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21952665 SWOT of Car Manufacturers
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Transcript of 21952665 SWOT of Car Manufacturers
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Strength and Weaknesses of passenger car manufacturers in INDIA
ANKIT MISHRA 09038 ANKIT SHUKLA 09039 ANURAG GUPTA 09044 AASHISH 09004 ASHOK 09049
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Established distribution and after-sales networks
Understanding of the Indian market and ability to liaison with the government
Ability to design products with differentiating features
Brand Image Experience and Know-how
in technology
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Dependent on vendors Heavy Import tariffs
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Increased purchasing power of Indian middleclass category
Govt. subsidies Foreign collaboration
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Threats from Chinese manufacturers
Indian as well as foreign competitors
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Hyundai has a sales network of 250 state-of-the-art showrooms across 189 cities
The Santro was chosen the best in the premium compact car segment
study also reveals that 97% of Hyundai owners would probably recommend the same make of vehicle, while 90% owners would probably repurchase the same make of vehicle.
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Higher costs due to changes in prices of inputs such as steel, aluminum, plastics and rubber, which go into the production of automobiles.
Long term contracts dilute the benefits, if any of a decline in input prices.
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Company led the growth in the passenger car sector last year.
Hyundai sales went up 30% to 4,72,000 units.
Its share increases from 40.3% in 2005-06 to 47.7% in 2006-07
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Hyundai is exposed to a variety of market and other risks including the effects of demand dynamics.
we use the instrument of insurance to mitigate the risk.
The automotive industry is very capital intensive
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Cheapest car-tata nano Brand image Alliance with Fiat since 2006 Internationalisation strategy Good in terms of technology Good service
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No self made car in luxury segement
Declining margins and returns
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ACQUIRED DAEWOO MOTOR’S COMMERCIAL VEHICLE
ACQUIRED LAND ROVER , JAGUAR BRANDS AND ENTERED INTO LUXURY SEGMENTS
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INCREASING COMPETITION
SITUATION LIKE SINGUR LAND CONTROVERSY
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Strengths...
Brand Image... Snob Value attached. Extra attention to passenger safety. SUV Bumper Resale Value Roadside Assistance Designed by keeping the customer mood in mind.
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Weakness...
JIT... Not catering to the needs of the masses. Building Time Waiting list Costly Spares. Can't be drived anywhere
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As the rule goes.. “profit lies at the bottom of pyramid”… so Mercedes have a lot more market if they start catering to the needs of the Masses.
Mercedes is known to give quality so there
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As we see that these days lot more companies are shifting to producing “DESIRES” in the car market so it no longer would be a mercedes bastion.
The roads are getting cramped day by day so a hard time chasing high capacity mercedes cars.