COMPANY COMPANY OVERVIEW History of Pak Suzuki
Pak Suzuki Motor Company Limited was formed as a joint venture between Pakistan Automobile Corporation and Suzuki Motor Corporation (SMC) - apan! "#e Company was in$orporated as a publi$ limited $ompany in Au%ust &' and started $ommer$ial operations in anuary &'*! "#e initial s#are #oldin% of SMC was &+!, w#i$# was %radually in$reased to .!/'! Pak Suzuki is pioneer in Automobile 0usiness #avin% t#e most modern and t#e lar%est manufa$ manufa$tur turin% in% fa$ili fa$iliti ties es in Pakista Pakistan n wit# wit# an Annual Annual produ$t produ$tion ion $apa$i $apa$ity ty of &,/1/// &,/1/// ve#i$le ve#i$les! s! "#e ve#i$l ve#i$les es produ$ produ$ed ed in$lud in$ludee $ars1 $ars1 small small vans1 vans1 Pi$kup Pi$kups1 s1 Car%o Car%o vans vans and Motor$y$le! Pak Suzuki #olds more t#an ,/ Market S#are! 2ollowin% 2ollowin% t#e a%%ressive a%%ressive poli$y of 3ndi%enizati 3ndi%enization1 on1 Suzuki ve#i$les ve#i$les #ave a #ealt#y lo$al $ontent upto .+! "#is was made possible by b y stron% support of our vendors! Pak Suzuki #as t#e lar%est 4ealers network offerin% S (Sales1 Servi$e and Spare Parts) fa$ilities a$ross Pakistan! Carin% for t#e 5nvironment Pak Suzuki was pioneer in introdu$tion of 2a$tory fitted C67 ve#i$les! Pak Suzuki always endeavors to %o a%%ressively for t#e sound development of t#e so$iety by in$reasin% motorization1 industrialization and $reatin% job opportunities t#us improvin% t#e people8s livin% standards wit# t#e $ombined efforts of all t#e dealers1 vendors and Pak Suzuki employees! Pak Suzuki is also e9portin% Suzuki :avi pi$kup1 Liana and $omponents to 0an%lades# and 5urope t#us earnin% pre$ious forei%n e9$#an%e for t#e $ountry! $oun try!
GROWTH ;n 2ebruary +//' Pak Suzuki #as * market s#are! "#e sales %rowt# $overed all $ar se%ments1 but t#e %lobal trend for a s#ift to small $ars was bu$kedas t#e #i%#est m-o-m %rowt# $ame in t#e &//-&s >s pri$e pri$e #ikes likely to affe$t sales in t#e$omin% mont#s1 0M3 is fore$astin% $ar sales %rowt# of around ,! ?#ile wee9pe$t some $orre$tion in t#e market from a parti$ularly low base in t#e lastfinan$ial year1 #i%#er pri$es will dra% on t#e market>s potential %rowt#!3ndus Motor took advanta%e of %rowt# in t#e #i%#er en%ine $apa$ity passen%er $ar se%ment1 wit# sales of t#e "oyota Corolla $ontributin% to %rowt# of +, y-o-y in ;$tober and %rowt# of .. for t#e first four mont#s of t#e finan$ialyear! "#is took t#e $ompany>s market s#are to *+ from + in t#e same periodof t#e previous finan$ial year! Pak Suzuki>s market s#are for t#e four mont#s fell to *, as its sales for t#e period were down + y-o-y1 despite a + in$rease m-o-m in ;$tober and + y-o-y in$rease for t#e mont#!
EVENTS Launching Ceremony of Suzuki WagonR Pak Suzuki a$#ieved anot#er milestone on &t# April1 +/&* by laun$#in% worldwide su$$essful Suzuki ?a%on: Car in Pakistan! Suzuki ?a%on: is of its own $lass in terms of te$#nolo%y wit# #i%#ly fuel effi$ient @-Series 5n%ine1 Spa$ious interior! "#e Suzuki ?a%on: is also $onsidered as a Star Produ$t in Suzuki Motor Corporation8s line up and #as won many appre$iations and awards worldwide!
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n!ro"uc!ion of #S Cam$aign Suzuki dealers#ips are now movin% beyond S Servi$es and providin% $omplete solution of automobile needs $overin% Sales1 Servi$e1 Spare parts1 Suzuki 59$#an%e1 Suzuki Certified sed Cars1 Suzuki 2inan$e and Suzuki 3nsuran$e! "#ese .S Servi$es are provided at all Suzuki aut#orized dealers#ips so t#at $ustomers $an benefit from t#ese fa$ilities under one roof! A promotional $ampai%n based on .S $on$ept was e9e$uted at $ountry wide Suzuki aut#orized dealers#ips in t#e mont# of April1 +/&* for $ustomer8s awareness about t#ese servi$e!
1%! Ou!&oar" 'o!or% han"ing o(er Ceremony Pak Suzuki a$#ieved anot#er milestone by introdu$in% ;utboard motors in Pakistan! "#e 2irst ;utboard motor was #anded over to a $ustomer at @ara$#i 0oat Club in a $eremony #eld on &&t# une1 +/&*!
Cer!i)e" *%e" Car Ga+a Pak Suzuki ;r%anized +nd sed Car 7ala of +/&* in La#ore1 :awalpindi and @ara$#i on &t# April and .t#1 &,t# une1 +/&* respe$tively1 w#ere Suzuki $ertified used $ars were displayed! All events were su$$essful wit# parti$ipation of lar%e number of $ustomers! A lar%e numbers of ve#i$les were sold on t#e spot!
Indoor Games Festival 2014 Pak Suzuki 3ndoor 7ames 2estival +/&* was #eld in t#e mont# of April and May +/&* at Pakistan Sports 0oard 7ymnasium! 5vents of 0asket 0all1 "able "ennis1 0adminton and Carrom were played! Lar%e number of audien$e enjoyed t#e sports festival! 3n t#e end1 prizes were distributed amon% winners and runners up! Lu$ky draws were also #eld afterwards!
I!E As a %eneral manufa$turer of automobiles1 motor$y$les1 outboard motors1 et$!1Suzuki addresses environmental $onservation at all sta%es in its operations from development to disposal! 3n produ$t development1 we make every effort to improve fuel e$onomy1 redu$e e9#aust emissions and noise1 and develop $lean ener%y ve#i$les1 et$! 3n manufa$turin%1 we address issues su$# as redu$in% environmental risk1 redu$in% ener%y1 and promotin% t#e use of alternative ener%y! 3n distribution1 we fo$us on improvin% transportation effi$ien$y and ener%y redu$tion1 promotin% t#e t#ree :s and t#e use of low emission transport! 3n marketin%1 we address issues related to promotin% environmental mana%ement at our dealers and proper disposal of end-of-life produ$ts1et$!3n addition to a$tivities related to produ$tion1 we also promote ener%y redu$tion and %reen pur$#asin% in our offi$es1 provide our employees wit# environmental edu$ation1 promote environmental mana%ement at our dealers1 and provide so$ial a$tion pro%rams in lo$al $ommunities
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E.i%!ing 'i%%ion an" Vi%ion %!a!emen!
VSON
"o be re$o%nized as a leadin% or%anization t#at values Customers8 needs and provides motorin% solutions wit# stron% $ustomer $are!
'SSON
•
BStrive to market value pa$ked ve#i$les t#at meet $ustomers8 e9pe$tations! BProvide a platform w#ere our stake#olders passionately $ontribute1 invest
•
and e9$el! BMake valuable $ontribution to So$ial development of Pakistan!
•
NEW VSON /N4 'SSON O%r Vision -To &e E.ce++en! /++ /roun"0 O!R MIIOM -To $ro(i"e au!omo&i+e of in!erna!iona+ ua+i!y a! com$e!i!i(e $rice20
WO" ANA#YI
PEST /na+y%i% n$ontrollable environment are t#ose e9ternal fa$tors w#i$# $an $reate #urdles between us and our business! 3t is also $alled pest analysis1 w#i$# is as follow
Politi$al Environment Pakistan #as to fa$e lots of politi$al ups and downs sin$e its independen$e! So many %overnments #ave been overtaken by military personnel and most of t#e time martial law was imposed on Pakistan! 3n t#is s$enario no entrepreneur was willin% to invest in
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Pakistan e9$ept few! 4ue to su$# $onditions1 market environment wasn8t #elpful in Pakistan! "#e Pakistani %overnment #as never been trustwort#y for any investor!
#e&al Environment As all $ountries1 Pakistan also #as some le%islation about ea$# se$tor! 0ut like developin% $ountries it is #ardly bein% imposed by aut#orities! "#e $orruption1 smu%%lin% and bla$k marketin% #ave been supported by 7overnment related offi$ials! "#e undue favor is %iven to t#ose business men w#o #ave been politi$ally affiliated and #ardly any le%al suite is $arried on a%ainst t#em! Su$# unet#i$al a$tivities destroy all law and le%islation.
E$onomi$ Environment Pakistan1 an impoveris#ed and underdeveloped $ountry1 #as suffered from de$ades of internal politi$al disputes and e9ternal on%oin% $onfli$t wit# 3ndia! =owever1 3M2 approved t#e %overnment poli$ies1 en$oura%es by different forei%n assistan$e and renewed a$$ess to %lobal market sin$e +//&! 0y followin% t#ese poli$ies %overnment su$$eed to reverse t#e situation of e$onomy durin% last five years.
o$io'C%lt%re Environment Pakistan #as stron% $ulture ba$k%round and it #as been follow in some parti$ular re%ion of Pakistan stri$tly! 0ut wit# t#e passa%e of time it is %oin% to $#an%e! "#ou%#ts of people1 $#oi$es1 taste and style #as been totally $#an%ed! 3f we talk about t#e transportation sour$e in Pakistan1 People use buses1 pi$kups et$ for journey! "#ey also #ave t#eir own bi$y$le and bikes and lots of people are pedestrian! 0ut now t#e people w#o #aven8t any sour$e of transportation t#ey also want somet#in% for t#eir $onvenien$e be$ause t#ey wants to save t#eir time as mu$# as t#ey $an! People want to use su$# ve#i$le w#i$# looks beautiful and also affordable!
"e$(nolo&i$al Environment "e$#nolo%i$al fa$tor also very important and we #aven8t $ontrol on it! "e$#nolo%y is %roomin% wit# t#e passa%e of time! People also want t#at t#e produ$t t#at t#ey #ave is full of te$#nolo%y! ?e never $ontrol on te$#nolo%y for e9ample you laun$#ed t#e produ$t last year and your sale volume on t#at time is very #i%# but after sometime due to latest invention a lots of substitute e9ist in market w#i$# affe$t on your b usiness so you $an8t #old on it!
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∗
E)ternal Assessment
CP'
E)ternal Fa$tor Eval%ation Matri) *EFE+ OPPORT*NTES 1, 2, -, 4, ., 1, 2, -, 4, .,
ncrea%ing 4eman" for Car% E9cien! E: Engine% Large 'arke! !o o$era!e G+o&a+ %$are $ar!% marke! Sma++ %ize CNG Cy+in"er% "/REA" Tough Com$e!i!or% +ike Toyo!a an" Hon"a n
Ra!ing%= 1 Poor 2 elo5 Avera&e
Weigh!
Ra!ing%
6217 6216 6216 6267 621,
5 3 3 , 3
Weigh!e" Score 6286 6236 6236 6216 6238
6215 626; 626; 6216 626;
, 3 3 5 ,
62,; 62,5 62,5 6256 6218
1,0
2,
- A3ove Avera&e 4 ' %6erior
"#e total wei%#ted s$ore of 2.98 s#ows t#at $ompany is respondin% above avera%e to its e9ternal fa$tors! "#ey are tryin% to %rab ma9imum opportunities available t#ere and avoidin% t#e t#reats to t#eir best!
7%sti8$ation o9 Ratin&s: &! "#e $ompany is produ$in% t#e ma9imum number of $ars in $ompare wit# ot#er
$ompetitors and t#erefore %rabbin% t#e opportunity to meet t#e in$reasin% demand! +! Pak Suzuki #as introdu$ed new 523 en%ine in its CL"S model w#i$# is a &///$$ $ar! "#e 523 en%ineAEMEN" te$#nolo%y is never introdu$ed before in below &//$$ $ars! IN"ERNA# ∗ ! "#e dealer network of Pak Suzuki is almost all around t#e $ountry w#i$# #elp t#em to ma9imize t#eir sales and rea$# in every $orner of t#e $ountry! *! 3n new C67 fitted $ars1 t#e Suzuki is introdu$in% new $ompa$t C67 $ylinders w#i$# take less spa$e and are li%#ter t#an t#eir eDuivalent available in t#e market! ,! "#e major t#reat Suzuki Company $ould #ave is from "oyota and =onda1 as Suzuki is still unable to meet t#em in &//$$ and above $ate%ory of $ars! "#e new produ$t S?32" is not %ivin% t#e respond w#i$# was e9pe$ted!
ORGANI;A"IONA# C/AR"
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n!erna+ :ac!or% E(a+ua!ion 'a!ri. >:E? STRENGTHS 1, 2, -, 4, ., 1, 2, -, 4, .,
Weigh!
Ra!ing%
Highe%! 'arke! Share Lo@ Price Vehic+e% Large 4i%!ri&u!ion Channe+% Ea%y a(ai+a&i+i!y of %$are $ar!% High+y nno(a!i(e an" "ee$ $ro"uc! +ine WEA
62,6 6216 621, 626; 621,
5 5 5 5 5
Weigh!e" Score 62;6 6256 625; 623, 625;
626; 6267
, ,
6218 6216
6216 6267 6216
1 1 1
6216 6267 6216
"otal Wei&(ted $ore
1,0
Ra!ing%= 1 Ma=or Wea>ness 2 Minor Wea>ness
2,
- Minor tren&t( 4 Ma=or tren&t(
"#e s$ore 2.99 s#ows t#at $ompany #as solid internal position1 its stren%t#s are over$omin% t#e weaknesses!
7%sti8$ation o9 Ratin&s: &! Pak Suzuki Motor Company #as lar%e market s#are #erein and also t#e lar%est produ$ers of Cars w#i$# is a major stren%t#! +! "#eir pri$es are very affordable in t#e same Duality t#at is anot#er major stren%t#! ! "#e lar%e distribution $#annel is anot#er major stren%t# w#i$# #elps t#em to a$#ieve t#eir desired sales tar%ets! *! "#e innovation is anot#er key stren%t# of Pak Suzuki and t#e e9ample is new Suzuki S?32"!
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,! "#e spare parts availability is a $riti$al issue w#i$# $ars1 Suzuki #as $omparative advanta%e in spare parts availability as most of t#em are bein% manufa$tured in Pakistan!
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:N/NC/L R/TO /N/LBSS O: P/ S*D* 'OTORS
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"RA"EGY FORM!#A"ION
WO" Matri) "RENG/" 12 Highe%! 'arke! Share
,2 Lo@ Price Vehic+e%
WO" @ "OW Matri)
32 Large 4i%!ri&u!ion Channe+ 52 High+y nno(a!i(e F 4ee$ $ro"uc! +ine 72 Ea%y a(ai+a&i+i!y of %$are $ar!%
OPPOR"!NI"IE 12 ncrea%ing 4eman" for car%
,2 E9cien! E: engine% 32 Large 'arke! !o O$era!e 52 Sma++ %ize CNG Cy+in"er
'O trate&ies 1, 'a.imize marke! %hare &y $ro"ucing more car% $er year >S1S,O1O5? 2, 4e(e+o$ more e9cien! an" inno(a!i(e Engine @hich gi(e% com$ara!i(e a"(an!age >S5O,?
72 G+o&a+ S$are $ar!% marke!
-, *%e e9cien! CNG %y%!em% >S5S7O5? '" trate&ies
"/REA"
12 Tough Com$e!i!or%
, 'ain!ain ua+i!y in aIor"a&+e $rice @i++ he+$ !o com$e!e @i!h com$e!i!or% an" im$or!e" car% >S,S5T1T5?
,2 n
B, 4e(e+o$ fue+ e9cien! engine% !o gain e"ge an" e+imina!e !hrea! of fue+ $rice% increa%e >S5S7T7T,?
72 ncrea%e in :ue+ $rice%
WEA
32 Le%% focu% on Look% an" "e%ign 52 Le%% Technica+ Training n%!i!u!e% 72 Le%% "i%!ri&u!ion channe+% in %u&ur&an area% W'O trate&ies
4, :ocu% on Look% an" 4e%ign !o com$e!e @i!h Hon"a an" Toyo!a >W3O1O3? ., :un" an" e%!a&+i%h !echnica+ in%!i!u!e% !o gain more %ki++e" @orkforce >W5O3O1?
W'" trate&ies
, Enhance "i%!ri&u!ion !o a(oi" !hrea! from %econ" han" im$or!e" car% >W7T5?
Grand Matri) Ra6id Mar>et Gro5t(
?1
?2
Wea> Com6etitive Position
tron& Com6etitive Position
?-
?4
16 | P a g e lo5 Mar>et Gro5t(
"#e %rand matri9 #elps us to determine t#e strate%y t#at firm must pursue1 based on its $ompetitive position and market %rowt#! "#e Pak Suzuki Motor Company Limited #as stron% $ompetitive position a%ainst its major $ompetitors and t#e market %rowt# is #ealt#y and at in$reasin% pa$e! 0ut t#ey still need to do lot to %et t#emselves at top! As per my jud%ment1 t#ey fall under Euadrant & and t#ey s#ould follow a%%ressive strate%ies like Market 4evelopment and Produ$t 4evelopment!
CG'matri) oston matri) oston Cons%ltin& Gro%6 analDsis
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PACE MA"RI A"A PACE MA"RI
6a$e Matri) Finan$ial tren&t( *F+ Re!urn on n(e%!men! Working Ca$i!a+ Shor! Term /%%e!% To!a+= Ind%strD tren&t( *I+ Large 'arke! !o o$era!e ncrea%ing $er Ca$i!a ncome Con%um$!ion Orien!e" Cu+!ure To!a+= Com6etitive Advanta&es *CA+ High Kua+i!y Pro"uc!% S+eek an" S!y+i%h 4e%ign% :amou% ran" Name% To!a+= Environmental ta3ilitD *E+ Tough Com$e!i!ion Change in Go(!2 ru+e% an" regu+a!ion% m$or!e" Refur&i%he" Car% La@ an" Or"er Si!ua!ion To!a+=
J5 J3 J5 J11
J7 J3 J5 J1,
3 5 3 16 , 3 5 , 11
Avera&e $ores: F 11@- -,B I 12@- 4 CA '10@- '-,-E '11@4 '2,B. 'a)is IHCA 4'-,-- 0,B Y'a)is FHE -,B'2,B. 0,2
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3n spa$e matri9 we8ve observed t#at strate%ies! ?e $onsider t#ey key fa$tors of Stren%t#s1 Competitive Advanta%es and t#em values as per t#eir importan$e worst us to t#e de$ision t#at $ompany will su%%est Market 4evelopment and
$ompany will pursue a%%ressive 2inan$ial Stren%t#s1 3ndustry 5nvironmental Stability! 0y assi%nin% to best1 we $al$ulated t#e s$ore w#i$# lead pursue A%%ressive strate%ies! And 3 would Produ$t 4evelopment strate%ies will
work best for PSMC!
IE MA"RI IFE Matri) $ores
S!rong EFE Matri) $ores
/(erage
5 tron& Avera&e Wea>
5
3
Weak ,
1
i
ii
iii
i(
(
(i
(ii
(iii
i.
3 , 1
"#e 325 matri9 s$ore for Pak Suzuki Motor Company Limited (PSMCL) is +!'' and for 525 matri9 is +!' t#erefore our 35 matri9 falls more around Fiv8 $ell! "#e $ompany s#ould adopt %rowt# and built strate%ies and 3 re$ommend Market 4evelopment and Produ$t 4evelopment Strate%ies!
?PM MA"RI Market 4evelopment External Factors
ncrea%ing 4eman" for Car% E9cien! E: engine% Large 'arke! !o o$era!e G+o&a+ S$are $ar!% marke! Tough com$e!i!or% n
Produ$t 4evelopment
Weight
Attractive Score
otal
Attractive Score
otal
6216 6268 626; 6265 626; 6268
5 3 5 3 5 1
6256 621; 623, 621, 623, 6268
5 5 5 , , 1
6256 62,5 623, 626; 6218 6268
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Chea$er m$or!e" car% ncrea%e in fue+ $rice% Internal Fa$tors Highe%! 'arke! %hare Lo@ $rice (ehic+e% Large "i%!ri&u!ion channe+ Ea%y a(ai+a&i+i!y of %$are $ar!% nno(a!i(e an" "ee$ $ro"uc! +ine Le%% focu% on %!y+e an" "e%ign Scarci!y of human re%ource "otals
626; 6216
5 5
623, 6256
5 5
623, 6256
626; 6216 6268 626,
3 1 , 3
62,5 6216 621, 6268
5 5 3 3
623, 6256 621; 6268
6268
5
62,5
3
621;
6265
5
6218
5
6218
6265
3
621,
5
6218
1,0
-,1
-,44
0y $omparin% bot# Market 4evelopment and Produ$t 4evelopment1 we obtained more wei%#ted attra$tive s$ore for Produ$t development! "#at means $ompany s#ould follow t#e produ$t development w#i$# is part of a%%ressive strate%ies! "#is strate%y is %oin% to #elp t#e firm in eliminatin% its t#reats and %rab t#e opportunities to be su$$essful in t#e present ma$ro environment!
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"#e main fo$us of Suzuki Motors is t#e ;verall Low Cost ProviderStrate%y w#ere t#ey provide low $ost automobiles alon% wit# fueleffi$ien$y and low $ost of maintenan$e
Suzuki also differentiates its produ$t in parti$ular se%ment to $aptureand %ain market s#are by usin% differentiation strate%y
3ntrodu$tion of Suzuki Liana and Suzuki Swift is a $lear si%n t#atSuzuki Motors are movin% towards e9tendin% t#eir produ$t portfolio
IFFEREN" "RA"EGIE APP#IE Y PA< !;!
Competitive advanta%e is an advanta%e over $ompetitors %ained by offerin% $onsumers %reater value1 eit#er by means of lower pri$es or by providin% %reater benefits and servi$e t#at justifies #i%#er pri$es. Strategies for !o"#etitive A$vantage%&
ierentiation trate&D :"#is strate%y involves sele$tin% one or more $riteria used by buyers in a market - and t#en positionin% t#e business uniDuely to meet t#ose $riteria! "#is strate%y is usually asso$iated wit# $#ar%in% a premium pri$e for t#e produ$t - often to refle$t t#e #i%#er produ$tion $osts and e9tra value-added features provided for t#e $onsumer! 4ifferentiation is about $#ar%in% a premium pri$e t#at more t#an $overs t#e additional produ$tion $osts1 and about %ivin% $ustomers $lear reasons to prefer t#e produ$t over ot#er1 less differentiated produ$ts!
#o5 Cost #eaders(i6 trate&D :' ?it# t#is strate%y1 t#e obje$tive is to be$ome t#e lowest-$ost produ$er in t#e industry! Many (per#aps all) market se%ments in t#e industry are supplied wit# t#e emp#asis pla$ed minimizin% $osts! 3f t#e a$#ieved sellin% pri$e $an at least eDual (or near)t#e avera%e for t#e market1 t#en t#e lowest-$ost produ$er will (in t#eory) enjoy t#e best profits! "#is strate%y is usually asso$iated wit# lar%e-s$ale businesses offerin% GstandardG produ$ts wit# relatively little differentiation t#at are perfe$tly a$$eptable to t#e majority of $ustomers! ;$$asionally1 a low-$ost leader will also dis$ount its produ$t to ma9imise sales1 parti$ularly if it #as a si%nifi$ant $ost advanta%e over t#e $ompetition and1 in doin% so1 it $an furt#er in$rease its market s#are!
?%i$> res6onse trate&D :' ust in time inventory partners#ip strate%y between suppliers and retailers of %eneral mer$#andise! 3t is aimed mainly at redu$in% order response time1 and a$#ievin% %reater a$$ura$y in s#ippin% t#e $orre$t %oods in $orre$t Duantities1 by employin% $omputerized eDuipment su$# as bar$odes and 543 to speed up flow of information! 3ts ot#er obje$tives
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in$lude redu$tion in operatin% e9penses1 out-of-sto$k situations1 and for$ed mark-downs (dis$ounts)!
CONC#!ION: "#e followin% are t#e findin%s of t#e study of Pak Suzuki Motor Company Limited! External Factor Evaluation 'atrix Score% +!' (nternal Factor Evaluation 'atrix Score% +!'' )!* 'atrix%
Star 3M6H1 0;L6A Euestion Mark S?32" Cas# Cows M5=:A61 CL"S1 AL";1 :AI3 4o%s API1 L3A6A (nternal External 'atrix% 7rowt# and 0uilt Strate%y S#ace 'atrix% Euadrant &1 A%%ressive Strate%ies *ran$ 'atrix% Euadrant &1 A%%ressive Strate%ies
Market 4evelopment1 Produ$t 4evelopment +SP' 'atrix%
Market 4evelopment !&< Produ$t 4evelopment !** C#osen Strate%y is Produ$t 4evelopment!
"RA"EGIC RECOMMENA"ION Produ$t 4evelopment is t#e sele$ted strate%y at t#is point of time for Pak Suzuki Motor Company Limited t#at we observed from our strate%i$ analysis of t#e firm! 3n produ$t development strate%y we re$ommend t#e $ompany to fo$uses on #avin% t#e #i%#est level of produ$t performan$e1 t#e #i%#est level of fun$tionality or fun$tions and features1 t#e latest te$#nolo%y or t#e #i%#est level of produ$t innovation!
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"#is strate%y mi%#t #ave some risk for t#e $ompany as innovative produ$ts are involved but proper resear$# and development will $ater t#e risk and $ompany $an pursue wit# t#e strate%y to be t#e market leaders and %et on top! ;ne major setba$k to PSMC was in t#e s#ape of Suzuki L3A6A1 w#i$# was not able to meet t#e e9pe$tations and $ouldn8t #old t#e market it was made for! 0ut $ompany didn8t stop its journey t#ere1 and now Suzuki S?32" #as re$ently been laun$#ed in t#e market1 w#i$# seems to be an attra$tive offer for t#e market in t#e &//$$ $lass! 0ut still $ompany #as not#in% to $ompete wit# =;64A and ";H;"A! "#e Suzuki needs to enter into t#e &
F!"!RE RECOMMENA"ION "#e former President Asif Ali Jaradari invited leadin% automobile industries to invest in Pakistan! So %overnment $an be a$$redited for its sin$erity in efforts! apan is t#e *t# lar%est investor in t#e automobile se$tor in Pakistan w#i$# in$ludes Suzuki and ot#er %iants like 3ndus motors and =indo Pak motors! 4ue to t#e de$line in t#e duty of t#e se$ond #and $ars in Pakistan1 Suzuki #as t#e %reat in$entive! 4ue to t#e lower pri$e level1 t#ere is an #u%e in$entive for t#e $onsumer! 0ut $ompetition also %ets stiff! "#ey s#ould $ompete wit# t#e ot#er brands in t#e market so it $an in$rease its performan$e but s#ould not lose its tar%et audien$e w#i$# is upper middle and lower $lass!
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