Comprehensive Business Analysis of Suzuki Motorcycle Corporation

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This report provides a comprehensive analysis of Suzuki Motorcycle Corporation's business operations. It begins with an overview of the company, highlighting its global presence and product offerings. The report then delves into Porter's generic strategies, examining how Suzuki positions itself within the motorcycle industry through cost leadership, differentiation, and focus strategies. A PESTEL analysis is conducted to assess the political, economic, social, technological, environmental, and legal factors influencing Suzuki's business environment. The marketing mix, including product, price, place, and promotion, is evaluated to understand Suzuki's approach to reaching its target market. Finally, the value chain analysis identifies the key activities that contribute to Suzuki's competitive advantage and operational efficiency. The report concludes with a summary of the key findings and insights into Suzuki's strategic positioning and market performance.
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ASSESSMENT ON
SUZUKI
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Table of Contents
INTRODUCTION...........................................................................................................................1
TASK ..............................................................................................................................................1
Overview of business..................................................................................................................1
Porter's generic Strategies...........................................................................................................1
PESTEL analysis.........................................................................................................................3
Marketing Mix............................................................................................................................3
Value chain..................................................................................................................................4
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5
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INTRODUCTION
In market the various company are there who make various strategies and decision to get
success and can attain their goals and objectives in proper manner (Diana and Ibrahim, 2015).
The report is based on Suzuki Motorcycle business, which is a leading selling bike company and
thus assignment is such which will include various things like Porter's generic strategy with
SWOT analysis with value chain as well. PESTEL and Five forces analysis is also there which
help to judge and analyse the market in better manner. Report is that which will specify that
Suzuki is such firm who take step forward or make decision with market research and such thing
help them to earn higher profit as well.
TASK
Overview of business
Suzuki motor corporation is such Japanese company who is working at large scale and it
is being considered as multinational firm too. It is such firm which manufacture different auto-
mobiles and four wheel drive vehicles and thus it is being considered with various other small
internal tumult engines as well. Organisation is having around 45,000 employees and having
more then production facility in 23 countries and having 133 distributor in almost 192 countries
in world (Kartika, 2014). The firm is founded by Michio Suzuki and founded in the year around
1909 and even though produces various kind of products as well.
Generally, the revenue of company is approximately to ¥80.4 billion (US$25.34 billion).
Moreover the company has won many awards for their bikes and cars. They work hard and
having a vision to become the number one selling cars and bikes in upcoming years and in
number of revenues as well. Organisation does make strategies and decision according to the
market scenario and they want to increase the numbers of income in higher manner although.
Industry is futuristic and want to become on the top brands in list of auto-mobiles. Ss
Porter's generic Strategies
A firms relative position is such which determine that firm is having profitability at the
above or below level at the industry average criteria in better manner. Fundamental basis is such
which make them to have profitability in long run and thus it is having a sustainable competitive
advantage which work in better manner as well. Normally, there are two kind of competitive
advantage is there and thus such are as; low cost and differentiation. Moreover, these two types
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of competitive advantage is such which is a combination of scope and activities which always a
firm also seeks to lead to achieve them, although there focus strategy has two variants like, cost
focus and with differentiation focus too.
(Source: Porter strategy, 2016)
Cost leadership: In this concept they need to become the lost cost producer inn large
industry. Moreover, there are various sources like cost advantage and somewhere also depend on
structure of industry as well. Although this something which also include various thing like
economies of scale, proprietary technology, advantageous to raw materials (Sotman, 2014).
Therefore, if the company can achieve the sustain cost leadership and thus it will be considered
as average performer and in industry too.
Differentiation: In this the firm try to look different from other company and along side
of this dimensions are there which are valued there by different buyers as well. Although, sit also
select one or more attributes in that buyers are considered as important and tremendously they
put themselves at such position where several needs can be met. It is something which can be
rewarded with its uniqueness and with its price too.
Focus: The generic strategy is such which rest on choice with having a narrow
competitive scope which has an within the industry (Clark and et. al 2014). Hence, in this there
are various focus strategy which has two variants and some of those are as follows:
Illustration 1: Porter Generic Strategy
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In this, cost focus is something which seeks to have a cost advantage and in its target
segment as well.
Differentiation is such which firm seeks and thus differentiation in its target segment as
well. Both of them are variants of focus strategy and rest on differences between the
focus with target segment and other segment in industry too.
Target segment is either having unusual needs and else with production and delivery
system and thus serves target segment and it is such which also differ from the other
industry segment as well.
The no-frill are there which has operators and thus it ha cost to cost minimum and having their
saving on customer and thus in prices as well. This is something which help in grab the market
share and to perform according to the requirement in market and help to settle down the needs
and wants of company in better manner although (Leebouapao, Insisienmay and Nolintha, 2014).
PESTEL analysis.
Suzuki motors is one of the largest two wheeler manufacturing industries in global market. Here
is a PESTEL analysis of firm, which describes political, economical, social, technological,
environment, legal issues, which needs to be known while launching a product in market.
Political: Political issues refers government policy such as tax policies, trade regulation,
political influence, rules and regulations which are decided by government. Government
imposes some tax including excise and custom duty which needs to conduct through out fiscal
years (Mohamad and et. al., 2014). It considers that which goods and services government will
provide. It examines business support priorities, that give power to organization growth. Policies
established by government has to generate employment. There should be harmful affects of to
environment. It offers reinforcement to to the in various vital area for business such as staff
training, health of entire nation and infrastructure quality. It ensures a balanced transition to open
trade at low level risk.
Economic: Economic factors include interest rate, taxation changes, economic growth,
inflation and exchange rates. It also analyse raw material which needed to be purchased like
steel, rubber and some parts. Economy defines apart from expenses how much it gaining to raise
country profit. Availability of finance for manufacturing of a certain product. Inclining
economic rate also increase purchasing power of potential users but it changes according to tax
rates. To perform better in finance it also covered rural areas to accomplish its market as broader
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as it can. Initial it find out requirement and then it head to most appreciated market and then it
look forward to raise in transactional profit business.
Social: In social market two-wheeler got boom. As bike lovers has most affordable and
designer bike to ride with convenient features. It was offering low cost so that it can have easy
reach to people. An individual always looking for well designed, stylish and moderated bike
which it was dealing. It had well furnished accessories. It is comfortable for two persons or a
small family which has spouses and two kids (Alvi and Jagtap, 2016). Mobility and safety is
prominent for everyone which it offers with its suitable tyres. It has one more important aspects
what people are looking for is low fuel consumption. Bikes are in demand because of its
approach in every area.
Technological: Suzuki has most considerable techniques that includes construction, fuel
economy, electric motorcycles, dynamics and accessories. It is two wheeler producer that
involves engineering, manufacturing and assembling of components and other systems which
related to show performance, in terms of cost and exquisitely designed. It creating from raw
materials considers aluminium frame, telescope forks and disc brakes. It has a powerful engine
that maintenance its performance on road with consumption of petrol. It has customized can be
provide with expansion of technology. Its new invention of electronic bike has an advantage of
saving fuel. Two wheeler rider has a privilege to modify looks if it broken from somewhere
through gettable supportive in market.
Environment: Environment factors means all products must be designed or
manufacturing of product that must not harm environment. It includes weather and climate is
changing day to day due to global warming, so now it is responsibility to save the nature.
Guarding nature is core of every industry such as travel and transportation. So, engine vehicles
should be design with concerning climate (Arwati, Syamsul and Izzati, 2017). Environment
friendly products should take a place in marketplace. While giving raise in transportation roads
and bridges are needed to be developed to benefit of population. Physical conditions affect use of
medium, like if weather is pleasant then utilization of conveyance will be gain.
Legal: Legal aspects includes all laws that derive a firm. These regulations has a standard
that has to follow by business and customers both.
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Marketing Mix.
Suzuki is such company which is already a established brand and thus their Motorcycles
are sold out even with their name and different thing which are considered in selling apart. There
are various competitors of company in market and to compete with them they are bringing
various strategy and decision so that they can make themselves stable in market as well (Arwati,
Syamsul and Izzati, 2017). The marketing mix is such which help company to use the market
scenario in their working too.
Product: The Suzuki company is such which company is using advanced machinery in
great manner and thus they are leading manufacturer of motorcycle. Their are various vehicles
availability in market and thus organisation is having a great product line. Yamaha is such which
is having more then 15% market share and even also account for the 90% sales too. Product is
something which should be of quality in market and thus which satisfy the demand and need in
better manner of customer as well.
Price: Suzuki is such brand who uses the price strategy for their product. Moreover
according to research the Suzuki is having best quality product and even though they have better
prices as well and they perform in proper way. The product price is bases on its power and type
of model. Therefore, prices should be set at such scenario that everyone can buy without any
problem in right context too.
Place: They use such marketing mix in better manner and even though the company has
targeted the middle class so that every one can buy their product with ease. Company usually
target the youth contradict which gets attracted towards the bike easily. Even the maximum part
of population is of middle age and company do focus on such so that they can sell their product
easily (Alvi and Jagtap, 2016). Place can be considered as major component because availability
of such at right place can make them to buy those in better way too.
Promotion: Suzuki is that brand who uses marketing mix and thus they promote in grand
way and thus they do have a Tagline like “ Touching your heart”. This is something which is
used by company to attract the maximum number of customer and do make them to get attracted
in better manner. They do have corporate initiatives which make them to perform even in perfet
way.
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Value chain.
A value chain is something which is having high level model which is Michael Porter
which is used to describe different thing and business receive various raw materials, and it also
add values to raw materials through the various processes to create a finished goods and product
in great way and looking forward to sell their product and services to the ultimate customer.
Moreover the company also analyse the value chain analysis which does cover the every
production step require to create a product line and such thing is that identify and also increases
the efficiency of chain. In organisation all the activities are such and they all are very much
essential in their working and add value and create a proper competitive advantage (Mohamad,
and et. al., 2014). These all activities and tasks are that which help in completing the work in
great manner and they all make it to convert the raw material into finished goods too. Moreover,
firm can support various competitive advantage and thus can be taken into consideration in value
chain. They does also create every outbound logistics which are highly efficient too.
CONCLUSION
From the above report it can be stated that, Suzuki motorcycle are the finest bikes ever
the different country can have and thus even the company is choosing the better strategy and
decision in organisation so that they can make themselves stable in market and even with these
the firm also goes with research part in market and with such they produce PESTLE and
marketing mix with value chain analysis is being done. Even the firm can attain their goals and
objective when they are working according to situation of market.
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REFERENCES
Books and Journals
Tue, N.M., and et. al., 2014. Aryl hydrocarbon receptor mediated activities in road dust from a
metropolitan area, Hanoi—Vietnam: contribution of polycyclic aromatic hydrocarbons
(PAHs) and human risk assessment. Science of the Total Environment. 491. pp.246-254.
Otsuka, R. and Takai, Y., Suzuki Motor Co Ltd, 2017. Fuel cell-powered motorcycle. U.S.
Patent 9,543,598.
Tue, N.M., and et. al., 2014. Methylated and unsubstituted polycyclic aromatic hydrocarbons in
street dust from Vietnam and India: occurrence, distribution and in vitro toxicity
evaluation. Environmental pollution. 194. pp.272-280.
Mohamad, D., and et. al., 2014. Assessment of hand-arm vibration exposure among motorcyclist
in malaysia. In Applied Mechanics and Materials (Vol. 663, pp. 395-399). Trans Tech
Publications.
Alvi, S. and Jagtap, M., 2016. STUDY OF TWO WHEELER DEALERS'PERCEPTION
TOWARDS CUSTOMERS'PREFERENCES. Indian Journal of Management Science.
6(2). p.53.
Arwati, I.G.A., Syamsul, N. and Izzati, T., 2017. Exhaust Emission Analysis on Motorcycle with
Fuel and Gasoline Mixture of H2O Electrolysis. World Chemical Engineering Journal.
1(4).
Leebouapao, L., Insisienmay, S. and Nolintha, V., 2014. ASEAN-People's Republic of China
Free Trade Area and the Competitiveness of Local Industries: A Case Study of Major
Industries in the Lao People's Democratic Partnership, Journal of GMS Development
Studies, Vol. 6, pp. 21-35.
Clark, C.J., and et. al 2014. BSA Group (Birmingham Small Arms Company) 96–7, 160
Budweiser 146 Burger King 140 Butlins 99. communications. 201. p.11.
Sotman, T.E., 2014. Synthesis of pyridone building blocks for biomimetic complexes of mono-
iron hydrogenase (Doctoral dissertation).
Kartika, E.K., 2014. Analisa Pengaruh Bauran Pemasaran Terhadap Minat Beli Ulang Sepeda
Motor Honda Kategori Sport Mid. E-Journal Graduate Unpar. 1(2). pp.162-175.
Diana, N. and Ibrahim, M., 2015. IMPLEMENTATION YAMAHA MOTORCYCLE SALES
PROMOTION IN THE CV. TRI STAR KENCANA BANGKINANG KAMPAR
DISTRICT. Jurnal Online Mahasiswa (JOM) Bidang Ilmu Sosial dan Ilmu Politik. 2(2).
pp.1-13.
Online
Porters generic strategy, 2016. [Online]. Available through
:<https://www.ifm.eng.cam.ac.uk/research/dstools/porters-generic-competitive-
strategies/>.
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