SWOT analysis of maruti suzuki

Answer 1

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