MARUTI SUZUKI

Strategic Management - Presentation

Presentation by FAS AO2

Harpreet Singh 17F811
Jyotsna Katiyar 17F815
Rahul Raphael P 17F830
Sree Harsha Lakkireddy 17F843
Swarnika Prakash 17F844
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Porter’s 5 Forces

Competitive Rivalry
High – The competition has turned more intense after the entry of foreign
players like Volkswagen and Ford, KIA motors with their changed designs to
cater to Indian market.

There are many competitively priced product launches in recent years and
the time period of these launches is decreasing.
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Porter’s 5 Forces

Threat of New Entrants

Moderate – The threat of new entrants is generally medium because of the brand equity and
capital intensive nature of the business

The Industry is consolidating in India and has seen an exit of certain key players like GM.

Distribution channels are controlled by existing players

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Porter’s 5 Forces

Bargaining Power of Buyers

High – In a market, like India there is lot of bargaining power available to the customers as
there are varieties of products available in the same range, by different manufacturers.

With global automakers flooding India with new models to capitalize on the growth
opportunity, buyers will be spoilt for choice
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Porter’s 5 Forces

Bargaining Power of Suppliers

Low - Bargaining power of suppliers is low as most of the auto component manufacturers
are specialized in some segments related to only one client.
There is a Fragmented source of Supply.
Switching costs from one supplier to another supplier is low.
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Porter’s 5 Forces

Threat of Substitutes

Low – The threat from substitutes products continues to be low, with public transportation
being under developed even in cities.

However, with increasing traffic in cities and increasing Metros construction, Public transport
can become a moderate threat soon.
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SWOT ANALYSIS

Strengths
S
 Strong brand image
 Great Market Position with more than 50% Market Share
 Strong Product portfolio and high economies of
 Efficient and Extensive Distribution Network and Promotional
Strategies
 Strong Parent Backing
 Asset lite strategy
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SWOT ANALYSIS

W Weaknesses

 Dip in product Quality may impact brand image and sales performance
 Inferior Design and Style when compared to compititors
 The company’s extensive dependence on Domestic market.
 Low International presence compared to other dominant players in the
industry
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SWOT ANALYSIS

O Opportunities
 Expansion of automotive manufacturing industry due to different Social
factors
 Green cars and Electric cars
 Increasing Personal disposable income
 Growth Opportunities in Rural and Semi Urban Markets
 Government tax schemes and Protectionism
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SWOT ANALYSIS

Threats
T
 Increasing Raw material prices
 Adverse foreign exchange fluctuations
 higher input costs
 100% FDI will bring in new
 Increasing competition within Industry
 Environmental Regulations such as BS-III ban
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EBIDTA
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MARKET SHARE ANALYSIS

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NEW MODEL RELEASE

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UV SEGMENT MARKET ANALYSIS

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MARUTI SUPPLIERS
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THANK YOU!