September 2, 2014

SWOT analysis of Maruti Suzuki

Maruti suzuki swot

Maruti Suzuki is the market leader in India and has an amazing brand equity. Maruti is known for the service it provides and is synonymous with Maruti 800 –  the longest running small car in India. Here is a SWOT of maruti suzuki, its strengths, weaknesses, opportunities and threats.

Strengths

  • Maruti Udyog limited (MUL) is in a leadership position in the market with a market share of 48.74
  • 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.
  • 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

  • MUL recently faced a decline in market share from its 50.09% to 48.09 % in the previous year(2011)
  • Major players like Maruti Suzuki, Hyundai, Tata has lost its market share due to many small players like Volkswagen- polo. Ford has shown a considerable increase in market share due to its Figo.
  • Tata Motors recent launches like Nano 2012, Indigo e-cs are imposing major threats to its respective competitor’s segment
  • China may give a good competition as they are also planning to enter into Indian car segment
  • Launch of Hyundai’s H800 may result in the decline of Alto sales
Arun Kumar
I am an assistant professor of Marketing in SMOT school of business, Chennai. An entrepreneur by heart, and a marketing enthusiast by nature, i love talking about marketing and analyzing businesses. Get in touch with me on Facebook or mail to arun_3971@yahoo.co.in
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About Arun Kumar

I am an assistant professor of Marketing in SMOT school of business, Chennai. An entrepreneur by heart, and a marketing enthusiast by nature, i love talking about marketing and analyzing businesses. Get in touch with me on Facebook or mail to arun_3971@yahoo.co.in

Comments

  1. sanit dhakne says:

    give some suggestions also