strategic analysis of pak suzuki motor company

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Strategic Analysis Pak Suzuki Motor Company Limited Muazzam Imtiaz Roll Number: 22 MBA (Morning) 4 th – A

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The strategic analysis of Pak Suzuki Motor Company Limited. It includes all the matrices, Internal External Evaluation Matrix, QSPM, Grand, Space Matrix and Strategies for the company to pursue.

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Page 1: Strategic Analysis of Pak Suzuki Motor Company

Strategic AnalysisPak 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 Day of Judgment.

Thee do we worship, and Thine aid we seek.

The way of those on whom Thou hast bestowed Thy Grace, those

whose (portion) is not wrath, and who go not astray.

Ameen

I am heartily thankful to our Strategic Management teacher, Sir

Shahid Yaqoob, whose encouragement, guidance and support from

initial to the final level enabled us to develop the subject Strategic

Management. With his dedicated lectures we were able to practically

understand and apply what we have learned in the classes.

Strategic Analysis – Pak Suzuki Motor Company Limited.The Islamia University of Bahawalpur – Rahim Yar Khan Campus

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EXECUTIVE SUMMARY

This project is about the strategic Analysis of Pak Suzuki Motor

Company. During the project, I’ve done the detailed study of Pak

Suzuki Motor Company Limited like their company profile, mission,

vision and corporate values. Then I observer the some of the major

products manufactured and assembled by the Pak Suzuki Motor

Company limited which include SWIFT, LIANA, CULTUS,

MEHRAN, APV etc… With the help of Internal and External

analysis, I’ve sorted out some of their strengths, weaknesses and the

opportunities and threats prevailing in the market. Also the PEST

analysis was conducted to observe the external factors that may

influence the performance of the company.

Then I did prepare the External Evaluation Matrix, which scored 2.98

that means company is trying best to utilize their opportunities by

avoiding the threats. And Internal Evaluation Matrix which scored

2.99 shows that company has solid internal strengths and they are

overcoming the weaknesses quite well. Then the TOWS matrix

helped us to suggest some of the strategies to the company which can

be helpful for them in future outlook.

The BCG matrix helped me to study the important products of the

company; I did identify in which stage the products are and tried to

do the SBU analysis for each product.

With the study of Pak Suzuki Motor Company Limited, I’ve learned

that they are doing well in the Pakistani market and are leading

market shareholder. They are producing Cars at affordable prices for

the low income to middle income people. But they are unable to

compete with Corolla and Honda in Luxury and semi-luxury cars.

They need product development strategy to follow so they tried to get

into the Honda and Corolla market by introducing Suzuki LIANA but

that couldn’t make its space. Now they have again tried that by

launching Suzuki SWIFT which is a 1300cc fully loaded car. I

recommend Product Development strategy for PSMC to pursue in

order to compete with HONDA and TOYOTA. Then they will be

able to grow their market share and growth.

Strategic Analysis – Pak Suzuki Motor Company Limited.The Islamia University of Bahawalpur – Rahim Yar Khan Campus

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TABLE OF CONTENTS

Sr. no. Contents Page #

1 Introduction 5

2 Product Mix 7

3 Internal and External Analysis 10

4 SWOT Analysis 10

5 PEST Analysis 11

6 External Factor Evaluation Matrix (EFE) 13

7 Internal Factor Evaluation Matrix (IFE) 14

8 SWOT or TOWS Matrix 15

9 BCG Matrix 16

10 SBU Analysis 17

11 Internal External Matrix 18

12 Space Matrix 19

13 Grand Matrix 21

14 QSPM Matrix 22

15 Conclusion 23

16 Recommendations 24

17 References 25

Strategic Analysis – Pak Suzuki Motor Company Limited.The Islamia University of Bahawalpur – Rahim Yar Khan Campus

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INTRODUCTION

Pak Suzuki Motors Company Ltd. is a company assembling and distributing Suzuki Japan's cars in Pakistan. Currently they are one of the most successful motor companies in Pakistan.

The firm was founded in 1983 as a joint venture between PAK and Suzuki, formalizing the arrangement by which AWAMI Auto Ltd. had produced the Suzuki SS80 from 1982. Suzuki originally owned 25% of the stock, and has gradually increased their holding; they now own 73.09%. The company now assembles a wide range of Suzuki vehicles and aims to produce 150,000 vehicles per year. (2005 production was 100,000)

Our Vision

To be Excellent All Around

Our Mission

To provide automobile of international quality at competitive price

These are Mission and Vision Statement of Pak Suzuki, and they always try to improve skills of employees by imparting training and inculcating in them a sense of participation.

To achieve maximum indigenization and promote the automobile vending industry.

To contribute to Pakistani society through development of industry in general and automobile industry in particular.

Strategic Analysis – Pak Suzuki Motor Company Limited.The Islamia University of Bahawalpur – Rahim Yar Khan Campus

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Statement of Ethics and Business Practices

Here are the code of ethics and Business Practice of Pak Suzuki Motors Company,

1. Pak Suzuki insists on integrity and honesty of its employees in doing business. Any unfair or corrupt practices to solicit business is fundamentally inconsistent with business codes of company

2. Pak Suzuki believes in compliance to regulatory obligation

3. Pak Suzuki believes in free and fair business practices and open competitive markets. Developing any association with competitors to distort the pricing and supply of products is contradictory to company’s business code of conduct.

4. Pak Suzuki believes in transparency in business transaction and they are to be recorded accurately and fairly in books of accounts in accordance with standard procedure.

5. Pak Suzuki expects its employees to act in company’s best interest while holding confidential information. Company expects its employees neither to solicit internal information from other nor to disclose company’s data or any other material information to any un- authorized person/body.

6. Pak Suzuki believes in individual’s respects and growth. Its employment policies do not discriminate on basis of race, religion, gender or any other factor.

7. Pak Suzuki does not believe in political affiliation.

Corporate Strategy

Pak Suzuki is built on the idea of a responsible corporate citizenship thereby managing environmental, safety & occupational health matters as an integral part of our business. In fulfilling this responsibility Pak Suzuki adheres to the following principles:

1) We are committed to provide top quality products to the satisfaction and requirement

of our customers.

2) We conduct our operations in compliance with applicable environmental,

occupational health & safety laws and regulations.

3) We recognize the interrelationship between energy and the environment, and we

promote the efficient use of energy throughout our system.

Strategic Analysis – Pak Suzuki Motor Company Limited.The Islamia University of Bahawalpur – Rahim Yar Khan Campus

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4) We ensure safe disposal of waste generated from our facility

5) We minimize the discharge of waste materials into the environment by utilizing

responsible pollution control practices.

6) We will continuously seek opportunities to improve our adherence to these principles.

As it is clearly mentioned in their Vision Statement that to be excellent all around, and they always operate in Environment friendly. And their Product will always be the environment friendly.

With the globalization of markets, greater foreign competition, and the reduction of entry barriers, it becomes all the more important to benchmark a company’s financial indicators on a worldwide basis. World stock markets have recently witnessed a return to fundamental financial analysis. Sound management as opposed to hype will in the long run generate shareholder value.

PRODUCT MIX

Following are some varieties of Cars with their and Prices:

SWIFT (1300cc)

Price: Rs. 1,049,000/-

The European inspired exterior gives Swift a distinctive look. A unique stylish and design that turns a head where you go. The spirited engine makes for exhilarating drive and gives you ultimate freedom where the road takes you.

Colors: Pearl Red, Graphite Grey, Solid white, Indigo, Silky Silver, Aqua Blue, Eminent Blue

LIANA (1300 & 1600 cc)

Strategic Analysis – Pak Suzuki Motor Company Limited.The Islamia University of Bahawalpur – Rahim Yar Khan Campus

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Price: Rs. 1,230,000/-

The Suzuki Liana available in 1300 cc manual transmission and 1600cc automatic transmission takes you out of ordinary and into the realm. Liana is entirely different car, its style, dimension and comfort will inspire you to see every day as an open door to a new age. Colors: Pearl Red, Graphite Grey, Solid white, Indigo, Silky Silver, Aqua Blue, Eminent Blue

CULTUS (1000cc)

Price: Rs. 897,000/-

CULTUS is the blend of space and craft.Its trim body Conceals ample space & flexibility for both passenger and storage. CULTUS ensures everyone, exceptional Value and quality.

Colors: Pearl Red, Graphite Grey, Solid white,Indigo, Silky Silver, Aqua Blue, Eminent Blue

ALTO (1000cc)

Price: Rs. 662,000/-

Alto has a bright, roomy and comfortable cabin which keeps body relax and strong and lighter body shell resulting in smooth drive due to reduction of unpleasant noise harshness and vibration. Its small turning radius and compact body make parking a breeze.

Colors: Olive Green, Pearl Red, Graphite Grey, Solid white, Indigo, Silky Silver, Aqua Blue, Eminent Blue

MEHRAN (800cc)

Strategic Analysis – Pak Suzuki Motor Company Limited.The Islamia University of Bahawalpur – Rahim Yar Khan Campus

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Price: Rs. 514,000/-

Unrivalled in its class, MEHRAN is Pakistan’s largest selling car. More smart features like head turning lamp, matching front grill and a two spoke steering wheel gives it the tidy look. Functional economy, peak performance or unmatched fuel efficiency, MEHRAN VXR is the leader.

Colors: Pearl Red, Graphite Grey, Solid white, Silky Silver, Eminent Blue

APV (1500cc)

Price: Rs. 1,775,000/-

APV 1500 cc (Imported) The New APV gives you everything you ever wanted in your vehicle. Spacious interior for comfort, tough engine to carry large loads and plenty of room for passengers to enjoy a comfortable day long ride.

Colors: Pearl Red, Graphite Grey, Solid white, Indigo, Silky Silver, Aqua Blue, Eminent Blue

JIMNY (1300cc)

Price: Rs. 1,850,000/-

JIMNY 4X4 JEEP 1300cc (Imported) Steady, sturdy and smart, Suzuki JIMNY with new wide tread brings you the ultimate pleasure of a real 4-wheel drive. It has got all the sporting spirit to go along for adventurous free souls.

Colors: Solid white, Silky Silver

Strategic Analysis – Pak Suzuki Motor Company Limited.The Islamia University of Bahawalpur – Rahim Yar Khan Campus

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EXTERNAL & INTERNAL ANALYSIS

SWOT Analysis

Strengths:

Highest Market Share

Low Price Vehicles

Resale of Local Assembled Cars

Large Distribution Channels

Rising per capita income with changing demographic distribution

Highly Innovative and deep product line

Highly maintained supply chain

Well Managed and highly competitive staff

Well defined and bureaucratic organizational structure

Complete understanding between Distributors

Easy availability of spare parts

Weakness:

Scarcity of raw material

Lack of coordination and linkage with Government/semi government supporting bodies

Less focus on Looks and Design

Less Technical Training Institutes

Less distribution channels in sub urban areas

Opportunities:

Increasing Demand for Cars

Efficient EFI engines

Large Market size to operate

Strategic Analysis – Pak Suzuki Motor Company Limited.The Islamia University of Bahawalpur – Rahim Yar Khan Campus

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Global spare part market

Space saving Small size CNG cylinders

Threats:

Tough Competitors like Toyota and Honda

Foreign Investment and setup production facilities

Smuggling of Auto Parts

Inflation rate

Heavy Taxes

Competition from cheaper imported cars

Increase in Fuel Prices

PEST Analysis

Uncontrollable environment are those external factors which can create hurdles between us and our business. It is also called pest analysis, which is as follow:

Political Environment

Pakistan has to face lots of political ups and downs since its independence. So many governments have been overtaken by military personnel and most of the time martial law was imposed on Pakistan. In this scenario no entrepreneur was willing to invest in Pakistan except few. Due to such conditions, market environment wasn’t helpful in Pakistan. The Pakistani government has never been trustworthy for any investor.

Legal Environment

As all countries, Pakistan also has some legislation about each sector. But like developing countries it is hardly being imposed by authorities. The corruption, smuggling and black marketing have been supported by Government related officials. The undue favor is given to those business men who have been politically affiliated and hardly any legal suite is carried on against them. Such unethical activities destroy all law and legislation.

Economic Environment

Pakistan, an impoverished and underdeveloped country, has suffered from decades of internal political disputes and external ongoing conflict with India. However, IMF approved the government policies, encourages by different foreign assistance and renewed access to global market since 2001.

Strategic Analysis – Pak Suzuki Motor Company Limited.The Islamia University of Bahawalpur – Rahim Yar Khan Campus

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By following these policies government succeed to reverse the situation of economy during last five years.

Socio-Culture Environment

Pakistan has strong culture background and it has been follow in some particular region of Pakistan strictly. But with the passage of time it is going to change. Thoughts of people, choices, taste and style has been totally changed. If we talk about the transportation source in Pakistan, People use buses, pickups etc for journey. They also have their own bicycle and bikes and lots of people are pedestrian. But now the people who haven’t any source of transportation they also want something for their convenience because they wants to save their time as much as they can. People want to use such vehicle which looks beautiful and also affordable.

Technological Environment

Technological factor also very important and we haven’t control on it. Technology is grooming with the passage of time. People also want that the product that they have is full of technology. We never control on technology for example you launched the product last year and your sale volume on that time is very high but after sometime due to latest invention a lots of substitute exist in market which affect on your business so you can’t hold on it.

Strategic Analysis – Pak Suzuki Motor Company Limited.The Islamia University of Bahawalpur – Rahim Yar Khan Campus

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EXTERNAL FACTOR EVALUATION MATRIX (EFE)

OPPORTUNITIES Weight Ratings Weighted Score1. Increasing Demand for Cars 0.15 4 0.602. Efficient EFI Engines 0.10 3 0.303. Large Market to operate 0.10 3 0.304. Global spare parts market 0.05 2 0.105. Small size CNG Cylinders 0.12 3 0.36

THREATS1. Tough Competitors like Toyota and Honda 0.14 2 0.282. Inflation Rate 0.08 3 0.243. Heavy Taxes 0.08 3 0.244. Cheaper Imported Cars 0.10 4 0.405. Increase in Fuel Prices 0.08 2 0.16

Total Weighted Score 1.0 2.98

Ratings:1 – Poor 3 – Above Average2 – Below Average 4 - Superior

The total weighted score of 2.98 shows that company is responding above average to its external factors. They are trying to grab maximum opportunities available there and avoiding the threats to their best.

Justification of Ratings:

1. The company is producing the maximum number of cars in compare with other competitors and therefore grabbing the opportunity to meet the increasing demand.

2. Pak Suzuki has introduced new EFI engine in its CULTUS model which is a 1000cc car. The EFI engine technology is never introduced before in below 1300cc cars.

3. The dealer network of Pak Suzuki is almost all around the country which help them to maximize their sales and reach in every corner of the country.

4. In new CNG fitted cars, the Suzuki is introducing new compact CNG cylinders which take less space and are lighter than their equivalent available in the market.

5. The major threat Suzuki Company could have is from Toyota and Honda, as Suzuki is still unable to meet them in 1300cc and above category of cars. The new product SWIFT is not giving the respond which was expected.

Strategic Analysis – Pak Suzuki Motor Company Limited.The Islamia University of Bahawalpur – Rahim Yar Khan Campus

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INTERNAL FACTORS EVALUATION MATRIX (IFE)

STRENGTHS Weight Ratings Weighted Score1. Highest Market Share 0.20 4 0.802. Low Price Vehicles 0.10 4 0.403. Large Distribution Channels 0.12 4 0.484. Easy availability of spare parts 0.08 4 0.32

5. Highly Innovative and deep product line 0.12 4 0.48WEAKNESSES

1. Scarcity of raw material 0.08 2 0.162. Lack of coordination and linkage with Govt. bodies 0.05 2 0.103. Less focus on Looks and design 0.10 1 0.104. Less Technical Training Institutes 0.05 1 0.055. Less distribution channels in sub urban areas 0.10 1 0.10

Total Weighted Score 1.0 2.99

Ratings:1 – Major Weakness 3 – Minor Strength2 – Minor Weakness 4 – Major Strength

The score 2.99 shows that company has solid internal position, its strengths are overcoming the weaknesses.

Justification of Ratings:

1. Pak Suzuki Motor Company has large market share herein and also the largest producers of

Cars which is a major strength.

2. Their prices are very affordable in the same quality that is another major strength.

3. The large distribution channel is another major strength which helps them to achieve their

desired sales targets.

4. The innovation is another key strength of Pak Suzuki and the example is new Suzuki

SWIFT.

5. The spare parts availability is a critical issue which cars, Suzuki has comparative

advantage in spare parts availability as most of them are being manufactured in Pakistan.

6. The major weakness which I felt is the non-availability of skilled engineers and workforce.

And the reason behind is lack of technical institutes under their banner.

7. They should also focus on sub-urban areas like Southern Punjab and Interior Sind which

their distribution network.

Strategic Analysis – Pak Suzuki Motor Company Limited.The Islamia University of Bahawalpur – Rahim Yar Khan Campus

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SWOT MATRIX

SWOT / TOWS Matrix

STRENGHTS WEAKNESSES

1. Highest Market Share 1.Scarcity of Raw Materials

2. Low Price Vehicles2. Lack of coordination with Govt. Bodies

3. Large Distribution Channel3. Less focus on Looks and design

4. Highly Innovative & Deep product line

4. Less Technical Training Institutes

5. Easy availability of spare parts

5. Less distribution channels in sub-urban areas

OPPORTUNITIES S-O Strategies W-O Strategies

1. Increasing Demand for cars 1. Maximize market share by producing more cars per year (S1,S2,O1,O4)

2. Develop more efficient and innovative Engine which gives comparative advantage (S4,O2)

3. Use efficient CNG systems (S4,S5,O4)

4. Focus on Looks and Design to compete with Honda and Toyota (W3,O1,O3)

5. Fund and establish technical institutes to gain more skilled workforce (W4,O3,O1)

2. Efficient EFI engines

3. Large Market to Operate

4. Small size CNG Cylinder

5. Global Spare parts market

THREATS S-T Strategies W-T Strategies

1. Tough Competitors6. Maintain quality in affordable price will help to compete with competitors and imported cars (S2,S4,T1,T4)

7. Develop fuel efficient engines to gain edge and eliminate threat of fuel prices increase (S4,S5,T5,T2)

8. Enhance distribution to avoid threat from second hand imported cars (W5,T4)

2. Inflation Rate

3. Heavy Taxes

4. Cheaper Imported Cars

5. Increase in Fuel prices

Proposed Strategies

1. Maximize market share by producing more cars per year2. Develop more efficient and innovative engines which give comparative advantage3. Use efficient CNG system4. Focus on looks and design of exterior to compete with Honda and Toyota5. Fund and establish technical institutes to gain more skilled workforce from local market6. Maintain quality in affordable price will help to compete with direct competitors and used imported cars

Strategic Analysis – Pak Suzuki Motor Company Limited.The Islamia University of Bahawalpur – Rahim Yar Khan Campus

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7. Develop fuel efficient engines to gain edge and eliminate threat of fuel prices increase8. Enhance distribution to avoid threat from second hand imported cars

BCG MATRIX

Strategic Analysis – Pak Suzuki Motor Company Limited.The Islamia University of Bahawalpur – Rahim Yar Khan Campus

Dogs

Question MarkStar

Cash Cows

High

Low

LowHigh

MarketGrowth

Market Share

MEHRAN

ALTO

CULTUS

RAVI

LIANA

APV

JIMNY

BOLANSWIFT

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SBUs Analysis

MEHRAN:

MEHRAN has the highest growth rate in automobile sector in Pakistan. Pak Suzuki

always changes the different parts of MEHRAN either exterior or interior whenever it comes

to its maturity level.

MEHRAN is attractive the people who have salaries within 20,000 to 30,000 per month. The

youngsters also prefer the MEHRAN because of its size and economical price. Small

business people also prefer MEHRAN because of its low maintenance cost. MEHRAN also

attracts people who move from bike to the cars.

LIANA:

Liana is a luxurious and highest price car of Pak Suzuki. It was built to compete with

Pak Suzuki’s biggest competitors like Toyota and Honda. Liana has the same features which

are available in Corolla and Civic but still it couldn’t make its market as compare to both

these cars. Liana has replaced the Pak Suzuki’s BALENO in 2005-06, since Pak Suzuki tried

several ways to establish its position but failed to do so.

Strategic Analysis – Pak Suzuki Motor Company Limited.The Islamia University of Bahawalpur – Rahim Yar Khan Campus

SWIFTJIMNY

BOLANMEHRAN

ALTOCULTUS

RAVILIANA

APV

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It was made for a people of high income group but due to high prices in which the market

was already giving names like corolla and civic who has their strong brand name and

customer loyalty, liana was failed to capture the market.

SWIFT:

Due to failure of Liana Pak Suzuki introduced another 1300cc car in Jan 2009. Swift

has all the latest features like power steering, central locking, Auto Transmission and the

ABS. All the 1300cc cars in Pakistan have price range of 1300000 to 1400000, while Swift

was introduced at 999000 and recently it was increased at 1049000. It has still advantage of

price competition as compare to other 1300cc cars in Pakistan.

RAVI:

Ravi is for the people doing small business especially cargo services like home

delivery services, TCS and market delivery. All people doing business of these types are

loyal customers to Ravi. Although the SHEHZORE has captured some of its market share but

still Ravi is much famous and market leader in its type.

Strategic Analysis – Pak Suzuki Motor Company Limited.The Islamia University of Bahawalpur – Rahim Yar Khan Campus

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INTERNAL EXTERNAL MATRIX

EFE Matrix Scores

IFE Matrix Scores

Strong Average Weak

4 3 2 1

Strong 4i ii iii

3Average

iv v vi2

Weakvii viii ix

1

The IFE matrix score for Pak Suzuki Motor Company Limited (PSMCL) is 2.99 and for EFE matrix is 2.98 therefore our IE matrix falls more around ‘iv’ cell.

The company should adopt growth and built strategies and I recommend Market Development and Product Development Strategies.

Strategic Analysis – Pak Suzuki Motor Company Limited.The Islamia University of Bahawalpur – Rahim Yar Khan Campus

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SPACE MATRIX

Financial Strength (FS)

Return on Investment +4Working Capital +3Short Term Assets +4

Total: +11Industry Strength (IS)

Large Market to operate +5Increasing per Capita Income +3Consumption Oriented Culture +4

Total: +12Competitive Advantages (CA)

High Quality Products -3Sleek and Stylish Designs -4Famous Brand Names -3

Total: -10Environmental Stability (ES)

Tough Competition -2Change in Govt. rules and regulations -3Imported Refurbished Cars -4Law and Order Situation -2

Total: -11

Average Scores:

FS = 11/3 = 3.67

IS = 12/3 = 4

CA = -10/3 = -3.33

ES = -11/4 = -2.75

X-axis = IS+CA = 4-3.33 = 0.67

Strategic Analysis – Pak Suzuki Motor Company Limited.The Islamia University of Bahawalpur – Rahim Yar Khan Campus

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Y-axis = FS+ES = 3.67-2.75 = 0.92

Space Matrix

In space matrix we’ve observed that company will pursue aggressive strategies. We consider they key factors of Financial Strengths, Industry Strengths, Competitive Advantages and Environmental Stability. By assigning them values as per their importance worst to best, we calculated the score which lead us to the decision that company will pursue Aggressive strategies. And I would suggest Market Development and Product Development strategies will work best for PSMC.

Strategic Analysis – Pak Suzuki Motor Company Limited.The Islamia University of Bahawalpur – Rahim Yar Khan Campus

Aggressive Strategies

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GRAND MATRIX

The grand matrix helps us to determine the strategy that firm must pursue, based on its competitive position and market growth.

The Pak Suzuki Motor Company Limited has strong competitive position against its major competitors and the market growth is healthy and at increasing pace.

But they still need to do lot to get themselves at top. As per my judgment, they fall under Quadrant 1 and they should follow aggressive strategies like Market Development and Product Development.

Strategic Analysis – Pak Suzuki Motor Company Limited.The Islamia University of Bahawalpur – Rahim Yar Khan Campus

Rapid Market Growth

Q1Q2

Q3 Q4

Slow Market Growth

Weak Competitive

Position

Strong Competitive

Position

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QSPM MATRIX

Market Development Product Development

External Factors WeightAttractive

ScoreTotal

AttractiveScore

Total

Increasing Demand for Cars 0.10 4 0.40 4 0.40Efficient EFI engines 0.06 3 0.18 4 0.24Large Market to operate 0.08 4 0.32 4 0.32Global Spare parts market 0.04 3 0.12 2 0.08Tough competitors 0.08 4 0.32 2 0.16Inflation 0.06 1 0.06 1 0.06Cheaper Imported cars 0.08 4 0.32 4 0.32Increase in fuel prices 0.10 4 0.40 4 0.40

Internal FactorsHighest Market share 0.08 3 0.24 4 0.32Low price vehicles 0.10 1 0.10 4 0.40Large distribution channel 0.06 2 0.12 3 0.18Easy availability of spare parts 0.02 3 0.06 3 0.06Innovative and deep product line 0.06 4 0.24 3 0.18Less focus on style and design 0.04 4 0.16 4 0.16Scarcity of human resource 0.04 3 0.12 4 0.16

Totals 1.0 3.16 3.44

By comparing both Market Development and Product Development, we obtained more weighted attractive score for Product development. That means company should follow the product development which is part of aggressive strategies. This strategy is going to help the firm in eliminating its threats and grab the opportunities to be successful in the present macro environment.

Strategic Analysis – Pak Suzuki Motor Company Limited.The Islamia University of Bahawalpur – Rahim Yar Khan Campus

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CONCLUSION

The following are the findings of the study of Pak Suzuki Motor

Company Limited.

External Factor Evaluation Matrix Score: 2.98

Internal Factor Evaluation Matrix Score: 2.99

BCG Matrix:

Star: JIMNY, BOLNA

Question Mark: SWIFT

Cash Cows: MEHRAN, CULTUS, ALTO, RAVI

Dogs: APV, LIANA

Internal External Matrix: Growth and Built Strategy

Space Matrix: Quadrant 1, Aggressive Strategies

Grand Matrix: Quadrant 1, Aggressive Strategies

Market Development, Product Development

QSPM Matrix:

Market Development: 3.16

Product Development: 3.44

Chosen Strategy is Product Development.

Strategic Analysis – Pak Suzuki Motor Company Limited.The Islamia University of Bahawalpur – Rahim Yar Khan Campus

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STRATEGIC RECOMMENDATIONS

Product Development is the selected strategy at this point of time

for Pak Suzuki Motor Company Limited that we observed from our

strategic analysis of the firm.

In product development strategy we recommend the company to

focuses on having the highest level of product performance, the

highest level of functionality or functions and features, the latest

technology or the highest level of product innovation.

This strategy might have some risk for the company as innovative

products are involved but proper research and development will cater

the risk and company can pursue with the strategy to be the market

leaders and get on top.

One major setback to PSMC was in the shape of Suzuki LIANA,

which was not able to meet the expectations and couldn’t hold the

market it was made for.

But company didn’t stop its journey there, and now Suzuki SWIFT

has recently been launched in the market, which seems to be an

attractive offer for the market in the 1300cc class. But still company

has nothing to compete with HONDA and TOYOTA. The Suzuki

needs to enter into the 1600cc and 1800cc market to expand its

market share and market growth. But for that purpose they need to

put more efforts of product development as the new product must

have all the required features and technology that is needed to

compete with giant competitors. And of course, PSMC has

competitive advantage in local assembling and manufacturing of

parts and they can utilize that advantage to produce cheaper cars in

the categories mentioned above.

The PSMC has recently received acknowledgement from Prime

Minister of Pakistan for being the only car manufacturers for the

lower and middle income people of Pakistan. But they should also

need to get into the line of HONDA and TOYOTA, to achieve that

Strategic Analysis – Pak Suzuki Motor Company Limited.The Islamia University of Bahawalpur – Rahim Yar Khan Campus

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target they need to develop more technologically cheap and efficient

and quality oriented products.

Strategic Analysis – Pak Suzuki Motor Company Limited.The Islamia University of Bahawalpur – Rahim Yar Khan Campus

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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 Pak Suzuki Motor Company Limited and figure out their External

and Internal Factors which were involved in the project.

Strategic Analysis – Pak Suzuki Motor Company Limited.The Islamia University of Bahawalpur – Rahim Yar Khan Campus

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“Real Strategic change requires inventing new categories, not rearranging old ones.”

Said, Henry Mintzberg

Strategic Analysis – Pak Suzuki Motor Company Limited.The Islamia University of Bahawalpur – Rahim Yar Khan Campus