Suzuki Motor Company Market Strategy Analysis
Analysis of marketing strategy of Suzuki Motor Company, Ltd. (Suzuki)
Company Background: Michio Suzuki founded Suzuki Loom Works, a privately owned loom manufacturing company, in 1909 in Hamamatsu, Japan. In 1952, the company began manufacturing and marketing a 2-cycle, 36 cubic centimeter (cc) motorcycle, which became so popular that in 1954 the company introduced a second motorcycle and changed its name to Suzuki Motor Company, Ltd. (Suzuki).In 1985, American Suzuki opened its automotive division and was the first manufacturer in the United States compact utility Vehicle.
SUZUKI'S MARKETING STRATEGY IN THE U.S.
MARKET ENTRY STATEGY: Suzuki changes its policy many times according to the market requirements.
At first they entered in the US market as exporter of a single product (only motor cycle) with pure vertical integration. In 1964 Suzuki began exporting motorcycles to the United States. It established a wholly owned subsidiary, U.S Suzuki Motor Company, Ltd., to serve as the exclusive importer and distributor of Suzuki motorcycles.
Then it began to export multi products and out sources its one brand: In 1983, General Motors (GM) purchase 5% of Suzuki hand helped the company a subcompact car for the US market. The car name was Chevrolet Sprint, it was the first entry into the continental US automobile market. And it was introduced regional basis only in the West Coast.
At last they decide to go for manufacturing in foreign land: GM's success with Sprint showed Suzuki that a market existed for its cars in the continental of United States. So the company planned to introduce several unique vehicles into the U.S market over time. Suzuki had no guarantee, how ever, the GM would be willing to market the vehicles. Therefore, Suzuki decided to establish its own presence in the US automobile industry.
Japan's voluntary restrain agreement (VRA) quotas made it impossible for Suzuki to export any cars other than the Sprint to USA in future. So in 1985, Suzuki and GM began negotiations with the Canadian government to build a plant in Ontario that could produce approximately 200,000 subcompact cars per year. Suzuki management expected the plant to be on line by early 1989, and the company could then begin selling cars in the USA under its own name.
But the US market was growing market and was very lubricated for both Japanese and other foreign competitors, and Suzuki managers believed that clutter might limit their success if they waited until 1989, they were convince that...