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Abstract

This case examines the competitive strategies of Maruti Suzuki India Limited, a subsidiary of Japan based Suzuki Motor Corporation, the market leader in the Indian passenger car industry. Maruti was founded in 1981. After the liberalisation of the Indian economy in 1991, several foreign players had entered the Indian passenger car market. Maruti started losing market share as the competitors firmly established their foothold in the car market with the launch of several new models that became popular with Indian buyers. To counter the competition, Maruti started a major restructuring exercise in 2003. The company focused on upgrading manufacturing, increasing capacity, launching new products at regular intervals so as to cater to all the segments of the Indian passenger car market and venturing into other related businesses like car finance, insurance and buying and selling used Maruti cars. Maruti's restructuring exercise helped the company hold its market leadership position and retain its market share. The case examines how the deregulation of the Indian automobile industry had an adverse impact on Maruti's market share. It also details how Maruti's competitive strategies helped it to sustain its market leadership. The case ends with a discussion on Maruti's future strategy.

Teaching and learning

This item is suitable for postgraduate courses.
Location:
Industry:
Size:
Large
Other setting(s):
1991-2009

About

Abstract

This case examines the competitive strategies of Maruti Suzuki India Limited, a subsidiary of Japan based Suzuki Motor Corporation, the market leader in the Indian passenger car industry. Maruti was founded in 1981. After the liberalisation of the Indian economy in 1991, several foreign players had entered the Indian passenger car market. Maruti started losing market share as the competitors firmly established their foothold in the car market with the launch of several new models that became popular with Indian buyers. To counter the competition, Maruti started a major restructuring exercise in 2003. The company focused on upgrading manufacturing, increasing capacity, launching new products at regular intervals so as to cater to all the segments of the Indian passenger car market and venturing into other related businesses like car finance, insurance and buying and selling used Maruti cars. Maruti's restructuring exercise helped the company hold its market leadership position and retain its market share. The case examines how the deregulation of the Indian automobile industry had an adverse impact on Maruti's market share. It also details how Maruti's competitive strategies helped it to sustain its market leadership. The case ends with a discussion on Maruti's future strategy.

Teaching and learning

This item is suitable for postgraduate courses.

Settings

Location:
Industry:
Size:
Large
Other setting(s):
1991-2009

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