Globalization of Maruti Suzuki India Ltd

Topics: Suzuki, Automotive industry, Maruti Suzuki Pages: 11 (3328 words) Published: October 28, 2012
Management of Global Manufacturing
Globalization of Maruti Suzuki India Limited Project Members

Table of Contents
Maruti – Company Profile3
Industry Analysis4
Current Scenario4
Background of the Indian Automobile Industry4
Research Objective5
The Issues at Maruti5
Analysis of the Issues6
GAP Analysis6
Process Flow Analysis10
Porter’s 5 Forces analysis11
Proposed Strategies and Reccommendations11
Strategies to maintain Market Leadership11
Perception change11
Defensive Warfare Strategy12
Platform Strategy13
Modular Manufacturing System14
Reccomendations to evolve out of the current issues14
Labour issues – Bring in Industrial Democracy14
Global Manufacturing locality14
Reduce dependency on Entry-level Models15

Maruti – Company Profile

Maruti Suzuki India Limited is a subsidiary company of Japanese automaker Suzuki Motor Corporation. It has been the leader of Indian car market for over two decades. Its manufacturing facilities are located at Gurgaon and Manesar with an installed capacity of 350000 units per annum and 100000 units per annum respectively. Both its plants Manesar and Gurgaon, account for half of Suzuki’s worldwide output and Maruti Suzuki owns a 50% share of the Indian Car Market (2). Suzuki Motor Corporation, the parent company, is a leader in mini and compact cars for three decades. Suzuki’s technical superiority lies in its ability to pack power and performance into a compact, lightweight engine that is clean and fuel efficient. Maruti Suzuki offers 12 models, Maruti 800, Omni, Alto, Versa, Gypsy, A Star, Wagon R, Zen Estilo, Swift, Swift Dzire, SX4, and Grand Vitara(2). It was the first company in India to mass-produce and sell more than a million cars. It is largely credited for having brought in an automobile revolution to India. But recently, India’s Automobile Giant faces decrease in sales by 14.5% so far and expects sales volumes to be 11% lower in the financial year that ends in March 2012. Suzuki’s share in Indian market is expected to drop to as low as 24% by 2013.(1) Company Mission (2)

* A leader in the Indian Automobile Industry
* Creating Customers Delight and Shareholders Wealth
* A Pride of India
Maruti Ownership (2)

Organization Structure (2)
Maruti Suzuki has a multi-tier management structure, comprising a Board of Directors at the top, followed by five business vertical heads reporting to the Managing Director. The business verticals of the company are Marketing & Sales, Engineering, Production, Administration and Supply Chain. Industry Analysis

The Automobile Industry has so far undergone significant changes since Henry Ford first introduced the assembly line technique for the mass production of cars. Production concepts, processes and the associated technologies have changed dramatically since the first cars rolled out. Today, the process of car manufacturing is fully automated. Carmakers concentrate mainly on a few specific stages (like car assembly) unlike olden days when every stage was manually scrutinized. Current Scenario

The global car industry has been facing the problem of excess capacity for quite some time now. In the year 2002, the global capacity in the automobile industry was 75 million units in a year against production of only 56 million units (excess capacity estimated at 25%). Efforts to shore up capacity utilization have prompted severe price competition, thus affecting margins and forcing fundamental changes in the industry. The pressure on sales and margins is driving players to emerging markets in pursuit of better growth opportunities and access to low cost manufacturing bases. Background of the Indian Automobile...

References: 1. CNBC TV 18, 2012. Business News. [Online] Available at: [Accessed on 10 February 2012].
2. Maruti Corporate website, 2012. [Online] Available at: [Accessed on 10 February 2012].
3. The Economic Times, 2012. Maruti labour unrest spoils Suzuki Motor Corp 's 11-year track record. [Online] Available at: [Accessed on 10 February 2012].
4. Indbank Merchant Banking Services Ltd, November 04, 2011. Maruti Suzuki India Ltd.
5. Winning in the Marketplace, 2nd Edition by Thompson, Gamble and Strickland, Globalizing Volkswagen Pg C-449
6. Local Brand Vs Global Brand Syndrome, A Study with Reference to Indian Car Industry by I Natarajan P. and Thiripurasundari U. Dept. of Commerce, School of Management. Pondicherry University
7. The Indian Mid-Segment Passenger Car Industry, Nitin Gupta and Vaibhav Shekhar
8. Tom Hawes, 15-04-2009. Competitive Intelligence, Early Warning.
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Maruti Suzuki India Limited Essay
  • Essay about Swot Maruti Suzuki Ltd
  • Maruti Suzuki Research Paper
  • Maruti Suzuki India Ltd Swot Analysis B Research Paper
  • Maruti Suzuki Essay
  • Maruti Suzuki Essay
  • Maruti Suzuki Essay

Become a StudyMode Member

Sign Up - It's Free