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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Excerpts Contd...
The Result
Within a year of its launch of its Challenge 50 plan, Maruti's restructuring efforts started reflecting in its financial performance. In the financial year 2003-04, Maruti reported a 25.2 percent increase in net sales to Rs 90.81 billion as compared to Rs 72.53 billion in the preceding fiscal year.
The net profit of the company for 2003-04 also increased from Rs 1.46 billion in fiscal 2002-03 to Rs 5.42 billion in fiscal 2003-04. The company was able to increase its net profit riding on the high sales growth of Alto, which increased by over 130 per cent in fiscal 2003-04 as compared to fiscal 2002-03. (Refer Table II for Maruti's Net Sales and Profit after Tax)...
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Outlook
Maruti announced plans to invest Rs 18 billion in the fiscal 2009-10 on launching new models and upgrading plants. In July 2009, the company launched a new version of Grand Vitara. Maruti would also launch a Multi-utility vehicle (MUV) in October 2009. The MUV would be built on the Maruti Versa platform...
Exhibits
Exhibit I: Awards and Accolades Received by Maruti over the
Years (1987-2009)
Exhibit II: A Note on Indian Passenger Car Market
Exhibit III: Maruti's Product Portfolio (July 2009)
Exhibit IV: Fuel Efficiency of Maruti's Models
Exhibit V: Maruti's Financial Performance
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