Porter’s Generic Strategies

& McKinsey 7-S Model

 SouravBiswas
Premdip Dhar
Bankim Gupta
G. Sudarshan
Chalapathi Rao
Manas Roy
MARUTI SUZUKI:IN A NUTSHELL
●
Established in 1981 through an act of Parliament
●
India’s number 1 leading market leader in car segment

18.28% stake held by India; 54.5% by Japan Govt

●

Domestic sales amounts to for about 45% annually

●

●
Product ranges from Entry level- hatchbacks-SUVs
●
Only car company in the world to be ranked highest in
customer satisfaction for the tenth year in a row
product Range
Entry Level

Hatchback

SUV
 KEY SUCCESS FACTORS (KSF)
●
R&D facilities and ●
Designing cars for
Japan Collaboration
Indian market
●
Launch of World ●
Cost leadership
class Quality cars

TECHNOLOGY MANUFACTURING

MARKETING DISTRIBUTION

●
Full range of Cars ●
Vast dealership
●
Ad, to the need of network
Indian Culture ●
Maruti True Value
McKinsey 7-S Framework

Hard Ss

Soft Ss
 1. STRUCTURE
CHAIRMAN
 2. STRATEGY

Maruti Driving
all Segments

School (MDS)
Catering to

Continue Maruti
Economic
Pricing Strategy True Value

MARKETIN
PRICING G

Manufacturing
Expansion of

Finance
Maruti
for upgradation Insurance

facility
efficient cars

customer looking
Maruti
More fuel

Provides option to

More focus on
A1, A2 & A3

PRODUCT

Alternate
fuel Cars
Cars
Eco-friendly
Roll out
 3. SYSTEMS

TRA
NFO
MAN RM SALES
POWER NETWORK
ATI
ON
PR
OC STRATEG
FINANCE Y
ESS

TECH MARKETIN STRUCT

RAW G URE
NOLO
MATERIALS
GY
4. SHARED VALUES
 5.
SKILLS
UNPARALLELED AUTHORISED
SERVICE SERVICE
NETWORK STATIONS

EXPRESS
JAPANESE
SERVICE
TECHNOLOGY
STATIONS
 6. style
●
PARTICIPATIVE MANAGEMENT
MANAGEMENT STYLE
●
TRAINING THE LOCAL STAFF

●
PAID INTERVIEWS & EXIT
ADMINISTRATION INTERVIEWS
●
360 DEGREE FEEDBACK SYSTEM
 7. STAFF
•7525 EMPLOYEES
• 4OOO SERVICE
TECNICIANS
• 730 ENGINEERS
IN R&D
• MORE THAN 3500
SALES
EXECUTIVES
PORTER’S
GENERIC
STRATEGIES
 COST LEADERSHIP
FULLY
LOW INITIAL
DEPRECIATED
INVESTMENT
PLANTS

HI
G
H
LA
B
O
U
R
PR
O
D
UC
TI
VI
TY

CONCESSION FROM
GOVERNMENT
DIFFERENTIATION
DEMAND A PREMIUM PRICE FROM
CONSUMERS

EMPLOYEE INCENTIVES & COMPENSATION

FOR CREATIVITY

HR STRATEGY FOCUS
FOCUS STRATEGY
ADS TARGETING
DIFFERENT SEGMENTS

LAUNCH OF ZEN
PREDATOR

RELAUNCH OF MARUTI
800 UNDER ‘2599’ OFFER
CONCLUSIO
N
DRIVE EFFORT TOWARDS A COMMON GOAL
●

ASSURING BEST QUALITY & SERVICES

●

●
INTERNAL RESOURCES TO FINANCE R & D
●
IMBIBING JAPANESE WORK CULTURE

●
LEADER IN PASSENGER CAR MARKET
4 MOST REPUTED AUTOMOBILE CO.
● TH