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 Day of Judgment.
Thee do we worship, and Thine aid we seek.
The way of those on whom Thou hast bestowed Thy Grace, those
whose (portion) is not wrath, and who go not astray.

Ameen

I am heartily thankful to our Strategic Management teacher, Sir

Hammad Zafar, whose encouragement, guidance and support from
initial to the final level enabled us to develop the subject Strategic
Management. With his dedicated lectures we were able to practically
understand and apply what we have learned in the classes.
 Page |2

EXECUTIVE SUMMARY

This project is about the strategic Analysis of Pak Suzuki Motor

Company. During the project, we’ve done the detailed study of Pak
Suzuki Motor Company Limited like their company profile, mission,
vision and corporate values. Then we observer the some of the major
products manufactured and assembled by the Pak Suzuki Motor
Company limited which include SWIFT, LIANA, CULTUS,
MEHRAN, APV etc… With the help of Internal and External
analysis, I’ve sorted out some of their strengths, weaknesses and the
opportunities and threats prevailing in the market. Also the PEST
analysis was conducted to observe the external factors that may
influence the performance of the company.

Then we did prepare the External Evaluation Matrix, which scored

2.98 that means company is trying best to utilize their opportunities
by avoiding the threats. And Internal Evaluation Matrix which scored
2.99 shows that company has solid internal strengths and they are
overcoming the weaknesses quite well. Then the TOWS matrix
helped us to suggest some of the strategies to the company which can
be helpful for them in future outlook.

The BCG matrix helped me to study the important products of the

company; we did identify in which stage the products are and tried to
do the SBU analysis for each product.

With the study of Pak Suzuki Motor Company Limited, we’ve

learned that they are doing well in the Pakistani market and are
leading market shareholder. They are producing Cars at affordable
prices for the low income to middle income people. But they are
unable to compete with Corolla and Honda in Luxury and semi-
luxury cars. They need product development strategy to follow so
they tried to get into the Honda and Corolla market by introducing
Suzuki LIANA but that couldn’t make its space. Now they have
again tried that by launching Suzuki SWIFT which is a 1300cc fully
loaded car. We recommend Product Development strategy for PSMC
to pursue in order to compete with HONDA and TOYOTA. Then
they will be able to grow their market share and growth.
 Page |3

TABLE OF CONTENTS

Sr. no. Contents Page #

1 Introduction 4
2 Product Mix 6
3 Porter’s 5 forces model 9
4 SWOT Analysis 10
5 PEST Analysis 11

6 External Factor Evaluation Matrix (EFE) 12

7 Internal Factor Evaluation Matrix (IFE) 13
8 SWOT or TOWS Matrix 14
9 BCG Matrix 16
10 SBU Analysis 17
11 Internal External Matrix 18
12 Space Matrix 19
13 Grand Matrix 21
14 QSPM Matrix 22

15 Conclusion 23
16 Recommendations 24
17 References 25
 Page |4

INTRODUCTION

Pak Suzuki Motors Company Ltd. is a company assembling and distributing Suzuki
Japan's cars in Pakistan. Currently they are one of the most successful motor companies in
Pakistan.

The firm was founded in 1983 as a joint venture between PAK and Suzuki, formalizing the
arrangement by which AWAMI Auto Ltd. had produced the Suzuki SS80 from 1982. Suzuki
originally owned 25% of the stock, and has gradually increased their holding; they now own
73.09%. The company now assembles a wide range of Suzuki vehicles and aims to produce
150,000 vehicles per year.

Our Vision

To be Excellent All Around

Our Mission

To provide automobile of international quality at competitive price

These are Mission and Vision Statement of Pak Suzuki, and they always try to improve skills
of employees by imparting training and inculcating in them a sense of participation.

• To achieve maximum indigenization and promote the automobile vending industry.

• To contribute to Pakistani society through development of industry in general and

automobile industry in particular.
 Page |5

Statement of Ethics and Business Practices

Here are the code of ethics and Business Practice of Pak Suzuki Motors Company,

1. Pak Suzuki insists on integrity and honesty of its employees in doing business. Any
unfair or corrupt practices to solicit business is fundamentally inconsistent with
business codes of company

2. Pak Suzuki believes in compliance to regulatory obligation

3. Pak Suzuki believes in free and fair business practices and open competitive markets.
Developing any association with competitors to distort the pricing and supply of
products is contradictory to company’s business code of conduct.

4. Pak Suzuki believes in transparency in business transaction and they are to be

recorded accurately and fairly in books of accounts in accordance with standard
procedure.

5. Pak Suzuki expects its employees to act in company’s best interest while holding
confidential information. Company expects its employees neither to solicit internal
information from other nor to disclose company’s data or any other material
information to any un- authorized person/body.

6. Pak Suzuki believes in individual’s respects and growth. Its employment policies do
not discriminate on basis of race, religion, gender or any other factor.

7. Pak Suzuki does not believe in political affiliation.

Corporate Strategy
Pak Suzuki is built on the idea of a responsible corporate citizenship thereby managing
environmental, safety & occupational health matters as an integral part of our business. In
fulfilling this responsibility Pak Suzuki adheres to the following principles:

1) We are committed to provide top quality products to the satisfaction and requirement
of our customers.

2) We conduct our operations in compliance with applicable environmental,

occupational health & safety laws and regulations.

3) We recognize the interrelationship between energy and the environment, and we

promote the efficient use of energy throughout our system.
 Page |6

4) We ensure safe disposal of waste generated from our facility

5) We minimize the discharge of waste materials into the environment by utilizing

responsible pollution control practices.

6) We will continuously seek opportunities to improve our adherence to these principles.

As it is clearly mentioned in their Vision Statement that to be excellent all around, and they
always operate in Environment friendly. And their Product will always be the environment
friendly.

With the globalization of markets, greater foreign competition, and the reduction of entry
barriers, it becomes all the more important to benchmark a company’s financial indicators on
a worldwide basis. World stock markets have recently witnessed a return to fundamental
financial analysis. Sound management as opposed to hype will in the long run generate
shareholder value.

PRODUCT MIX

Following are some varieties of Cars with their and Prices:

SWIFT (1300cc)

Price: Rs. 1,049,000/-

The European inspired exterior gives Swift a

distinctive look. A unique stylish and design
that turns a head where you go. The spirited
engine makes for exhilarating drive and gives
you ultimate freedom where the road takes you.

Colors: Pearl Red, Graphite Grey, Solid white,

Indigo, Silky Silver, Aqua Blue, Eminent Blue

LIANA (1300 & 1600 cc)

 Page |7

Price: Rs. 1,230,000/-

The Suzuki Liana available in 1300 cc manual

transmission and 1600cc automatic
transmission takes you out of ordinary and into
the realm. Liana is entirely different car, its
style, dimension and comfort will inspire you
to see every day as an open door to a new age.

Colors: Pearl Red, Graphite Grey, Solid white,

Indigo, Silky Silver, Aqua Blue, Eminent Blue

CULTUS (1000cc)

Price: Rs. 897,000/-

CULTUS is the blend of space and craft.

Its trim body Conceals ample space &
flexibility for both passenger and storage.
CULTUS ensures everyone, exceptional Value
and quality.

Colors: Pearl Red, Graphite Grey, Solid white,

Indigo, Silky Silver, Aqua Blue, Eminent Blue

ALTO (1000cc)

Price: Rs. 662,000/-

Alto has a bright, roomy and comfortable

cabin which keeps body relax and strong and
lighter body shell resulting in smooth drive
due to reduction of unpleasant noise
harshness and vibration. Its small turning
radius and compact body make parking a
breeze.

Colors: Olive Green, Pearl Red, Graphite

Grey, Solid white, Indigo, Silky Silver, Aqua
Blue, Eminent Blue

MEHRAN (800cc)
 Page |8

Price: Rs. 514,000/-

Unrivalled in its class, MEHRAN is

Pakistan’s largest selling car. More smart
features like head turning lamp, matching
front grill and a two spoke steering wheel
gives it the tidy look. Functional economy,
peak performance or unmatched fuel
efficiency, MEHRAN VXR is the leader.

Colors: Pearl Red, Graphite Grey, Solid

white, Silky Silver, Eminent Blue

APV (1500cc)

Price: Rs. 1,775,000/-

APV 1500 cc (Imported) The New APV

gives you everything you ever wanted in
your vehicle. Spacious interior for comfort,
tough engine to carry large loads and plenty
of room for passengers to enjoy a
comfortable day long ride.

Colors: Pearl Red, Graphite Grey, Solid

white, Indigo, Silky Silver, Aqua Blue,
Eminent Blue

JIMNY (1300cc)

Price: Rs. 1,850,000/-

JIMNY 4X4 JEEP 1300cc (Imported)

Steady, sturdy and smart, Suzuki JIMNY
with new wide tread brings you the ultimate
pleasure of a real 4-wheel drive. It has got all
the sporting spirit to go along for
adventurous free souls.

Colors: Solid white, Silky Silver

 Page |9

Porter’s 5 forces model

Bargaining power of consumer low

Because there are relatively few car companies operating in Pakistan and import duty is also
very high so it is difficult to import cars. As a result, buyers do not have many choices.

• Bargaining power of suppliers High

As there is a scarcity of raw material like steel and aluminum in Pakistan, the suppliers have
a high bargaining power.

• Threat of new entrants Low

Threat of new entrants is low at the moment because as a result of the deteriorating political
and economic situation not many investors are ready to invest in Pakistan.
This may change because government has recently allowed the import of used cars and new
companies may enter in near future

• Threat of Substitutes Low

The main substitute for cars is the local transportation like buses, trains etc and as we know
that the transportation network in Pakistan is pretty poor. As a result this threat is low.

• Competitive rivalry High

Rivalry is high due to the fact that the present automobile manufacturers are trying to
introduce new models and are competing on the basis of looks, mileage and prices in
different categories of automobiles
 P a g e | 10

EXTERNAL & INTERNAL ANALYSIS

SWOT Analysis

Strengths:

 Highest Market Share

 Low Price Vehicles

 Resale of Local Assembled Cars

 Large Distribution Channels

 Rising per capita income with changing demographic distribution

 Highly Innovative and deep product line

 Highly maintained supply chain

 Well Managed and highly competitive staff

 Well defined and bureaucratic organizational structure

 Complete understanding between Distributors

 Easy availability of spare parts

Weakness:

 Scarcity of raw material

 Lack of coordination and linkage with Government/semi government supporting

bodies

 Less focus on Looks and Design

 Less Technical Training Institutes

 Less distribution channels in sub urban areas

Opportunities:

 Increasing Demand for Cars

 Efficient EFI engines

 Large Market size to operate

 P a g e | 11

 Global spare part market

 Space saving Small size CNG cylinders

Threats:

 Tough Competitors like Toyota and Honda

 Foreign Investment and setup production facilities

 Smuggling of Auto Parts

 Inflation rate

 Heavy Taxes

 Competition from cheaper imported cars

 Increase in Fuel Prices

PEST Analysis

Uncontrollable environment are those external factors which can create hurdles between us
and our business. It is also called pest analysis, which is as follow:

Political Environment
Pakistan has to face lots of political ups and downs since its independence. So many
governments have been overtaken by military personnel and most of the time martial law was
imposed on Pakistan. In this scenario no entrepreneur was willing to invest in Pakistan
except few. Due to such conditions, market environment wasn’t helpful in Pakistan. The
Pakistani government has never been trustworthy for any investor.

Legal Environment
As all countries, Pakistan also has some legislation about each sector. But like developing
countries it is hardly being imposed by authorities. The corruption, smuggling and black
marketing have been supported by Government related officials. The undue favor is given to
those business men who have been politically affiliated and hardly any legal suite is carried
on against them. Such unethical activities destroy all law and legislation.

Economic Environment
Pakistan, an impoverished and underdeveloped country, has suffered from decades of internal
political disputes and external ongoing conflict with India. However, IMF approved the
government policies, encourages by different foreign assistance and renewed access to global
market since 2001.
 P a g e | 12

By following these policies government succeed to reverse the situation of economy during
last five years.

Socio-Culture Environment
Pakistan has strong culture background and it has been follow in some particular region of
Pakistan strictly. But with the passage of time it is going to change. Thoughts of people,
choices, taste and style has been totally changed. If we talk about the transportation source in
Pakistan, People use buses, pickups etc for journey. They also have their own bicycle and
bikes and lots of people are pedestrian. But now the people who haven’t any source of
transportation they also want something for their convenience because they wants to save
their time as much as they can. People want to use such vehicle which looks beautiful and
also affordable.

Technological Environment
Technological factor also very important and we haven’t control on it. Technology is
grooming with the passage of time. People also want that the product that they have is full of
technology. We never control on technology for example you launched the product last year
and your sale volume on that time is very high but after sometime due to latest invention a
lots of substitute exist in market which affect on your business so you can’t hold on it.

EXTERNAL FACTOR EVALUATION MATRIX (EFE)

OPPORTUNITIES Weight Ratings Weighted Score

1. Increasing Demand for Cars 0.15 4 0.60
2. Efficient EFI Engines 0.10 3 0.30
3. Large Market to operate 0.10 3 0.30
4. Global spare parts market 0.05 2 0.10
5. Small size CNG Cylinders 0.12 3 0.36
THREATS
1. Tough Competitors like Toyota and Honda 0.14 2 0.28
2. Inflation Rate 0.08 3 0.24
3. Heavy Taxes 0.08 3 0.24
4. Cheaper Imported Cars 0.10 4 0.40
5. Increase in Fuel Prices 0.08 2 0.16

Total Weighted Score 1.0 2.98

Ratings:
1 – Poor 3 – Above Average
2 – Below Average 4 - Superior
 P a g e | 13

The total weighted score of 2.98 shows that company is responding above average to its
external factors. They are trying to grab maximum opportunities available there and avoiding
the threats to their best.

Justification of Ratings:

1. The company is producing the maximum number of cars in compare with other
competitors and therefore grabbing the opportunity to meet the increasing demand.

2. Pak Suzuki has introduced new EFI engine in its CULTUS model which is a 1000cc car.
The EFI engine technology is never introduced before in below 1300cc cars.

3. The dealer network of Pak Suzuki is almost all around the country which help them to
maximize their sales and reach in every corner of the country.

4. In new CNG fitted cars, the Suzuki is introducing new compact CNG cylinders which take
less space and are lighter than their equivalent available in the market.

5. The major threat Suzuki Company could have is from Toyota and Honda, as Suzuki is still
unable to meet them in 1300cc and above category of cars. The new product SWIFT is not
giving the respond which was expected.

INTERNAL FACTORS EVALUATION MATRIX (IFE)

STRENGTHS Weight Ratings Weighted Score

1. Highest Market Share 0.20 4 0.80
2. Low Price Vehicles 0.10 4 0.40
3. Large Distribution Channels 0.12 4 0.48
4. Easy availability of spare parts 0.08 4 0.32
5. Highly Innovative and deep product line 0.12 4 0.48
WEAKNESSES
1. Scarcity of raw material 0.08 2 0.16
2. Lack of coordination and linkage with Govt. bodies 0.05 2 0.10
3. Less focus on Looks and design 0.10 1 0.10
4. Less Technical Training Institutes 0.05 1 0.05
5. Less distribution channels in sub urban areas 0.10 1 0.10

Total Weighted Score 1.0 2.99

Ratings:
1 – Major Weakness 3 – Minor Strength
2 – Minor Weakness 4 – Major Strength
 P a g e | 14

The score 2.99 shows that company has solid internal position, its strengths are overcoming
the weaknesses.

Justification of Ratings:

1. Pak Suzuki Motor Company has large market share herein and also the largest producers of
Cars which is a major strength.
2. Their prices are very affordable in the same quality that is another major strength.
3. The large distribution channel is another major strength which helps them to achieve their
desired sales targets.
4. The innovation is another key strength of Pak Suzuki and the example is new Suzuki
SWIFT.
5. The spare parts availability is a critical issue which cars, Suzuki has comparative
advantage in spare parts availability as most of them are being manufactured in Pakistan.
6. The major weakness which I felt is the non-availability of skilled engineers and workforce.
And the reason behind is lack of technical institutes under their banner.
7. They should also focus on sub-urban areas like Southern Punjab and Interior Sind which
their distribution network.

SWOT MATRIX

STRENGHTS WEAKNESSES
1. Highest Market Share 1.Scarcity of Raw Materials

2. Lack of coordination with

2. Low Price Vehicles
Govt. Bodies

SWOT / TOWS Matrix 3. Less focus on Looks and

OPPORTUNITIES
1. Increasing Demand for cars
2. Efficient EFI engines
3. Large Distribution Channel
4. Highly Innovative & Deep
product line
5. Easy availability of spare
parts
S-O Strategies
1. Maximize market share by
producing more cars per year
(S1,S2,O1,O4)
design
4. Less Technical Training
Institutes
5. Less distribution channels in
sub-urban areas
W-O Strategies
4. Focus on Looks and Design
to compete with Honda and
Toyota (W3,O1,O3)

2. Develop more efficient and 5. Fund and establish technical

3. Large Market to Operate
4. Small size CNG Cylinder
5. Global Spare parts market
innovative Engine which gives institutes to gain more skilled
comparative advantage (S4,O2) workforce (W4,O3,O1)
3. Use efficient CNG systems
 P a g e | 15

THREATS
1. Tough Competitors
2. Inflation Rate
3. Heavy Taxes
4. Cheaper Imported Cars
5. Increase in Fuel prices
(S4,S5,O4)
S-T Strategies W-T Strategies
6. Maintain quality in
affordable price will help to
compete with competitors and
8. Enhance distribution to avoid
imported cars (S2,S4,T1,T4)
threat from second hand
imported cars (W5,T4)
7. Develop fuel efficient
engines to gain edge and
eliminate threat of fuel prices
increase (S4,S5,T5,T2)

Proposed Strategies
1. Maximize market share by producing more cars per year
2. Develop more efficient and innovative engines which give comparative advantage
3. Use efficient CNG system
4. Focus on looks and design of exterior to compete with Honda and Toyota
5. Fund and establish technical institutes to gain more skilled workforce from local market
6. Maintain quality in affordable price will help to compete with direct competitors and used
imported cars
7. Develop fuel efficient engines to gain edge and eliminate threat of fuel prices increase
8. Enhance distribution to avoid threat from second hand imported cars
 P a g e | 16

BCG MATRIX

Star Question Mark

High
JIMNY

SWIFT
BOLAN

Market
Growth Dogs
Cash Cows
CULTUS
MEHRAN LIANA

ALTO APV
RAVI

Low

Low
High Market Share
 P a g e | 17

JIMNY
SWIFT BOLAN
MEHRAN
ALTO
CULTUS LIANA
RAVI APV

SBUs Analysis

MEHRAN:
MEHRAN has the highest growth rate in automobile sector in Pakistan. Pak Suzuki
always changes the different parts of MEHRAN either exterior or interior whenever it comes
to its maturity level.
MEHRAN is attractive the people who have salaries within 20,000 to 30,000 per month. The
youngsters also prefer the MEHRAN because of its size and economical price. Small
business people also prefer MEHRAN because of its low maintenance cost. MEHRAN also
attracts people who move from bike to the cars.
LIANA:
Liana is a luxurious and highest price car of Pak Suzuki. It was built to compete with
Pak Suzuki’s biggest competitors like Toyota and Honda. Liana has the same features which
are available in Corolla and Civic but still it couldn’t make its market as compare to both
these cars. Liana has replaced the Pak Suzuki’s BALENO in 2005-06, since Pak Suzuki tried
several ways to establish its position but failed to do so.
 P a g e | 18

It was made for a people of high income group but due to high prices in which the market
was already giving names like corolla and civic who has their strong brand name and
customer loyalty, liana was failed to capture the market.
SWIFT:
Due to failure of Liana Pak Suzuki introduced another 1300cc car in Jan 2009. Swift
has all the latest features like power steering, central locking, Auto Transmission and the
ABS. All the 1300cc cars in Pakistan have price range of 1300000 to 1400000, while Swift
was introduced at 999000 and recently it was increased at 1049000. It has still advantage of
price competition as compare to other 1300cc cars in Pakistan.
RAVI:
Ravi is for the people doing small business especially cargo services like home
delivery services, TCS and market delivery. All people doing business of these types are
loyal customers to Ravi. Although the SHEHZORE has captured some of its market share but
still Ravi is much famous and market leader in its type.

INTERNAL EXTERNAL MATRIX

IFE Matrix Scores

Strong Average Weak

4 3 2 1
Strong 4
EFE i ii iii
Matrix 3
Scores Average
iv v vi
2
Weak
vii viii ix
1
 P a g e | 19

The IFE matrix score for Pak Suzuki Motor Company Limited (PSMCL) is 2.99 and for EFE
matrix is 2.98 therefore our IE matrix falls more around ‘iv’ cell.

The company should adopt growth and built strategies and I recommend Market
Development and Product Development Strategies.

SPACE MATRIX

Financial Strength (FS)

Return on Investment +4
Working Capital +3
Short Term Assets +4

Total: +11
Industry Strength (IS)

Large Market to operate +5

Increasing per Capita Income +3
Consumption Oriented Culture +4

Total: +12
Competitive Advantages (CA)

High Quality Products -3

Sleek and Stylish Designs -4
Famous Brand Names -3

Total: -10
Environmental Stability (ES)

Tough Competition -2
Change in Govt. rules and regulations -3
Imported Refurbished Cars -4
Law and Order Situation -2

Total: -11

Average Scores:

FS = 11/3 = 3.67

IS = 12/3 = 4

CA = -10/3 = -3.33

ES = -11/4 = -2.75
 P a g e | 20

X-axis = IS+CA = 4-3.33 = 0.67

Y-axis = FS+ES = 3.67-2.75 = 0.92

Aggressive
Strategies

Space Matrix

In space matrix we’ve observed that company will pursue aggressive strategies. We consider
they key factors of Financial Strengths, Industry Strengths, Competitive Advantages and
Environmental Stability. By assigning them values as per their importance worst to best, we
calculated the score which lead us to the decision that company will pursue Aggressive
strategies. And I would suggest Market Development and Product Development strategies
will work best for PSMC.
 P a g e | 21

GRAND MATRIX

Rapid Market Growth

Q2 Q1

Weak Strong
Competitive Competitive
Position Position

Q3 Q4

Slow Market Growth

The grand matrix helps us to determine the strategy that firm must pursue, based on its
competitive position and market growth.

The Pak Suzuki Motor Company Limited has strong competitive position against its major
competitors and the market growth is healthy and at increasing pace.

But they still need to do lot to get themselves at top. As per my judgment, they fall under
Quadrant 1 and they should follow aggressive strategies like Market Development and
Product Development.
 P a g e | 22

QSPM MATRIX

Market Development Product Development

Attractive Attractive
External Factors Weight Total Total
Score Score
Increasing Demand for Cars 0.10 4 0.40 4 0.40
Efficient EFI engines 0.06 3 0.18 4 0.24
Large Market to operate 0.08 4 0.32 4 0.32
Global Spare parts market 0.04 3 0.12 2 0.08
Tough competitors 0.08 4 0.32 2 0.16
Inflation 0.06 1 0.06 1 0.06
Cheaper Imported cars 0.08 4 0.32 4 0.32
Increase in fuel prices 0.10 4 0.40 4 0.40

Internal Factors
Highest Market share 0.08 3 0.24 4 0.32
Low price vehicles 0.10 1 0.10 4 0.40
Large distribution channel 0.06 2 0.12 3 0.18
Easy availability of spare parts 0.02 3 0.06 3 0.06
Innovative and deep product line 0.06 4 0.24 3 0.18
Less focus on style and design 0.04 4 0.16 4 0.16
Scarcity of human resource 0.04 3 0.12 4 0.16

Totals 1.0 3.16 3.44

By comparing both Market Development and Product Development, we obtained more

weighted attractive score for Product development. That means company should follow the
product development which is part of aggressive strategies. This strategy is going to help the
firm in eliminating its threats and grab the opportunities to be successful in the present macro
environment.
 P a g e | 23

CONCLUSION

The following are the findings of the study of Pak Suzuki Motor
Company Limited.

External Factor Evaluation Matrix Score: 2.98

Internal Factor Evaluation Matrix Score: 2.99

BCG Matrix:

Star: JIMNY, BOLNA

Question Mark: SWIFT
Cash Cows: MEHRAN, CULTUS, ALTO, RAVI
Dogs: APV, LIANA

Internal External Matrix: Growth and Built Strategy

Space Matrix: Quadrant 1, Aggressive Strategies

Grand Matrix: Quadrant 1, Aggressive Strategies

Market Development, Product Development

QSPM Matrix:

Market Development: 3.16

Product Development: 3.44

Chosen Strategy is Product Development.

 P a g e | 24

STRATEGIC RECOMMENDATIONS

Product Development is the selected strategy at this point of time

for Pak Suzuki Motor Company Limited that we observed from our
strategic analysis of the firm.

In product development strategy we recommend the company to

focuses on having the highest level of product performance, the
highest level of functionality or functions and features, the latest
technology or the highest level of product innovation.

This strategy might have some risk for the company as innovative
products are involved but proper research and development will cater
the risk and company can pursue with the strategy to be the market
leaders and get on top.

One major setback to PSMC was in the shape of Suzuki LIANA,

which was not able to meet the expectations and couldn’t hold the
market it was made for.

But company didn’t stop its journey there, and now Suzuki SWIFT
has recently been launched in the market, which seems to be an
attractive offer for the market in the 1300cc class. But still company
has nothing to compete with HONDA and TOYOTA. The Suzuki
needs to enter into the 1600cc and 1800cc market to expand its
market share and market growth. But for that purpose they need to
put more efforts of product development as the new product must
have all the required features and technology that is needed to
compete with giant competitors. And of course, PSMC has
competitive advantage in local assembling and manufacturing of
parts and they can utilize that advantage to produce cheaper cars in
the categories mentioned above.

The PSMC has recently received acknowledgement from Prime

Minister of Pakistan for being the only car manufacturers for the
lower and middle income people of Pakistan.
 P a g e | 25

But they should also need to get into the line of HONDA and
TOYOTA, to achieve that target they need to develop more
technologically cheap and efficient and quality oriented products.

REFERENCES

http://www.paksuzuki.com.pk

http://www.we.com.pk

http://www.maxi-pedia.com

And various news paper articles, research findings and blogs, which helped me indirectly to
build up our mind about Pak Suzuki Motor Company Limited and figure out their External
and Internal Factors which were involved in the project.
 P a g e | 26

“Real Strategic change requires inventing

new categories, not rearranging old ones.”
Said, Henry Mintzberg