Strategic Management Project:

Maruti Suzuki- Making Automobile

Accesible
By-
Anshul Inani
Hussain Hakimuddin
Rahil Kothari
Aman Upadhyay
Manav Singh
About Maruti Suzuki
Maruti Suzuki India Limited (MSIL), a subsidiary of Suzuki Motor Corporation,
Japan, is India’s largest passenger car maker. Maruti Suzuki is credited with
having ushered in the automobile revolution in the country. The Company is
engaged in the business of manufacturing and sale of passenger vehicles in
India. Making a small beginning with the iconic Maruti 800 car, Maruti Suzuki
today has a vast portfolio of 16 car models with over 150 variants. Maruti
Suzuki’s product range extends from entry level small cars like Alto 800, Alto
K10 to the luxury sedan Ciaz.
Vision and Mission
1 Vision
“To be a leader in the Indian automobile
industry creating customer delight and
shareholder wealth, a pride of India”.
2 Mission
● Modernization of the Indian Automobile
Industry.
● Developing cars faster and selling them
for less.
● Production of fuel-efficient vehicles to
conserve scarce resources.
● Production of large number of motor
vehicles which was necessary for
economic growth.
● Market Penetration, Market Development
Similarly Product Development and
Diversification.
● Partner relationship management, Value
chain, Value delivery network.
Core Values
Customer Focus Innovation Integrity

Putting the customer at the Continuously seeking new and Upholding the highest standards
heart of everything we do, better ways to create value for of ethical conduct and
anticipating and exceeding their our customers and stakeholders. professionalism in all our
expectations. dealings.
Customer Value Proposition
Reliability Affordability
Maruti Suzuki vehicles are known for their
The company's wide range of competitively
durability, dependability, and low maintenance
priced vehicles caters to the diverse budgets and
costs, providing customers with peace of mind.
needs of Indian consumers.

Convenience Innovation
Maruti Suzuki's extensive service network and
The company's focus on incorporating the latest
customer-centric approach ensure a seamless
technologies and designs keeps its products at
ownership experience for its customers.
the forefront of the industry.
Innovative Products and Technologies

Advanced Engines Cutting-Edge Features Eco-Friendly Solutions

Maruti Suzuki's engines are The company's vehicles are Maruti Suzuki is committed to
renowned for their fuel efficiency, equipped with the latest safety, developing sustainable mobility
performance, and low emissions. connectivity, and convenience solutions, including hybrid and
technologies. electric vehicles.
Commitment to Sustainability
Energy Efficiency
Maruti Suzuki has implemented energy-efficient processes and technologies across
its manufacturing facilities to reduce its carbon footprint.

Waste Management
The company has adopted robust waste management practices, including recycling
and responsible disposal, to minimize its environmental impact.

Community Initiatives
Maruti Suzuki actively engages with local communities through various social
responsibility programs, contributing to the well-being of society.
Future Roadmap
Electrification Maruti Suzuki is accelerating its efforts to
introduce a range of electric vehicles, aligning with
the growing demand for eco-friendly mobility
solutions.

Digitalization The company is leveraging digital technologies to

enhance the customer experience, streamline
operations, and drive innovation across its
business.

Global Expansion Maruti Suzuki is exploring opportunities to expand

its footprint in international markets, leveraging its
expertise and brand reputation.
Navigating the External
Environment : PESTEL
Analysis

Maruti Suzuki is India's leading automobile manufacturer, known for its

innovative and affordable vehicles. To stay competitive, the company must
thoroughly analyze the various external factors shaping its industry.
Political Factors: Government Policies and
Regulations
The Indian government's policies and regulations have a significant impact on Maruti Suzuki's operations. These
include emission standards, tax incentives, and trade agreements that can influence the company's manufacturing
and pricing strategies.

1 Emission Regulations 2 Tax Policies 3 Trade Agreements

Stricter emission norms
require Maruti Suzuki to
invest in cleaner engine
technologies.
Tax incentives and Trade deals influence the
subsidies can affect the import and export of parts
affordability of Maruti's and vehicles, impacting
vehicles for consumers. Maruti's supply chain.
Economic Factors: GDP, Inflation, and
Consumer Spending
Maruti Suzuki's performance is closely tied to the broader economic climate in India. Factors like GDP growth,
inflation, and consumer purchasing power can significantly impact the company's sales and profitability.

GDP Growth Inflation Consumer Spending Imports

Stronger GDP growth indicates a
healthier economy and
increased consumer spending
power, which benefits Maruti
Suzuki's sales.
High inflation can erode
consumer purchasing power,
making Maruti's vehicles less
affordable and leading to
reduced demand.
Trends in disposable income and
consumer confidence directly
impact the sales of Maruti
Suzuki's vehicles.
Maruti Suzuki's reliance on imported
components makes it vulnerable to
fluctuations in exchange rates,
impacting production costs and
overall competitiveness domestically
and internationally.
Social Factors: Changing Consumer
Preferences and Demographic Shifts
Maruti Suzuki must closely monitor evolving social trends and demographic changes in India to ensure its product
offerings align with customer preferences.

Urbanization Rising Income Levels

The growing urban population demands more Increased disposable incomes drive demand for
compact and fuel-efficient vehicles. higher-end and feature-rich models.

Environmental Consciousness Digital Savvy Buyers

Consumers seek eco-friendly and sustainable Tech-savvy consumers expect seamless digital
transportation options. experiences and connected features.
Technological Factors: Advancements in
Automotive Technology
Rapid technological advancements in the automotive industry present both challenges and opportunities for
Maruti Suzuki. Keeping pace with trends in areas like electrification, autonomous features, and connected services
is crucial for the company's long-term success.

Electric Vehicles 1
The shift towards electric mobility requires
Maruti Suzuki to invest in developing and
manufacturing zero-emission vehicles. 2 Autonomous Driving
Autonomous and semi-autonomous
driving technologies are transforming the
industry, and Maruti must adapt
Connected Services 3 accordingly.
Integrating advanced connectivity features
and digital services is crucial to meet
evolving consumer expectations.
Environmental Factors: Emission Standards
and Sustainability Initiatives

As environmental concerns grow, Maruti Suzuki must address the impact of its operations and products on the
environment. Compliance with emission regulations and adoption of sustainable practices are essential for the
company's long-term viability.

Emission Standards Sustainability Initiatives Circular Economy

Stricter emission regulations
require Maruti Suzuki to invest in
clean engine technologies and
alternative fuel solutions.
The company must implement
eco-friendly manufacturing
processes and promote
environmentally responsible
products.
Maruti Suzuki should explore
circular economy strategies, such
as recycling and reusing materials,
to reduce its environmental
footprint.
Legal Factors: Antitrust Laws and Consumer
Protection Regulations
Maruti Suzuki must navigate a complex web of legal and regulatory requirements to ensure fair competition and
protect consumer rights.

Antitrust Laws Consumer Protection Intellectual Property

Compliance with antitrust
regulations is crucial to
maintain a level playing field
and prevent unfair market
practices.
Adhering to consumer
protection laws ensures Maruti
Suzuki's products and services
meet safety and quality
standards.
Safeguarding the company's
intellectual property rights is
essential to maintain its
competitive edge.
Competitive Landscape: Porter's Five Forces
Analysis
Maruti Suzuki's success is heavily influenced by the competitive dynamics within the Indian automotive market.
Applying Porter's Five Forces framework provides valuable insights into the company's strategic positioning.

Threat of New Entrants High due to low entry barriers and government
incentives for new players

Bargaining Power of Suppliers Moderate as Maruti Suzuki has strong relationships

with key suppliers

Bargaining Power of Buyers High as consumers have many options and can
easily switch brands

Threat of Substitutes Moderate as public transportation and used car

market provide alternatives

Intensity of Rivalry High due to intense competition from established

players and new entrants
SWOT Analysis
Key Financial Ratios: Profitability
Key Financial Ratios: Liquidity
Key Financial Ratios: Management Efficiency
Value Chain Analysis

Suppliers , Capital Goods Outbound Transporters Marketing and Sales Aftermarket

Manufacturers, In-bound
Logistics and MSIL
VRIN Test
Valuable Rare
Maruti Suzuki's focus on affordable and reliable The company's deep understanding of the Indian
vehicles aligns with the growing demand in the consumer and ability to tailor products to local
Indian market. preferences is a unique capability.

Inimitable Non-substitutable
Maruti Suzuki's extensive dealer network and The brand's strong reputation and customer
after-sales service infrastructure are difficult for loyalty make it difficult for consumers to find
competitors to replicate. adequate substitutes.
Competitive Positioning

Price Market Dominance Product Innovation Customer Loyalty

Competitiveness
Maruti Suzuki's focus on The company's Maruti Suzuki The company's
affordability allows it to extensive distribution continuously invests in reputation for reliability
maintain a strong network and brand research and and after-sales service
competitive edge in the recognition have development to has fostered a loyal
mass market segment. enabled it to capture a introduce new models customer base in the
significant market share and technologies to Indian market.
in India. meet evolving customer
needs.
Challenges and Opportunities
Shift to Electric Vehicles
Maruti Suzuki needs to invest in
developing and adopting
electric vehicle technology to
stay competitive in the long-
term.
Regulatory Changes
The company must adapt to
evolving emission standards
and automotive regulations to
maintain its operational
efficiency.
Growing Competition
Increased competition from
both domestic and
international players in the
Indian market poses a
challenge for Maruti Suzuki.
 Generic Competitive Strategies: Cost Leadership
and Differentiation
Differentiation Focus
Cost Leadership
Through tailored branding and product evolution,
The company also differentiates itself through
Maruti Suzuki's focus on cost optimization and Maruti Suzuki enhances value for money to cater
continuous product innovation, technology
efficient production processes allows it to offer to customer needs.
advancements, and a customer-centric approach,
competitively priced vehicles, making them
ensuring that its offerings meet the evolving needs
accessible to a wide range of consumers.
of the market.
Specific Company Strategies: Product Innovation
and Customer Focus
1 First Mover 4 Market Readiness Assessment

2 Defensive 5 Product Development and Innovation

3 Late Mover
Vertical Integration: Leveraging Synergies Across
the Value Chain
Raw Material Sourcing 1
Maruti Suzuki's vertical integration extends
to the sourcing of raw materials, enabling
the company to maintain quality control and 2 Manufacturing
cost efficiency. The company's state-of-the-art
manufacturing facilities and production
processes ensure high levels of efficiency
and quality control.
Distribution and Aftermarket 3
Maruti Suzuki's extensive network of
dealerships and service centers across India
allows for efficient distribution and effective
customer support.
Technological Advancements: Embracing
Sustainable Mobility Solutions

Electric Vehicles Hybrid Technology

Maruti Suzuki is at the forefront of developing and The company is also investing in hybrid technology,
promoting eco-friendly electric vehicles to address the which combines the efficiency of electric motors with
growing demand for sustainable mobility solutions in the convenience of internal combustion engines.
India.
Partnerships and Collaborations: Enhancing Capabilities and Reach
- In 2017, Toyota and Maruti Suzuki formed a strategic alliance to
bolster their presence in India's compact car market and to gain
access to hybrid technology for global expansion.
- This collaboration, marked by shared platforms and expertise, aims to
offer consumers a wider array of options while reducing development
costs. Maruti Suzuki further expanded its partnerships, teaming up
with Indian Oil Corporation for the 'Maruti Suzuki Rewards' loyalty
program, enhancing benefits at thousands of fuel stations
nationwide.
- Additionally, alliances with Aisin Seiki Co., Ltd., Jammu & Kashmir
Bank, Union Bank, IDFC FIRST Bank Limited, Quiklyz by Mahindra
Finance, and others have strengthened Maruti Suzuki's offerings in
financing, inventory funding, and vehicle subscription services.
- Looking ahead, Maruti Suzuki aims to double its production capacity
by 2030-31, with plans to streamline production activities and
acquire shares in key manufacturing entities. These collaborations,
coupled with investments in technology startups like Amlgo Labs and
Sociograph Solutions, underscore Maruti Suzuki's commitment to
innovation and customer-centric solutions in the automotive industry.
Recommendations for Continued Success:
Adapting to Evolving Market Dynamics

Embrace Emerging Trends Continuously adapt to changing consumer

preferences and technological advancements in the
automotive industry.

Enhance Sustainability Invest further in electric and hybrid vehicles to meet

the growing demand for eco-friendly mobility
solutions.

Strengthen Partnerships Explore new collaborations and strategic alliances to

enhance capabilities and reach in both domestic and
international markets.
Thank You!