Maruti - Corporate Strategy

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Maruti Corporate Strategy

* Repositioning/revitalising of products: Whenever Maruti’s cars sales reached the maturity stage in the product life cycle, they revitalised the product to gain momentum in the market share. Few examples that can be noted in this regard are: * Omni – Interiors and Exteriors, Omni Cargo & CNG omni * Versa – Slashed prices by decreasing engine power

* Esteem – Changed the exteriors to boost sales
* Baleno – Slashed prices
* WagonR – Modifications in engine and sporty look
* Zen – Modified 4 times, including special editions. Now Product has been revitalised and sold as Zen Estillo * Swift – Latest change in exteriors and interiors due to strong competition being faced in the segment * Alto – Revitalised and now sold as A-star

* Product Market Diversity: The present focus of the company is Generic growth, as it is revitalising its car variants to increase sales and make the product competitive in its segment. Recent changes in the interiors of Swift Dzire and SX4, and a complete make-over of the Swift are an example of the type of strategy being pursued. However, as per the press releases, the company plans to launch 15-20 new models by 2015, out of which, Ritz, Alto and Dzire will see a complete make-over models. The company has invested Rs 1,000 – 1,500 crores on product development which includes the upcoming plant at Rohtak which is expected to be functional by 2014. As quoted by Mr. Shashank Shrivastava , Chief General manager, Marketing, the company also plans to increase its rural visibility, hence this can be an indication that since the tier 1 and 2 markets are getting saturated, the company is looking for smaller markets to increase the revenue pie.

From the above diagram, it can be inferred that Maruti, as of now is focussing more on Generic growth, however as product life cycles are getting shorter, it has a long term strategy to shift focus to product...
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