Maruti Suzuki India Limited - Competitive Strategies of the Market Leader


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Please note:

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.

Case Details:

Price:
Case Code : BSTR351 For delivery in electronic format: Rs. 400;
For delivery through courier (within India): Rs. 400 + Rs. 25 for Shipping & Handling Charges

Themes

Competitive Strategies / Differentiation
Case Length : 19 Pages
Period : 1991-2009
Pub Date : 2009
Teaching Note : Not Available
Organization : Maruti Suzuki
Industry : Automobile
Countries : India

Abstract:

The case examines the competitive strategies of Maruti Suzuki India Limited (Maruti), a subsidiary of Japan based Suzuki Motor Corporation (Suzuki), the market leader in the Indian passenger car industry. Maruti was founded in 1981. After the liberalization of the Indian economy in 1991, several foreign players had entered the Indian passenger car market. Maruti started losing market share as the competitors firmly established their foothold in the car market with the launch of several new models that became popular with the Indian buyers.

To counter the competition, Maruti started a major restructuring exercise in 2003.

The company focused on upgrading manufacturing, increasing capacity, launching new products at regular intervals so as to cater to all the segments of the Indian passenger car market and venturing into other related businesses like car finance, insurance and buying and selling used Maruti cars. Maruti's restructuring exercise helped the company hold its market leadership position and retain its market share. The case examines how the deregulation of the Indian automobile industry had an adverse impact on Maruti's market share. It also details how Maruti's competitive strategies helped it to sustain its market leadership. The case ends with a discussion on Maruti's future strategy.

Issues:

» Study the impact of liberalization in the Indian automobile industry.
» Examine the growth strategies of Maruti over the decades.
» Analyze the restructuring program implemented by Maruti and its impact on the company's competitive position.
» Evaluate the competitive strategies of Maruti to retain its market share in the recent years.
» Examine the future plans of Maruti to improve its competitive position.

Contents:

  Page No.
Introduction 1
Background Note 2
Deregulation of the Industry 3
Competitive Strategies 4
The Result 10
Outlook 12
Exhibits 14

Keywords:

Maruti Suzuki, Restructuring Program, Operational Efficiency, Indian Automobile Industry, Liberalization, Deregulation of Automobile Industry, Competitive Advantage, Competitive Strategies, Promotional Strategies, Value Added Services, Product Portfolio, Business Portfolio, Distribution Network, Economic Meltdown, Electric Car Technology, Indian Passenger Car Market

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