Suzuki's Sucess in China

Published: 2021-06-29 06:57:40
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Global Business
Case 4: Suzuki's advance into India
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1. Why do you think Suzuki has succeeded in India?

1. Suzuki entered the India market quite early (in 1980s), while other players haven't notice the importance of India market yet. As a result, Maruti Suzuki has a overwhelming advantages in brand power.
2. Suzuki has an advantage in the area of small motorcycles and light vehicles, which exactly met the needs of developing counties market like India.
3. As the only foreign automaker in 1980s, Maruti Suzuki succeeded in attracting outstanding Indian engineers.
4. Suzuki enter India market as a response to India government's request, and by set up joint-venture, Suzuki maintained a good relationship with government and was able to expand its sales network with minimal difficulty.
5. As vehicles supply constantly fell short of demand in the 1980s, Maruti dealer didn't need to market, and as a state-run firm, Maruti was easy to gain the trust from dealers.
6. Suzuki has a corporate culture encouraging consistently advanced product development, so that it can always introduce new models to meet the needs.

Threat of new competition
India can be recognized as an open market where has quite an amount of potential competitors. Toyota and Honda have announced plans to introduce small cars targeting India markets. And both targeting the same segment with Suzuki. (~500,000 rupee)

Threat of substitute products or services
One of the substitute products are products from other company. And with as more and more companies are aiming this market, there will be more products fit the small niche. (such as mini car or low-priced mid-sized car)

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