Enviornmental Analysis of Pak Suzuki Motor Company
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Transcript of Enviornmental Analysis of Pak Suzuki Motor Company
National Defense University Islamabad A PROJECT REPORT
ON
Pak Suzuki motors company
By
Soban Tahir Abbasi (Group Leader)
Syed Saeed ur Rehman (Member)
Muhammad Usman Khalid (Member)
Saheb Gul khan (Member)
Submitted to
Prof. UMER IFTEKHAR
(STRATEGIC MANAGEMENT)
Class: LMS-MSC-2nd semester
Date: 23-05-2012 Day: Wednesday
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ACKNOWLEDGMENT
In the name of Allah, Most Gracious, Most Merciful
Praise be to Allah, the Cherisher and Sustainer of the worlds;
Most Gracious, Most Merciful;
Master of the Day of Judgment.
Thee do we worship, and Thine aid we seek.
The way of those on whom Thou hast bestowed Thy Grace, those
whose (portion) is not wrath, and who go not astray.
Ameen
We are heartily thankful to our Strategic Management teacher, Sir
Umer Ifthekhar, whose encouragement, guidance and support from
initial to the final level enabled us to develop the subject S.M. With
his dedicated lectures We are able to practically understand and apply
what We have learned in the classes.
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CHAIRMANS REVIEW
In Year 2010 the demand for automobile was sluggish .The industry for cars
and light commercial vehicles experienced 29% decline in the sales volume. The
industry sold 107,768 units during the year against 151,517 units last year. It’s my
pleasure to present review on the performance of the company for the year December
31, 2010
The demand has depressed during the year due to cost push inflation resulting
from depreciation of Pak rupee, limited financing by banks/leasing companies and
general economic recession.
First half of the year was the worst. Sales volume during this period has
dropped by 53% compared to last period of last year. Second half was somewhat
better than first half year. As it was grew by 33% over the first half year.
The market size of motorcycle has marginal improved by 2% over the last year
in the organized sector. During the year 593,479 units were sold against 580,604 units
last year. During the first half year Demand was 25% lower than same period of last
year. However this loss of demand was offset by the increased demand latter half year.
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EXECUTIVE SUMMARY
This project is about the strategic Analysis of Pak Suzuki Motor
Company. During the project, we had done the detailed study of Pak
Suzuki Motor Company Limited like their company profile, mission,
vision and corporate values. Then we observe the some of the major
products manufactured and assembled by the Pak Suzuki Motor
Company limited which include SWIFT, LIANA, CULTUS,
MEHRAN, APV etc… With the help of Internal and External
analysis, we sorted out some of their strengths, weaknesses and the
opportunities and threats prevailing in the market. Also the
Environmental analysis was conducted to observe the internal,
external factors that may influence the performance of the company.
The BCG matrix helped us to study the important products of the
company; we did identify in which stage the products are and tried to
do the SBU analysis for each product.
With the study of Pak Suzuki Motor Company Limited, we learned
that they are doing well in the Pakistani market and are leading
market shareholder. They are producing Cars at affordable prices for
the low income to middle income people. But they are unable to
compete with Corolla and Honda in Luxury and semi-luxury cars.
They need product development strategy to follow. So, they tried to
get into the Honda and Corolla market by introducing Suzuki LIANA
but that couldn’t make its space. Now they have again tried that by
launching Suzuki SWIFT which is a 1300cc fully loaded car. we
recommend Product Development strategy for PSMC (Pak Suzuki
motor company) to pursue in order to compete with HONDA and
TOYOTA. Then they will be able to grow their market share and
growth.
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TABLE OF CONTENTS
Sr. no. Contents Page #
1 Acknowledgement 2
2 Chairman’s review 3
3 Executive summary 4
4 Toc (table of content ) 5
5 Introduction 7
6 Vision and mission 8
7 Statement of ethics and business practices 9
8 Corporate strategy 10
9 Objectives of the company 11
10 Corporate culture 12
11 Macro environment 15
12 Micro environment 19
13 Business portfolio 20
14 Product mix 23
15 Participants 24
16 Proposed strategies 25
17 BCG matrix 26
18 External and internal analysis 27
19 SWOT analysis 28
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20 SBUs analysis 29
21 Product expansion 30
22 Environmental policy 31
23 Future outlook of the company 32
24 Strategic recommendations 33
25 Conclusion 33
26 References and bibliography 34
27 Dedication 35
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INTRODUCTION
Pak Suzuki Motors Company Ltd. is a company assembling and distributing Suzuki Japan's cars in Pakistan. Currently they are one of the most successful motor companies in Pakistan.
The firm was founded in 1983 as a joint venture between PAK and Suzuki, formalizing the arrangement by which AWAMI Auto Ltd. had produced the Suzuki SS80 from 1982. Suzuki originally owned 25% of the stock, and has gradually increased their holding; they now own 73.09%. The company now assembles a wide range of Suzuki vehicles and aims to produce 150,000 vehicles per year. (2010) production was 100,000)
COMPANY BACKGROUND, OPERATIONS AND LEGAL STATUS
The Company was formed in accordance with the terms of a joint venture agreement concluded between Pakistan Automobile Corporation Limited (PACO) and Suzuki Motor Corporation, Japan (SMC) - the principal shareholders of the Company, for the purposes of assembling, progressive manufacturing and marketing of Suzuki cars, pickups, vans and 4x4s. Under the joint venture agreement, the net assets of AWAMI Autos Limited (AAL), a subsidiary of PACO, now liquidated, were taken over by the Company in August 1983 in consideration for which shares in the Company were issued to PACO. The Company was incorporated in Pakistan as a public limited company in August 1983 and started commercial production in January 1984. The shares of the Company are quoted on Karachi and Lahore Stock Exchanges. In accordance with the terms of a sale agreement dated September 19, 1992 between SMC and PACO, SMC increased its shareholding to 40% in the Company by purchasing shares from PACO and took over its management with effect from September 21, 1992. Since then SMC progressively increased its equity to 72.8%. In July 1996, PACO had disinvested its remaining shareholding. These shares were acquired by SMC in terms of the joint venture agreement between PACO and SMC - Japan which since came to an end. The total foreign investment brought in by SMC - Japan since inception stands at Rs. 1,026.36 million.
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Our Vision
To be Excellent All Around
Our Mission
To provide automobile of international quality at
Competitive price
These are Mission and Vision Statement of Pak Suzuki, and they always try to improve skills of employees by imparting training and inculcating in them a sense of participation.
To achieve maximum indigenization and promote the automobile vending industry.
To contribute to Pakistani society through development of industry in general and automobile industry in particular.
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Statement of Ethics and Business Practices
Here are the code of ethics and Business Practice of Pak Suzuki Motors Company,
1. Pak Suzuki insists on integrity and honesty of its employees in doing business. Any unfair or corrupt practices to solicit business is fundamentally inconsistent with business codes of company
2. Pak Suzuki believes in compliance to regulatory obligation
3. Pak Suzuki believes in free and fair business practices and open competitive markets. Developing any association with competitors to distort the pricing and supply of products is contradictory to company’s business code of conduct.
4. Pak Suzuki believes in transparency in business transaction and they are to be recorded accurately and fairly in books of accounts in accordance with standard procedure.
5. Pak Suzuki expects its employees to act in company’s best interest while holding confidential information. Company expects its employees neither to solicit internal information from other nor to disclose company’s data or any other material information to any un- authorized person/body.
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6. Pak Suzuki believes in individual’s respects and growth. Its employment policies do not discriminate on basis of race, religion, gender or any other factor.
7. Pak Suzuki does not believe in political affiliation.
Corporate Strategy
Pak Suzuki is built on the idea of a responsible corporate citizenship thereby managing environmental, safety & occupational health matters as an integral part of its business. In fulfilling this responsibility Pak Suzuki adheres to the following principles:
1) We are committed to provide top quality products to the satisfaction and requirement
of our customers.
2) We conduct our operations in compliance with applicable environmental,
occupational health & safety laws and regulations.
3) We recognize the interrelationship between energy and the environment, and we
promote the efficient use of energy throughout our system.
4) We ensure safe disposal of waste generated from our facility
5) We minimize the discharge of waste materials into the environment by utilizing
responsible pollution control practices.
6) We will continuously seek opportunities to improve our adherence to these principles.
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As it is clearly mentioned in their Vision Statement that to be excellent all around, and they always operate in Environment friendly. And their Product will always be the environment friendly.
With the globalization of markets, greater foreign competition, and the reduction of entry barriers, it becomes all the more important to benchmark a company’s financial indicators on a worldwide basis. World stock markets have recently witnessed a return to fundamental financial analysis. Sound management as opposed to hype will in the long run generate shareholder value.
OBJECTIVES OF THE COMPANY
To be the market leader and satisfy the requirements of its customers, the company has set certain objectives. These are:
1. Improve Quality2. Enhance Efficiency3. Minimize Cost4. Increase Productivity
Over the previous years, the company has put in its best efforts to manufacture quality cars designed for its customers. To improve their efficiency, the company gives great importance to its human resource as the company believes that satisfied and quality conscious team can produced quality products.
The company is using the philosophy of Kaizen for continuous improvement. It has become a way of life for the management of the company by doing these efforts towards their objectives.
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Corporate objective:
Provide high quality reliable and comfortable cars.
Financial objective :
Suzuki’s financial objectives are to make money.
Marketing objective:
Main objective is world domination, with regard to
supplying cars.
Long term objectives:
. To makes a profit - entrepreneurs risk their capital in a business and profit is their reward for risk-taking. If a business is to grow it needs to make a profit. Some of the profit could be used to buy new equipment, staff or premises.
. To increase market share - If a firm is able to increase its market share, it shows that it is winning customers from its competitors; so many businesses have increasing market share as one of their key aims.
. To provide services to costumers - most businesses provide a service to customers and therefore, they need to provide services to customers in order to make a profit.
. To improve the quality of the product or service - In most markets, customers have a choice about the product or service that they use. If the quality of a product is not as good as that of its competitors it is likely to lose market share.
Corporate culture:
Corporate culture is the collective behavior of people using Common corporate vision, goals, shared values, beliefs, Habits, working
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language, systems, and symbols. It is interwoven with processes, technologies, learning and significant events. In addition, different individuals bring to the workplace their own uniqueness, knowledge, and ethnic Culture. So corporate culture encompasses moral, social, and Behavioral norms of your organization based on the values, Beliefs, attitudes, and priorities of its members. Corporate culture can be transformed, but leadership to Sustain anything that sweeping has to come from "the top."The corporate culture of Suzuki is “fosters flexibility and Innovation.''
Short term analysis
Enhancement of Expertise
Run through the Hierarchy System
Enhancement of Finance
Increase in Responsibilities
1.0 STRATEGIC POSITION
Current Situation – Analysis of-
Micro-EnvironmentAnd
Macro-Environment
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MACRO ENVIRONMENT
Macro Environment
The larger societal forces that affect the micro environment are: demographic, economic, natural, technological, political, and cultural forces. These factors represent constraints within which all organizations including the automobile industry must function. The various components of macro environment are:
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1. Economic2. Cultural3. Political4. Technological5. Demographics6. Natural
Economic Condition
Pakistan, an impoverished and underdeveloped country, has suffered from decades of internal political disputes and external ongoing conflict with India. However, IMF approved the government policies, encourages by different foreign assistance and renewed access to global market since 2001.By following these policies government succeed to reverse the situation of economy during last five years.
Social and Culture Forces
Pakistan has strong culture background and it has been follow in some particular region of Pakistan strictly. But with the passage of time it is going to change. Thoughts of people, choices, taste and style has been totally changed. If we talk about the transportation source in Pakistan, People use buses, pickups etc for journey. They also have their own as well e.g. cycles; bikes, cars etc and lots of people are pedestrian. But now the people who haven’t any source of transportation they also want something for their convenience because they wants to save their time as much as they can. People want to use such vehicle which looks beautiful and also affordable.
Political and legal forces
Pakistan has to face lots of ups and down since its independence. So many governments have been broken down by military authority and most of the time marsh law applied on Pakistan. In this scenario no entrepreneur was willing to invest in Pakistan except few. Due to this market environment wasn’t so good in Pakistan. Anyhow, Pakistani government never had been trustworthy for any investor. As all countries, Pakistan also has some legislation about each sector. But like
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developing countries it is hardly being imposed by authorities. Only due to corruption government encourage smuggling and black marketing. When anyone supported by government or give more commission to Govt. get inside in the market and they have very soft behavior by government for any legal action. Such unethical activities destroy all law and legislation.
Technology
Technological factor also very important and we haven’t control on it. Technology is grooming with the passage of time. People also want that the product that they have is full of technology. We never control on technology for example you launched the product last year and your sale volume on that time is very high but after sometime due to latest invention a lots of substitute exist in market which affect on your business so you can’t hold on it.
Demographics
Society holds a global or summary belief that an organization is proper and worthy of support. Suzuki takes pride in being the most trusted name all over Pakistan. Its vehicles are regarded as a status symbol. It is the guiding principles of Suzuki which has strongly developed trust in the people.
Natural Factor
Involves the natural resources that are needed as inputs by marketers or that are affected by marketing activities.
Trends
Shortages of raw materials. Increased pollution. Increased government intervention.
MICRO ENVIRONMENT
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Micro Environment
The Micro environment consists of those components of the macro environment which are directly relevant to an individual’s organization. An organization’s micro environment includes:
1. Customers2. Suppliers3. Internal Public4. Competitors5. Intermediaries6. The company
The boundary between an organization’s Macro and Micro environment should not be viewed as static. Changes in the former will inevitably redefine the latter.
The various components of micro environment for PAK Suzuki motors have direct influence on its performance. Moreover components of Suzuki’s micro environment are also related to its macro environment.
1. CUSTOMERS
Suzuki aims at developing loyal customer’s relationship. For this reappoint tries its best to understand who its buyers are and what their needs are. It tries to listen to its customers, realizing that they may be their best collaborators. Customer’s feedbacks drive their product development.
To be the market leader and satisfy the requirements of its customers, the company has set certain objectives. These are:
a) Improve Qualityb) Enhance Efficiencyc) Minimize Cost d) Increase Productivity
Over the previous years the company has put in its best efforts to manufacture quality cars designed for its customers. In Pakistan, more and more people want to experience the unique pleasure of motoring. Exhaustive, in-depth research and consumer surveys conducted over the past years revealed trends of customers and the environmental factors relating to use.
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Suzuki Marketing Policy
Suzuki represents its emphasis on strong trustworthy and life-long automobiles. It has many brand loyal customers and is considered as market leader. In Pakistan, it has aimed at various segments with their variety of models in Suzuki, so customers in every segment can be satisfied.
Different classes of Suzuki introduced in Pakistan are;
Model Description Segments
Apv ,liana Industrialists Well established Businessman, Professionals.
Swift. Cultus Businessman, Top Level Mgt. of multinationals, Professionals, Government High Officials.
Alto, jimny Middle-level Executives, Government Departments & Organizations, Professionals, and Armed Forces.
Mehran, bolan van, ravi pickups
Professionals, Business Executives who are fuel cost conscious.
Suzuki has got an effective nationwide dealer network comprising of 25 dealers at Karachi, Lahore, Faisalabad, Mirpur, Islamabad, Peshawar, Sialkot, DI Khan, Multan, Quetta and Larkana. This spread of network shows not how Suzuki is sincerely busy in developing a company’s customer relationship and winning the hearts of brand loyal as well as attracting potential customers.
2. SUPPLIERS
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Suppliers constitute a second component in a typical organization’s micro environment. Suzuki has to respond not only to the customers they supply, but also to the sources from which they receive supplies. Suppliers are given importance and respect by Suzuki. It continuously aims at developing a strong relationship with its suppliers. This is done to ensure that Suzuki suppliers provide a quality material which is the most important factor for Suzuki vehicles.
Japan, is the major supplier of CBU or completely built up vehicles. Also CKD kits or completely Knocked down Kits are supplied from Japan. CKD kits mainly comprise of the engine of vehicles. The vehicles which are assembled in Pakistan comprise of 65% locally manufactured parts.
Pak Suzuki aims for good relations with both the local and foreign suppliers. “To
provide automobile of international quality at competitive price” is Suzuki mission.
This can be proved by the fact that dealership is authorized to those selective people
who offer 3 S’s. That is sales, services, spare parts . This is done to ensure convenience
for its customers. They are offering the following services to cater to the needs of their
customers:
a) One year free servicing from any Suzuki service center all over Pakistan.b) Free checkup camps are set annually. c) Spare parts easily available all over Pakistan.d) The dealership network comprises of seventeen dealerships all offering
sales, services and spares. e) The customer retention department at the dealerships is also improved and
consolidated periodically.
The company believes on the fact that favorable supplier relations lead to improve quality, better shipping arrangements early warming of major price changes and advance information about technological or marketplace developments. So, the aim is to develop friendly, professional relations with suppliers in which both will profit.
3. Internal Public
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It is the action, of employees by which a company’s objectives are accomplished. In order to achieve its goals and objectives Suzuki makes sure that highly competent and skilled people are employed. Emphases is laid to ensure that the person being hired meet the criterion for the respective departments.
Training is an integral part in Suzuki various departments. Training was intensified and various courses were conducted through the previous year. Technicians at the dealers’ service departments underwent extensive by PSMC service departments to improve their skills. Moreover, periodic training of managers is also conducted. This includes training camps, short courses, training programs conducted by experts.
4. COMPETITORS
Market competition is the cornerstone of managerial capitalism. The five forces that shape the degree of market competition operating within an organization’s micro environment are:
a) Rivalry among existing organization.b) Relative power of customers.c) Relative power of suppliers.d) Threat of new entrants.e) Threat of new substitutes.
Presently Suzuki is proud to have the most market share. Toyota stands second followed by Honda and Nissan. Since its start it was only in 95-96 that Toyota managed to sale 200 more units of vehicles than Suzuki. Still, Suzuki is proud to be in a strong position. However to the spirit of competition is strong and this has lead Suzuki to continuously try to improve itself, at all levels. Continuous emphasis is laid on to attract more customers, maintains healthy relations with its suppliers and makes efforts to improve technology. Careful strategic planning at all levels has enabled Suzuki to achieve the highest market share and have an edge over other automobile companies.
5. INTERMEIARIES
Banks, Leasing companies and car agents are some of the intermediaries for Suzuki. These intermediaries basically giving the boost to the sales of Suzuki, by offering the cars to
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the consumers, in easy installments and making the cars affordable for the customers to the higher extent.
6. THE COMPANY
Marketing must consider other parts of the organization including finance, R&D, purchasing, operations and accounting. Marketing decisions must relate to broader company goals and strategies.
SCENARIO BUILDING
In terms of the environmental factors, the main issues the whole of the car industry is emissions. Suzuki are exploring more new technology that does not include this as they have an insight into the way that their businesses will be affected by this is the future. For example, the greenhouse effect which warms the climate. Therefore leading to an increase in temperature, which in turn causes serious consequences for the environment. Suzuki invested in R&D reducing emission, by producing cars that use fuel cell technology, methane gas, heat and power systems, natural gas and community heating.
INDUSTRY ANALYSIS
The importance of industry analysis is now dawning on the Pakistan investor as never before. It is very important to analyze the health of an industry because no company is operating in isolation. Analysis of an industry can be performed using the tools like:
INDUSTRY LIFE CYCLE
The first step in industry is to determine the cycle it is in, or the stage of maturity of the industry. All industries evolve through the following stages:
1. Introduction
2. Growth
3. Maturity
4. Decline
PORTER’S FIVE FORCES MODEL
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There are competitive forces and it is these competitive forces that determine the extent of the inflow of funds, the return on investment and the ability of companies to sustain these returns. Porter has identified five competitive forces that shape every industry and every market. The five forces identified by Porter are:
1. Threat of new entrants
2. Threat of substitutes
3. Baggaining power of the customers
4. Bargaining power of the suppliers
5. Rivalry among competitors
Porter’s 5 Force
The strategic business manager seeking to develop an edge over rival firms can use
this model to better understand the industry context in which the firm operates.
Here are the Porter’s 5 forces.
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Potential new entrants
Bargaining power of buyers
Bargaining power of suppliers.
Threat of substitutes.
Industry Competition/rivalry between competitors.
1. Potential new entrants
In Pak Suzuki this can be described as
• In the New Entrant category of Porter's 5 forces, we can see
that it would be tremendously difficult for another car
manufacturer to enter into the market.
• The rate at which the industry is changing does not allow for
new entrants to come into the market very easily, and the cash
investment for a new firm to produce massive quantities of
cars is in the billions.
2. Bargaining power of buyers
• Buyers, from the strong competition inside of the market find themselves in a very favorable position.
• Since competition is so strong between auto makers and dealers, consumers will often do research on a vehicle before making a purchase.
• The high quantity of dealer’s forces prices to be very negotiable and the consumer often knows exactly what the dealer paid for the car.
• Thus, consumers are in an enviable position: The market supply is strong, competition between auto makers and auto sellers is very intense, and there is no set price.
• Everything is negotiable. For companies like Pak Suzuki to continue to compete, the quality of their offerings must be excellent, dealership service must be strong, and they must focus on offering consumers a product with high durability and value.
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3. Bargaining power of suppliers. Pak Suzuki’s suppliers have been known to be some of the
most dedicated suppliers in the industry.
By virtue of the Just-In-Time production concept pioneered by Pak Suzuki, the auto industry itself has seen a very positive relationship develop between its suppliers and producers.
Suppliers are expected to make deliveries of parts in small quantities several times a day.
Pak Suzuki, by reducing its part inventory, has been able to speed up production costs, save money by not letting parts sit on the shelf, and improve its relationship with parts suppliers, which rely on Pak Suzuki for their revenue.
4. Threat of substitutes Consumer preference is changing (Mini cars are being
replaced by compact or midsized cars)
Setting up integrated manufacturing facilities may require higher capital investments than establishing assembly facilities
Pakistan is also likely to increasingly serve as the sourcing base for global automotive companies, and automotive exports are likely to gain increasing importance over the medium term
Pakistan passenger car market is moving towards cars of higher capacity.
5. Industry Competition/rivalry between competitors Industry competition between auto makers is fierce.
The typical consumer, when searching for a particular vehicle is bombarded by choices.
For example, a search for ALTO (Product of Suzuki) yields a result of Coure (Daihatsu) with a minimal extra amount.
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COMPETITORS AND MARKET
Market competition is the cornerstone of managerial capitalism. The five forces that shape the degree of market competition operating within an organization’s micro environment are:
f) Rivalry among existing organization.g) Relative power of customers.h) Relative power of suppliers.i) Threat of new entrants.j) Threat of new substitutes.
Presently Suzuki is proud to have the most market share. Toyota stands second followed by Honda and Nissan. Since its start it was only in 95-96 that Toyota managed to sale 200 more units of vehicles than Suzuki. Still, Suzuki is proud to be in a strong position. However to the spirit of competition is strong and this has lead Suzuki to continuously try to improve itself, at all levels. Continuous emphasis is laid on to attract more customers, maintains healthy relations with its suppliers and makes efforts to improve technology. Careful strategic planning at all levels has enabled Suzuki to achieve the highest market share and have an edge over other automobile companies.
ANNUAL PLANT CAPACITY
Competitor Car Quantity
Pak Suzuki Motor Co. Ltd. 68,000
Indus Motor Co. Ltd. 34,000
Honda Atlas Cars (Pakistan) Ltd. 30,000
Dewan Farooque Motors Ltd. 15,000
Ghandhara Nissan Ltd. 6,000
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BUSINESS PORTFOLIO:
“The collection of businesses and products that make up the company“
Product Lines of Suzuki
The international product line of Suzuki includes:
Automobiles Motorcycle All-Terrain Vehicles (ATVs) Outboard Marine Engines Internal Combustion Engines
Product Lines in Pakistan
Suzuki Motors have two major product lines in Pakistan.
Automobiles Motorcycles
PRODUCT MIX:
Following are some varieties of Cars with their respective Prices:
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SWIFT (1300cc)
Price: Rs. 1,049,000/-
The European inspired exterior gives Swift a distinctive look. A unique stylish and design that turns a head where you go. The spirited engine makes for exhilarating drive and gives you ultimate freedom where the road takes you.
Colors: Pearl Red, Graphite Grey, Solid white, Indigo, Silky Silver, Aqua Blue, Eminent Blue.
LIANA (1300 & 1600 cc)
Price: Rs. 1,230,000/-
The Suzuki Liana available in 1300 cc manual transmission and 1600cc automatic transmission takes you out of ordinary and into the realm. Liana is entirely different car, its style, dimension and comfort will inspire you to see every day as an open door to a new age. Colors: Pearl Red, Graphite Grey, Solid white, Indigo, Silky Silver, Aqua Blue, Eminent Blue.
CULTUS (1000cc)
Price: Rs. 897,000/-
CULTUS is the blend of space and craft.Its trim body Conceals ample space & flexibility for both passenger and storage. CULTUS ensures everyone, exceptional Value and quality.
Colors: Pearl Red, Graphite Grey, Solid white,Indigo, Silky Silver, Aqua Blue, Eminent Blue.
ALTO (1000cc)
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Price: Rs. 662,000/-
Alto has a bright, roomy and comfortable cabin which keeps body relax and strong and lighter body shell resulting in smooth drive due to reduction of unpleasant noise harshness and vibration. Its small turning radius and compact body make parking a breeze.
Colors: Olive Green, Pearl Red, Graphite Grey, Solid white, Indigo, Silky Silver, Aqua Blue, Eminent Blue.
MEHRAN (800cc)
Price: Rs. 514,000/-
Unrivalled in its class, MEHRAN is Pakistan’s largest selling car. More smart features like head turning lamp, matching front grill and a two spoke steering wheel gives it the tidy look. Functional economy, peak performance or unmatched fuel efficiency, MEHRAN VXR is the leader.
Colors: Pearl Red, Graphite Grey, Solid white, Silky Silver, Eminent Blue.
APV (1500cc)
Price: Rs. 1,775,000/-
APV 1500 cc (Imported) The New APV gives you everything you ever wanted in your vehicle. Spacious interior for comfort, tough engine to carry large loads and plenty of room for passengers to enjoy a comfortable day long ride.
Colors: Pearl Red, Graphite Grey, Solid white, Indigo, Silky Silver, Aqua Blue, Eminent Blue.
JIMNY (1300cc)
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Price: Rs. 1,850,000/-
JIMNY 4X4 JEEP 1300cc (Imported) Steady, sturdy and smart, Suzuki JIMNY with new wide tread brings you the ultimate pleasure of a real 4-wheel drive. It has got all the sporting spirit to go along for adventurous free souls.
Colors: Solid white, Silky Silver.
BOLAN VAN (800cc)
Price: Rs. 609,000/-
The Suzuki Bolan Hi-roof gives you everything
You ever wanted in a van. Spacious interior for
Comfort, tough engine to carry large loads and
Plenty of room for passengers to enjoy a comfort
-able day long ride .Air-conditioned model
(Dual thrust) has been recently introduced.
Colors: Pearl Red, Solid white, Silky Silver.
RAVI PICKUP (800cc)
Price: Rs. 489,000/-
RAVI Pick Up 800cc Suzuki Ravi is the veritable
Cargo vehicle with an amazing capacity for load
Bearing and durability undoubtedly, the unrivalled
Commercial vehicle in its class, Ravi is the bread
winner for millions in Pakistan. This light commercial
Vehicle referred to as the mini revolution,
replaced the animal drawn vehicles in Pakistan.
Colors: Pearl Red, Solid white, Silky Silver.
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Participants
To make this project I make research and surveys and then I get the participants.
The participants of Suzuki are as follows:
1: Suzuki Mehran is usually bought by female, teenagers, students and middle class.
As it is economical and unmatched fuel efficiency.
2: Suzuki Liana is usually used by family and business class.
As it is a luxury car and can be found in 1300cc and 1600cc
3: Suzuki Swift is usually used by youngster and teenagers.
As it is innovator, unique and stylish car.
4: Suzuki Ravi is usually used by farmers and transportation of goods.
As Suzuki Ravi is the veritable cargo vehicle with an amazing capacity for load-bearing and durability.
5: Suzuki Bolan van is usually used by the school van drivers for pick and drop of students.
As Suzuki Bolan Hi-roof gives you everything you ever wanted in a van. It has tough engine to carry large loads and plenty of room for passengers to enjoy a comfortable day long ride.
6: Suzuki Alto is usually used by business workers, employees and women like that car.
As it Smooth-riding comfort, Functional and easy to use, Sharplooks, Offering maximum efficiency and powered by a
1.0-litre engine delivering peppy acceleration and responsive performance, the Alto fully responds to today’s driving needs in smart and stylish fashion.
7: Suzuki APV is usually used by big families.
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As it has large capacity. It has Heavy engine to carry load, usually used for long drive.
8: Suzuki cultus is most selling car of Suzuki.
As it is universal car used by middle class. Suzuki Cultus assures everyone, exceptional value and quality.
Proposed Strategies
Business Strategies
Business strategies planning are to be conducted in order to know about their various
businesses how each business performing. With the help these strategies I come to
know which business require investment and in the similar manner which require
promotional activities. They can use the same promotional activities and with the help
of synergy, their different department (R&D, Marketing, Sales etc) can be shared in
different business. By utilizing the synergy efficiently they can reduce cost of product.
And this strategy will help managers to identify that which SBU is falls in which
categories, for that there is an analysis known as BCG Matrix Analysis which gives
the detail information to the managers to carry which SBU, and how many resources
should a company allocate to which Unit.
In Pak Suzuki the main SBUs are
1) Swift
2) Liana
3) Cultus
4) Alto
5) Mehran
6) Ravi
7) Bolan
8) Jimny
After analysis from different data I came across the BCG analysis and draw the
following conclusion:
1. Maximize market share by producing more cars per year.2. Develop more efficient and innovative engines which give comparative advantage.
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3. Use efficient CNG system.4. Focus on looks and design of exterior to compete with Honda and Toyota.5. Fund and establish technical institutes to gain more skilled workforce from local market.6. Maintain quality in affordable price will help to compete with direct competitors and used imported cars.7. Develop fuel efficient engines to gain edge and eliminate threat of fuel prices increase.8. Enhance distribution to avoid threat from second hand imported cars.
BCG MATRIX
Dogs
Question MarkStar
Cash Cows
High
Low
LowHigh
MarketGrowth
Market Share
MEHRAN
ALTO
LIANA
BALENO
CULTUS
BOLAN
SWIFT
APVRAVI
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EXTERNAL & INTERNAL ANALYSIS
In formulating sound strategic plans, an organization must assess its internal strengths and weaknesses in relation to the external opportunities and threats it faces. An effective strategy will take advantage of an organizations strengths and opportunities at the same time it minimizes or overcomes weaknesses and threats. Regular assessment and SWOT analysis is thus given importance.
SWIFTA
PV
CULTUS
RAVI
MEHRANALTO LIANA
BALENO
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SWOT Analysis
Strengths:
Highest Market Share
Low Price Vehicles
Resale of Local Assembled Cars
Large Distribution Channels
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Rising per capita income with changing demographic distribution
Highly Innovative and deep product line
Highly maintained supply chain
Well Managed and highly competitive staff
Well defined and bureaucratic organizational structure
Complete understanding between Distributors
Easy availability of spare parts
Weakness:
Scarcity of raw material
Lack of coordination and linkage with Government/semi government supporting bodies
Less focus on Looks and Design
Less Technical Training Institutes
Less distribution channels in sub urban areas
Opportunities:
Increasing Demand for Cars
Efficient EFI engines
Large Market size to operate
Global spare part market
Space saving Small size CNG cylinders
Threats:
Tough Competitors like Toyota and Honda
Foreign Investment and setup production facilities
Smuggling of Auto Parts
Inflation rate
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Heavy Taxes
Competition from cheaper imported cars
Increase in Fuel Prices
SBUs Analysis
MEHRAN:
MEHRAN has the highest growth rate in automobile sector in Pakistan. Pak Suzuki
always changes the different parts of MEHRAN either exterior or interior whenever it comes
to its maturity level.
MEHRAN is attractive the people who have salaries within 20,000 to 30,000 per month. The
youngsters also prefer the MEHRAN because of its size and economical price. Small
business people also prefer MEHRAN because of its low maintenance cost. MEHRAN also
attracts people who move from bike to the cars.
LIANA:
Liana is a luxurious and highest price car of Pak Suzuki. It was built to compete with
Pak Suzuki’s biggest competitors like Toyota and Honda. Liana has the same features which
are available in Corolla and Civic but still it couldn’t make its market as compare to both
these cars. Liana has replaced the Pak Suzuki’s BALENO in 2005-06, since Pak Suzuki tried
several ways to establish its position but failed to do so.
It was made for a people of high income group but due to high prices in which the market
was already giving names like corolla and civic who has their strong brand name and
customer loyalty, liana was failed to capture the market.
SWIFT:
Due to failure of Liana Pak Suzuki introduced another 1300cc car in Jan 2009. Swift
has all the latest features like power steering, central locking, Auto Transmission and the
ABS. All the 1300cc cars in Pakistan have price range of 1300000 to 1400000, while Swift
was introduced at 999000 and recently it was increased at 1049000. It has still advantage of
price competition as compare to other 1300cc cars in Pakistan.
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RAVI:
Ravi is for the people doing small business especially cargo services like home
delivery services, TCS and market delivery. All people doing business of these types are
loyal customers to Ravi. Although the SHEHZORE has captured some of its market share but
still Ravi is much famous and market leader in its type.
EXPECTATIONS AND PURPOSE
Successful strategies are dependent on the organisation having the internal strategic capabilities that are required for survival and success. IKEA create opportunities through strategies and gain competitive advantage that make it hard for competitors to match or create new opportunities. Using strategies IKEA enhance themselves in order to accomplish their mission statement:
RESOURCES AND CAPABILITIES
RESOURCES:
1. TANGIBLE RESOURCES:
Production capacity of Suzuki, Suzuki Annual production capacity of 150,000 vehicles. The vehicles produced include cars, small vans, Pickups, Cargo vans and Motorcycle. Pak Suzuki holds more than 50% Market Share.
People: Almost 145,510 employees worldwide work in the business with a mutual understanding of the business goals. Without employees no company can accomplish their business objectives.
Raw Materials/ Car Parts etc: Suzuki buy in raw materials and car related products such as steel, plastic, glass and energy related raw materials e.g. crude oil. Suzuki also invests in a range of renewable raw materials in its vehicle production.
Machines/Machinery: There are several machineries used at Suzuki within the production system.
Successful strategies are dependent on the organization having the internal strategic capabilities that are required for survival and success. Suzuki creates opportunities through strategies and gain competitive advantage that make it hard for competitors to match or create new opportunities. Using strategies Suzuki enhance themselves in order to accomplish their mission statement:
To provide automobile of international quality at
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Buildings/fixtures and Fittings:
Suzuki Showrooms:
Suzuki is a multinational company, to promote their business they have invested in showrooms around the world such as China, India, Pakistan, and Japan etc.
1. INTANGIBLE RESOURCES
Financial Resources:
Capital:
The Suzuki industry has recorded Yen 138,014 million (as of March 31, 2011)
Shareholders:
Suzuki has private shareholders who have invested money into the business. From the financial losses in 1959, the company started to increase profits by entering new markets such as the Motorcycle industries .
CAPABILITIES
Foundations of Capabilities
Threshold Competences –
Suzuki seeks to meet customer’s requirements such as AC, trip computer, electric seats etc. Suzuki is one step ahead and is looking to provide customers with services that other companies don’t for example key reader which checks the chassis number, mileage of the vehicle, the next due date for service and introducing the hydrogen fuel because it meets its customers’ requirements in terms of power, dynamic performance, costs and sophistication.
Threshold Capabilities –
Suzuki is serving with threshold capabilities in order to dominate the market and be the best. They provide services such as different brands (APV, LIANA, CULTUS etc), future Hydrogen Fuel to reduce pollution, increase car performance and reliability and Key reader.
Core competences –
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At present, Suzuki core competences is by having specific models that cannot be imitated by other competitors such as the mehran as well as the cultus and alto vxr. Suzuki started re-designing the Mini, giving it a performance engine to gain competitive advantage in the market and to meet their reliability factor of their mission statement.
Sustaining Competitive Advantage
The strategic capabilities have been mentioned as an important factor for Suzuki; for instance if Suzuki does not meet customer’s needs then their organization would not survive. The aim of Suzuki is to achieve competitive advantage as well as sustaining the competitive advantage, which can be met through strategic capabilities but factors within the strategic capabilities also have to be taken into consideration, which are as follows:
Value of Strategic capabilities – this is where organizations understand what customer’s value. Suzuki values their customers by giving the range of choices to choose from. Suzuki is the only automobile company that offers 9 different brands; swift, cultus and apv exclusively on the premium segments of the automobile markets. This gives Suzuki a competitive advantage as their customers have a wide range of brands to choose from. No other auto mobility company entails different brands within the company so therefore Suzuki does have the competitive edge in the market.
Rarity of Strategic Capabilities – this means having a rare strategic capability; that is rarely used by competitors to get the edge on the competitive advantage. In relation to Suzuki their rarity of strategic capability is to insure their customers retrieve the best reliable automobile and also fuel consumption.
Robustness of Strategic Capabilities – a capability which cannot be imitated by any other competitors. The Suzuki groups are unique car manufacturers due to the fact that they are the only company to provide their customers with the Mini range. Another capability would be Suzuki are looking into invest on a long term bright future which lacks on pollution, this is the hydrogen. The hydrogen fuel has been tested on the 6 th generation Suzuki and is in the process of installing for the remaining series. By 2011 Suzuki aims to hand over the vehicles to customers for them to test and optimize the concept of hydrogen in the daily life.
Three generic competitive strategies:
Each of the generic strategies involves different route and target to competitive advantage, “The cost leadership and differentiation strategies seek competitive advantage in a broad range of industry segments, while focus strategies aim at cost advantage (cost focus) or differentiation (differentiation focus) in a narrow segment.” (Porter, 1985)
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Cost leadership:
Cost leadership is the clearest of the three generic strategies. In this strategy, firm should try their best to reduce the cost. “If a firm can achieve and sustain overall cost leadership, then it will be an above-average performer in its industry provided it can command prices at or near the industry average. At equivalent or lower prices than its rivals, a cost leader’ low-cost position translates in to higher returns. A cost leader, however, cannot ignore the bases of differentiation. If its product is not perceived as comparable of acceptable by buyers, a cost leader will be forced to discount prices well below competitors’ to gain sales. This may nullify the benefits of its favorable cost position. ” (Porter, 1985)
If customers think the product is not good as the product of competitor; the firm has to reduce the price. The firm can get high profitability until a cost leader gets the cost leadership parity in the bases of differentiation.
Differentiation:
The second generic strategy is differentiation. “In a differentiation strategy, a firm seeks to be unique in its industry along some dimensions that are widely valued by buyers. It selects one or more attributes that many buyers in an industry perceive as important, and uniquely positions it to meet those needs. It is rewarded for its uniqueness with a premium price. The
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means for differentiation is peculiar to each industry. Differentiation is based on the product itself, the delivery system by which it is sold, the marketing approach, and a broad range of other factors.” (Porter, 1985)
If the extra cost for differentiation is less than the premiums price, the firm which has the competitive advantage of differentiation can get better profitability than other firms in the industry. Because the extra cost for differentiation is the disadvantage of the differentiation, the firm cannot ignore the cost position. So, only based on the price is almost the same as competitor, the differentiator could get the high profitability.
Focus:
The third generic strategy is focus. “This strategy is quite different from the others because it rests on the choice of a narrow competitive scope within an industry. The focuser selects a segment or group of segment in the industry and tailors its strategy to serving them to the exclusion of others. By optimizing its strategy for the target segments, the focuser seeks to achieve a competitive advantage in its target segments even though it does not possess a competitive advantage overall. The focus strategy has two variants. In cost focus a firm seeks a cost advantage in its target segment, while in differentiation focus a firm seeks differentiation in its target segment. “(Porter, 1985)
The firm can focus the time, the resource and the money on the segment to get the competitive advantage. If the firm can get the competitive advantage of cost leadership or differentiation in its target segment, the firm could provide customer the better service and meet the special requirement. Because of the different requirements of customer, there are always many segments in one industry.
Cost Efficiency
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Strategic capabilities and competitive advantage
VALUE CHAIN ANALYSIS OF SUZUKI
Primary Activities
Cost
Efficiency
Supply Cost
Economies of Scale
Product/process design
Experience
Resources Competences
Threshold Resources
TangibleIntangible
Unique Resources
TangibleIntangible
Threshold Competences
Core Competences
Threshold Capabilities
Capabilities for Competitive Advantage
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Inbound Logistics:
Suzuki is in continuous search of less expensive and good quality raw material in result of which they could find material instead of traditional teak.
Operations:
They help their supplier financially and technically to maintain their competitive advantage of low cost.
Outbound Logistic:
Suzuki store inventory in its own warehouses as per commitment with supplier and to meet its 90% to 95 % service level objective.
Marketing and sales:
Suzuki marketing mostly depend on its Catalog in 1988 its annual distribution was of 44 million in 12 languages and 27 editions accounted for half the company’s marketing budget.
Service:
Suzuki customer has to use their own transport to carry the knock-down kits and assemble themselves
VALUE:
Cost Reduction Product Differentiation
Infrastructure of Firm:
Firm use central decision making and use informal management style its culture focuses on human aspect and common sense and simple style.
STRATEGIC CHOICES: DISCUSSION OF SCOPE AND OPTIONS
Due to confusion in the generic strategy, the strategic clock was introduced, Suzuki remain competitive and avoid their position being threatened by using strategies from the clock
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allowing Suzuki to stay one step ahead of their competitors, creating competitive advantage, market share, etc.
STRATEGIC 'CLOCK
Hybrid Strategy:
Suzuki Hybrid Strategy ; Suzuki cost reductions are available outside its differentiated activities Achieve cost leadership through multi-level competitive advantage on supply side Low cost logistics large retail units in suburban areas.
Suzuki Hybrid Strategy Suzuki concentrates on building its differentiation on the basis of its: Marketing Product Range Logistics Store Operations
Suzuki Hybrid Strategy Marketing Target the global middle class localization strategy in global markets Consumer tastes are merging Product Range 9,500 lines Carry Basic product range in each store Place great emphasis on product lines that appeal to local tastes
Suzuki Hybrid Strategy Logistics Furniture is flat packed Stack more, reduce storage space Customer transports it home and assembles it Store operation Accept low Margins in return for high volumes Shopping Experience Efficient Processes .
Modified Value Chain :
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Suzuki Hybrid Strategy Suzuki customer expectations of service levels are low allowing for cost reductions as customers are prepared to transport and build their products A unique cost structure flat pack gives Suzuki as low cost distribution channel A global retail giant such as Suzuki can achieve greater volumes than competitors so margins may be better because of its lower cost base This allows Suzuki to sustain a low cost high quality advantage.
Porter’s five forces can be related to the diagram below.
Shared work with customers
Competitiveness might be improved by collaboration
to achieve
Stakeholder expectations
Increased selling power
Increased buying power
Increased barriers to
entry
Decreased risk of substitution
Entry to new market
Shared work with customers
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Suzuki has gone into E-commerce that allows customers to purchase online. The Suzuki website is designed so that customers can order furniture online as they are able to give customers self-service and allows them to customize their own design with specific style and colors. Customers are able to purchase products or services from other countries e.g. as financial services are not offered to all the countries that Suzuki operate in, they could trade online to buy these services from the UK, US, Asia pacific, North America etc.
THE CULTURAL WEB
Strategic fit among activities is fundamental not only to competitive advantage but also to the sustainability of that advantage. The culture of Suzuki is to enthusiastically work for constantly renewing the products, on cost consciousness, focusing on quality, to assume responsibility and to help in tasks and brining simplicity in the behaviors. To achieve this culture, Suzuki has integrated all the activities to achieve the simple consistency between them, the optimum efforts could be reached by reinforcing the activities. There was an increasing demand for the inexpensive furniture, while the prices were high; this was a social problem yet a rising opportunity for the business. To place itself in the industry it focused on activities like layout of warehouses, relationships with suppliers, meeting demands of young buyers, providing a wide product range, appreciating the creative solutions, paying attention to retails, a smooth leadership style that will be passed to the generations developing leaders in the company and moreover their management style that is the key to every activity.
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DIRECTIONS AND METHODS OF DEVELOPMENT
In the present business environment, no firm can consider itself immune to threats of product obsolesces and saturation of demand. As a minimum, firms in all industries need to make regular periodic reviews of product-market strategy. It has been one of the two most significant authors of strategic management knowledge who firstly developed a framework which is now broadly used for decisions related to business development options.
Figure 3.1 Product-market growth matrixes
This matrix has been revised and further elaborated on by other authors from the time it has been published. Probably the most extensive and complex discussion is provided by Johnson and Scholes37 whose elaboration will be used for further discussions related to this matrix.
\
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Product-market growth strategies
Based on the introductive discussions related to the product-market growth matrix, there are 4 main directions in which companies could develop. They could protect and build positions of their current products or services on current markets, enter new markets with current products, develop new products and offer them on current markets or both activities together, i.e. enter new markets with new products.
Business development options on current markets with current Products or services
The first option available to organizations wishing to develop and improve their competitiveness is to gain further market share, in other words penetrate the market further. However, the extent to which such option could be easily followed depends on several factors. Most importantly, it is the nature and state of the market. It is much easier to gain further market share on growing markets than on static markets where the demand is already met by current providers. In addition, companies wishing to gain further market share need to have additional resources for such developments and this can provide barriers mainly to smaller companies.
UNRELATED DIVERSIFICATION
Suzuki to move into specialty generator market Suzuki can also enter into the worldwide market Suzuki can also enter into mini boats industry
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CRITERIA AND TESTS FOR SUCCESS
Suitability
Suzuki have to make sure that the strategy which are they adapting will fit in their culture and they have enough resources and competences and it full fill the needs of its stake holders.
Feasibility
In order of proper implementation of strategy Suzuki will have to make sure that they have enough resources and competences for any of earlier mentioned strategies and it will bring their desired expectations.
Product Expansion
Pak Suzuki also deals in motorcycle and also in Marine equipment, and they
have a variety of Product line expansion in Motor bikes is also one of the largest
customers size to operate and has a high market size to fulfill the needs of the
customers.
It also operates in the spare parts of the vehicles and Motor bikes. So they are
also operate in vertical integrated, and sometimes the company made different venture
to fulfill the needs of its customer, such as it has joint venture with General tier for it
products.
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In Marine segment, the Company is manufacturing the Equipments for ships, it
is also one of the largest areas to operate, so here the Pak Suzuki plays the role of
Business ventures and the transaction at this level is B2B Transaction.
Environmental Policy
As a general manufacturer of automobiles, motorcycles, outboard motors, etc., Suzuki
addresses environmental conservation at all stages in its operations from development
to disposal. In product development, we make every effort to improve fuel economy,
reduce exhaust emissions and noise, and develop clean energy vehicles, etc. In
manufacturing, we address issues such as reducing environmental risk, reducing
energy, and promoting the use of alternative energy. In distribution, we focus on
improving transportation efficiency and energy reduction, promoting the three Rs and
the use of low emission transport. In marketing, we address issues related to
promoting environmental management at our dealers and proper disposal of end-of-
life products, etc.
In addition to activities related to production, we also promote energy reduction and
green purchasing in our offices, provide our employees with environmental education,
promote environmental management at our dealers, and provide social action
programs in local communities.
Suzuki 2008 Environmental and Social Report (web version)
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Future Outlook of the Company:
In Future company is going to offer a new activity for its potential and
Targeted customers.
Suzuki Insurance Arrangement Program
It is a complete peace of mind solution to all your Auto Insurance needs
exclusively available at Pak Suzuki authorized dealerships. This is a Customer
focused Auto Insurance Program with the following distinct features:
a) Best premium rates.
b) Online/Instant policy issuance (Walk in – Drive out Insured).
c) Exclusively Repairs at Pak Suzuki Authorized Dealer workshops only.
d) Quality Repairs Using Suzuki Genuine parts with 6 Months Warranty on
parts.
e) Largest Country Wide Dealer Network Support.
f) Call Center facility.
g) Fastest claim settlement time.
FUTURE PROSPECTS
The Company would strive to earn reasonable return on equity. However Rupee/Yen parity, economic conditions, Government policies and growing competition would play a vital role in this achievement. Company's key objectives continue to remain: - To provide automobiles of international quality at reasonable prices; - To improve skills of employees by imparting training and by inculcating in them a sense of participation; and - To
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abide by the deletion policy of the Government, achieve maximum indigenization and promote the automobile vending industry.
STRATEGIC RECOMMENDATIONS
“Real Strategic change requires inventing new categories, not rearranging old ones.”
Said, Henry Mintzberg
Product Development is the selected strategy at this point of time for Pak
Suzuki Motor Company Limited that I observed from my strategic analysis of the
PSMC.
In product development strategy I recommend the company to focuses on having
the highest level of product performance, the highest level of functionality or
functions and features, the latest technology or the highest level of product
innovation.
This strategy might have some risk for the company as innovative products are
involved but proper research and development will cater the risk and company
can pursue with the strategy to be the market leaders and get on top.
One major setback to PSMC was in the shape of Suzuki LIANA, which was not
able to meet the expectations and couldn’t hold the market it was made for.
But company didn’t stop its journey there, and now Suzuki SWIFT has recently
been launched in the market, which seems to be an attractive offer for the market
in the 1300cc class. But still company has nothing to compete with HONDA and
TOYOTA. The Suzuki needs to enter into the 1600cc and 1800cc market to
expand its market share and market growth. But for that purpose they need to put
more efforts of product development as the new product must have all the
required features and technology that is needed to compete with giant
competitors. And of course, PSMC has competitive advantage in local
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assembling and manufacturing of parts and they can utilize that advantage to
produce cheaper cars in the categories mentioned above.
The PSMC has recently received acknowledgement from Prime Minister of Pakistan for being the only car manufacturers for the lower and middle income people of Pakistan. But they should also need to get into the line of HONDA and TOYOTA, to achieve that target they need to develop more technologically cheap and efficient and quality oriented products. World trade organization (WTO ) has rejected their program of deletion. I suggest they must start an alternative program for extension of their growth. So that their market growth and market share do not declined. To reduce their input cost they must use other methods for producing resources so that they can lower their cost of production. They must make trust with government so that government give them security and protection. They must train their workers to use innovations and new technology as workforce is backbone of the company. I recommended them that they must increase their production and give more beautiful and heart touching look to the car with good system and service.
CONCLUSIONThe Pak Suzuki Motor Company Limited has strong competitive position against its major competitors and the market growth is healthy and at increasing pace. By comparing both Market Development and Product Development, they obtained more weighted attractive score for Product development. That means company should follow the product development which is part of aggressive strategies. This strategy is going to help the firm in eliminating its threats and grab the opportunities to be successful in the present macro environment.
REFERENCES/BIBLIOGRAPHY
http://www.paksuzuki.com.pk
http://www.google.com
http://en.wikipedia.org/wiki/Pak_Suzuki_Motor
http://www.globalsuzuki.com
http://www.we.com.pk
http://www.maxi-pedia.com
www.informaworld.com
www.pama.com
Principles of Marketing (Philip Kotler)
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Suzuki Area Office TAXILA
And various news paper articles, research findings and blogs, which helped me indirectly to build up my mind about Pak Suzuki Motor Company Limited and figure out their
External and Internal Factors which were involved in the project.
Dedication
Dedicated to OUR beloved parents,Teachers, and friends, whose assistance
And moral support is such a greatSource of inspiration and a drive to work
For us !
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