Opportunities and Threats for Maruti Suzuki

Maruti Suzuki
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Executive Summary
This is a strategic report prepared for Maruti Suzuki, an automobile manufacturing company in
India. In this report, micro and macro environment analysis of Maruti Suzuki have been carried
out and found the presence of various opportunities and threats for this organization. Evaluation
of Maruti Suzuki’s resources identified the existence of distinctive capabilities for this
organization to help in gaining competitive advantage. Recommendations for international
growth of Maruti Suzuki are given to initially adopt exporting and then choose to have
subsidiary in Netherlands.
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Table of Contents
Executive Summary 2
Introduction 4
Maruti Suzuki 4
Opportunities and threats for Maruti Suzuki 5
Evaluation of Organization Sources 7
Recommendations for the International Expansion 9
Conclusion 10
References 11
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Introduction
This is a strategic report prepared for Maruti Suzuki India Limited, an automobile manufacturer
in India. The main aim of this report is to analyze the opportunities and threats of Maruti Suzuki
in Indian market, evaluate the key resources of Maruti Suzuki and then provide possible
recommendations for its international expansion. Maruti Suzuki is from a developing country
India also known as republic of India in South Asia. With an area of nearly 3,287,263 square
kilometers, India is considered as 7th largest country in the world in terms of its area. India posses
the second position with second highest population after China with 1.364 billion
(Statisticstimes, 2019). India based on its low per capita income India is considered as emerging
country because of its economic growth, possessing sixth largest economy with respect to
nominal GDP and third largest GDP with respect to purchasing power parity (Iccrindia, 2019).
Increasing urbanization, growing middle class population due to rise in working population have
become some key factors making India as fastest growing economy in the world (United
Nations, 2019). Due to this growing economy, the demand for vehicles not just for travelling but
symbol of status has increased greatly in India. Besides, the increase in demand for cars from the
manufactures like Maruti Suzuki, increasing competition and several product models with less
differentiation and domination of few firms in the automobile manufacturing industry have made
companies look for analyzing their micro and macro environment to make decisions on their
international environments.
Maruti Suzuki
Maruti Suzuki India Limited in an automobile manufacturing started in the year 1981. With its
head quarters in New Delhi the capital city of India, the Maruti Suzuki serves the passenger
vehicle needs of the target market in India. The leading models sold by Maruti Suzuki are cars
with range including hatch backs, sedans, vans and sport utility vehicles (Maruti Suzuki, 2019c).
Maruti Suzuki is known for its iconic model Maruti 800 that has revolutionized Indian car model
after being launched in the year 1983. With its strategic values like responsibility dynamism,
open, efficient, reliable, Maruti Suzuki has been changing to meet the growing needs and
demands of Indian consumers (Maruti Suzuki, 2019a). Maruti Suzuki consists of 56.21% stake
by Suzuki motors which is Japan manufactures of car and motor cycles. In the year 2018 Maruti
Suzuki posses 53% market share in India market of passenger cars. Maruti Suzuki is known for
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