Corporate Transformation Case Study

Maruti Udyog Ltd. to Maruti Suzuki Ltd.: Celebrating 25 Years of Corporate Transformation

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Abstract:
The case study outlines the transformation of Maruti Suzuki India Private Ltd. (Maruti) from a state-owned company to a dominant market player (with protectionism all around) and also to an effective competitor (in the era of increased and intensified competition from domestic and foreign players). Beginning with its inception as Maruti Udyog Ltd. (MUL), the case study progresses towards its market entry, growth, expansion, turnaround and competitive strategies to establish and strengthen its presence in the Indian passenger car market. The case study also highlights Maruti’s strategies to counter intensified competition and external conditions like global economic recession, the resultant credit crunch and its impact on sales volume. Given its successful corporate transformation over the past 25 years, there arises the dilemma whether it can adopt proven strategies of the evolutionary phase to the new revolutionary phase of another 25 years or so? Further, amid challenging industrial and economic conditions, what are the growth options for Maruti Suzuki to ensure future growth sustenance and profitability?

Pedagogical Objectives:

• To understand the historical state-connections of MUL and to debate over the necessity of government to start an automobile company
• To examine and debate over Maruti’s competitive strategies during three different phases of its 25 years – (1981–1991), (1992–1999) and (2000–2008)
• To explore growth options available for Maruti
• To analyse all the impending challenges and suggest ways and means to overcome them.

Keywords : Maruti, Suzuki, India, Asia, Corporate Transformation, New product introduction, global strategy, marketing; promotion, Growth Strategies, Automobile, new entrants, competition, market leader