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SWOT Analysis of Maruti Suzuki

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SWOT Analysis of Maruti Suzuki

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

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