International Business Strategic Analysis Report: Suzuki Corporation

This report provides a comprehensive international strategic analysis of Suzuki Motor Corporation. It begins with an overview of the company's international business operations and then delves into a PESTLE analysis, examining the political, economic, social, technological, legal, and environmental factors impacting the company's global activities. The report also applies Porter's Diamond Model to assess the firm's strategy, structure, rivalry, factor conditions, demand conditions, related and supporting industries, government, and chance factors. Furthermore, the report examines the challenges faced by Suzuki in international trade, including fluctuations in oil prices, changing consumer demands, and the need for technological advancements. It also highlights the company's environmental initiatives, such as the introduction of hybrid cars and CNG-fitted engines. The report references various sources to support its findings and provides a detailed examination of Suzuki's strategic position in the global market, offering valuable insights for students studying international strategic management.

International Business

INTERNATIONAL BUSINESS 1

INTERNATIONAL BUSINESS 2
PESTLE Analysis
Political
It has been seen that Suzuki Motor Corporation export their product from one country to
another. Due to which the company has to adopt the rules and regulation as per the country
(Suzuki, 2018).
Economical
The company face the issue of constant change in the oil prices. The fluctuation in the
exchange rate and export rate affect the company.
Social
It has been analysed that the demand of the consumers is changing towards the car. Consumer
of Suzuki Motor Corporation always wants some new modern design. It is difficult for the
company to quickly change the design which satisfies the consumer needs.
Technological
The company invest a huge amount in research and development to increase the engine
capacity. Technology is getting advance in these days; the company has to introduced the
new technological product to attracts the customer. However, the company introduced the
CNG kit which is highest selling product of the company (Ng, Yeow, Jee, Thong, and Lee,
2016).
Legal

INTERNATIONAL BUSINESS 3
The company deal with the international trade; due to which the company had to follow the
laws as per the country and which is continually affect the business.
Environmental
It has been founded that the company took the environment initiative by introducing the
hybrid cars which are eco-friendly. The company also introduced the CNG fitted engines in
the country which is safe for the environment.
Diamond Model
Firm strategy, structure and Rivalry
Domestic rivalry forces the companies to develop unique and sustainable strength. Suzuki
pushed them to innovate and improve the strategies in order to beat the competitors. There
are many competitors such as Nissan, Honda, Toyota, and many others. These companies
compete with each other and cable to beat the foreign market.
Factor Condition
Low labour cost is the main factor which affects the cost of the company. The company has
to analyse the wages of manufacturing the product. India is best place for the company to
operate because there labour can easily available in low cost.
Demand Condition
It has been seen that the company has the high demand consumers in the market. The GDP
of Japan is high which states that the consumers can easily afford the high prices and buy the
product of Suzuki. 14.2% is the daily sale of the company which states the strong demand of
the consumers towards the product of the company (Fainshmidt, Smith, and Judge, 2016).

INTERNATIONAL BUSINESS 4
Related and Supporting Industries
The company requires the support to achieve success in the market. The company has the
support of Japanese motorcycle producers due to which the sale of the company is increases
such as Yamaha, Honda. These companies have their own production but they have
subcontracting system with the close relationship.
Government
As the Suzuki trade at the international level which is difficult for the company to adopt the
different rules and regulation as per the country. Government of Japan helps the company but
it did not allow the company to introduce the product without any testing.
Chance
It has been seen that the random events affect the sale of the company. Due to natural
disaster, the demand of the consumers is decline for car, and bikes (Law2017).

INTERNATIONAL BUSINESS 5
References
Fainshmidt, S., Smith, A. and Judge, W.Q., 2016. National Competitiveness and Porter's
Diamond Model: The Role of MNE Penetration and Governance Quality. Global Strategy
Journal, 6(2), pp.81-104.
Law, C.M., 2017. Restructuring the global automobile industry. Routledge.
Ng, P.K., Yeow, J.A., Jee, K.S., Thong, L.W. and Lee, C.H., 2016. Japanese Automobile
Industry in Malaysia: A Survey on Consumer Decision-Making.
Suzuki. 2018. History of Suzuki. [online] Available from:
http://www.globalsuzuki.com/automobile/history/ [Accessed 30/10/18].