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StrategicAnalysisPak Suzuki Motor Company Limited
Muazzam Imtiaz
Roll Number: 22
MBA (Morning) 4th A
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ACKNOWLEDGMENT
In the name of Allah, Most Gracious, Most Merciful
Praise be to Allah, the Cherisher and Sustainer of the worlds;
Most Gracious, Most Merciful;
Master of the Da of !udgment"
#hee do we worshi$, and #hine aid we see%"
#he wa of those on whom #hou hast bestowed #h Grace, those
whose &$ortion' is not wrath, and who go not astra"
Ameen
I am heartil than%ful to our Strategic Management teacher, Sir
Shahid (a)oob, whose encouragement, guidance and su$$ort from
initial to the final le*el enabled us to de*elo$ the sub+ect Strategic
Management" ith his dedicated lectures we were able to $racticall
understand and a$$l what we ha*e learned in the classes"
Strategic Analsis - Pa% Su.u%i Motor Com$an /imited"
#he Islamia 0ni*ersit of 1ahawal$ur - ahim (ar 3han Cam$us
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EXECUTIVESUMMARY
#his $ro+ect is about the strategic Analsis of Pa% Su.u%i MotorCom$an" During the $ro+ect, I5*e done the detailed stud of Pa%
Su.u%i Motor Com$an /imited li%e their com$an $rofile, mission,
*ision and cor$orate *alues" #hen I obser*er the some of the ma+or
$roducts manufactured and assembled b the Pa% Su.u%i Motor
Com$an limited which include SI6#, /IA7A, C0/#0S,
M89A7, AP: etc ith the hel$ of Internal and 8
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TABLEOFCONTENTS
Sr. no. Contents Pae !
Introduction
2 Product Mi< E
4 Internal and 8 S?# or #?S Matri<
= 1CG Matri< F
B S10 Analsis E
Internal 8
2 S$ace Matri< =
4 Grand Matri< 2
SPM Matri< 22
Conclusion 24
F ecommendations 2
E eferences 2
Strategic Analsis - Pa% Su.u%i Motor Com$an /imited"
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INTRODUCTION
Pa" S#$#"% Motors Co&'an( Lt). is a com$an assembling and distributing Su.u%i
!a$anHs cars in Pa%istan" Currentl the are one of the most successful motor com$anies in
Pa%istan"
#he firm was founded in =>4 as a +oint *enture between PA3 and Su.u%i, formali.ing the
arrangement b which AAMI Auto /td" had $roduced the Su.u%i SS>B from =>2" Su.u%i
originall owned 2 of the stoc%, and has graduall increased their holding; the now own
E4"B=" #he com$an now assembles a wide range of Su.u%i *ehicles and aims to $roduce
B,BBB *ehicles $er ear" &2BB $roduction was BB,BBB'
O#r V%s%on
#o be 8
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State&ent o* Et+%,s an) B#s%ness Pra,t%,es
9ere are the code of ethics and 1usiness Practice of Pa% Su.u%i Motors Com$an,
" Pa% Su.u%i insists on integrit and honest of its em$loees in doing business" An
unfair or corru$t $ractices to solicit business is fundamentall inconsistent with
business codes of com$an
2" Pa% Su.u%i belie*es in com$liance to regulator obligation
4" Pa% Su.u%i belie*es in free and fair business $ractices and o$en com$etiti*e mar%ets"
De*elo$ing an association with com$etitors to distort the $ricing and su$$l of
$roducts is contradictor to com$an5s business code of conduct"
" Pa% Su.u%i belie*es in trans$arenc in business transaction and the are to berecorded accuratel and fairl in boo%s of accounts in accordance with standard
$rocedure"
" Pa% Su.u%i e
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' e ensure safe dis$osal of waste generated from our facilit
' e minimi.e the discharge of waste materials into the en*ironment b utili.ing
res$onsible $ollution control $ractices"
F' e will continuousl see% o$$ortunities to im$ro*e our adherence to these $rinci$les"
As it is clearl mentioned in their :ision Statement that to be e
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Pr%,e2 s" ,24B,BBBJ@
#he Su.u%i /iana a*ailable in 4BB cc manual
transmission and FBBcc automatic
transmission ta%es ou out of ordinar and into
the realm" /iana is entirel different car, its
stle, dimension and comfort will ins$ire ou
to see e*er da as an o$en door to a new age"
Co3ors2Pearl ed, Gra$hite Gre, Solid white,
Indigo, Sil% Sil*er, A)ua 1lue, 8minent 1lue
CULTUS -000,,1
Pr%,e2 s" >=E,BBBJ@
C0/#0S is the blend of s$ace and craft"
Its trim bod Conceals am$le s$ace K
fle
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Pr%,e2 s" ,BBBJ@
0nri*alled in its class, M89A7 is
Pa%istan5s largest selling car" More smart
features li%e head turning lam$, matching
front grill and a two s$o%e steering wheel
gi*es it the tid loo%" 6unctional econom,
$ea% $erformance or unmatched fuel
efficienc, M89A7 : is the leader"
Co3orsL Pearl ed, Gra$hite Gre, Solid
white, Sil% Sil*er, 8minent 1lue
APV -800,,1
Pr%,e2 s" ,EE,BBBJ@
AP: BB cc &Im$orted' #he 7ew AP:
gi*es ou e*erthing ou e*er wanted in
our *ehicle" S$acious interior for comfort,
tough engine to carr large loads and $lent
of room for $assengers to en+o a
comfortable da long ride"
Co3ors2 Pearl ed, Gra$hite Gre, Solidwhite, Indigo, Sil% Sil*er, A)ua 1lue,
8minent 1lue
9IMNY -/00,,1
Pr%,e2 s" ,>B,BBBJ@
!IM7( !88P 4BBcc &Im$orted'
Stead, sturd and smart, Su.u%i !IM7(with new wide tread brings ou the ultimate
$leasure of a real @wheel dri*e" It has got all
the s$orting s$irit to go along for
ad*enturous free souls"
Co3ors2Solid white, Sil% Sil*er
Strategic Analsis - Pa% Su.u%i Motor Com$an /imited"
#he Islamia 0ni*ersit of 1ahawal$ur - ahim (ar 3han Cam$us
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EXTERNAL4 INTERNALANALYSIS
SWOT Ana3(s%s
Strent+s2
9ighest Mar%et Share
/ow Price :ehicles
esale of /ocal Assembled Cars
/arge Distribution Channels
ising $er ca$ita income with changing demogra$hic distribution
9ighl Inno*ati*e and dee$ $roduct line
9ighl maintained su$$l chain
ell Managed and highl com$etiti*e staff
ell defined and bureaucratic organi.ational structure
Com$lete understanding between Distributors
8as a*ailabilit of s$are $arts
Wea"ness2
Scarcit of raw material
/ac% of coordination and lin%age with Go*ernmentJsemi go*ernment su$$orting
bodies
/ess focus on /oo%s and Design
/ess #echnical #raining Institutes
/ess distribution channels in sub urban areas
O''ort#n%t%es2
Increasing Demand for Cars
8fficient 86I engines
Strategic Analsis - Pa% Su.u%i Motor Com$an /imited"
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/arge Mar%et si.e to o$erate
Global s$are $art mar%et
S$ace sa*ing Small si.e C7G clinders
T+reats2
#ough Com$etitors li%e #oota and 9onda
6oreign In*estment and setu$ $roduction facilities
Smuggling of Auto Parts
Inflation rate
9ea* #a
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go*ernment $olicies, encourages b different foreign assistance and renewed access to global
mar%et since 2BB"
1 following these $olicies go*ernment succeed to re*erse the situation of econom during
last fi*e ears.
So,%o;C#3t#re En:%ron&ent
Pa%istan has strong culture bac%ground and it has been follow in some $articular region of
Pa%istan strictl" 1ut with the $assage of time it is going to change" #houghts of $eo$le,
choices, taste and stle has been totall changed" If we tal% about the trans$ortation source in
Pa%istan, Peo$le use buses, $ic%u$s etc for +ourne" #he also ha*e their own biccle and
bi%es and lots of $eo$le are $edestrian" 1ut now the $eo$le who ha*en5t an source of
trans$ortation the also want something for their con*enience because the wants to sa*e
their time as much as the can" Peo$le want to use such *ehicle which loo%s beautiful and
also affordable"
Te,+no3o%,a3 En:%ron&ent
#echnological factor also *er im$ortant and we ha*en5t control on it" #echnolog is
grooming with the $assage of time" Peo$le also want that the $roduct that the ha*e is full of
technolog" e ne*er control on technolog for e
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EXTERNALFACTOREVALUATIONMATRIX-EFE1
OPPORTUNITIES We%+t Rat%ns We%+te) S,ore" Increasing Demand for Cars B" B"FB
2" 8fficient 86I 8ngines B"B 4 B"4B
4" /arge Mar%et to o$erate B"B 4 B"4B
" Global s$are $arts mar%et B"B 2 B"B
" Small si.e C7G Clinders B"2 4 B"4F
T6REATS
" #ough Com$etitors li%e #oota and 9onda B" 2 B"2>
2" Inflation ate B"B> 4 B"2
4" 9ea* #a
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INTERNALFACTORSEVALUATIONMATRIX-IFE1
STRENGT6S We%+t Rat%ns We%+te) S,ore
" 9ighest Mar%et Share B"2B B">B
2" /ow Price :ehicles B"B B"B4" /arge Distribution Channels B"2 B">" 8as a*ailabilit of s$are $arts B"B> B"42
" 9ighl Inno*ati*e and dee$ $roduct line B"2 B">
WEAKNESSES
" Scarcit of raw material B"B> 2 B"F
2" /ac% of coordination and lin%age with Go*t" bodies B"B 2 B"B
4" /ess focus on /oo%s and design B"B B"B
" /ess #echnical #raining Institutes B"B B"B
" /ess distribution channels in sub urban areas B"B B"B
Tota3 We%+te) S,ore .0
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SWOT MATRIX
SWOT > TOWS Matr%?
STRENG6TS WEAKNESSES
" 9ighest Mar%et Share "Scarcit of aw Materials
2" /ow Price :ehicles2" /ac% of coordination with
Go*t" 1odies
4" /arge Distribution Channel4" /ess focus on /oo%s and
design
" 9ighl Inno*ati*e K Dee$
$roduct line
" /ess #echnical #raining
Institutes
" 8as a*ailabilit of s$are
$arts
" /ess distribution channels in
sub@urban areas
OPPORTUNITIES S;OStrate%es W;OStrate%es
" Increasing Demand for cars .Ma
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>" 8nhance distribution to a*oid threat from second hand im$orted cars
BCG MATRIX
Strategic Analsis - Pa% Su.u%i Motor Com$an /imited"
#he Islamia 0ni*ersit of 1ahawal$ur - ahim (ar 3han Cam$us
Dos
#est%on Mar"Star
Cas+ Cos
6%+
Lo
Lo6%+
Mar"et
Grot+
Mar"et S+are
ME6RAN
ALTO
CULTUS
RAVI
LIANA
APV
9IMNY
BOLANSWIFT
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SBUs Ana3(s%s
ME6RAN2
M89A7 has the highest growth rate in automobile sector in Pa%istan" Pa% Su.u%i
alwas changes the different $arts of M89A7 either e
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It was made for a $eo$le of high income grou$ but due to high $rices in which the mar%et
was alread gi*ing names li%e corolla and ci*ic who has their strong brand name and
customer loalt, liana was failed to ca$ture the mar%et"
SWIFT2
Due to failure of /iana Pa% Su.u%i introduced another 4BBcc car in !an 2BB=" Swift
has all the latest features li%e $ower steering, central loc%ing, Auto #ransmission and the
A1S" All the 4BBcc cars in Pa%istan ha*e $rice range of 4BBBBB to BBBBB, while Swift
was introduced at ===BBB and recentl it was increased at B=BBB" It has still ad*antage of
$rice com$etition as com$are to other 4BBcc cars in Pa%istan"
RAVI2
a*i is for the $eo$le doing small business es$eciall cargo ser*ices li%e home
deli*er ser*ices, #CS and mar%et deli*er" All $eo$le doing business of these t$es are
loal customers to a*i" Although the S989N?8 has ca$tured some of its mar%et share but
still a*i is much famous and mar%et leader in its t$e"
Strategic Analsis - Pa% Su.u%i Motor Com$an /imited"
#he Islamia 0ni*ersit of 1ahawal$ur - ahim (ar 3han Cam$us
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INTERNALEXTERNALMATRIX
868
Matri
#ough com$etitors B"B> B"42 2 B"F
Inflation B"BF B"BF B"BF
Chea$er Im$orted cars B"B> B"42 B"42
Increase in fuel $rices B"B B"B B"B
Interna3 Fa,tors
9ighest Mar%et share B"B> 4 B"2 B"42
/ow $rice *ehicles B"B B"B B"B
/arge distribution channel B"BF 2 B"2 4 B">
8as a*ailabilit of s$are $arts B"B2 4 B"BF 4 B"BFInno*ati*e and dee$ $roduct line B"BF B"2 4 B">
/ess focus on stle and design B"B B"F B"F
Scarcit of human resource B"B 4 B"2 B"F
Tota3s .0 /.5 /.@@
1 com$aring both Mar%et De*elo$ment and Product De*elo$ment, we obtained more
weighted attracti*e score for Product de*elo$ment" #hat means com$an should follow the
$roduct de*elo$ment which is $art of aggressi*e strategies" #his strateg is going to hel$ the
firm in eliminating its threats and grab the o$$ortunities to be successful in the $resent macro
en*ironment"
Strategic Analsis - Pa% Su.u%i Motor Com$an /imited"
#he Islamia 0ni*ersit of 1ahawal$ur - ahim (ar 3han Cam$us
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CONCLUSION
#he following are the findings of the stud of Pa% Su.u%i Motor
Com$an /imited"
E?terna3 Fa,tor E:a3#at%on Matr%? S,ore22"=>
Interna3 Fa,tor E:a3#at%on Matr%? S,ore22"==
BCG Matr%?2
StarL !IM7(, 1?/7A
uestion Mar%L SI6#
Cash CowsL M89A7, C0/#0S, A/#?, A:I
DogsL AP:, /IA7A
Interna3 E?terna3 Matr%?2Growth and 1uilt Strateg
S'a,e Matr%?2uadrant , Aggressi*e Strategies
Gran) Matr%?2uadrant , Aggressi*e Strategies
Mar%et De*elo$ment, Product De*elo$ment
SPM Matr%?2
Mar%et De*elo$mentL 4"F
Product De*elo$mentL 4"
C+osen Strate( %s Pro)#,t De:e3o'&ent.
Strategic Analsis - Pa% Su.u%i Motor Com$an /imited"
#he Islamia 0ni*ersit of 1ahawal$ur - ahim (ar 3han Cam$us
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STRATEGICRECOMMENDATIONS
Pro)#,t De:e3o'&ent is the selected strateg at this $oint of timefor Pa% Su.u%i Motor Com$an /imited that we obser*ed from our
strategic analsis of the firm"
In $roduct de*elo$ment strateg we recommend the com$an to
focuses on ha*ing the highest le*el of $roduct $erformance, the
highest le*el of functionalit or functions and features, the latest
technolog or the highest le*el of $roduct inno*ation"
#his strateg might ha*e some ris% for the com$an as inno*ati*e
$roducts are in*ol*ed but $ro$er research and de*elo$ment will cater
the ris% and com$an can $ursue with the strateg to be the mar%et
leaders and get on to$"
?ne ma+or setbac% to PSMC was in the sha$e of Su.u%i /IA7A,
which was not able to meet the e
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REFERENCES
http://www.paksuzuki.com.pk
http://www.we.com.pk
http://www.maxi-pedia.com
And various news paper articles, research findings and blogs, which helped me indirectly to
build up my mind about ak !uzuki "otor #ompany $imited and figure out their %xternaland &nternal 'actors which were involved in the pro(ect.
Strategic Analsis - Pa% Su.u%i Motor Com$an /imited"
#he Islamia 0ni*ersit of 1ahawal$ur - ahim (ar 3han Cam$us
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)*eal !trategic change re+uires inventing
new categories, not rearranging old ones.
!aid,Henry Mintzberg