National Defense University Islamabad

A PROJECT REPORT
ON

Pak Suzuki motors company

By
Soban Tahir Abbasi (Group Leader)
Syed Saeed ur Rehman (Member)
Muhammad Usman Khalid (Member)
Saheb Gul khan (Member)
Submitted to

Prof. UMER IFTEKHAR

(STRATEGIC MANAGEMENT)
Class: LMS-MSC-2nd semester
Date: 23-05-2012 Day: Wednesday
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ACKNOWLEDGMENT

In the name of Allah, Most Gracious, Most Merciful

Praise be to Allah, the Cherisher and Sustainer of the worlds;

Most Gracious, Most Merciful;
Master of the Day of Judgment.
Thee do we worship, and Thine aid we seek.
The way of those on whom Thou hast bestowed Thy Grace, those
whose (portion) is not wrath, and who go not astray.

Ameen

We are heartily thankful to our Strategic Management teacher, Sir

Umer Ifthekhar, whose encouragement, guidance and support from
initial to the final level enabled us to develop the subject S.M. With
his dedicated lectures We are able to practically understand and apply
what We have learned in the classes.
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CHAIRMANS REVIEW

In Year 2010 the demand for automobile was sluggish .The industry for cars
and light commercial vehicles experienced 29% decline in the sales volume. The
industry sold 107,768 units during the year against 151,517 units last year. It’s my
pleasure to present review on the performance of the company for the year December
31, 2010
The demand has depressed during the year due to cost push inflation resulting
from depreciation of Pak rupee, limited financing by banks/leasing companies and
general economic recession.
First half of the year was the worst. Sales volume during this period has
dropped by 53% compared to last period of last year. Second half was somewhat
better than first half year. As it was grew by 33% over the first half year.
The market size of motorcycle has marginal improved by 2% over the last year
in the organized sector. During the year 593,479 units were sold against 580,604 units
last year. During the first half year Demand was 25% lower than same period of last
year. However this loss of demand was offset by the increased demand latter half year.
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EXECUTIVE SUMMARY

This project is about the strategic Analysis of Pak Suzuki Motor

Company. During the project, we had done the detailed study of Pak
Suzuki Motor Company Limited like their company profile, mission,
vision and corporate values. Then we observe the some of the major
products manufactured and assembled by the Pak Suzuki Motor
Company limited which include SWIFT, LIANA, CULTUS,
MEHRAN, APV etc… With the help of Internal and External
analysis, we sorted out some of their strengths, weaknesses and the
opportunities and threats prevailing in the market. Also the
Environmental analysis was conducted to observe the internal,
external factors that may influence the performance of the company.

The BCG matrix helped us to study the important products of the

company; we did identify in which stage the products are and tried to
do the SBU analysis for each product.

With the study of Pak Suzuki Motor Company Limited, we learned

that they are doing well in the Pakistani market and are leading
market shareholder. They are producing Cars at affordable prices for
the low income to middle income people. But they are unable to
compete with Corolla and Honda in Luxury and semi-luxury cars.
They need product development strategy to follow. So, they tried to
get into the Honda and Corolla market by introducing Suzuki LIANA
but that couldn’t make its space. Now they have again tried that by
launching Suzuki SWIFT which is a 1300cc fully loaded car. we
recommend Product Development strategy for PSMC (Pak Suzuki
motor company) to pursue in order to compete with HONDA and
TOYOTA. Then they will be able to grow their market share and
growth.
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TABLE OF CONTENTS

Sr. no. Contents Page #

1 Acknowledgement 2

2 Chairman’s review 3

3 Executive summary 4

4 Toc (table of content ) 5

5 Introduction 7

6 Vision and mission 8

7 Statement of ethics and business practices 9

8 Corporate strategy 10

9 Objectives of the company 11

10 Corporate culture 12

11 Macro environment 15

12 Micro environment 19

13 Business portfolio 20

14 Product mix 23

15 Participants 24

16 Proposed strategies 25

17 BCG matrix 26

18 External and internal analysis 27

19 SWOT analysis 28

20 SBUs analysis 29

21 Product expansion 30
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22 Environmental policy 31

23 Future outlook of the company 32

24 Strategic recommendations 33

25 Conclusion 33

26 References and bibliography 34

27 Dedication 35

INTRODUCTION
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Pak Suzuki Motors Company Ltd. is a company assembling and distributing Suzuki
Japan's cars in Pakistan. Currently they are one of the most successful motor companies in
Pakistan.

The firm was founded in 1983 as a joint venture between PAK and Suzuki, formalizing the
arrangement by which AWAMI Auto Ltd. had produced the Suzuki SS80 from 1982. Suzuki
originally owned 25% of the stock, and has gradually increased their holding; they now own
73.09%. The company now assembles a wide range of Suzuki vehicles and aims to produce
150,000 vehicles per year. (2010) production was 100,000)

COMPANY BACKGROUND, OPERATIONS AND LEGAL STATUS

The Company was formed in accordance with the terms of a joint venture agreement
concluded between Pakistan Automobile Corporation Limited (PACO) and Suzuki Motor
Corporation, Japan (SMC) - the principal shareholders of the Company, for the purposes of
assembling, progressive manufacturing and marketing of Suzuki cars, pickups, vans and
4x4s. Under the joint venture agreement, the net assets of AWAMI Autos Limited (AAL), a
subsidiary of PACO, now liquidated, were taken over by the Company in August 1983 in
consideration for which shares in the Company were issued to PACO. The Company was
incorporated in Pakistan as a public limited company in August 1983 and started commercial
production in January 1984. The shares of the Company are quoted on Karachi and Lahore
Stock Exchanges. In accordance with the terms of a sale agreement dated September 19, 1992
between SMC and PACO, SMC increased its shareholding to 40% in the Company by
purchasing shares from PACO and took over its management with effect from September 21,
1992. Since then SMC progressively increased its equity to 72.8%. In July 1996, PACO had
disinvested its remaining shareholding. These shares were acquired by SMC in terms of the
joint venture agreement between PACO and SMC - Japan which since came to an end. The
total foreign investment brought in by SMC - Japan since inception stands at Rs. 1,026.36
million.

Our Vision
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To be Excellent All Around

Our Mission

To provide automobile of international

quality at
Competitive price

These are Mission and Vision Statement of Pak Suzuki, and they always try to improve skills
of employees by imparting training and inculcating in them a sense of participation.

 To achieve maximum indigenization and promote the automobile vending industry.

 To contribute to Pakistani society through development of industry in general and

automobile industry in particular.
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Statement of Ethics and Business Practices

Here are the code of ethics and Business Practice of Pak Suzuki Motors Company,

1. Pak Suzuki insists on integrity and honesty of its employees in doing business. Any
unfair or corrupt practices to solicit business is fundamentally inconsistent with
business codes of company

2. Pak Suzuki believes in compliance to regulatory obligation

3. Pak Suzuki believes in free and fair business practices and open competitive markets.
Developing any association with competitors to distort the pricing and supply of
products is contradictory to company’s business code of conduct.

4. Pak Suzuki believes in transparency in business transaction and they are to be

recorded accurately and fairly in books of accounts in accordance with standard
procedure.

5. Pak Suzuki expects its employees to act in company’s best interest while holding
confidential information. Company expects its employees neither to solicit internal
information from other nor to disclose company’s data or any other material
information to any un- authorized person/body.

6. Pak Suzuki believes in individual’s respects and growth. Its employment policies do
not discriminate on basis of race, religion, gender or any other factor.

7. Pak Suzuki does not believe in political affiliation.

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Corporate Strategy

Pak Suzuki is built on the idea of a responsible corporate citizenship thereby

managing environmental, safety & occupational health matters as an integral part of its
business. In fulfilling this responsibility Pak Suzuki adheres to the following principles:

1) We are committed to provide top quality products to the satisfaction and requirement
of our customers.

2) We conduct our operations in compliance with applicable environmental,

occupational health & safety laws and regulations.

3) We recognize the interrelationship between energy and the environment, and we

promote the efficient use of energy throughout our system.

4) We ensure safe disposal of waste generated from our facility

5) We minimize the discharge of waste materials into the environment by utilizing

responsible pollution control practices.

6) We will continuously seek opportunities to improve our adherence to these principles.

As it is clearly mentioned in their Vision Statement that to be excellent all around, and they
always operate in Environment friendly. And their Product will always be the environment
friendly.

With the globalization of markets, greater foreign competition, and the reduction of entry
barriers, it becomes all the more important to benchmark a company’s financial indicators on
a worldwide basis. World stock markets have recently witnessed a return to fundamental
financial analysis. Sound management as opposed to hype will in the long run generate
shareholder value.
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OBJECTIVES OF THE COMPANY

To be the market leader and satisfy the requirements of its customers, the company has
set certain objectives. These are:

1. Improve Quality
2. Enhance Efficiency
3. Minimize Cost
4. Increase Productivity

Over the previous years, the company has put in its best efforts to manufacture quality
cars designed for its customers. To improve their efficiency, the company gives great
importance to its human resource as the company believes that satisfied and quality
conscious team can produced quality products.

The company is using the philosophy of Kaizen for continuous improvement. It has
become a way of life for the management of the company by doing these efforts towards
their objectives.

Corporate objective:

Provide high quality reliable and comfortable cars.

Financial objective:

Suzuki’s financial objectives are to make money.

Marketing objective:

Main objective is world domination, with regard to supplying cars.

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Long term objectives:

. To makes a profit - entrepreneurs risk their capital in a business and profit is their
reward for risk-taking. If a business is to grow it needs to make a profit. Some of the profit
could be used to buy new equipment, staff or premises.
. To increase market share - If a firm is able to increase its market share, it shows
that it is winning customers from its competitors; so many businesses have increasing market
share as one of their key aims.
. To provide services to costumers - most businesses provide a service to customers
and therefore, they need to provide services to customers in order to make a profit.
. To improve the quality of the product or service - In most markets, customers have
a choice about the product or service that they use. If the quality of a product is not as good
as that of its competitors it is likely to lose market share.

Corporate culture:

Corporate culture is the collective behavior of people using Common

corporate vision, goals, shared values, beliefs, Habits, working
language, systems, and symbols. It is interwoven with processes,
technologies, learning and significant events. In addition, different
individuals bring to the workplace their own uniqueness, knowledge,
and ethnic Culture. So corporate culture encompasses moral, social,
and Behavioral norms of your organization based on the values,
Beliefs, attitudes, and priorities of its members. Corporate culture
can be transformed, but leadership to Sustain anything that
sweeping has to come from "the top."The corporate culture of
Suzuki is “fosters flexibility and Innovation.''

Short term analysis

Enhancement of Expertise

Run through the Hierarchy System

Enhancement of Finance
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Increase in Responsibilities

1.0 STRATEGIC POSITION

Current Situation –
Analysis of-
Micro-Environment
And
Macro-Environment
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MACRO ENVIRONMENT

Macro Environment

The larger societal forces that affect the micro environment are: demographic, economic,
natural, technological, political, and cultural forces. These factors represent constraints
within which all organizations including the automobile industry must function. The
various components of macro environment are:
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1. Economic
2. Cultural
3. Political
4. Technological
5. Demographics
6. Natural

Economic Condition

Pakistan, an impoverished and underdeveloped country, has suffered from

decades of internal political disputes and external ongoing conflict with India.
However, IMF approved the government policies, encourages by different
foreign assistance and renewed access to global market since 2001.By
following these policies government succeed to reverse the situation of
economy during last five years.

Social and Culture Forces

Pakistan has strong culture background and it has been follow in some
particular region of Pakistan strictly. But with the passage of time it is going to
change. Thoughts of people, choices, taste and style has been totally changed.
If we talk about the transportation source in Pakistan, People use buses,
pickups etc for journey. They also have their own as well e.g. cycles; bikes,
cars etc and lots of people are pedestrian. But now the people who haven’t any
source of transportation they also want something for their convenience
because they wants to save their time as much as they can. People want to use
such vehicle which looks beautiful and also affordable.

Political and legal forces

Pakistan has to face lots of ups and down since its independence. So many
governments have been broken down by military authority and most of the time
marsh law applied on Pakistan. In this scenario no entrepreneur was willing to
invest in Pakistan except few. Due to this market environment wasn’t so good
in Pakistan. Anyhow, Pakistani government never had been trustworthy for any
investor. As all countries, Pakistan also has some legislation about each sector.
But like developing countries it is hardly being imposed by authorities. Only
due to corruption government encourage smuggling and black marketing.
When anyone supported by government or give more commission to Govt. get
inside in the market and they have very soft behavior by government for any
legal action. Such unethical activities destroy all law and legislation.
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Technology

Technological factor also very important and we haven’t control on it.

Technology is grooming with the passage of time. People also want that the
product that they have is full of technology. We never control on technology
for example you launched the product last year and your sale volume on that
time is very high but after sometime due to latest invention a lots of substitute
exist in market which affect on your business so you can’t hold on it.

Demographics

Society holds a global or summary belief that an organization is proper and

worthy of support. Suzuki takes pride in being the most trusted name all over
Pakistan. Its vehicles are regarded as a status symbol. It is the guiding
principles of Suzuki which has strongly developed trust in the people.

Natural Factor

Involves the natural resources that are needed as inputs by marketers or that
are affected by marketing activities.

Trends

 Shortages of raw materials.

 Increased pollution.
 Increased government intervention.

MICRO ENVIRONMENT

Micro Environment

The Micro environment consists of those components of the macro environment which
are directly relevant to an individual’s organization. An organization’s micro
environment includes:

1. Customers
2. Suppliers
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3. Internal Public
4. Competitors
5. Intermediaries
6. The company

The boundary between an organization’s Macro and Micro environment should not be
viewed as static. Changes in the former will inevitably redefine the latter.

The various components of micro environment for PAK Suzuki motors have direct
influence on its performance. Moreover components of Suzuki’s micro environment are
also related to its macro environment.

1. CUSTOMERS

Suzuki aims at developing loyal customer’s relationship. For this reappoint

tries its best to understand who its buyers are and what their needs are. It tries
to listen to its customers, realizing that they may be their best collaborators.
Customer’s feedbacks drive their product development.

To be the market leader and satisfy the requirements of its customers, the
company has set certain objectives. These are:

a) Improve Quality
b) Enhance Efficiency
c) Minimize Cost
d) Increase Productivity

Over the previous years the company has put in its best efforts to manufacture quality cars
designed for its customers. In Pakistan, more and more people want to experience the
unique pleasure of motoring. Exhaustive, in-depth research and consumer surveys
conducted over the past years revealed trends of customers and the environmental factors
relating to use.

Suzuki Marketing Policy

Suzuki represents its emphasis on strong trustworthy and life-long automobiles. It has
many brand loyal customers and is considered as market leader. In Pakistan, it has aimed
at various segments with their variety of models in Suzuki, so customers in every
segment can be satisfied.
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Different classes of Suzuki introduced in Pakistan are;

Model Description Segments

Apv ,liana Industrialists Well established Businessman,

Professionals.

Swift. Cultus Businessman, Top Level Mgt. of multinationals,

Professionals, Government High Officials.

Alto, jimny Middle-level Executives, Government Departments &

Organizations, Professionals, and Armed Forces.

Mehran, bolan van, ravi Professionals, Business Executives who are fuel cost
pickups conscious.

Suzuki has got an effective nationwide dealer network comprising of 25 dealers at

Karachi, Lahore, Faisalabad, Mirpur, Islamabad, Peshawar, Sialkot, DI Khan, Multan,
Quetta and Larkana. This spread of network shows not how Suzuki is sincerely busy in
developing a company’s customer relationship and winning the hearts of brand loyal as
well as attracting potential customers.

2. SUPPLIERS

Suppliers constitute a second component in a typical organization’s micro environment.

Suzuki has to respond not only to the customers they supply, but also to the sources from
which they receive supplies. Suppliers are given importance and respect by Suzuki. It
continuously aims at developing a strong relationship with its suppliers. This is done to
ensure that Suzuki suppliers provide a quality material which is the most important factor
for Suzuki vehicles.
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Japan, is the major supplier of CBU or completely built up vehicles. Also CKD
kits or completely Knocked down Kits are supplied from Japan. CKD kits mainly
comprise of the engine of vehicles. The vehicles which are assembled in Pakistan
comprise of 65% locally manufactured parts.

Pak Suzuki aims for good relations with both the local and foreign suppliers. “ To
provide automobile of international quality at competitive price ” is Suzuki mission.
This can be proved by the fact that dealership is authorized to those selective people
who offer 3 S’s. That is sales, services, spare parts . This is done to ensure convenience
for its customers. They are offering the following services to cater to the needs of their
customers:
a) One year free servicing from any Suzuki service center all over Pakistan.
b) Free checkup camps are set annually.
c) Spare parts easily available all over Pakistan.
d) The dealership network comprises of seventeen dealerships all offering
sales, services and spares.
e) The customer retention department at the dealerships is also improved and
consolidated periodically.

The company believes on the fact that favorable supplier relations lead to improve
quality, better shipping arrangements early warming of major price changes and advance
information about technological or marketplace developments. So, the aim is to develop
friendly, professional relations with suppliers in which both will profit.

3. Internal Public

It is the action, of employees by which a company’s objectives are accomplished. In order

to achieve its goals and objectives Suzuki makes sure that highly competent and skilled
people are employed. Emphases is laid to ensure that the person being hired meet the
criterion for the respective departments.

Training is an integral part in Suzuki various departments. Training was

intensified and various courses were conducted through the previous year.
Technicians at the dealers’ service departments underwent extensive by PSMC
service departments to improve their skills. Moreover, periodic training of
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managers is also conducted. This includes training camps, short courses, training
programs conducted by experts.

4. COMPETITORS

Market competition is the cornerstone of managerial capitalism. The five forces that
shape the degree of market competition operating within an organization’s micro
environment are:

a) Rivalry among existing organization.

b) Relative power of customers.
c) Relative power of suppliers.
d) Threat of new entrants.
e) Threat of new substitutes.

Presently Suzuki is proud to have the most market share. Toyota stands second
followed by Honda and Nissan. Since its start it was only in 95-96 that Toyota
managed to sale 200 more units of vehicles than Suzuki. Still, Suzuki is proud to
be in a strong position. However to the spirit of competition is strong and this
has lead Suzuki to continuously try to improve itself, at all levels. Continuous
emphasis is laid on to attract more customers, maintains healthy relations with its
suppliers and makes efforts to improve technology. Careful strategic planning at
all levels has enabled Suzuki to achieve the highest market share and have an
edge over other automobile companies.

5. INTERMEIARIES

Banks, Leasing companies and car agents are some of the intermediaries for Suzuki.
These intermediaries basically giving the boost to the sales of Suzuki, by offering the cars to
the consumers, in easy installments and making the cars affordable for the customers to the
higher extent.

6. THE COMPANY

Marketing must consider other parts of the organization including finance, R&D,
purchasing, operations and accounting. Marketing decisions must relate to broader company
goals and strategies.
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SCENARIO BUILDING

In terms of the environmental factors, the main issues the whole of the car industry is
emissions. Suzuki are exploring more new technology that does not include this as they have
an insight into the way that their businesses will be affected by this is the future. For
example, the greenhouse effect which warms the climate. Therefore leading to an increase in
temperature, which in turn causes serious consequences for the environment. Suzuki invested
in R&D reducing emission, by producing cars that use fuel cell technology, methane gas, heat
and power systems, natural gas and community heating.

INDUSTRY ANALYSIS

The importance of industry analysis is now dawning on the Pakistan investor as never before.
It is very important to analyze the health of an industry because no company is operating in
isolation. Analysis of an industry can be performed using the tools like:

INDUSTRY LIFE CYCLE

The first step in industry is to determine the cycle it is in, or the stage of maturity of the
industry. All industries evolve through the following stages:

1. Introduction

2. Growth

3. Maturity

4. Decline

PORTER’S FIVE FORCES MODEL

There are competitive forces and it is these competitive forces that determine the extent of the
inflow of funds, the return on investment and the ability of companies to sustain these
returns. Porter has identified five competitive forces that shape every industry and every
market. The five forces identified by Porter are:

1. Threat of new entrants

2. Threat of substitutes

3. Baggaining power of the customers

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4. Bargaining power of the suppliers

5. Rivalry among competitors

Porter’s 5 Force
The strategic business manager seeking to develop an edge over rival firms can use
this model to better understand the industry context in which the firm operates.
Here are the Porter’s 5 forces.
 Potential new entrants
 Bargaining power of buyers
 Bargaining power of suppliers.
 Threat of substitutes.
 Industry Competition/rivalry between competitors.
1. Potential new entrants
In Pak Suzuki this can be described as
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• In the New Entrant category of Porter's 5 forces, we can see

that it would be tremendously difficult for another car
manufacturer to enter into the market.
• The rate at which the industry is changing does not allow for
new entrants to come into the market very easily, and the cash
investment for a new firm to produce massive quantities of
cars is in the billions.
2. Bargaining power of buyers

• Buyers, from the strong competition inside of the market find

themselves in a very favorable position.

• Since competition is so strong between auto makers and

dealers, consumers will often do research on a vehicle before
making a purchase.

• The high quantity of dealer’s forces prices to be very

negotiable and the consumer often knows exactly what the dealer
paid for the car.

• Thus, consumers are in an enviable position: The market

supply is strong, competition between auto makers and auto
sellers is very intense, and there is no set price.

• Everything is negotiable. For companies like Pak Suzuki to

continue to compete, the quality of their offerings must be
excellent, dealership service must be strong, and they must focus
on offering consumers a product with high durability and value.

3. Bargaining power of suppliers.

 Pak Suzuki’s suppliers have been known to be some of the

most dedicated suppliers in the industry.

 By virtue of the Just-In-Time production concept pioneered

by Pak Suzuki, the auto industry itself has seen a very positive
relationship develop between its suppliers and producers.
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 Suppliers are expected to make deliveries of parts in small

quantities several times a day.

 Pak Suzuki, by reducing its part inventory, has been able to

speed up production costs, save money by not letting parts sit
on the shelf, and improve its relationship with parts suppliers,
which rely on Pak Suzuki for their revenue.

4. Threat of substitutes

 Consumer preference is changing (Mini cars are being

replaced by compact or midsized cars)

 Setting up integrated manufacturing facilities may require

higher capital investments than establishing assembly
facilities

 Pakistan is also likely to increasingly serve as the sourcing

base for global automotive companies, and automotive
exports are likely to gain increasing importance over the
medium term

 Pakistan passenger car market is moving towards cars of

higher capacity.

5. Industry Competition/rivalry between competitors

 Industry competition between auto makers is fierce.

The typical consumer, when searching for a particular vehicle

is bombarded by choices.

For example, a search for ALTO (Product of Suzuki) yields a

result of Coure (Daihatsu) with a minimal extra amount.

COMPETITORS AND MARKET

Market competition is the cornerstone of managerial capitalism. The five forces that
shape the degree of market competition operating within an organization’s micro
environment are:
 P a g e | 25

f) Rivalry among existing organization.

g) Relative power of customers.
h) Relative power of suppliers.
i) Threat of new entrants.
j) Threat of new substitutes.

Presently Suzuki is proud to have the most market share. Toyota stands second
followed by Honda and Nissan. Since its start it was only in 95-96 that Toyota
managed to sale 200 more units of vehicles than Suzuki. Still, Suzuki is proud to
be in a strong position. However to the spirit of competition is strong and this
has lead Suzuki to continuously try to improve itself, at all levels. Continuous
emphasis is laid on to attract more customers, maintains healthy relations with its
suppliers and makes efforts to improve technology. Careful strategic planning at
all levels has enabled Suzuki to achieve the highest market share and have an
edge over other automobile companies.

ANNUAL PLANT CAPACITY

Competitor Car Quantity
Pak Suzuki Motor Co. Ltd. 68,000
Indus Motor Co. Ltd. 34,000
Honda Atlas Cars (Pakistan) Ltd. 30,000
Dewan Farooque Motors Ltd. 15,000
Ghandhara Nissan Ltd. 6,000

BUSINESS PORTFOLIO:

“The collection of businesses and products that make up the company“

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Product Lines of Suzuki

The international product line of Suzuki includes:

 Automobiles
 Motorcycle
 All-Terrain Vehicles (ATVs)
 Outboard Marine Engines
 Internal Combustion Engines

Product Lines in Pakistan

Suzuki Motors have two major product lines in Pakistan.

 Automobiles
 Motorcycles

PRODUCT MIX:

Following are some varieties of Cars with their respective Prices:

SWIFT (1300cc)

Price: Rs. 1,049,000/-

The European inspired exterior gives Swift a

distinctive look. A unique stylish and design
that turns a head where you go. The spirited
engine makes for exhilarating drive and gives
you ultimate freedom where the road takes you.

Colors: Pearl Red, Graphite Grey, Solid white,

Indigo, Silky Silver, Aqua Blue, Eminent Blue.
LIANA (1300 & 1600 cc)
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Price: Rs. 1,230,000/-

The Suzuki Liana available in 1300 cc manual

transmission and 1600cc automatic
transmission takes you out of ordinary and into
the realm. Liana is entirely different car, its
style, dimension and comfort will inspire you
to see every day as an open door to a new age.

Colors: Pearl Red, Graphite Grey, Solid white,

Indigo, Silky Silver, Aqua Blue, Eminent Blue.
CULTUS (1000cc)

Price: Rs. 897,000/-

CULTUS is the blend of space and craft.

Its trim body Conceals ample space &
flexibility for both passenger and storage.
CULTUS ensures everyone, exceptional Value
and quality.

Colors: Pearl Red, Graphite Grey, Solid white,

Indigo, Silky Silver, Aqua Blue, Eminent Blue.

ALTO (1000cc)

Price: Rs. 662,000/-

Alto has a bright, roomy and comfortable

cabin which keeps body relax and strong and
lighter body shell resulting in smooth drive
due to reduction of unpleasant noise
harshness and vibration. Its small turning
radius and compact body make parking a
breeze.

Colors: Olive Green, Pearl Red, Graphite

Grey, Solid white, Indigo, Silky Silver, Aqua
Blue, Eminent Blue.

MEHRAN (800cc)

Price: Rs. 514,000/-

Unrivalled in its class, MEHRAN is

Pakistan’s largest selling car. More smart
features like head turning lamp, matching
front grill and a two spoke steering wheel
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gives it the tidy look. Functional economy,

peak performance or unmatched fuel
efficiency, MEHRAN VXR is the leader.

Colors: Pearl Red, Graphite Grey, Solid

white, Silky Silver, Eminent Blue.

APV (1500cc)

Price: Rs. 1,775,000/-

APV 1500 cc (Imported) The New APV

gives you everything you ever wanted in
your vehicle. Spacious interior for comfort,
tough engine to carry large loads and plenty
of room for passengers to enjoy a
comfortable day long ride.

Colors: Pearl Red, Graphite Grey, Solid

white, Indigo, Silky Silver, Aqua Blue,
Eminent Blue.

JIMNY (1300cc)

Price: Rs. 1,850,000/-

JIMNY 4X4 JEEP 1300cc (Imported)

Steady, sturdy and smart, Suzuki JIMNY
with new wide tread brings you the
ultimate pleasure of a real 4-wheel drive.
It has got all the sporting spirit to go
along for adventurous free souls.

Colors: Solid white, Silky Silver.

BOLAN VAN (800cc)

Price: Rs. 609,000/-

The Suzuki Bolan Hi-roof gives you everything

You ever wanted in a van. Spacious interior for
Comfort, tough engine to carry large loads and
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Plenty of room for passengers to enjoy a comfort

-able day long ride .Air-conditioned model
(Dual thrust) has been recently introduced.
Colors: Pearl Red, Solid white, Silky Silver.

RAVI PICKUP (800cc)

Price: Rs. 489,000/-

RAVI Pick Up 800cc Suzuki Ravi is the veritable

Cargo vehicle with an amazing capacity for load
Bearing and durability undoubtedly, the unrivalled
Commercial vehicle in its class, Ravi is the bread
winner for millions in Pakistan. This light commercial
Vehicle referred to as the mini revolution,
replaced the animal drawn vehicles in Pakistan.
Colors: Pearl Red, Solid white, Silky Silver.

Participants

To make this project I make research and surveys and then I get the
participants.

The participants of Suzuki are as follows:

1: Suzuki Mehran is usually bought by female, teenagers, students and

middle class.

As it is economical and unmatched fuel efficiency.

2: Suzuki Liana is usually used by family and business class.

As it is a luxury car and can be found in 1300cc and 1600cc

3: Suzuki Swift is usually used by youngster and teenagers.

As it is innovator, unique and stylish car.

 P a g e | 30

4: Suzuki Ravi is usually used by farmers and transportation of goods.

As Suzuki Ravi is the veritable cargo vehicle with an amazing capacity for
load-bearing and durability.

5: Suzuki Bolan van is usually used by the school van drivers for pick and drop of students
.
As Suzuki Bolan Hi-roof gives you everything you ever wanted in a van. It
has tough engine to carry large loads and plenty of room for passengers to enjoy a
comfortable day long ride.

6: Suzuki Alto is usually used by business workers, employees and women like that car.

As it Smooth-riding comfort, Functional and easy to use, Sharp

looks, Offering maximum efficiency and powered by a 1.0-litre engine
delivering peppy acceleration and responsive performance, the Alto
fully responds to today’s driving needs in smart and stylish fashion.

7: Suzuki APV is usually used by big families.

As it has large capacity. It has Heavy engine to carry load, usually used for
long drive.

8: Suzuki cultus is most selling car of Suzuki.

As it is universal car used by middle class. Suzuki Cultus assures

everyone, exceptional value and quality.

Proposed Strategies

Business Strategies
Business strategies planning are to be conducted in order to know about their various
businesses how each business performing. With the help these strategies I come to
know which business require investment and in the similar manner which require
promotional activities. They can use the same promotional activities and with the help
of synergy, their different department (R&D, Marketing, Sales etc) can be shared in
different business. By utilizing the synergy efficiently they can reduce cost of product.
And this strategy will help managers to identify that which SBU is falls in which
categories, for that there is an analysis known as BCG Matrix Analysis which gives
the detail information to the managers to carry which SBU, and how many resources
should a company allocate to which Unit.
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In Pak Suzuki the main SBUs are

1) Swift
2) Liana
3) Cultus
4) Alto
5) Mehran
6) Ravi
7) Bolan
8) Jimny
After analysis from different data I came across the BCG analysis and draw the
following conclusion:

1. Maximize market share by producing more cars per year.

2. Develop more efficient and innovative engines which give comparative advantage.
3. Use efficient CNG system.
4. Focus on looks and design of exterior to compete with Honda and Toyota.
5. Fund and establish technical institutes to gain more skilled workforce from local market.
6. Maintain quality in affordable price will help to compete with direct competitors and used
imported cars.
7. Develop fuel efficient engines to gain edge and eliminate threat of fuel prices increase.
8. Enhance distribution to avoid threat from second hand imported cars.
BCG MATRIX
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Star Question Mark

High
RAVI
APV
CULTUS
SWIFT
BOLAN
Market
Growth
Cash Cows Dogs

LIANA
MEHRAN
ALTO BALENO

Low

High Market Share Low

CULTUS
SWIFTA RAVI
PV MEHRAN
ALTO
LIANA
BALENO
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EXTERNAL & INTERNAL ANALYSIS

In formulating sound strategic plans, an organization must assess its internal strengths
and weaknesses in relation to the external opportunities and threats it faces. An effective
strategy will take advantage of an organizations strengths and opportunities at the same
time it minimizes or overcomes weaknesses and threats. Regular assessment and SWOT
analysis is thus given importance.

SWOT Analysis
 P a g e | 34

Strengths:

 Highest Market Share

 Low Price Vehicles

 Resale of Local Assembled Cars

 Large Distribution Channels

 Rising per capita income with changing demographic distribution

 Highly Innovative and deep product line

 Highly maintained supply chain

 Well Managed and highly competitive staff

 Well defined and bureaucratic organizational structure

 Complete understanding between Distributors

 Easy availability of spare parts

Weakness:

 Scarcity of raw material

 Lack of coordination and linkage with Government/semi government supporting

bodies

 Less focus on Looks and Design

 Less Technical Training Institutes

 Less distribution channels in sub urban areas

Opportunities:

 Increasing Demand for Cars

 Efficient EFI engines

 Large Market size to operate

 Global spare part market

 Space saving Small size CNG cylinders

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Threats:

 Tough Competitors like Toyota and Honda

 Foreign Investment and setup production facilities

 Smuggling of Auto Parts

 Inflation rate

 Heavy Taxes

 Competition from cheaper imported cars

 Increase in Fuel Prices

SBUs Analysis

MEHRAN:
MEHRAN has the highest growth rate in automobile sector in Pakistan. Pak Suzuki
always changes the different parts of MEHRAN either exterior or interior whenever it comes
to its maturity level.
MEHRAN is attractive the people who have salaries within 20,000 to 30,000 per month. The
youngsters also prefer the MEHRAN because of its size and economical price. Small
business people also prefer MEHRAN because of its low maintenance cost. MEHRAN also
attracts people who move from bike to the cars.

LIANA:
Liana is a luxurious and highest price car of Pak Suzuki. It was built to compete with
Pak Suzuki’s biggest competitors like Toyota and Honda. Liana has the same features which
are available in Corolla and Civic but still it couldn’t make its market as compare to both
these cars. Liana has replaced the Pak Suzuki’s BALENO in 2005-06, since Pak Suzuki tried
several ways to establish its position but failed to do so.
It was made for a people of high income group but due to high prices in which the market
was already giving names like corolla and civic who has their strong brand name and
customer loyalty, liana was failed to capture the market.
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SWIFT:
Due to failure of Liana Pak Suzuki introduced another 1300cc car in Jan 2009. Swift
has all the latest features like power steering, central locking, Auto Transmission and the
ABS. All the 1300cc cars in Pakistan have price range of 1300000 to 1400000, while Swift
was introduced at 999000 and recently it was increased at 1049000. It has still advantage of
price competition as compare to other 1300cc cars in Pakistan.

RAVI:
Ravi is for the people doing small business especially cargo services like home
delivery services, TCS and market delivery. All people doing business of these types are loyal
customers to Ravi. Although the SHEHZORE has captured some of its market share but still
Ravi is much famous and market leader in its type.

EXPECTATIONS AND PURPOSE

Successful strategies are dependent on the organization having the internal strategic capabilities
that are required for survival and success. Suzuki creates opportunities through strategies and gain
competitive advantage that make it hard for competitors to match or create new opportunities.
Successful
Using strategies
strategies Suzuki are dependent
enhance on the
themselves organisation
in order having
to accomplish theirthe internal
mission strategic
statement:
capabilities that are required for survival and success. IKEA create opportunities through
Toandprovide
strategies automobile
gain competitive ofit international
advantage that make quality
hard for competitors to match or createat
new opportunities. Using strategies IKEA enhance themselves in order to accomplish their
Competitive price
mission statement:

RESOURCES AND CAPABILITIES

RESOURCES:

1. TANGIBLE RESOURCES:

Production capacity of Suzuki, Suzuki Annual production capacity of 150,000 vehicles.

The vehicles produced include cars, small vans, Pickups, Cargo vans and Motorcycle. Pak
Suzuki holds more than 50% Market Share.

People: Almost 145,510 employees worldwide work in the business with a mutual
understanding of the business goals. Without employees no company can accomplish their
business objectives.
 P a g e | 37

Raw Materials/ Car Parts etc: Suzuki buy in raw materials and car related products such as
steel, plastic, glass and energy related raw materials e.g. crude oil. Suzuki also invests in a
range of renewable raw materials in its vehicle production.

Machines/Machinery: There are several machineries used at Suzuki within the production
system.

Buildings/fixtures and Fittings:

Suzuki Showrooms:

Suzuki is a multinational company, to promote their business they have invested in

showrooms around the world such as China, India, Pakistan, and Japan etc.

1. INTANGIBLE RESOURCES

Financial Resources:

Capital:

The Suzuki industry has recorded Yen 138,014 million (as of March 31, 2011)

Shareholders:

Suzuki has private shareholders who have invested money into the business. From the
financial losses in 1959, the company started to increase profits by entering new markets such
as the Motorcycle industries .

CAPABILITIES

Foundations of Capabilities

Threshold Competences –

Suzuki seeks to meet customer’s requirements such as AC, trip computer, electric seats etc.
Suzuki is one step ahead and is looking to provide customers with services that other
companies don’t for example key reader which checks the chassis number, mileage of the
vehicle, the next due date for service and introducing the hydrogen fuel because it meets its
customers’ requirements in terms of power, dynamic performance, costs and sophistication.
 P a g e | 38

Threshold Capabilities –

Suzuki is serving with threshold capabilities in order to dominate the market and be the best.
They provide services such as different brands (APV, LIANA, CULTUS etc), future
Hydrogen Fuel to reduce pollution, increase car performance and reliability and Key reader.

Core competences –

At present, Suzuki core competences is by having specific models that cannot be imitated by
other competitors such as the mehran as well as the cultus and alto vxr. Suzuki started re-
designing the Mini, giving it a performance engine to gain competitive advantage in the
market and to meet their reliability factor of their mission statement.

Sustaining Competitive Advantage

The strategic capabilities have been mentioned as an important factor for Suzuki; for instance
if Suzuki does not meet customer’s needs then their organization would not survive. The aim
of Suzuki is to achieve competitive advantage as well as sustaining the competitive
advantage, which can be met through strategic capabilities but factors within the strategic
capabilities also have to be taken into consideration, which are as follows:

Value of Strategic capabilities – this is where organizations understand what customer’s

value. Suzuki values their customers by giving the range of choices to choose from. Suzuki is
the only automobile company that offers 9 different brands; swift, cultus and apv exclusively
on the premium segments of the automobile markets. This gives Suzuki a competitive
advantage as their customers have a wide range of brands to choose from. No other auto
mobility company entails different brands within the company so therefore Suzuki does have
the competitive edge in the market.

Rarity of Strategic Capabilities – this means having a rare strategic capability; that is rarely
used by competitors to get the edge on the competitive advantage. In relation to Suzuki their
rarity of strategic capability is to insure their customers retrieve the best reliable automobile
and also fuel consumption.

Robustness of Strategic Capabilities – a capability which cannot be imitated by any other

competitors. The Suzuki groups are unique car manufacturers due to the fact that they are the
only company to provide their customers with the Mini range. Another capability would be
Suzuki are looking into invest on a long term bright future which lacks on pollution, this is
the hydrogen. The hydrogen fuel has been tested on the 6 th generation Suzuki and is in the
process of installing for the remaining series. By 2011 Suzuki aims to hand over the vehicles
to customers for them to test and optimize the concept of hydrogen in the daily life.
 P a g e | 39

Three generic competitive strategies:

Each of the generic strategies involves different route and target to competitive advantage,
“The cost leadership and differentiation strategies seek competitive advantage in a broad
range of industry segments, while focus strategies aim at cost advantage (cost focus) or
differentiation (differentiation focus) in a narrow segment.” (Porter, 1985)

Cost leadership:

Cost leadership is the clearest of the three generic strategies. In this strategy, firm should try
their best to reduce the cost. “If a firm can achieve and sustain overall cost leadership, then it
will be an above-average performer in its industry provided it can command prices at or near
the industry average. At equivalent or lower prices than its rivals, a cost leader’ low-cost
position translates in to higher returns. A cost leader, however, cannot ignore the bases of
differentiation. If its product is not perceived as comparable of acceptable by buyers, a cost
leader will be forced to discount prices well below competitors’ to gain sales. This may
nullify the benefits of its favorable cost position. ” (Porter, 1985)

If customers think the product is not good as the product of competitor; the firm has to
reduce the price. The firm can get high profitability until a cost leader gets the cost leadership
parity in the bases of differentiation.
 P a g e | 40

Differentiation:

The second generic strategy is differentiation. “In a differentiation strategy, a firm seeks to be
unique in its industry along some dimensions that are widely valued by buyers. It selects one
or more attributes that many buyers in an industry perceive as important, and uniquely
positions it to meet those needs. It is rewarded for its uniqueness with a premium price. The
means for differentiation is peculiar to each industry. Differentiation is based on the product
itself, the delivery system by which it is sold, the marketing approach, and a broad range of
other factors.” (Porter, 1985)

If the extra cost for differentiation is less than the premiums price, the firm which has the
competitive advantage of differentiation can get better profitability than other firms in the
industry. Because the extra cost for differentiation is the disadvantage of the differentiation,
the firm cannot ignore the cost position. So, only based on the price is almost the same as
competitor, the differentiator could get the high profitability.

Focus:

The third generic strategy is focus. “This strategy is quite different from the others because it
rests on the choice of a narrow competitive scope within an industry. The focuser selects a
segment or group of segment in the industry and tailors its strategy to serving them to the
exclusion of others. By optimizing its strategy for the target segments, the focuser seeks to
achieve a competitive advantage in its target segments even though it does not possess a
competitive advantage overall. The focus strategy has two variants. In cost focus a firm seeks
a cost advantage in its target segment, while in differentiation focus a firm seeks
differentiation in its target segment. “(Porter, 1985)

The firm can focus the time, the resource and the money on the segment to get the
competitive advantage. If the firm can get the competitive advantage of cost leadership or
differentiation in its target segment, the firm could provide customer the better service and
meet the special requirement. Because of the different requirements of customer, there are
always many segments in one industry.
 P a g e | 41

Cost Efficiency

Economies of Experience
Scale

Cost

Efficiency

Supply Cost Product/process

design

Strategic capabilities and competitive advantage

Resources Competences

Threshold Resources Threshold

Competences
Threshold Tangible
Capabilities Intangible

Unique Resources Core Competences

Capabilities for Tangible

Competitive Intangible
Advantage
 P a g e | 42

VALUE CHAIN ANALYSIS OF SUZUKI

 Primary Activities

Inbound Logistics:

Suzuki is in continuous search of less expensive and good quality raw material in result of
which they could find material instead of traditional teak.

Operations:

They help their supplier financially and technically to maintain their competitive advantage
of low cost.

Outbound Logistic:

Suzuki store inventory in its own warehouses as per commitment with supplier and to meet
its 90% to 95 % service level objective.

Marketing and sales:

Suzuki marketing mostly depend on its Catalog in 1988 its annual distribution was of 44
million in 12 languages and 27 editions accounted for half the company’s marketing budget.

Service:

Suzuki customer has to use their own transport to carry the knock-down kits and assemble
themselves

VALUE:

Cost Reduction Product Differentiation

Infrastructure of Firm:

Firm use central decision making and use informal management style its culture focuses on
human aspect and common sense and simple style.
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STRATEGIC CHOICES: DISCUSSION OF SCOPE AND OPTIONS

Due to confusion in the generic strategy, the strategic clock was introduced, Suzuki remain
competitive and avoid their position being threatened by using strategies from the clock
allowing Suzuki to stay one step ahead of their competitors, creating competitive advantage,
market share, etc.

STRATEGIC 'CLOCK

Hybrid Strategy:

Suzuki Hybrid Strategy; Suzuki cost reductions are available outside its differentiated
activities Achieve cost leadership through multi-level competitive advantage on supply side
Low cost logistics large retail units in suburban areas.

 Suzuki Hybrid Strategy Suzuki concentrates on building its differentiation on

the basis of its: Marketing Product Range Logistics Store Operations

 Suzuki Hybrid Strategy Marketing Target the global middle class localization
strategy in global markets Consumer tastes are merging Product Range 9,500
lines Carry Basic product range in each store Place great emphasis on
product lines that appeal to local tastes

 Suzuki Hybrid Strategy Logistics Furniture is flat packed Stack more, reduce
storage space Customer transports it home and assembles it Store operation
Accept low Margins in return for high volumes Shopping Experience Efficient
Processes .
 P a g e | 44

Modified Value Chain :

 Suzuki Hybrid Strategy Suzuki customer expectations of service levels are low
allowing for cost reductions as customers are prepared to transport and build
their products A unique cost structure flat pack gives Suzuki as low cost
distribution channel A global retail giant such as Suzuki can achieve greater
volumes than competitors so margins may be better because of its lower cost
base This allows Suzuki to sustain a low cost high quality advantage.

Porter’s five forces can be related to the diagram below.

Increased
selling power

Stakeholder Increased
expectations buying power

Competitiveness might be
improved by collaboration
to achieve
Increased
Shared work
barriers to
with customers
entry

Entry to new Decreased risk

market of substitution
 P a g e | 45

Shared work with customers

Suzuki has gone into E-commerce that allows customers to purchase online. The Suzuki
website is designed so that customers can order furniture online as they are able to give
customers self-service and allows them to customize their own design with specific style and
colors. Customers are able to purchase products or services from other countries e.g. as
financial services are not offered to all the countries that Suzuki operate in, they could trade
online to buy these services from the UK, US, Asia pacific, North America etc.

THE CULTURAL WEB

Strategic fit among activities is fundamental not only to competitive advantage but also to the
sustainability of that advantage. The culture of Suzuki is to enthusiastically work for
constantly renewing the products, on cost consciousness, focusing on quality, to assume
responsibility and to help in tasks and brining simplicity in the behaviors. To achieve this
culture, Suzuki has integrated all the activities to achieve the simple consistency between
them, the optimum efforts could be reached by reinforcing the activities. There was an
increasing demand for the inexpensive furniture, while the prices were high; this was a social
problem yet a rising opportunity for the business. To place itself in the industry it focused on
activities like layout of warehouses, relationships with suppliers, meeting demands of young
buyers, providing a wide product range, appreciating the creative solutions, paying attention
 P a g e | 46

to retails, a smooth leadership style that will be passed to the generations developing leaders
in the company and moreover their management style that is the key to every activity.

DIRECTIONS AND METHODS OF DEVELOPMENT

In the present business environment, no firm can consider itself immune to threats of product
obsolesces and saturation of demand. As a minimum, firms in all industries need to make
regular periodic reviews of product-market strategy. It has been one of the two most
significant authors of strategic management knowledge who firstly developed a framework
which is now broadly used for decisions related to business development options.

Figure 3.1 Product-market growth matrixes

This matrix has been revised and further elaborated on by other authors from the time it has
been published. Probably the most extensive and complex discussion is provided by Johnson
and Scholes37 whose elaboration will be used for further discussions related to this matrix.

\
 P a g e | 47

Product-market growth strategies

Based on the introductive discussions related to the product-market growth matrix, there are 4
main directions in which companies could develop. They could protect and build positions of
their current products or services on current markets, enter new markets with current
products, develop new products and offer them on current markets or both activities together,
i.e. enter new markets with new products.

Business development options on current markets with current

Products or services

The first option available to organizations wishing to develop and improve their
competitiveness is to gain further market share, in other words penetrate the market further.
However, the extent to which such option could be easily followed depends on several
factors. Most importantly, it is the nature and state of the market. It is much easier to gain
further market share on growing markets than on static markets where the demand is already
met by current providers. In addition, companies wishing to gain further market share need to
have additional resources for such developments and this can provide barriers mainly to
smaller companies.

UNRELATED DIVERSIFICATION

 Suzuki to move into specialty generator market

 Suzuki can also enter into the worldwide market
 Suzuki can also enter into mini boats industry
 P a g e | 48

CRITERIA AND TESTS FOR SUCCESS

Suitability

Suzuki have to make sure that the strategy which are they adapting will fit in their culture and
they have enough resources and competences and it full fill the needs of its stake holders.

Feasibility

In order of proper implementation of strategy Suzuki will have to make sure that they have
enough resources and competences for any of earlier mentioned strategies and it will bring
their desired expectations.

Product Expansion

Pak Suzuki also deals in motorcycle and also in Marine equipment, and they
have a variety of Product line expansion in Motor bikes is also one of the largest
customers size to operate and has a high market size to fulfill the needs of the
customers.
It also operates in the spare parts of the vehicles and Motor bikes. So they are
also operate in vertical integrated, and sometimes the company made different venture
 P a g e | 49

to fulfill the needs of its customer, such as it has joint venture with General tier for it
products.
In Marine segment, the Company is manufacturing the Equipments for ships, it
is also one of the largest areas to operate, so here the Pak Suzuki plays the role of
Business ventures and the transaction at this level is B2B Transaction.

Environmental Policy

As a general manufacturer of automobiles, motorcycles, outboard motors, etc., Suzuki

addresses environmental conservation at all stages in its operations from development
to disposal. In product development, we make every effort to improve fuel economy,
reduce exhaust emissions and noise, and develop clean energy vehicles, etc. In
manufacturing, we address issues such as reducing environmental risk, reducing
energy, and promoting the use of alternative energy. In distribution, we focus on
improving transportation efficiency and energy reduction, promoting the three Rs and
the use of low emission transport. In marketing, we address issues related to
promoting environmental management at our dealers and proper disposal of end-of-
life products, etc.
In addition to activities related to production, we also promote energy reduction and
green purchasing in our offices, provide our employees with environmental education,
promote environmental management at our dealers, and provide social action
programs in local communities.
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Suzuki 2008 Environmental and Social Report (web version)

Future Outlook of the Company:

In Future company is going to offer a new activity for its potential and Targeted
customers.

Suzuki Insurance Arrangement Program

It is a complete peace of mind solution to all your Auto Insurance needs

exclusively available at Pak Suzuki authorized dealerships. This is a Customer
focused Auto Insurance Program with the following distinct features:

a) Best premium rates.

b) Online/Instant policy issuance (Walk in – Drive out Insured).
c) Exclusively Repairs at Pak Suzuki Authorized Dealer workshops only.
d) Quality Repairs Using Suzuki Genuine parts with 6 Months Warranty on
parts.
e) Largest Country Wide Dealer Network Support.
f) Call Center facility.
g) Fastest claim settlement time.

FUTURE PROSPECTS
The Company would strive to earn reasonable return on equity. However
Rupee/Yen parity, economic conditions, Government policies and growing competition
would play a vital role in this achievement. Company's key objectives continue to remain: -
To provide automobiles of international quality at reasonable prices; - To improve skills of
 P a g e | 51

employees by imparting training and by inculcating in them a sense of participation; and - To

abide by the deletion policy of the Government, achieve maximum indigenization and
promote the automobile vending industry.

STRATEGIC RECOMMENDATIONS

“Real Strategic change requires inventing

new categories, not rearranging old ones.”
Said, Henry Mintzberg
Product Development is the selected strategy at this point of time for Pak
Suzuki Motor Company Limited that I observed from my strategic analysis of the
PSMC.

In product development strategy I recommend the company to focuses on having

the highest level of product performance, the highest level of functionality or
functions and features, the latest technology or the highest level of product
innovation.

This strategy might have some risk for the company as innovative products are
involved but proper research and development will cater the risk and company
can pursue with the strategy to be the market leaders and get on top.

One major setback to PSMC was in the shape of Suzuki LIANA, which was not
able to meet the expectations and couldn’t hold the market it was made for.

But company didn’t stop its journey there, and now Suzuki SWIFT has recently
been launched in the market, which seems to be an attractive offer for the market
in the 1300cc class. But still company has nothing to compete with HONDA and
TOYOTA. The Suzuki needs to enter into the 1600cc and 1800cc market to
expand its market share and market growth. But for that purpose they need to put
more efforts of product development as the new product must have all the
required features and technology that is needed to compete with giant
competitors. And of course, PSMC has competitive advantage in local
 P a g e | 52

assembling and manufacturing of parts and they can utilize that advantage to
produce cheaper cars in the categories mentioned above.

The PSMC has recently received acknowledgement from Prime Minister of Pakistan for
being the only car manufacturers for the lower and middle income people of Pakistan. But
they should also need to get into the line of HONDA and TOYOTA, to achieve that target
they need to develop more technologically cheap and efficient and quality oriented products.
World trade organization (WTO) has rejected their program of deletion. I suggest they must
start an alternative program for extension of their growth. So that their market growth and
market share do not declined. To reduce their input cost they must use other methods for
producing resources so that they can lower their cost of production. They must make trust
with government so that government give them security and protection. They must train their
workers to use innovations and new technology as workforce is backbone of the company. I
recommended them that they must increase their production and give more beautiful and
heart touching look to the car with good system and service.

CONCLUSION
The Pak Suzuki Motor Company Limited has strong competitive position against its major
competitors and the market growth is healthy and at increasing pace. By comparing both
Market Development and Product Development, they obtained more weighted attractive
score for Product development. That means company should follow the product development
which is part of aggressive strategies. This strategy is going to help the firm in eliminating its
threats and grab the opportunities to be successful in the present macro environment.

REFERENCES/BIBLIOGRAPHY

http://www.paksuzuki.com.pk
http://www.google.com
http://en.wikipedia.org/wiki/Pak_Suzuki_Motor
http://www.globalsuzuki.com
http://www.we.com.pk

http://www.maxi-pedia.com

www.informaworld.com

www.pama.com

Principles of Marketing (Philip Kotler)

Suzuki Area Office TAXILA

 P a g e | 53

And various news paper articles, research findings and blogs, which helped me indirectly
to build up my mind about Pak Suzuki Motor Company Limited and figure out their
External and Internal Factors which were involved in the project.

Dedication

Dedicated to OUR beloved parents,

Teachers, and friends, whose assistance
And moral support is such a great
Source of inspiration and a drive to work
For us!
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