Maruti Suzuki India Limited - Competitive Strategies of the Market Leader

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Case Details:

Case Code : BSTR351
Case Length : 19 Pages
Period : 1991-2009
Pub Date : 2009
Teaching Note :Not Available
Organization : Maruti Suzuki
Industry : Automobile
Countries : India

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Introduction Contd...

From the mid 1990s, foreign automobile companies started entering the Indian passenger car market. Maruti started losing market share as competitors began taking over their space with the launch of models that proved very popular with Indian buyers. Between the financial years 1997-98 and 1999-2000, Maruti's market share declined from 83.1 percent to 60.8 percent.

To counter the competition, Maruti started a major restructuring exercise. The company focused on improving its operational efficiency by upgrading manufacturing using new manufacturing techniques, increasing capacity, using information technology (IT) in manufacturing, focus on new product launches at

regular intervals and venturing into other related businesses like car finance, insurance and buying and selling used Maruti cars. Maruti's restructuring exercise paid off as the company was able to hold its market leadership position with a 55 percent market share in 2008-09. The new products launched by the company were well accepted by the market. However, there was no room for complacency and so the company formulated a careful plan for its future direction. The company decided that it would upgrade all its products with its new KB series engine³...

Excerpts >>

3] Maruti developed the KB series engine in 2008, with an investment of Rs 12 billion. The engine was not only fuel efficient but also emitted less carbon dioxide.

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