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SWOT Analysis of Maruti Udyog Limited

By: Yogin Vora on May 2, 2010 No Comment

Maruti LogoStrength

  • MUL is in a leadership position in the market.
  • Major strength of MUL is having largest network of dealers and after sales service caters in the country.
  • Self competing product range in small car segment
    • Maruti 800
    • Omni
    • Alto
    • Zen
    • Wagon R
  • Good promotional strategy is adopted by MUL to transform its thoughts to the people about its products
    • Baleno: “Missed the flight catch Baleno” The most comfortable Car even in long drives.
    • Esteem: “My Daddy’s Big Car” Affordable mid size car
    • Alto: “Lets Go” The fuel efficient and affordable car
    • After Sales Service “Kya yanha Maruti Service Station hai” Availibility of service stations even in the remotest place in the country.
  • Refurbished Cars: MUL has also entered into second hand car market with a brand name “Maruti True Value”.
  • Loyal Customer Base is another big strength of MUL. In JD Power survey, MUL has been awarded consequently 5th year for best customer satisfaction.
  • Strong Brand Value
  • Availability of raw material

Weakness

  • Lack of having products in mid size car segment could result in shifting of loyal customers who has a desire to upgrade their cars.
  • Low interior quality in side the cars.
  • Labour Laws and Labour Unions are not in a good form in India.
  • Government intervention due to having share in MUL.

Opportunity

  • MUL may encash the opportunity to enter again into the diesel segment of the cars to compete its nearest competitor TATA in diesel segment of small cars. Though MUL launched Zen in diesel version but it was not successful.
  • MUL has launched its LPG version of Wagon R and it was a good move simultaneously MUL can start R&D on  electric cars for a much better substitute of the fuel.
  • Economic growth of the country is sound and promising in future.
  • Liberal policies of GOI.
  • Big Market: Domestic and Abroad

Threat

  • Tata Motors is planning to launch a car with a price tag of Rs. 1 Lac and that could give a big impact on sales of MUL
  • HMIL is a challenger and trying hard to achieve number one position in the market.
  • China may give a good competition as they are also planning to enter into car segment.
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