Problem and Literature Review

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PROBLEM AND LITERATURE REVIEW

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PROBLEM AND LITERATURE REVIEW
Company Background Analysis:
Maruti Suzuki India Ltd. (MSIL) automotive manufacturing company, which
was formely known as Maruti Udyog Limited began its operation in 1983 with
a joint venture with the Indian Government (Singh & Salwan, 2015). MSIL
affected India’s automobile market industry proficiently from an economic
standpoint. The company made good progress from 2008 to 2013 as the
brand tried to establish an emotional connect with its message “India comes
home in a Maruti Suzuki”. However the aggressive competition that the
brand faced from Hyundai and Tata Motors in respect to their product design
strategy or product segmentation and marketing strategy brought greater
hardships for MSIL and demanded to strengthen its survival
Research Problem
With the presence of a large number of competitive dynamics in different
vehicle manufacturing companies, MSIL faced a greater competition to stay
relevant with its product particularly catering to the needs of A-segment
(hatch level) as the company witnessed a steady fall in the market share
pertaining particularly to this segment from 61% to a sharp fall of 49%. The
A-segment is considered very important as the growth of the vehicle industry
market in India is analyzed on this basis and where MSIL has always been a
leading name, this sudden downfall has made the company extremely
worried and the general manager of the product development sector lead to
an in-depth research and market analysis pertaining to this specific research
problem.

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PROBLEM AND LITERATURE REVIEW
Literature Review
A literature review is both a process and a product. One needs to search for
information about the related subject to familiarize oneself with the relevant
research results. This process also helps you to identify problems and gaps in
research. Remember that you identify the main authors and main arguments
relevant to your topic and do not want to read everything that has been
written on this topic in detail. (Christianson, 20018). To add more, as a well
completed writing a literature review describes the method and theory used
in the related research.
In the history of the modern vehicle corporation, Toyota’s march to the
top from its humble beginnings as a textile machinery manufacturer in the
mill town of Koromo is one of the most remarkable examples of market
power. (Stewart & Raman, 2007). The Japanese auto manufacturer closed
the gap little by little, improvement by improvement. In 1970 General Motors
had a 40% portion of the U.S. car and light-trucks market, whereas Toyota
had only a 2% sliver. Toyota's market share rose from 3% in 1980, to 13% in
2006 and General Motors experienced a fall of 26% from 40 %. Toyota's
ascension is best captured by the Japanese word
Jojo: “slowly, gradually, and
steadily.” (Stewart & Raman, 2007) In some instance, MSIL sales were in a
critical situation at that time. It was necessary to start the production and its
redesign process forms the point it was already in progress. By hiring
consultants MSIL could initiate change strategy that aimed toward current

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PROBLEM AND LITERATURE REVIEW
market competitions by gathering significant data that provide a cautious
solution to the market power problem.
Following the change process, once MSIL’s production management
collected ideas and recommendations in a statistics base, it should bring
changes gradually while it watches the consumer behavior toward new
design (face-lifting, options, fuel economy, price, etc.) changes compared
with the market. On the other hand, MSIL could become more agile start
rethinking the design of competitive intelligence process, to focus on
building a strategic early warning capability, so it can not miss the big
picture (of it brand) (Gilad, 2015). By using market intelligence, MSIL should
match its upcoming designs with its hatch-level market to satisfy and keep
its customers. this way, MSIL can manage any unexpected risk of new
changes before harming the company. For this reason, the extent of
researcher interference study of action research is an appropriate
method. In this method relationship of researcher interference study in
which researcher tries to manipulate certain variable (change in design vs
change in consumer behavior or change in sell) to alter the "channel
push driven product to consumer pull driven product." (Sekaran & Bougie,
2019)
Stakeholders
MSIL is formerly known as Maruti Udyog Limited that started in 1983
when the government of India and the Suzuki motors established a joint