Strategic Analysis of Pak Suzuki Motor Company

Strategic Analysis Pak 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 hearti heartily ly thankf thankful ul to our Strategic Strategic Manage Managemen mentt teacher 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 produ products cts manufa manufactu ctured red and assemb assembled led by the Pak Suzuki Suzuki Motor Motor Comp Compan any y limi limite ted d whic which h incl includ udee SW SWIF IFT, T, LIAN LIANA, A, CULT CULTUS US,, MEHR MEHRAN AN,, APV APV etc… etc… With With the the help help of Inte Intern rnal al and and Exte Extern rnal al analysis, I’ve sorted out some of their strengths, weaknesses and the opportunities and threats prevailing in the market. Also the PEST analys analysis is was conduc conducted ted to obser observe ve the extern external al factors factors that 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 overco overcomin ming g the weakne weaknesse ssess quite quite well. well. Then Then the TOWS TOWS matrix 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 laun launch chin ing g Suzu Suzuki ki SW SWIF IFT T whic which h is a 1300 1300cc cc full fully y load loaded ed car. 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.


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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


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INTRODUCTION

company y assemb assemblin ling g and distrib distributi uting ng Suzuki Suzuki Pak Suz Suzuki uki Motor Motorss Compa Company ny Ltd Ltd.. is a compan 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.


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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 Suzuki insists insists on integrity integrity and and honesty honesty of its employees employees in doing doing busines business. s. Any unfair unfair or corrup corruptt practi practices ces to solici solicitt busine business ss is fundam fundament entally ally incons inconsist istent ent with with business codes of company 2. Pak Suzuk Suzukii believes believes in compliance compliance to to regulato regulatory ry obligatio obligation n 3. Pak Suzuki Suzuki believes believes in free and fair fair business business practice practicess and open open competitive competitive markets 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 Pak Suzu Suzuki ki beli believ eves es in tran transp spare arenc ncy y in busi busine ness ss tran transa sact ctio ion n and and they they are to be recorde recorded d accura accurately tely and fairly fairly in books books of account accountss in accorda accordance nce with with standa standard rd procedure. 5. Pak Suzuki Suzuki expect expectss its employ employees ees to act in company company’s ’s best interest interest while while holding holding confidential information. Company expects its employees neither to solicit internal info inform rmat atio ion n from from othe otherr nor nor to disc disclo lose se comp compan any’ y’ss data data or any any othe otherr mater materia iall information to any un- authorized person/body. 6. Pak Suzuki Suzuki believes believes in individu individual’s al’s respects respects and growth. growth. Its employm employment ent policies policies do not discriminate on basis of race, religion, gender or any other factor. 7. Pak Suzuki Suzuki does does not not believe believe in political political affiliation. 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. conduc uctt our our oper operat atio ions ns in comp compli lian ance ce with with appl applic icab able le envi enviro ronm nmen enta tal, l, 2) We cond occupational health & safety laws and regulations.

3) We recogni recognize ze the interre interrelati lations onship hip betwee between n energy energy and the enviro environme nment, nt, and we promote the efficient use of energy throughout our system.


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4) We ensure safe disposal of waste generated from our facility minimize ze the discha discharge rge of waste waste materia materials ls into into the enviro environme nment nt by utilizi utilizing ng 5) We minimi responsible pollution control practices.

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

As it is clearly mentioned mentioned in their Vision Statement 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)


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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. realm. Liana Liana is entire entirely ly differ different ent 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 Its trim trim body body Conce onceaals amp ample spac spacee & flex flexib ibil ilit ity y for for both both pass passen enge gerr and and stor storag age. e. 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 bright,, roomy roomy and comfor comfortab table le cabin which keeps body relax and strong and lighter body shell resulting in smooth drive due due to redu reduct ctio ion n of unp unpleas leasan antt nois noisee harshn harshness ess and vibrat vibration ion.. Its small small turnin turning g radius radius and compac compactt body body make make parkin parking g a breeze. Colors: Olive Olive Green, Green, Pearl Pearl Red, Red, Graphi Graphite te Grey, Solid white, Indigo, Silky Silver, Aqua Blue, Eminent Blue

MEHRAN (800cc)


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Price: Rs. 514,000/-

Unrivalle lled in its clas lass, MEHRAN is Pakist Pakistan’ an’ss larges largestt sellin selling g car. car. More More smart smart feature featuress like like head head turnin turning g lamp, lamp, matchi matching ng front grill and a two spoke steering wheel gives it the tidy look. Functional economy, pea peak k perfo erform rman ance ce or unmat matched ched fue fuel efficiency, MEHRAN VXR is the leader. Colors: Pear Pearll Red, Red, Grap Graphi hite te Grey Grey,, Soli Solid d white, Silky Silver, Eminent Blue

APV (1500cc) Price: Rs. 1,775,000/-

APV APV 1500 1500 cc (Imp (Impor orte ted) d) The The New New APV gives gives you everythin everything g you ever wanted 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 Pearl Red, Red, Grap Graphi hite te Grey Grey,, Soli Solid d white white,, Indi Indigo go,, Silk Silky y Silve Silver, r, Aqua Aqua Blue Blue,, Eminent Blue

JIMNY (1300cc) Price: Rs. 1,850,000/-

JIMN JIMNY Y 4X4 4X4 JEEP JEEP 1300 1300cc cc (Imp (Impor orte ted) d) Steady, Steady, sturdy sturdy and smart, smart, Suzuki Suzuki JIMNY 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


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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


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Large Market size to operate



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

Paki Pakist stan an has has to face face lots lots of poli politi tical cal ups ups and and down downss sinc sincee its its inde indepe pend nden ence. ce. So many many governments have been overtaken by military personnel and most of the time martial law was imposed imposed on Pakistan. Pakistan. In this scenario scenario no entrepreneur entrepreneur was willing willing to invest in Pakistan Pakistan except few. Due to such conditions conditions,, market environment environment wasn’t wasn’t helpful in Pakistan. Pakistan. The Pakistani government has never been trustworthy for any investor. Legal Environment

As all countries, Pakistan Pakistan also has some legislation legislation about each sector. But like developing 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 business men who have been politically politically affiliated 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 deca des of internal political political disputes disputes and external ongoing ongoing conflict conflict with India. However, However, IMF approved approved the


P a g e | 12 government policies, encourages by different foreign assistance and renewed access to global market since 2001. 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 Pakistan strictly. strictly. But with the the passage passage of time it is going going to change. change. Thoughts Thoughts of people, people, choices, taste and style has been totally changed. If we talk about the transportation transportation source in Pakistan, Pakistan, People People use buses, pickups pickups etc for journey. journey. They also have have their own bicycle and bikes bikes and lots of people people are pedestria pedestrian. n. But now the people people who haven’ haven’tt any source source of transportation they also want something for their convenience because they wants to save their time as much as they they can. People People want to use such vehicle vehicle which looks looks beautiful beautiful and also affordable. Technological Technological Environment

Techno Technolog logical ical factor factor also also very very import important ant and we haven’t haven’t contro controll on it.

Techno Technolog logy y is

grooming with the passage passage of time. People also want that the product that that they have is full of technology. We never control on technology technology for example you launched the product last 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.


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EXTERNAL FACTOR EVALUATION MATRIX (EFE)

1. 2. 3. 4. 5. 1. 2. 3. 4. 5.

OPPORTUNITIES Increasing Demand for Cars Efficient EFI Engines Large Market to operate Global spare parts market Small size CNG Cylinders THREATS Tough Competitors like Toyota and Honda Inflation Rate He Heavy Taxes Cheaper Imported Cars Increase in Fuel Prices Total Weighted Score

Ratings: 1 – Poor 2 – Below Average

Weight 0.15 0.10 0.10 0.05 0.12

Ratings 4 3 3 2 3

Weighted Score 0.60 0.30 0.30 0.10 0.36

0.14 0.08 0.08 0.10 0.08

2 3 3 4 2

0.28 0.24 0.24 0.40 0.16

1.0

2.98

3 – Above 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 The comp compan any y is prod produc ucin ing g the the maxi maximu mum m numb number er of cars cars in comp compar aree with with othe other r 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.


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INTERNAL FACTORS EVALUATION MATRIX (IFE) STRENGTHS

1. 2. 3. 4.

5.

Weight 0.20 0.10 0.12

Ratings 4 4 4

Weighted Score 0.80 0.40 0.48

0.08

4

0.32

0.12

4

0.48

Scarcity of raw material Lack of coordination and linkage with Govt. bodies Less focus on Looks and design Less Technical Training Institutes Less distribution channels in sub urban areas

0.08 0.05 0.10 0.05 0.10

2 2 1 1 1

0.16 0.10 0.10 0.05 0.10

Total Weighted Score

1.0

Highest Market Share Low Price Vehicles Large Distribution Channels Easy availability of spare parts Highly Innovative and deep product line

WEAKNESSES

1. 2. 3. 4. 5.

Ratings: 1 – Major Weakness 2 – Minor Weakness

2.99

3 – Minor Strength 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 The spar sparee parts parts avai availab labil ility ity is a criti critical cal issu issuee whic which h cars, cars, Suzu Suzuki ki has has comp compar arati ative ve 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.


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SWOT MATRIX STRENGHTS

SWOT / TOWS Matrix

OPPORTUNITIES 1. Increasing Demand for cars 2. Efficient EFI engines 3. Large Market to Operate 4. Small size CNG Cylinder 5. Global Spare parts market

THREATS

WEAKNESSES

1. Highest Market Share

1.Scarcity of Raw Materials

2. Low Price Vehicles

2. Lack of coordination with Govt. Bodies

3. Large Distribution Channel

3. 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

S-O Strategies 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)

S-T Strategies

W-O Strategies 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)

W-T Strategies

1. Tough Competitors 6. Maintain quality in affordable price will help to compete with competitors and imported cars (S2,S4,T1,T4)

2. Inflation Rate 3. Heavy Taxes 4. Cheaper Imported Cars 5. Increase in Fuel prices

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)

Proposed Strategies

1. Maximize market share by producing more cars per year 2. Develop more efficient and innovative engines which give comparative advantage 3. Use efficient CNG system 4. Focus on looks and design of exterior to compete with Honda and Toyota 5. Fund and establish technical institutes to gain more skilled workforce from local market 6. Maintain quality in affordable price will help to compete with direct competitors and used imported cars 7. Develop fuel efficient engines to gain edge and eliminate threat of fuel prices increase Strategic Analysis – Pak Suzuki Motor Company Limited. The Islamia University of Bahawalpur – Rahim Yar Khan Campus

P a g e | 16 8. Enhance distribution to avoid threat from second hand imported cars

BCG MATRIX

Star

High

Question Mark

JIMNY SWIFT

BOLAN

Market Growth

Dogs

Cash Cows MEHRAN

CULTUS ALTO

LIANA APV

RAVI Low Low High

Market Share


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JIMNY SWIFT

BOLAN MEHRAN ALTO CULTUS RAVI

LIANA APV

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 youngs youngsters ters also prefer prefer the MEHRAN MEHRAN because because of its size size and economic economical al price. price. Small Small business business people also prefer MEHRAN because of its low maintenance 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.


P a g e | 18 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.


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INTERNAL EXTERNAL MATRIX

IFE Matrix Scores Strong 4 Strong EFE Matrix Scores

Average Weak

4

Average 3

Weak 2

1

i

ii

iii

iv

v

vi

vii

viii

ix

3 2 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 The comp compan any y shou should ld adop adoptt grow growth th and and buil builtt stra strate tegi gies es and and I reco recomm mmen end d Mark Market et Development and Product Development Strategies.


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SPACE MATRIX Financial Strength (FS)

Return on Investment Working Capital Short Term Assets

+4 +3 +4

Total:

+11

Industry Strength (IS) Large Market to operate Increasing per Capita Income Consumption Oriented Culture

+5 +3 +4

Total:

+12

Competitive Advantages (CA) High Quality Products Sleek and Stylish Designs Famous Brand Names

-3 -4 -3

Total:

-10

Environmental Stability (ES) Tough Competition Change in Govt. rules and regulations Imported Refurbished Cars Law and Order Situation Total:

-2 -3 -4 -2 -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


P a g e | 21 Y-axis = FS+ES = 3.67-2.75 = 0.92

Aggressive Strategies

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.


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GRAND MATRIX

Rapid Market Growth

Q1

Q2

Weak

Strong

Competitive

Competitive

Position

Position

Q3

Q4

Slow Market Growth

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 Quadra Quadrant nt 1 and they they shoul should d follow follow aggres aggressiv sivee strate strategie giess like like Market Market Develo Developme pment nt and Product Development.


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QSPM MATRIX

Mark Market et Deve Develo lopm pmen entt

Increasing Demand for Cars Efficient EFI engines Large Market to operate Global Spare parts market Tough competitors Inflation Cheaper Imported cars Increase in fuel prices

0.10 0.06 0.08 0.04 0.08 0.06 0.08 0.10

Attractive Score 4 3 4 3 4 1 4 4

Internal Factors Highest Market share Low price vehicles Large distribution channel Easy availability of spare parts Innovative and deep product line Less focus on style and design Scarcity of human resource

0.08 0.10 0.06 0.02 0.06 0.04 0.04

3 1 2 3 4 4 3

External Factors

Totals

Weight

1.0

Prod Produc uctt Dev Devel elop opm ment ent

0.40 0.18 0.32 0.12 0.32 0.06 0.32 0.40

Attractive Score 4 4 4 2 2 1 4 4

0.24 0.10 0.12 0.06 0.24 0.16 0.12

4 4 3 3 3 4 4

Total

3.16

Total

0.40 0.24 0.32 0.08 0.16 0.06 0.32 0.40

0.32 0.40 0.18 0.06 0.18 0.16 0.16 3.44

By compar comparing ing both both Market Market Develo Developme pment nt and Produc Productt Develo Developme pment, nt, we obtain obtained ed more more weighted weighted attractive score for Product development. 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.


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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.


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STRATEGIC R ECOMMENDATIONS ECOMMENDATIONS 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 produc productt develo developme pment nt strate strategy gy we recomme recommend nd the compan company y to focuse focusess on having having the highes highestt level level of produc productt perfor performan mance, ce, the highes highestt level level of functi functiona onalit lity y or functi functions ons and featur features, es, the latest 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 attractive offer for the market in the 1300cc 1300cc class. But still company 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 have all all the the requ requir ired ed featu features res and and tech techno nolo logy gy that that is need needed ed to comp compet etee with with gian giantt comp compet etit itor ors. s. And And of cour course se,, PSMC PSMC has has compet competitiv itivee advant advantage age in local local assemb assemblin ling g and manufa manufactu cturin ring g of parts and they can utilize that advantage to produce cheaper cars in the categories mentioned above. The The PSMC PSMC has recent recently ly receiv received ed acknow acknowled ledgem gement ent from from Prime 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 target they need to develop more technologically cheap and efficient and quality oriented products.


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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.


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


Strategic Analysis of Pak Suzuki Motor Company

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