BCG Analysis of Pak Suzuki Motor Company Ltd. By Saud Zafar Usmani and Waqas Ali Tunio
Institute of Manufacturing Engineering & Management, PNEC (NUST), Karachi
This is one of the cheapest new 4x4s on sale and it's capable off-road thanks to its low-ratio 'box. Thewarranty is good, too. She has high quality materials used in its interior and exterior body parts,something which was not there in Suzuki Potohar. Though, it might not seem a good deal to spend2millions to buy just a 4 seater 4X4 Mini Jeep type Jeep, but it comes with 1328c engine, what makes ittop and only 4X4 Jeep in Pakistan.
It is a STAR, because all government and NGOs and those private organizations which have setupin small cities/towns/villages, like in Central Punjab or Interior Sindh are blindly purchasing Jimnyon contract, including banking sector, as it gives them license to go off roads when needed, and canhandle any road situation.
To make it cash cow Pak Suzuki need to invest heavily in order to assembleit locally.
Alto, Mehran, Cultus, Ravi, Bolan are all cash cows. They have the highest sales in their category. Allthese vehicles have reached a point in their development cycle where the customers are satisfied with thecurrent status of the product.
All vehicles which fall in this category are fuel efficient and have lowmaintenance cost
in short affordable.
Mehran is attracting those people who have salaries within 20,000 to 30,000 per month. The youngstersalso prefer the Mehran because of its size and economical price. Small business people also preferMEHRAN because of its low maintenance cost. Mehran also attracts people who move from bike to thecars. Mehran is cheapest and first choice of all people having low income. It has highest sales in Pakistanthan any other car in all categories. Alto is good choice because of its spare parts availability and 1000ccengine.All these cars compete in their category and are successful due to following
Good availability of spare parts.
Suits Pakistani culture and environment.Suzuki should now focus on improving the quality of these vehicles without compromising on cost. Aftersales services also have some room for improvement.Ravi is for the people doing small business especially cargo services like home delivery services, TCSand market delivery. All people doing business of these types are loyal customers to Ravi. Although theSHEHZORE has captured some of its market share but still Ravi is much famous and market leader in itstype.To maintain status-quo Suzuki should focus on improving the quality, innovation so that when these cashcows reach a maturity level and their sales start to decline; they must be able to come up with a rebornversion of same car to maintain/regain market share.