tag:blogger.com,1999:blog-7004453.post3598981221159315176..comments2023-09-02T19:53:06.144+05:30Comments on Understanding and applying value investing principles: Analysis - Maruti Suzuki LtdRohit Chauhanhttp://www.blogger.com/profile/00356455735241398199noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-7004453.post-73576306612883543142008-05-21T22:54:00.000+05:302008-05-21T22:54:00.000+05:30Hi ninadvery interesting link . Let me give my tho...Hi ninad<BR/>very interesting link . Let me give my thoughts<BR/><BR/>I assume you would have read clayton christensen's work on innovation. namely that a lot of companies in response to disruptive innovation tend to move upmarket. I see signs of that happening here with maruti. not a good sign in the long run although the company will do well in medium to short term<BR/><BR/>regards<BR/>rohitRohit Chauhanhttps://www.blogger.com/profile/00356455735241398199noreply@blogger.comtag:blogger.com,1999:blog-7004453.post-48746676747736335772008-05-21T19:05:00.000+05:302008-05-21T19:05:00.000+05:30Hi Rohit http://www.hindustantimes.com/StoryPage/S...Hi Rohit <BR/><BR/>http://www.hindustantimes.com/StoryPage/StoryPage.aspx?id=eb6b8838-a3ec-4edc-a450-f2ea48791cb3<BR/><BR/>Run thru this link in context to your post. Honestly I dont know whether this is really Maruti's startegy or a figment of imagination in the reporters mind. <BR/><BR/>Cheers <BR/><BR/>NinadNinad Kunderhttps://www.blogger.com/profile/14275940021296930028noreply@blogger.comtag:blogger.com,1999:blog-7004453.post-67997116410177365472008-05-21T05:20:00.000+05:302008-05-21T05:20:00.000+05:30Hi ranjiti agree. I think maruti has correctly rea...Hi ranjit<BR/>i agree. I think maruti has correctly realised that the dealer network is a key asset and a major competitive advantage. they have taken a lot of effort to sustain the profitability of the dealers and improve their revenue base via additional services such as insurance, used car sales etc<BR/><BR/>regards<BR/>rohitRohit Chauhanhttps://www.blogger.com/profile/00356455735241398199noreply@blogger.comtag:blogger.com,1999:blog-7004453.post-80433167381696161862008-05-21T03:14:00.000+05:302008-05-21T03:14:00.000+05:30Hi ninadcongrats on your blog. would be visiting i...Hi ninad<BR/><BR/>congrats on your blog. would be visiting it regularly.<BR/><BR/>agree maruti has done a good job of maintaining its market share after the stumble in the late 90s. however as the global growth slows, we can expect to see more competition in india and china.<BR/><BR/>as the car majors expand and establish in india, we can expect to see a repeat of china to a certain extent where there is a lot of competition. that is what worries me ..<BR/><BR/>50% is huge market share to maintain and if there is a price war, then margins could be a casualty<BR/><BR/>i am not too worried about nano. even before nano, the M800 segment is shrinking and is now less than 10% of the volumes. so i am not too worried for maruti due to nano.<BR/><BR/>but i guess i am with you on the point, that it is difficult to see how it will play out<BR/><BR/>regards<BR/>rohitRohit Chauhanhttps://www.blogger.com/profile/00356455735241398199noreply@blogger.comtag:blogger.com,1999:blog-7004453.post-6051998876185412002008-05-20T22:52:00.000+05:302008-05-20T22:52:00.000+05:30Hi Rohit,I want to add one important point on Maru...Hi Rohit,<BR/><BR/>I want to add one important point on Maruti. Their idea on making the dealers rich by helping them in building relationships rather than just treating them as middlemen is paying off the dividends very well.<BR/><BR/>Regards,<BR/>Ranjit kumarRanjit kumarhttps://www.blogger.com/profile/14856995905755271940noreply@blogger.comtag:blogger.com,1999:blog-7004453.post-38394596652462888752008-05-18T15:31:00.000+05:302008-05-18T15:31:00.000+05:30Hi Rohit I think maruti has done a comendable job ...Hi Rohit <BR/><BR/>I think maruti has done a comendable job over the years maintaining its marketshare insipte of the level of competition from all over the world pouring into India. <BR/><BR/>Maruti's only Achilles heel was its ability to address the premium segment. The Baleno was a disaster and the Esteem had seen better days. <BR/><BR/>With SX4 and Dzire the company has managed to move the brand upwards. Prices on the Grand Vitare have also been slashed to make it competitive. <BR/><BR/>If it is able to build a product portfolio in the premium segment covering every price point as it has managed to do it in the volume segment then it will continue to be the formidable player. <BR/><BR/>The only joker in the pack could be the Nano. One doesnt know how the consumer will react to it. The consumer could prepone car purchase bcos of the Nano and then in the next upgade move straight to the Swift segment. This would affect the entire 800, Alto, Wagon R etc segment which is if I m not wrong about 70 % of the companys sales. <BR/><BR/>I dont know how it will play out. <BR/><BR/>BTW i just/finally started writing. I m on <BR/>http://investingvalues.blogspot.com<BR/><BR/>Cheers <BR/><BR/>NinadAnonymousnoreply@blogger.com