Final Project Milestone One
Denise Chandler
Southern New Hampshire University
Final Project Milestone One
Business Problem
Maruti Suzuki India Ltd is a subsidiary of Suzuki Motor Corporation of Japan. MSIL sat atop
of the automotive industry in the Indian market since the first vehicle rolled off the production
line in 1983. MSIL offered vehicles in the A-segment including hatch, sedan, sport utility and
multi utility vehicles. MSIL commanded the Indian market until 2008 (Mukherjee, Mathur, Dhar
2015). From 2008 through 2013 MSIL's market share in India dropped from 61% to 49%
(Mukherjee et al 2015). During that same time, automotive giants Detroit based General Motors
and Japan based Toyota grew production in the A-segment compact category. As a result,
competition in the premium hatch category became more competitive (Mukherjee et al 2015).
India had the sixth largest automotive market in the world (Mukherjee et al 2015). That meant
to maintain a competitive edge, manufacturers had to tailor their vehicles to meet the needs of
the consumer. Hyundai Motor Company achieved that feat and took the top spot in the Indian car
market. Tata Motors was also a top contender for the Indian consumer. As this was happening
companies also began to lure the consumer to the used car market with sales incentives. As other
automotive manufacturers were modifying their business models to attract and retain consumer
trust and confidence with advertisements and incentives MSIL Ltd had not put into motion a
business plan that would ensure they regained their position as the top manufacturer and sales
company in the automotive industry.
Research Problem
As consumer needs and the market changed MSIL did not pivot. The immediate problem for
MSIL Ltd is rectifying the company's failure to manufacture vehicles in the A-segment category
that met the needs of India's consumer market as other manufacturers had done. That means
MSIL Ltd will have to develop and execute a new business plan that addresses the need for
standard features specific to the Indian market including air conditioning, power steering, power
windows, touch-screen audio, electric and auto-foldable mirrors (Mukherjee et al 2015). GM,
Ford, and Toyota had already made those features standard with their entry, mid-hatch, and
luxury vehicles when they entered the market. Hyundai responded by
changing its business model to stay competitive (Mukherjee et al 2015). MSIL
Ltd executives commissioned macroeconomics studies to determine the new
business strategy. Those studies looked at dealership health, sales figures, market potential and
consumer insights.
Stakeholders
Stakeholders are defined as a party that has an interest in a company and can either affect of
be affected by the business (Fernando 2021). In this case the consumers are stakeholders because
they will be the beneficiaries of new products featuring better products and technology. India's
economy is a stakeholder because increased sales mean more money that will keep the country
prospering. The competition Hyundai, Suzuki Motor Corporation, Toyota, and GM are
stakeholders as well because they are competitors that stand to lose market share and business as
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