CALCUTTA BUSINESS SCHOOL

CRITICAL ANALYSIS OF ORGANIZATION ON

APPLICATION OF CONCEPTS OF MANAGEMENT

SUBMITTED TO: SUBMITTED BY:

DR.TAMAL DUTTA CHOWDHURY SAYAN KUNDU

CALCUTTA BUSINESS SCHOOL PGDM 2015-17

ROLL NO- 15045

MARUTI SUZUKI Page 1

CALCUTTA BUSINESS SCHOOL

CONTENTS PAGE NUMBER

ABOUT THE COMPANY 3

MISSION & VISION 4

MAJOR COMPETITORS 5

MARKET SHARE OF 6-7

MARUTI SUZUKI
PRODUCT 8

PORTER’S 5 FORCES MODEL 9-11

CORE COMPETENCE 12

BCG MATRIX 13-14

SWOT ANALYSIS 15—16

PROFIT AND LOSS RATIO 17

NET SALES AND PAT 17

BALANCE SHEET 18

IS MARUTI SUZUKI 19
BUILT TO LAST?
CONCLUSION 20

MARUTI SUZUKI Page 2

CALCUTTA BUSINESS SCHOOL

ABOUT
THE
“If
you have travelled in India, taken a
route to anywhere around this great nation, chances are
you’ve driven with us. For over three decades now, Maruti
Suzuki cars have been going places.
We started out in 1982 in Gurgaon, Haryana. Little did the then quiet suburb of New Delhi
know, that it was going to become the epicenter of the automobile revolution in India. The year
marked the birth of the Maruti Suzuki factory. India turned out 40,000 cars every year. The new
Maruti Suzuki 800 hit the streets to begin a whole new chapter in the Indian automobile
industry.
We set out with an obsession for customer delight, one that was unheard in the corridors of
automobile manufacturers then. It was about a commitment to create value through
innovation, quality, creativity, partnerships, openness and learning. It created a road that was
going to lead the world in to a whole new direction, laid out by Maruti Suzuki.
Today, Maruti Suzuki alone makes 1.5 million Maruti Suzuki family cars every year. That’s one
car every 12 seconds. We drove up head and shoulders above every major global auto
company. Yet our story was not just about making a mark. It was about revolutionary cars that
delivered great performance, efficiency and environment friendliness with low cost of
ownership. That’s what we call true value. We built our story with a belief in small cars for a big
future. Our story encouraged millions of Indians to make driving a way of life. India stepped up
with our vision to take on the fast lane. A comradeship had begun. Something incredible had
begun.
So, what drives us? Millions of Indians who’ve put their faith in us. A team of over 12500
dedicated and passionate professionals that turned out 14 cars with over 150 variants. The
drive is backed up by a nationwide service network spanning over 1454 cities and towns and a
sales network that spreads across 1097 cities, 2 state of the art factories. A diesel engine plant
with a capacity upped to turn out 7 lakh diesel cars a year. And a commitment to road safety to
make Indian roads safer.
Finally, our inspiration comes from one place – India’s hopes, dreams and aspirations. The
Maruti Suzuki journey has been nothing less than spectacular. But to be honest, we’ve only just
begun.”

MARUTI SUZUKI Page 3

CALCUTTA BUSINESS SCHOOL

MISSION STATEMENT

“We have chosen a road and that drives us extra miles to achieve every
endeavour. Here is what we at Maruti Suzuki believe in:
Customer Obsession
Fast, Flexible & First Mover
Innovation & Creativity
Networking & Partnership
Openness & Learning”

VISION STATEMENT

“The Leader in automobile industry creating customer delight and

shareholder’s wealth; A pride of India”

MAJOR COMPETITORS:
MARUTI SUZUKI Page 4
CALCUTTA BUSINESS SCHOOL

 Honda
 Hyundai
 Tata Motors
 Mahindra
 Ford
 Chrevolet

MARKET SHARE OF MARUTI SUZUKI

MARUTI SUZUKI Page 5

CALCUTTA BUSINESS SCHOOL

MARUTI SUZUKI Page 6

CALCUTTA BUSINESS SCHOOL

MARUTI SUZUKI Page 7

CALCUTTA BUSINESS SCHOOL

Products:

MARUTI SUZUKI Page 8

CALCUTTA BUSINESS SCHOOL

PORTER’S FIVE FORCES MODEL:

Supplier Power: LOW

• The Supplier market for Maruti is highly fragmented.

• The possibility for backward integration is also high which has

restrained the power of the suppliers

MARUTI SUZUKI Page 9

CALCUTTA BUSINESS SCHOOL

• Maruti engages with several local suppliers for their spares and
parts for their automobiles manufacturing.

• The entry of many new small scale manufacturers has also

contributed to the benefit of large automobile manufacturers like
Maruti to source their Spares and parts at a very optimal price.

• This clearly indicates the low supplier power.

Buyer Power: HIGH

• Buyers’ power in four wheelers industry is more as the product
diversity and brands available in the market are exceptionally
high.

• Buyers today are demanding and specific on their needs for the
money they pay.

• They are looking for the brand that offers better pricing and
technology which has shadowed the customer loyalty for any
brand today which is the most faced threat by Maruti Suzuki.

Threat of Substitutes: HIGH, And increasing

• Threat from substitutes is quite high.

• When looked down the line we could anticipate a threat from the
dramatically escalating fuel cost which might cause customers to
switch to economic two wheelers.

• As well growing environmental concerns has also brought in

bicycles and battery two wheelers that might pose a threat in
future to Maruti Suzuki.

MARUTI SUZUKI Page 10

CALCUTTA BUSINESS SCHOOL

Intensity of Rivalry: HIGH

• Automobile industry is most known for the competitive market
and rivalry.

• Automobile brands like hundyai, Honda, Tata Motors, and

Mahindra have come up with various product line and technology
targeting the customer segment of age group 20 to 30 years who
are more fascinated to fascinating four wheelers.

Threats of New Entrants: LOW

• New entrants face a moderate barrier in penetrating the market
since it is consolidated by few and strong suppliers.

• As the market size of the four wheelers industry is big and

requires a strong footprint with high capital investment, new
entrants find it difficult to fit themselves among the market
frontrunners.

• Thus Maruti Suzuki is not susceptible to threats from the new

entrants to the industry.

MARUTI SUZUKI Page 11

CALCUTTA BUSINESS SCHOOL

CORE COMPETENCE
1.The core competence of Maruti Suzuki lies in manufacturing small
cars.

2. Another competence is their fuel efficiency factor that their car

provides

MARUTI SUZUKI Page 12

CALCUTTA BUSINESS SCHOOL

BCG MATRIX:

Sx4,eeco
Swift,swift dzire

Alto,Waganor Maruti Omni,Maruti 800

Star:
Star denotes high market growth and high market share in the industry. This position defends when the
organization invest large amount in this segment. There is high growth when compared to last year, so
this is the reason SWIFT and SWIFT DZIRE comes under star category. It will turn into cash cow when
there is gradual decrease in market growth in coming years.

MARUTI SUZUKI Page 13

CALCUTTA BUSINESS SCHOOL

Cash cow:

Cash cow denotes low market growth and high market share in the industry. ALTO and
WAGANOR can be treated as cash cows. Handling is very simple and this is more preferred by
small traders. Teenagers are using this vehicle as an entry point for them. This dominates in the
position of cash cow because increase in the share of sales in every year.

Question mark:

Question mark denotes high market growth and low market share. In this category, there are two
things to be considered as invest greatly in the products or to clear up this products. The
company launches new EECO which gets more drawbacks in the market and the company
planned to launch the product with redesign But the product is failed due to some engine
problems. So company need to invest in them(EECO AND SX4) for increase in market growth,
this is the reason that these products comes under the question mark.

Dog:

Dog denotes low market growth as well as low market share in the industry. In this segment we
have considered MARUTI SUZUKI 800 and OMNI because there is negligible market share of
the cars,the growth of the two cars is also negligible.

MARUTI SUZUKI Page 14

 CALCUTTA BUSINESS SCHOOL

SWOT ANALYSIS
STRENGTHS:

 Maruti Udyog limited (MUL) is in a leadership position in the

market with a market share of 47.68%
 Major strength of MUL is having largest network of dealers and
after sales service centers in the country.
 Good promotional strategy is adopted by MUL to transfer its
thoughts to the people about its products.
 Maruti Suzuki recorded highest number of domestic sales with
9,66,447 units from 7,65,533 units in the previous fiscal. It recently
attained the 10million domestic sales mark.
 Strong Brand Value and Loyal Customer Base are big strengths for
MUL
 There are around 15 vehicles in Maruti Product portfolio. Has
good product lines with good fuel efficiency like Maruti Swift, Diesel,
Alto etc
 Alto still beats the small car segment with highest number of sales
 MUL is the first automobile company to start second hand vehicle
sales through its True-value entity.
 MUL has good market share and hence it’s after sales service is a
major revenue contributor.

WEAKNESSES:

 Low interior quality inside the cars when compared to quality

players like Hyundai and other new foreign players like
Volkswagen,Nissan etc.
 Government intervention due to having share in MUL.

MARUTI SUZUKI Page 15

 CALCUTTA BUSINESS SCHOOL

 Younger generations started getting a great affinity towards new

foreign brands
 The management and the company’s labor unions are not in good
terms. The recent strikes of the employees have slowed down
production and in turn affecting sales.
 Maruti hasn’t proved itself in SUV segment like other players.

OPPORTUNITIES:

 MUL has launched its LPG version of Wagon R and it was a good
move simultaneously
 MUL can start R&D on  electric cars for a much better  substitute
of the fuel.
 Maruti’s cervo 600 has a huge potential in tapping the middle
class segment and act as a strong threat to Nano
 New DZire from Maruti will capture the market share and
expected to create the same magic as Maruti Esteem(currently not
available)
 Export capacity of the company is giving new hopes in American
and UK markets
 Economic growth of the country is constantly increasing and the
government is working hard to increase the gdp to double digit

THREATS:

Heavy competition from other competitors and from other

international brand i.e. importing of cheap motorcycle from china.

Gradual increase in fuel price, Decrease in car prices, policies and

increase in taxes will affect margin for dealer as well as customer.

Improving public transport will have an effect on the automobile sales.

MARUTI SUZUKI Page 16
CALCUTTA BUSINESS SCHOOL

Spare parts are expensive which increases the maintenance cost.

PROFIT AND LOSS RATIO

NET SALES AND PAT

MARUTI SUZUKI Page 17

CALCUTTA BUSINESS SCHOOL

BALANCE SHEET as on 31 st March 2014

As at
31.03.2014
As at
31.03.2013

MARUTI SUZUKI Page 18

CALCUTTA BUSINESS SCHOOL

IS MARUTI SUZUKI BUILT TO LAST?

• Yes It is built to last as it follows the 7 timeless principles of Great
companies

• Best of the Best- Maruti Suzuki is premier institution in their industries,

widely admired by their peers and having a long track record of making a
significant impact on the world around them.

• Be Clock Builders, Not Time-Tellers- Maruti Udyog Limited in the early

years were mot pioneer in automobile industry.They merged with Suzuki
and built their goodwill slowly.

• More than Profits- Maruti Suzuki preserved its core ideology while
allowing room for the manifestations of the core ideologies to change. This
means product lines, profit strategies, cultural tactics, and organization
structure changed – but the core ideology did not.

• Preserve the Core/Stimulate Progress- Maruti Suzuki does business by

being able to adapt and change over time in response to market conditions.
Over time, competencies, strategies, and goals change but the core
ideology remained intact.

• Big Hairy Audacious Goals- Maruti Suzuki is committed to being a highly

profitable, socially responsible, and leading manufacturer of high value for
money, environmentally friendly, lifetime personal transportation products
under the Maruti Suzuki brand, for customers predominantly in Asian
markets and to provide fulfillment and prosperity for employees, dealers
and suppliers.

• Cult-like Cultures- Maruti Suzuki employs around 40,000 skilled employees

who believe strongly in the company ideology.

• Try a Lot of Stuff and Keep What Works-Maruti Suzuki is constantly

working on research and innovation and modifying the products and
upgrading the technology.

MARUTI SUZUKI Page 19

CALCUTTA BUSINESS SCHOOL

• Maruti Suzuki also believes that BEING A GREAT COMPANY IS A NEVER

ENDING PROCESS and has a great VISION (stated earlier).

CONCLUSION:
In this study I came to know that there are more than five different automobile
companies manufacturing different types of consumer utility vehicles. As the time
is changing, the demands and preferences are also changing very rapidly, so if the
companies wants to survive in this competitive market , they have to produce the
goods and services as per the needs of customers to delight them.The Maruti
Suzuki is currently the No.3 four-wheeler company in India which produces wide
variety of products with different models, aesthetics etc, by which it has captured
a large market share in four-wheeler market. Although the sale of Maruti Suzuki
fell during the year 2011-2014,but due to its excellent strategy and built to last
techniques it bounced back during the financial year 2014-15. Now there are
other companies like Hyundai, Ford etc, which are giving keen competition to
Maruti Suzuki, continuous innovation and research is required to survive the
competition.

THANK YOU

MARUTI SUZUKI Page 20