STRATEGY MANAGEMENT

Strategy Management of Maruti Suzuki



Strategy Management of Maruti Suzuki

Introduction

The automotive industry is always changing. Competition and special consumer demands lead to steady improvements in efficiency and effectiveness. The automotive industry has in the past led to revolutionary changes. This is unique in the industry. So it was only in the 100-year old automobile industry has already been two revolutions, and the third is in full swing.

Maruti Suzuki India is a Japanese automobile manufacturer Suzuki, the Indian in the passenger car production and sales subsidiary. It was established in February 1981 and has become the largest automobile company. The company manufactures the wide range of cars and SUV's. Previously, it was known as the Maruti Udyog Limited.

The business activities of the company can be divided into two parts such as the primary segment and other segment. The company deals in manufacturing, purchases, spare parts, and sells motor vehicles. Similarly, the other activities comprises of pre-owned car sales, fleet management and car financing. The company plans to enhance its manufacturing facility to 1.75 million till 2013.

Different car variants and models are offered due to which the Maruti Suzuki has been the leader for over the two and half decades in the Indian car market. At the end of March 2011, the company enjoyed the market share of 44.9 percent of the Indian passenger car market.

urrently, the company in fiscal 2010 (ending March) has seen sales of 120 million units. Last year was 101 million units.Has sustained strong sales in the domestic market in India. In addition, the market share of Maruti Suzuki India, the Indian market at the end of August was 52 percent. Maruti Suzuki prioritizes the interests of its communities, customers, shareholders, employees, social responsibility and plays an emphasis on the relationship between various stakeholders such as suppliers. 

PESTLE Analysis

PESTEL Analysis will focus on the external industry environment in which the company competes; it will help in understanding the Maruti Suzuki market growth, business position, potential and direction for operations.

Political Factors

The degree of intervention in the economy takes place through the various government and political forces. These factors have affected the car industry since long (Thompson 2005, pp. 65). Major political factor that can affect the Maruti Suzuki sales is the global petrol prices. The current increase in petrol prices is having a major impact on major economies. For instance, with the rise in petrol prices, consumers are demanding higher fuel efficient and small cars and lesser of the big and luxury cars. Another factor might be the taxation policy of the country which implies paying tax rates when buying cars.

Economic Factors

The Interest rates, taxation charges, economic growth rates, inflation and exchange rates falls under the category of economic factors. Similarly, the major factor that affects the automobile industry is the exchange rate. For instance, in the year 2009, the sale of new cars was largely affected due to an appreciation in Japanese Yen and Euro. Sales figure were down by around 20%. The reason is the due to appreciation of the Japanese Yen and Euro; the exports were become ...