Support Activities
Organization • The Company has been awarded ISO: 27001 Certification for meeting international standards of maintaining information security.
• Maruti Suzuki has two state-of-the-art manufacturing facilities in India. With the use of these plants they can manufacture up to a capacity of 700,000 units.
• Maruti Suzuki was certified with ISO: 9001:2000. In addition, it had made the following improvements in terms of producing defect-free products by adopting the Japanese methods of continuous product improvement methods.
Human Resource management • Employees are the key strength for MSIL to which it aimed at continuous improvement of skills through special programs for workmen and technicians.
• MSIL has taken initiative to train its vendors through Maruti Center of Excellence program. It aimed at developing better understanding and increase the support and co-operation for the employees.
Technology Development • Building Full Mode Change Capability and Vehicle Design and Development are the specific areas of R&D carried out by MSIL.
• The technology adoption and innovative procedures involved in localization, development and testing of parts, design optimization.
Purchase • The company has been following JIT approach through setting up supplier network within 100Kms radius.
• It aimed at reducing the raw material cost for components through raw material yield management program across all the manufacturing processes.
Applying the Resource Based View: This is used to help an existing company to sustain its competitive advantage or for a start up to attain competitive advantage. As Maruti is an existing well established company, the different methods they have implemented to sustain their competitive advantage...
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...orld’s largest car companies on its home turf. The influx of these foreign companies has highly segmented the market.
The erstwhile Maruti Udyog limited was the market leader for many years but the lead has been dwindling in the recent years. It has fallen from 45% of the market to 39% in the last 5 years. This has happened even when the overall sales of Maruti are growing by over 22% annually. This shows the rapid rise of the Indian auto industry.
Market analysis:
The Indian passenger vehicle has huge potential and all set to become third largest market by 2020. In the market from past 2 years. The share of passenger vehicles have decreased and that of SUV/MPV (Sports/Multi utility Vehicles) have increased. Similarly the overall share of diesel vehicles in all segments are increasing. In 2012 the share of passenger vehicles run by diesel in total has reached 50%.
Chevrolet has a large diversity of vehicles, as stated by Farrell & Hartline (2014), “the company has developed large trucks and vans; the Silverado, Avalanche, Colorado and the Express, full-size; midsize, compact, and sub-compact automobiles; sports cars; and even race cars” (p.406-407). Chevrolet strengths are the large diversity of vehicles under the brand name. Moreover, Chevrolet has a unique product mix, that offers an arrangement of vehicles for all different types of consumers. Additionally, Chevrolet offers these various types of vehicles at different price points, a vehicle to fit every budget.
Thesis: Even though there is a lot of skepticism towards Chinese car companies making a foothold in the American car market, with the right marketing and not rushing into the market, there is a good chance that the Chinese car companies will follow the Japanese car companies and carve a spot in the American market.
The automobile sector has been a robust sector that has experienced tremendous growth in the past seven to eight years. Apart from two years in particular -2008-09 & 2012-13, there is general trend of ten percent plus growth in various segments like passenger car, commercial vehicles, two and three wheelers. The following chart shows the growth rate of various years in each sectors.
...system. Surely, it will take time for setting up a new plant and making production working smoothly with the quality assurance. How to shorten the learning curve for these works would be the first priority for BMW to think of.
By 1954, GM had produced its 50 millionth vehicle in the US market and it controls 54% of the US auto market (“GM: History”, 2009. When the 1970s’s hit GM was forced to adapt to new regulations regarding fuel economy and emissions. This marked the peak of General Motors employment and is slow decline due to increasing competition from European and Asian companies entering the US market. Over the course of the 80’s and early 90’s GM acquires portions of Suzuki, 100% of Lotus and 50% of Saab. They also launch an entirely new auto line branded Saturn (Reuters Staff, 2009).
85% equipments use single-cylinder diesel engines, while the rest use multi-cylinder ones. In the market of multi-cylinder diesel the competition is less intense because of excessive demand. The prospect is much more promising. Longxi has a certain competitive advantage in this market, resulting from its popular product such as SL2100.
In the future the global car market is full of potential. There are currently 44 million vehicles and by the year 2002 experts estimate that number will grow to 64 million. That growth is not expected to be in the US, rather in countries such as: China, India, The Pacific Rim, South Africa, and South America. In America, a current trend is for the neighborhood car dealer to be purchased by a large manufacturer, such as GM, so cars can be sold through retail outlets. Other future endeavors include low emission cars, which are expected to provide expansions in sales. Some major automakers are investing in fuel cells, devices that convert liquid hydrogen into elec...
In a capitalistic country with a free market, foreign competition is expected. This is no exception for the automobile industry where America competes with its various rivals. Competition from elsewhere encompasses that from Italy, Germany, and of course, the renowned Japan. The Japanese vehicle industry is especially competitive; according to the Automotive News Data Center, five out of the ten best selling vehicles of the year are Japanese vehicles. This data applies to the U.S. market over the first 9 months of the year. Expectedly, the automobile industry is an important and significant market. Motor vehicles are a major form of transportation as many people in the U.S. own at least one car.
Ownership and control of production ; vertically integrated manufacturing operation to enable its constant introducing of new items and also ensure short lead time
source a critical part of the components from the country, providing opportunities. Every one of them prefers to give it as a whole contract to just one company. They want to make a deal only with an individual and place their confidence in that party’s capabilities in design, quality control and logistics. It is believed that Tata industries have invested close to 2,000 crore over the last decade in various businesses, although Chaukar prefers to brush aside such investments as small considering the size and scale of business of some of the group companies like Tata steel, TCS and Tata motors. Similarly, Tata developed materials, promoted by Tata industries, designs, manufactures and supplies composite products for defence and aerospace sectors. Also on the radar of Tata industries is an alternative energy, an area marked by intensive researches.
In the system, design analysis and other additional analysis are used to reduce product cost by analyzing the trade-offs between product functionality and total product cost. Review and revision are carried out throughout the process. Moreover, the continuous improvement and operational control are also used to further reduce costs. However, the functionality reduction during the process will adversely affect the differentiation strategy as what we mentioned
Currently, Toyota Prius is the best hybrid car in US collection market. It is one of the most modern sedans in the automotive sector in the business environment. It offers a competitive lead to other businesses since it is environmental friendly and it offers the most excellent fuel system. The market of this vehicle is experiencing development on an impressive degree with the market sales per year being around 550,000 every year in the US from year-2008. The paper starts with the introduction of Toyota Company where short background information and an overview of the market environment, in which its functions are described. An up to date situation analysis is also performed. This analysis gives a clear understanding of the company, its numerous products, rivals and various business atmospheres in which it operates. After looking into its internal and external environment, a SWOT analysis to identify its environment’s opportunities and threats is performed as well as the 4Ps analysis. Basing on these aspects, the most significant matters are recognized and marketing goals and strategies have been classified. In conclusion, a suggestion for change and execution plan has been set up to develop the product. Finally, in order to remain competitive in the market, a brief integrated marketing communication is carried out.
Another strategy used by BMW to differentiate itself from other automakers in the market is the proactive usage of technology and innovativeness in the development of products. From the early 1990’s, BMW has been on the forefront of incorporating technology in its designs in line with the technological advances of the modern world. This has led to the creation of inventive products. The uniqueness of these auto products put BMW in a position of advantage. The development of the hydrogen car as early as 2000 was an indicator of the company’s innovative strategy. In addition, the company also presents itself as environment friendly creating a whole range of vehicles in this category. This is a differentiation strategy meant to boost the company’s image and reputation amongst customers. In addition, this gives the environment conscious customers a variety of products to choose from giving BMW an upper hand in the industry.
BMW having high market share in European and U.S luxury car markets, started facing issues with launch product qualities and also facing a fierce competition from Japanese producers. Currently the market share was still stable but the rigorous growth of Japanese producers would affect BMW in future. These Japanese competitors had set higher standards of conformance.
The main challenges in the manufacturing companies are in the following stage of product development.