Strategic Analysis

Pak Suzuki Motor Company Limited

P a g e | 2
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 Da of !udgment"
#hee do we worshi$, and #hine aid we see%"
#he wa of those on whom #hou hast bestowed #h Grace, those
whose &$ortion' is not wrath, and who go not astra"
Ameen
I am heartil than%ful to our Strategic Management teacher, Ma(am
#ahira A)am, whose encouragement, guidance and su$$ort from
initial to the final le*el enabled us to de*elo$ the sub+ect Strategic
Management" ,ith his dedicated lectures we were able to $racticall
understand and a$$l what we ha*e learned in the classes"
P a g e | -
EXECUTIVE SUMMARY
#his $ro+ect is about the strategic Analsis of Pa% Su)u%i Motor
Com$an" During the $ro+ect, we(*e done the detailed stud of Pa%
Su)u%i Motor Com$an .imited li%e their com$an $rofile, mission,
*ision and cor$orate *alues" #hen I obser*er the some of the ma+or
$roducts manufactured and assembled b the Pa% Su)u%i Motor
Com$an limited which include S,I/#, .IA0A, C1.#1S,
M234A0, AP5 etc6 ,ith the hel$ of Internal and 27ternal
analsis, I(*e sorted out some of their strengths, wea%nesses and the
o$$ortunities and threats $re*ailing in the mar%et" Also the P2S#
analsis was conducted to obser*e the e7ternal factors that ma
influence the $erformance of the com$an"
#hen we did $re$are the 27ternal 2*aluation Matri7, which scored
2"89 that means com$an is tring best to utili)e their o$$ortunities
b a*oiding the threats" And Internal 2*aluation Matri7 which scored
2"88 shows that com$an has solid internal strengths and the are
o*ercoming the wea%nesses :uite well" #hen the #;,S matri7
hel$ed us to suggest some of the strategies to the com$an which can
be hel$ful for them in future outloo%"
#he <CG matri7 hel$ed me to stud the im$ortant $roducts of the
com$an; we did identif in which stage the $roducts are and tried to
do the S<1 analsis for each $roduct"
,ith the stud of Pa% Su)u%i Motor Com$an .imited, we(*e
learned that the are doing well in the Pa%istani mar%et and are
leading mar%et shareholder" #he are $roducing Cars at affordable
$rices for the low income to middle income $eo$le" <ut the are
unable to com$ete with Corolla and 3onda in .u7ur and semi=
lu7ur cars" #he need $roduct de*elo$ment strateg to follow so
the tried to get into the 3onda and Corolla mar%et b introducing
Su)u%i .IA0A but that couldn(t ma%e its s$ace" 0ow the ha*e
again tried that b launching Su)u%i S,I/# which is a >-??cc full
loaded car" we recommend Product De*elo$ment strateg for PSMC
to $ursue in order to com$ete with 3;0DA and #;@;#A" #hen
the will be able to grow their mar%et share and growth"
P a g e | A
TABLE OF CONTENTS
Sr. no. Contents Pae !
> Introduction B
2 Product Mi7 C
- Internal and 27ternal Analsis >?
A S,;# Analsis >?
B P2S# Analsis >>
D 27ternal /actor 2*aluation Matri7 &2/2' >-
C Internal /actor 2*aluation Matri7 &I/2' >A
9 S,;# Matri7 >B
8 <CG Matri7 >C
>? Internal 27ternal Matri7 >9
>> S$ace Matri7 2?
>2 Grand Strateg Matri7 2>
>- ESPM Matri7 22
>A Conclusion 2-
>B 4ecommendations 2A
>D 4eferences 2B
P a g e | B
INTRODUCTION
Pa" S#$#"% Motors Co&'an( Lt). is a com$an assembling and distributing Su)u%i
!a$anFs cars in Pa%istan" Currentl the are one of the most successful motor com$anies in
Pa%istan"
#he firm was founded in >89- as a +oint *enture between PAG and Su)u%i, formali)ing the
arrangement b which A,AMI Auto .td" had $roduced the Su)u%i SS9? from >892" Su)u%i
originall owned 2BH of the stoc%, and has graduall increased their holding; the now own
C-"?8H" #he com$an now assembles a wide range of Su)u%i *ehicles and aims to $roduce
>B?,??? *ehicles $er ear" &2??B $roduction was >??,???'
O#r V%s%on
#o be 27cellent All Around
O#r M%ss%on
#o $ro*ide automobile of international :ualit at com$etiti*e $rice

#hese are Mission and 5ision Statement of Pa% Su)u%i, and the alwas tr to im$ro*e s%ills
of em$loees b im$arting training and inculcating in them a sense of $artici$ation"
#o achie*e ma7imum indigeni)ation and $romote the automobile *ending industr"
#o contribute to Pa%istani societ through de*elo$ment of industr in general and
automobile industr in $articular"
P a g e | D
State&ent o* Et+%,s an) B#s%ness Pra,t%,es
3ere are the code of ethics and <usiness Practice of Pa% Su)u%i Motors Com$an,
>" Pa% Su)u%i insists on integrit and honest of its em$loees in doing business" An
unfair or corru$t $ractices to solicit business is fundamentall inconsistent with
business codes of com$an
2" Pa% Su)u%i belie*es in com$liance to regulator obligation
-" Pa% Su)u%i belie*es in free and fair business $ractices and o$en com$etiti*e mar%ets"
De*elo$ing an association with com$etitors to distort the $ricing and su$$l of
$roducts is contradictor to com$an(s business code of conduct"
A" Pa% Su)u%i belie*es in trans$arenc in business transaction and the are to be
recorded accuratel and fairl in boo%s of accounts in accordance with standard
$rocedure"
B" Pa% Su)u%i e7$ects its em$loees to act in com$an(s best interest while holding
confidential information" Com$an e7$ects its em$loees neither to solicit internal
information from other nor to disclose com$an(s data or an other material
information to an un= authori)ed $ersonIbod"
D" Pa% Su)u%i belie*es in indi*idual(s res$ects and growth" Its em$loment $olicies do
not discriminate on basis of race, religion, gender or an other factor"
C" Pa% Su)u%i does not belie*e in $olitical affiliation"
Cor'orate Strate(
Pa% Su)u%i is built on the idea of a res$onsible cor$orate citi)enshi$ thereb managing
en*ironmental, safet J occu$ational health matters as an integral $art of our business" In
fulfilling this res$onsibilit Pa% Su)u%i adheres to the following $rinci$lesK
>' ,e are committed to $ro*ide to$ :ualit $roducts to the satisfaction and re:uirement
of our customers"
2' ,e conduct our o$erations in com$liance with a$$licable en*ironmental,
occu$ational health J safet laws and regulations"
-' ,e recogni)e the interrelationshi$ between energ and the en*ironment, and we
$romote the efficient use of energ throughout our sstem"
P a g e | C
A' ,e ensure safe dis$osal of waste generated from our facilit
B' ,e minimi)e the discharge of waste materials into the en*ironment b utili)ing
res$onsible $ollution control $ractices"
D' ,e will continuousl see% o$$ortunities to im$ro*e our adherence to these $rinci$les"
As it is clearl mentioned in their 5ision Statement that to be e7cellent all around, and the
alwas o$erate in 2n*ironment friendl" And their Product will alwas be the en*ironment
friendl"
,ith the globali)ation of mar%ets, greater foreign com$etition, and the reduction of entr
barriers, it becomes all the more im$ortant to benchmar% a com$an(s financial indicators on
a worldwide basis" ,orld stoc% mar%ets ha*e recentl witnessed a return to fundamental
financial analsis" Sound management as o$$osed to h$e will in the long run generate
shareholder *alue"
PRODUCT MIX
/ollowing are some *arieties of Cars with their and PricesK
SWIFT -./00,,1
Pr%,e2 4s" >,?A8,???I=
#he 2uro$ean ins$ired e7terior gi*es Swift a
distincti*e loo%" A uni:ue stlish and design
that turns a head where ou go" #he s$irited
engine ma%es for e7hilarating dri*e and gi*es
ou ultimate freedom where the road ta%es ou"
Co3ors2 Pearl 4ed, Gra$hite Gre, Solid white,
Indigo, Sil% Sil*er, A:ua <lue, 2minent <lue
LIANA -./00 4 .500 ,,1
P a g e | 9
Pr%,e2 4s" >,2-?,???I=
#he Su)u%i .iana a*ailable in >-?? cc manual
transmission and >D??cc automatic
transmission ta%es ou out of ordinar and into
the realm" .iana is entirel different car, its
stle, dimension and comfort will ins$ire ou
to see e*er da as an o$en door to a new age"

Co3ors2 Pearl 4ed, Gra$hite Gre, Solid white,
Indigo, Sil% Sil*er, A:ua <lue, 2minent <lue
CULTUS -.000,,1
Pr%,e2 4s" 98C,???I=
C1.#1S is the blend of s$ace and craft"
Its trim bod Conceals am$le s$ace J
fle7ibilit for both $assenger and storage"
C1.#1S ensures e*erone, e7ce$tional 5alue
and :ualit"
Co3ors2 Pearl 4ed, Gra$hite Gre, Solid white,
Indigo, Sil% Sil*er, A:ua <lue, 2minent <lue
ALTO -.000,,1
Pr%,e2 4s" DD2,???I=
Alto has a bright, room and comfortable
cabin which %ee$s bod rela7 and strong and
lighter bod shell resulting in smooth dri*e
due to reduction of un$leasant noise
harshness and *ibration" Its small turning
radius and com$act bod ma%e $ar%ing a
bree)e"
Co3ors2 ;li*e Green, Pearl 4ed, Gra$hite
Gre, Solid white, Indigo, Sil% Sil*er, A:ua
<lue, 2minent <lue
ME6RAN -700,,1
Pr%,e2 4s" B>A,???I=
P a g e | 8
1nri*alled in its class, M234A0 is
Pa%istan(s largest selling car" More smart
features li%e head turning lam$, matching
front grill and a two s$o%e steering wheel
gi*es it the tid loo%" /unctional econom,
$ea% $erformance or unmatched fuel
efficienc, M234A0 5L4 is the leader"
Co3orsK Pearl 4ed, Gra$hite Gre, Solid
white, Sil% Sil*er, 2minent <lue
APV -.800,,1
Pr%,e2 4s" >,CCB,???I=
AP5 >B?? cc &Im$orted' #he 0ew AP5
gi*es ou e*erthing ou e*er wanted in
our *ehicle" S$acious interior for comfort,
tough engine to carr large loads and $lent
of room for $assengers to en+o a
comfortable da long ride"
Co3ors2 Pearl 4ed, Gra$hite Gre, Solid
white, Indigo, Sil% Sil*er, A:ua <lue,
2minent <lue
9IMNY -./00,,1
Pr%,e2 4s" >,9B?,???I=
!IM0@ ALA !22P >-??cc &Im$orted'
Stead, sturd and smart, Su)u%i !IM0@
with new wide tread brings ou the ultimate
$leasure of a real A=wheel dri*e" It has got all
the s$orting s$irit to go along for
ad*enturous free souls"
Co3ors2 Solid white, Sil% Sil*er
P a g e | >?
EXTERNAL 4 INTERNAL ANALYSIS
SWOT Ana3(s%s
Strent+s2
3ighest Mar%et Share
.ow Price 5ehicles
4esale of .ocal Assembled Cars
.arge Distribution Channels
4ising $er ca$ita income with changing demogra$hic distribution
3ighl Inno*ati*e and dee$ $roduct line
3ighl maintained su$$l chain
,ell Managed and highl com$etiti*e staff
,ell defined and bureaucratic organi)ational structure
Com$lete understanding between Distributors
2as a*ailabilit of s$are $arts
Wea"ness2
Scarcit of raw material
.ac% of coordination and lin%age with Go*ernmentIsemi go*ernment su$$orting
bodies
.ess focus on .oo%s and Design
.ess #echnical #raining Institutes
.ess distribution channels in sub urban areas
O''ort#n%t%es2
Increasing Demand for Cars
2fficient 2/I engines
P a g e | >>
.arge Mar%et si)e to o$erate
Global s$are $art mar%et
S$ace sa*ing Small si)e C0G clinders
T+reats2
#ough Com$etitors li%e #oota and 3onda
/oreign In*estment and setu$ $roduction facilities
Smuggling of Auto Parts
Inflation rate
3ea* #a7es
Com$etition from chea$er im$orted cars
Increase in /uel Prices
PEST Ana3(s%s
1ncontrollable en*ironment are those e7ternal factors which can create hurdles between us
and our business" It is also called $est analsis, which is as followK
Po3%t%,a3 En:%ron&ent
Pa%istan has to face lots of $olitical u$s and downs since its inde$endence" So man
go*ernments ha*e been o*erta%en b militar $ersonnel and most of the time martial law was
im$osed on Pa%istan" In this scenario no entre$reneur was willing to in*est in Pa%istan
e7ce$t few" Due to such conditions, mar%et en*ironment wasn(t hel$ful in Pa%istan" #he
Pa%istani go*ernment has ne*er been trustworth for an in*estor"
Lea3 En:%ron&ent
As all countries, Pa%istan also has some legislation about each sector" <ut li%e de*elo$ing
countries it is hardl being im$osed b authorities" #he corru$tion, smuggling and blac%
mar%eting ha*e been su$$orted b Go*ernment related officials" #he undue fa*or is gi*en to
those business men who ha*e been $oliticall affiliated and hardl an legal suite is carried
on against them" Such unethical acti*ities destro all law and legislation.
E,ono&%, En:%ron&ent
Pa%istan, an im$o*erished and underde*elo$ed countr, has suffered from decades of internal
$olitical dis$utes and e7ternal ongoing conflict with India" 3owe*er, IM/ a$$ro*ed the
P a g e | >2
go*ernment $olicies, encourages b different foreign assistance and renewed access to global
mar%et since 2??>"
< following these $olicies go*ernment succeed to re*erse the situation of econom during
last fi*e ears.
So,%o;C#3t#re En:%ron&ent
Pa%istan has strong culture bac%ground and it has been follow in some $articular region of
Pa%istan strictl" <ut with the $assage of time it is going to change" #houghts of $eo$le,
choices, taste and stle has been totall changed" If we tal% about the trans$ortation source in
Pa%istan, Peo$le use buses, $ic%u$s etc for +ourne" #he also ha*e their own biccle and
bi%es and lots of $eo$le are $edestrian" <ut now the $eo$le who ha*en(t an source of
trans$ortation the also want something for their con*enience because the wants to sa*e
their time as much as the can" Peo$le want to use such *ehicle which loo%s beautiful and
also affordable"
Te,+no3o%,a3 En:%ron&ent
#echnological factor also *er im$ortant and we ha*en(t control on it" #echnolog is
grooming with the $assage of time" Peo$le also want that the $roduct that the ha*e is full of
technolog" ,e ne*er control on technolog for e7am$le ou launched the $roduct last ear
and our sale *olume on that time is *er high but after sometime due to latest in*ention a
lots of substitute e7ist in mar%et which affect on our business so ou can(t hold on it"
P a g e | >-
EXTERNAL FACTOR EVALUATION MATRIX -EFE1
OPPORTUNITIES We%+t Rat%ns We%+te) S,ore
>" Increasing Demand for Cars ?">B A ?"D?
2" 2fficient 2/I 2ngines ?">? - ?"-?
-" .arge Mar%et to o$erate ?">? - ?"-?
A" Global s$are $arts mar%et ?"?B 2 ?">?
B" Small si)e C0G Clinders ?">2 - ?"-D
T6REATS
>" #ough Com$etitors li%e #oota and 3onda ?">A 2 ?"29
2" Inflation 4ate ?"?9 - ?"2A
-" 3ea* #a7es ?"?9 - ?"2A
A" Chea$er Im$orted Cars ?">? A ?"A?
B" Increase in /uel Prices ?"?9 2 ?">D
Tota3 We%+te) S,ore ..0 <.=7
Rat%ns2
> M Poor - M Abo*e A*erage
2 M <elow A*erage A = Su$erior
#he total weighted score of <.=7 shows that com$an is res$onding abo*e a*erage to its
e7ternal factors" #he are tring to grab ma7imum o$$ortunities a*ailable there and a*oiding
the threats to their best"
9#st%*%,at%on o* Rat%ns2
>" #he com$an is $roducing the ma7imum number of cars in com$are with other
com$etitors and therefore grabbing the o$$ortunit to meet the increasing demand"
2" Pa% Su)u%i has introduced new 2/I engine in its C1.#1S model which is a >???cc car"
#he 2/I engine technolog is ne*er introduced before in below >-??cc cars"
-" #he dealer networ% of Pa% Su)u%i is almost all around the countr which hel$ them to
ma7imi)e their sales and reach in e*er corner of the countr"
A" In new C0G fitted cars, the Su)u%i is introducing new com$act C0G clinders which ta%e
less s$ace and are lighter than their e:ui*alent a*ailable in the mar%et"
B" #he ma+or threat Su)u%i Com$an could ha*e is from #oota and 3onda, as Su)u%i is still
unable to meet them in >-??cc and abo*e categor of cars" #he new $roduct S,I/# is not
gi*ing the res$ond which was e7$ected"
P a g e | >A
INTERNAL FACTORS EVALUATION MATRIX -IFE1
STRENGT6S We%+t Rat%ns We%+te) S,ore
>" 3ighest Mar%et Share ?"2? A ?"9?
2" .ow Price 5ehicles ?">? A ?"A?
-" .arge Distribution Channels ?">2 A ?"A9
A" 2as a*ailabilit of s$are $arts ?"?9 A ?"-2
B" 3ighl Inno*ati*e and dee$ $roduct line ?">2 A ?"A9
WEAKNESSES
>" Scarcit of raw material ?"?9 2 ?">D
2" .ac% of coordination and lin%age with Go*t" bodies ?"?B 2 ?">?
-" .ess focus on .oo%s and design ?">? > ?">?
A" .ess #echnical #raining Institutes ?"?B > ?"?B
B" .ess distribution channels in sub urban areas ?">? > ?">?
Tota3 We%+te) S,ore ..0 <.==
Rat%ns2
> M Ma+or ,ea%ness - M Minor Strength
2 M Minor ,ea%ness A M Ma+or Strength
#he score <.== shows that com$an has solid internal $osition, its strengths are o*ercoming
the wea%nesses"
9#st%*%,at%on o* Rat%ns2
>" Pa% Su)u%i Motor Com$an has large mar%et share herein and also the largest $roducers of
Cars which is a ma+or strength"
2" #heir $rices are *er affordable in the same :ualit that is another ma+or strength"
-" #he large distribution channel is another ma+or strength which hel$s them to achie*e their
desired sales targets"
A" #he inno*ation is another %e strength of Pa% Su)u%i and the e7am$le is new Su)u%i
S,I/#"
B" #he s$are $arts a*ailabilit is a critical issue which cars, Su)u%i has com$arati*e
ad*antage in s$are $arts a*ailabilit as most of them are being manufactured in Pa%istan"
D" #he ma+or wea%ness which I felt is the non=a*ailabilit of s%illed engineers and wor%force"
And the reason behind is lac% of technical institutes under their banner"
C" #he should also focus on sub=urban areas li%e Southern Pun+ab and Interior Sind which
their distribution networ%"
P a g e | >B
SWOT MATRIX
SWOT > TOWS Matr%?
STRENG6TS WEAKNESSES
>" 3ighest Mar%et Share >"Scarcit of 4aw Materials
2" .ow Price 5ehicles
2" .ac% of coordination with
Go*t" <odies
-" .arge Distribution Channel
-" .ess focus on .oo%s and
design
A" 3ighl Inno*ati*e J Dee$
$roduct line
A" .ess #echnical #raining
Institutes
B" 2as a*ailabilit of s$are
$arts
B" .ess distribution channels in
sub=urban areas
OPPORTUNITIES S;O Strate%es W;O Strate%es
>" Increasing Demand for cars
.. Ma7imi)e mar%et share b
$roducing more cars $er ear
&S>,S2,;>,;A'
<. De*elo$ more efficient and
inno*ati*e 2ngine which gi*es
com$arati*e ad*antage &SA,;2'
/. 1se efficient C0G sstems
&SA,SB,;A'
@. /ocus on .oo%s and Design
to com$ete with 3onda and
#oota &,-,;>,;-'
8. /und and establish technical
institutes to gain more s%illed
wor%force &,A,;-,;>'
2" 2fficient 2/I engines
-" .arge Mar%et to ;$erate
A" Small si)e C0G Clinder
B" Global S$are $arts mar%et
T6REATS S;T Strate%es W;T Strate%es
>" #ough Com$etitors
5. Maintain :ualit in
affordable $rice will hel$ to
com$ete with com$etitors and
im$orted cars &S2,SA,#>,#A'
A. De*elo$ fuel efficient
engines to gain edge and
eliminate threat of fuel $rices
increase &SA,SB,#B,#2'
7. 2nhance distribution to a*oid
threat from second hand
im$orted cars &,B,#A'
2" Inflation 4ate
-" 3ea* #a7es
A" Chea$er Im$orted Cars
B" Increase in /uel $rices
Pro'ose) Strate%es
>" Ma7imi)e mar%et share b $roducing more cars $er ear
2" De*elo$ more efficient and inno*ati*e engines which gi*e com$arati*e ad*antage
-" 1se efficient C0G sstem
A" /ocus on loo%s and design of e7terior to com$ete with 3onda and #oota
B" /und and establish technical institutes to gain more s%illed wor%force from local mar%et
D" Maintain :ualit in affordable $rice will hel$ to com$ete with direct com$etitors and used
im$orted cars
C" De*elo$ fuel efficient engines to gain edge and eliminate threat of fuel $rices increase
P a g e | >D
9" 2nhance distribution to a*oid threat from second hand im$orted cars
BCG MATRIX
Dos
B#est%on Mar" Star
Cas+ CoCs
6%+
LoC
LoC 6%+
Mar"et
GroCt+
Mar"et S+are
ME6RAN
ALTO
CULTUS
RAVI
LIANA
APV
9IMNY
BOLAN
SWIFT
P a g e | >C
SBUs Ana3(s%s
ME6RAN2
M234A0 has the highest growth rate in automobile sector in Pa%istan" Pa% Su)u%i
alwas changes the different $arts of M234A0 either e7terior or interior whene*er it comes
to its maturit le*el"
M234A0 is attracti*e the $eo$le who ha*e salaries within 2?,??? to -?,??? $er month" #he
oungsters also $refer the M234A0 because of its si)e and economical $rice" Small
business $eo$le also $refer M234A0 because of its low maintenance cost" M234A0 also
attracts $eo$le who mo*e from bi%e to the cars"
LIANA2
.iana is a lu7urious and highest $rice car of Pa% Su)u%i" It was built to com$ete with
Pa% Su)u%i(s biggest com$etitors li%e #oota and 3onda" .iana has the same features which
are a*ailable in Corolla and Ci*ic but still it couldn(t ma%e its mar%et as com$are to both
these cars" .iana has re$laced the Pa% Su)u%i(s <A.20; in 2??B=?D, since Pa% Su)u%i tried
se*eral was to establish its $osition but failed to do so"
SWIFT
9IMNY
BOLAN
ME6RAN
ALTO
CULTUS
RAVI
LIANA
APV
P a g e | >9
It was made for a $eo$le of high income grou$ but due to high $rices in which the mar%et
was alread gi*ing names li%e corolla and ci*ic who has their strong brand name and
customer loalt, liana was failed to ca$ture the mar%et"
SWIFT2
Due to failure of .iana Pa% Su)u%i introduced another >-??cc car in !an 2??8" Swift
has all the latest features li%e $ower steering, central loc%ing, Auto #ransmission and the
A<S" All the >-??cc cars in Pa%istan ha*e $rice range of >-????? to >A?????, while Swift
was introduced at 888??? and recentl it was increased at >?A8???" It has still ad*antage of
$rice com$etition as com$are to other >-??cc cars in Pa%istan"
RAVI2
4a*i is for the $eo$le doing small business es$eciall cargo ser*ices li%e home
deli*er ser*ices, #CS and mar%et deli*er" All $eo$le doing business of these t$es are
loal customers to 4a*i" Although the S323N;42 has ca$tured some of its mar%et share but
still 4a*i is much famous and mar%et leader in its t$e"
P a g e | >8
INTERNAL EXTERNAL MATRIX
2/2
Matri7
Scores
I/2 Matri7 Scores
Strong A*erage ,ea%
A - 2 >
Strong A
I ii iii
-
A*erage
I* * *i
2
,ea%
5ii *iii i7
>
#he I2 matri7 score for Pa% Su)u%i Motor Com$an .imited &PSMC.' is 2"88 and for 2/2
matri7 is 2"89 therefore our I2 matri7 falls more around Oi*( cell"
#he com$an should ado$t growth and built strategies and I recommend Mar%et
De*elo$ment and Product De*elo$ment Strategies"
P a g e | 2?
SPACE MATRIX
F%nan,%a3 Strent+ -FS1
4eturn on In*estment PA
,or%ing Ca$ital P-
Short #erm Assets PA
#otalK P>>
In)#str( Strent+ -IS1
.arge Mar%et to o$erate PB
Increasing $er Ca$ita Income P-
Consum$tion ;riented Culture PA
#otalK P>2
Co&'et%t%:e A):antaes -CA1
3igh Eualit Products =-
Slee% and Stlish Designs =A
/amous <rand 0ames =-
#otalK =>?
En:%ron&enta3 StaD%3%t( -ES1
#ough Com$etition =2
Change in Go*t" rules and regulations =-
Im$orted 4efurbished Cars =A
.aw and ;rder Situation =2
#otalK =>>
A:erae S,ores2
/S Q >>I- Q -"DC
IS Q >2I- Q A
CA Q =>?I- Q =-"--
2S Q =>>IA Q =2"CB
L=a7is Q ISPCA Q A=-"-- Q ?"DC
P a g e | 2>
@=a7is Q /SP2S Q -"DC=2"CB Q ?"82
Space Matrix
In s$ace matri7 we(*e obser*ed that com$an will $ursue aggressi*e strategies" ,e consider
the %e factors of /inancial Strengths, Industr Strengths, Com$etiti*e Ad*antages and
2n*ironmental Stabilit" < assigning them *alues as $er their im$ortance worst to best, we
calculated the score which lead us to the decision that com$an will $ursue Aggressi*e
strategies" And I would suggest Mar%et De*elo$ment and Product De*elo$ment strategies
will wor% best for PSMC"
Aggressi*e
Strategies
P a g e | 22
GRAND STRATEGY MATRIX
#he grand matri7 hel$s us to determine the strateg that firm must $ursue, based on its
com$etiti*e $osition and mar%et growth"
#he Pa% Su)u%i Motor Com$an .imited has strong com$etiti*e $osition against its ma+or
com$etitors and the mar%et growth is health and at increasing $ace"
<ut the still need to do lot to get themsel*es at to$" As $er m +udgment, the fall under
Euadrant > and the should follow aggressi*e strategies li%e Mar%et De*elo$ment and
Product De*elo$ment"
4a$id Mar%et Growth
E>
E2
E- EA
Slow Mar%et Growth
,ea%
Com$etiti*e
Position
Strong
Com$etiti*e
Position
P a g e | 2-
BSPM MATRIX
Mar"et De:e3o'&ent Pro)#,t De:e3o'&ent
E?terna3 Fa,tors We%+t
Attra,t%:e
S,ore
Tota3
Attra,t%:e
S,ore
Tota3
Increasing Demand for Cars ?">? A ?"A? A ?"A?
2fficient 2/I engines ?"?D - ?">9 A ?"2A
.arge Mar%et to o$erate ?"?9 A ?"-2 A ?"-2
Global S$are $arts mar%et ?"?A - ?">2 2 ?"?9
#ough com$etitors ?"?9 A ?"-2 2 ?">D
Inflation ?"?D > ?"?D > ?"?D
Chea$er Im$orted cars ?"?9 A ?"-2 A ?"-2
Increase in fuel $rices ?">? A ?"A? A ?"A?
Interna3 Fa,tors
3ighest Mar%et share ?"?9 - ?"2A A ?"-2
.ow $rice *ehicles ?">? > ?">? A ?"A?
.arge distribution channel ?"?D 2 ?">2 - ?">9
2as a*ailabilit of s$are $arts ?"?2 - ?"?D - ?"?D
Inno*ati*e and dee$ $roduct line ?"?D A ?"2A - ?">9
.ess focus on stle and design ?"?A A ?">D A ?">D
Scarcit of human resource ?"?A - ?">2 A ?">D
Tota3s ..0 /..5 /.@@

< com$aring both Mar%et De*elo$ment and Product De*elo$ment, we obtained more
weighted attracti*e score for Product de*elo$ment" #hat means com$an should follow the
$roduct de*elo$ment which is $art of aggressi*e strategies" #his strateg is going to hel$ the
firm in eliminating its threats and grab the o$$ortunities to be successful in the $resent macro
en*ironment"
P a g e | 2A
CONCLUSION
#he following are the findings of the stud of Pa% Su)u%i Motor
Com$an .imited"
E?terna3 Fa,tor E:a3#at%on Matr%? S,ore2 2"89
Interna3 Fa,tor E:a3#at%on Matr%? S,ore2 2"88
BCG Matr%?2
StarK !IM0@, <;.0A
Euestion Mar%K S,I/#
Cash CowsK M234A0, C1.#1S, A.#;, 4A5I
DogsK AP5, .IA0A
Interna3 E?terna3 Matr%?2 Growth and <uilt Strateg
S'a,e Matr%?2 Euadrant >, Aggressi*e Strategies
Gran) Matr%?2 Euadrant >, Aggressi*e Strategies
Mar%et De*elo$ment, Product De*elo$ment
BSPM Matr%?2
Mar%et De*elo$mentK -">D
Product De*elo$mentK -"AA
C+osen Strate( %s Pro)#,t De:e3o'&ent.
P a g e | 2B
STRATEGIC RECOMMENDATIONS
Pro)#,t De:e3o'&ent is the selected strateg at this $oint of time
for Pa% Su)u%i Motor Com$an .imited that we obser*ed from our
strategic analsis of the firm"
In $roduct de*elo$ment strateg we recommend the com$an to
focuses on ha*ing the highest le*el of $roduct $erformance, the
highest le*el of functionalit or functions and features, the latest
technolog or the highest le*el of $roduct inno*ation"
#his strateg might ha*e some ris% for the com$an as inno*ati*e
$roducts are in*ol*ed but $ro$er research and de*elo$ment will cater
the ris% and com$an can $ursue with the strateg to be the mar%et
leaders and get on to$"
;ne ma+or setbac% to PSMC was in the sha$e of Su)u%i .IA0A,
which was not able to meet the e7$ectations and couldn(t hold the
mar%et it was made for"
<ut com$an didn(t sto$ its +ourne there, and now Su)u%i S,I/#
has recentl been launched in the mar%et, which seems to be an
attracti*e offer for the mar%et in the >-??cc class" <ut still com$an
has nothing to com$ete with 3;0DA and #;@;#A" #he Su)u%i
needs to enter into the >D??cc and >9??cc mar%et to e7$and its
mar%et share and mar%et growth" <ut for that $ur$ose the need to
$ut more efforts of $roduct de*elo$ment as the new $roduct must
ha*e all the re:uired features and technolog that is needed to
com$ete with giant com$etitors" And of course, PSMC has
com$etiti*e ad*antage in local assembling and manufacturing of
$arts and the can utili)e that ad*antage to $roduce chea$er cars in
the categories mentioned abo*e"
#he PSMC has recentl recei*ed ac%nowledgement from Prime
Minister of Pa%istan for being the onl car manufacturers for the
lower and middle income $eo$le of Pa%istan" <ut the should also
need to get into the line of 3;0DA and #;@;#A, to achie*e that
target the need to de*elo$ more technologicall chea$ and efficient"
P a g e | 2D
REFERENCES
http://www.paksuzuki.com.pk
http://www.we.com.pk
http://www.maxi-pedia.com