PORTER’S FIVE FORCES MODEL

Threat of New Entrants: Increasing

Although most of the major global players are present in the Indian market; few more are expected to enter due to the
welcoming government policies and expected retaliation.
Threat of Substitutes: Low to Medium
Maruti Suzuki faces serious threat from consumer shifting to hybrid or electric cars.
sole player Reva Electric Car Company, brands like Tata Motors, Chevrolet and Nissan are also
planning to launch their electric car this year.
Bargaining power of Supplier: Low
Maruti Suzuki has manufacturing units where engines are manufactured and parts supplied by first
tier suppliers and second tier suppliers are assembled. There are a large number of automobile
component suppliers whose switching costs are very high. Thus reducing the bargaining power of
the suppliers.
Bargaining power of buyers: Increasing
.Byers get incentives in the form of cost discounts and better after sales services.
Competitive Rivalry: High
Brands like Hyundai, Chevrolet, Tata and Skoda have given huge competition to Maruti Suzuki.
THREE GENERIC STRATEGIES

 Gurgaon facility(300 acres) housing the ‘K’ Engine Plant


 Gurgaon facility(300 acres) housing the ‘K’ Engine Plant
Manesar facility(600 acres)

 Manesar facility(600 acres)

 Brand Name- Maruti Suzuki

 Technology- The highly fuel efficient, technologically advanced K series engines have
been very well appreciated by the customers for their performance
 Service- Best Service/highest no. of service centres
 Dealer network- Highest
Quality- Value for performance

Cost Focus
Differentiation Focus ----Maruti kizashi and Maruti Vitara
 BCG Growth share matrix developed by Boston consulting group of USA in the early 1970's and popularly known as
BCG Matrix takes a two dimensional views.
I. Industry growth rate.
II. Relative market share.

Star----Maruti Zen and Swift are in this scenario.

Cash cow----Wagon R and Alto are in this scenario

Dog---Omni and Versa belong to this segment.

Question mark---SX4 and A star belong to this scenario.

GE/MCKINSEY MATRIX

The GE/McKinsey Matrix identifies the

optimum business portfolio as one that fits
perfectly to the company's strengths and helps to
explore the most attractive industry sectors or
markets.

Grow--Business units that fall under grow

attract high investment.
Hold – Business units that fall under hold
phase attract moderate investment.
Harvest -Business units that fall under this
phase are unattractive.