Re: Maruti Suzuki to revamp its sales and service network I don’t understand the logic there. The company’s USP has always been its large dealer network and value-for-money pricing. Everything else—like the exterior and interior design and quality of its cars, the reliability of the vehicles, its safety standards, the experience of purchasing a Maruti Suzuki car—has always been subpar. This has kept a large number of customers away.
Sure, Maruti Suzuki has the largest market share by a wide margin in India, but does that mean it should stop trying to increase it and be content with what it has got? If the company recognises its failings and is trying to revamp its operations to gear them more towards bringing in the premium customers it is currently missing out on (who, incidentally, tend to buy products with higher margins), where is the harm in that?
I assume that no one at the company is stupid, so it is unlikely that it will do things to take itself out of the consideration of the sub 4-metre buyers in the country. But when you’ve captured 50% of the market, the next logical step (that far too many risk averse and staid corporations fail to take) is to go after the other 50%, even if it is a challenge to retain the qualities that made you appeal to the first fifty. |