization. But Maruti learned very quickly. By incorporating new
strategies, the stopped their sloppy decline and even increased their
production numbers and regained bit of their market share back.
In 1992 Maruti was a big giant of automobile industry with 80% share
but new market situation abruptly brought decrease in market share of
Maruti. Implementing new strategies and redesigning the processes help
Maruti to gain back their market share with 50.8% share and 40% rise in
profits in 2003. They increased their production numbers, introduction of new
models like Swift and Baleno added versatility in their product range. Their
customer care service and after sale support raised the bar for competition.
All these factors made Maruti once again darling of Indian automobile
industry.