Maruti Suzuki India Limited - Competitive Strategies of the Market Leader

            
 
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Case Details:

Case Code : BSTR351
Case Length : 19 Pages
Period : 1991-2009
Pub Date : 2009
Teaching Note :Not Available
Organization : Maruti Suzuki
Industry : Automobile
Countries : India

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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"The Government of India had entrusted the company a responsibility of building low cost, fuel efficient cars for the people of India as also building firm foundation for the modernization and growth of Indian automobile industry. Thanks to the support of our stakeholders, we have successfully led the automobile revolution in India. We are positioning India as the global small car manufacturing hub, in line with the government's vision." 1

- Shinzo Nakanishi, Managing Director and CEO, Maruti Suzuki India Limited, in December 2008.

"The car market is growing increasingly competitive. This is not surprising as global manufacturers are bound to come where they see a growing market. Maruti has a strategy for the future." 2

- RC Bhargava, Chairman, Maruti Suzuki India Limited, in August 2008.

Introduction

In the first quarter of fiscal 2009-10, Maruti Suzuki India Limited (Maruti), a subsidiary of Japan based Suzuki Motor Corporation (Suzuki), reported an increase of 34 percent in its net sales to Rs. 63.4 billion as compared to the corresponding quarter of the previous year. During the same period, the net profit of the company also increased by 25.3 percent to Rs 5.83 billion.

Founded in 1981, Maruti was India's leading car manufacturer. Since the late 1980s, the company had been the market leader in the passenger car industry in India. However, the liberalization of the Indian economy in 1991 changed the dynamics of the Indian passenger car industry.

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1] "Maruti Suzuki Completes 25 Years," www.marutisuzuki.com, December 13, 2008.
2] "Maruti Suzuki Has a Strategy for the Future, Says Bhargava," www.blonnet.com, August 21, 2008.


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