This action might not be possible to undo. Are you sure you want to continue?
Maruti History :
Maruti Udyog Limited (MUL) was established in Feb 1981 through an Act of Parliament, to meet the growing demand of a personal mode of transport caused by the lack of an efficient public transport system. It was established with the objectives of - modernizing the Indian automobile industry, producing fuel efficient vehicles to conserve scarce resources and producing indigenous utility cars for the growing needs of the Indian population. A license and a Joint Venture agreement were signed with the Suzuki Motor Company of Japan in Oct 1983, by which Suzuki acquired 26% of the equity and agreed to provide the latest technology as well as Japanese management practices. Suzuki was preferred for the joint venture because of its track record in manufacturing and selling small cars all over the world. There was an option in the agreement to raise Suzuki’s equity to 40%, which it exercised in 1987. Five years later, in 1992, Suzuki further increased its equity to 50% turning Maruti into a non-government organization managed on the lines of Japanese management practices. Maruti created history by going into production in a record 13 months. Maruti is the highest volume car manufacturer in Asia, outside Japan and Korea, having produced over 5 million vehicles by May 2005. Maruti is one of the most successful automobile joint ventures, and has made profits every year since inception till 2000-01. In 2000-01, although Maruti generated operating profits on an income of Rs 92.5 billion, high depreciation on new model launches resulted in a book loss. The Evolution
Batches of Japanese personnel came over to Maruti to train. Large number of Indian managers. During the pre-liberalization period (1983-1992) a major source of Maruti’s strength was the wholehearted willingness of the Government of India to subscribe to Suzuki’s technology and the principles and practices of Japanese management. Maruti’s style of management was essentially to follow Japanese management practices. supervise and manage. 1997-2002). The company's headquarters remain in Gurgaon. The Path to Success for Maruti was as follows: (a) teamwork and recognition that each employee’s future growth and prosperity is totally dependent on the company’s growth and prosperity (b) strict work discipline for individuals and the organization (c) constant efforts to increase the productivity of labor and capital (d) steady improvements in quality and reduction in costs (e) customer orientation (f) long-term objectives and policies with the confidence to realize the goals . Employees grew to 2000 (end of first phase 1986). It is largely credited for having brought in an automobile revolution to India. supervisors and workers were regularly sent to the Suzuki plants in Japan for training. near Delhi. From such a modest start the company in just about a decade (beginning of second phase in 1992) had turned itself into an automobile giant capturing about 80% of the market share in India.Maruti’s history of evolution can be examined in four phases: two phases during pre-liberalization period (1983-86. It is the market leader in India. 3900 (end of second phase 1992) and 5700 in 1999. 1986-1992) and two phases during post-liberalization period (1992-97.The first phase started when Maruti rolled out its first car in December 1983. followed by the full privatization of Maruti in June 2003 with the launch of an initial public offering (IPO). On 17 September. Maruti Udyog was renamed to Maruti Suzuki India Limited. During the initial years Maruti had 883 employees. 2007.
quality circles. Near-total transparency was introduced in the decision making process. The company has two manufacturing facilities located at Gurgaon and Manesar. The product range includes 14 basic models with more than 150 variants. They commuted in the same buses without any discrimination in seating arrangements. The other activities of the Group comprises of facilitation of Pre-Owned Car Sales and Car Financing. During the pre. Attendance approximated around 94-95%. Business Portfolio: The Group's principal activity is to manufacture. Employees were handsomely rewarded with increasing bonus as Maruti produced more and sold more in a seller’s market commanding an almost monopoly situation.rotation.(g) respect of law. economical leasing of car. maintenance management. principles and procedures for group decision making. ethics and human beings. All the employees ate in the same canteen. kaizen activities. purchase and sale of Motor Vehicles and Spare parts. The company is focused on rapidly expanding the sales and service further across the country. teamwork and job.335 towns and cities (as on March 31. south of . and provides service support to customers at 2. There were laid-down norms. registration and insurance management. The “path to success” translated into practices that Maruti’s culture approximated from the Japanese management practices. The plant had an open office system and practiced on-the-job training.740 workshops in over 1. The Group also provides services like framing of customized car policies. Maruti adopted the norm of wearing a uniform of the same color and quality of the fabric for all its employees thus giving an identity. These practices were unheard of in other Indian organizations but they worked well in Maruti. MSIL has been the leader of the Indian car market for over two and a half decades. Employees reported early in shifts so that there were no time loss in-between shifts.liberalization period the focus was solely on production. The company has a sales network of 802 centers in 555 towns and cities. emergency assistance and accident management. 2010).
WagonR. sedans SX4.75 million by 2013.New Delhi. In an environment friendly initiative. Ritz and Estilo. Shareholder’s wealth2 is the prime concern for running business smoothly. AltoK10. SUV Grand Vitara. international brands Alto.was to maximize profit and reducing cost by maximizing output and sales Hence MUL declared its Vision as- “The Leader in the Indian Automobile Industry. but of the need of maximum profit. eventually become a pride of India” Customer Delight1 is making sure that performance. India. MUL knows this and understands “customer is king”. Swift DZire and Kizashi.2 million (1. Swift. The company plans to expand its manufacturing capacity to 1. Vision: Visions of any company are those values on which company works. people movers. Creating Customer Delight1 and Shareholder's Wealth2. These include Eeco. after sales service and customer support are best and beyond expectation. Alto. As the MUL is started by Governmental initiatives it tends to be more consumer oriented and hence cost effective. The company offers a wide range of cars across different segments. The only way for this Nora’s dilemma of selecting principals for company’s working vision . off-roader Gypsy. Omni and Eeco.200. Wagon R and Sx4. A-star. he can change the .Maruti 800. It offers 15 brands and over 150 variants .000) vehicles annually. Both the facilities have a combined capability to produce over a 1. but on the other hand Suzuki’s participation ensures not only need of the profit. Estilo. in August 2010 Maruti Suzuki introduced factory fitted CNG option on 5 models across vehicle segments.
.fortune of any company.Modernization of the Indian Automobile Industry.Market Penetration.Production of large number of motor vehicles which was necessary for economic growth. Value chain.Developing cars faster and selling them for less. realistic and motivating. Market Development and Diversification. Japanese Management practices (that had captured Japan over USA to the status of top Auto manufacturing country in the world) 2. The main objectives/Missions of MUL are: . .Partner relationship management. . . Early mover advantages. what it want to accomplish in the larger environment and its goals which are specific. SWOT ANALYSIS: Consists of analysis of internal environment (Strength and weakness) and external environments (Opportunity and Threat). Contemporary technology. .Production of fuel-efficient vehicles to conserve scarce resources. Development Similarly Product . Value delivery network . STERNGHTHS: 1. Missions are described over visions and visions demand certain objectives. hence goes company’s brand line: COUNT ON US! Mission: Mission is the statement of an organization’s purpose.
10% components are manufactured outside India. 4. Other companies lacks economy of scale. Recruitment is done in very tedious manner ensuring talent and best professionals. support. after sale services. 3. OPPURTUNITY: 1. culture. Numbers of new Technology driven players and manufactures are in market. are still having a negative impact on the company. Technological disadvantages. distribution. Rapid technological changes . 2.’s Proposal of new ethanol (renewable) mixed fuel. Decades of isolation. R&D. Growing market as there is a considerable increase in the demand levels. Working. first company to roll out suitably designed cars before 2008 as per Govt.3. 2. Have to import there diesel engines from Fait. Bureaucracy. 5. Japan For tech. THREAT: 1. Demand is rising 4. Is considered to be the most fuel efficient cars producing company in the industry WEAKNESS: 1. Government reducing support and cutting down the Gas supply quota. 3. 3. Still depends upon SUZUKI COPORATION. so market is still open. 4. Though MUL has launched luxury cars as well it’s still considered as poor man’s brand. 2.
The result was a model with over 5. Increase in interest rates has inverse result on car sales and is a great threat to the company. buyers and alternative solutions to the problem being addressed. We used the five-forces model as a basic structure and built on it with concepts from the works of many other authors.4. New players coming in India 5.000 relational links. . potential competitors. Fuel prices are increasing at a very fast rate resulting in slowing down the growth rate of the market 6. This concept involves a relationship between competitors within an industry. MICHAEL PORTER’S FIVE FOURCE MODEL: Michael Porter described a concept that has become known as the "five forces model". suppliers.
Existing competitive rivalry in industry: 2. Threat of substitute products (including technology change) .porter's five forces 1. Threat of new market entrants 3. Bargaining power of buyers 4. Power of suppliers 5.
MISSION.MARUTI: VISION. SWOT ANALYSIS AND APPLICATION OF MICHAEL PORTER’S FIVE FORCE MODEL .
SUBMITTED BY: AARIF RATHER [ROLL NO. 11] SUBMITTED TO: MISS FEYONA . 13] AYESHA MIRZA [ROLL NO.0 2] SOUOD FAROOQ [ROLL NO.