Suzuki's make or break Gamble-Will it pay off

So far Suzuki has escaped the direct line of fire with its japanese counterparts and has been operating in its own niche[compact + economy segment]."Their strategy was to avoid the markets where Toyota and Honda were strong and concentrate on producing small cars efficiently," says Hirofumi Yokoi, an analyst at CSM Worldwide in Tokyo but now they have decided to move on and raise the bar.

Suzuki want to play the game where all the action is happening,they are moving towards the more developed markets and with products which would be direct competitors to the more established brand no longer depending on GM products for the same.For the first time they are serious about their products for this segment.No reason why suzuki cannot be successful against the more established brands ,Despite India's looming large on all major automakers' radars, Maruti's[Suzuki] market share in India is still over 40%. About a quarter of Suzuki's global production is made in India.Suzuki still holds 50% market share in Pakistan.

Exports from the Hungary plant helped the company boost sales in Europe to a record 308,000 last year. Sales should get a further kick with the release of a new city car for Europe, called the Splash.

Next up could be an uncharacteristic push in the U.S. By early 2010, Suzuki says it will almost double U.S. sales to 190,000, building on sales of the SX4, a new compact, and an updated version of the new XL7, a budget sport-utility vehicle built in Canada in partnership with GM (GM). Suzuki will also bring the new version of its popular Swift compact to the U.S.Not for nothing have Suzuki share prices been rising ahead of Toyota's in the past few years.

Details are scant, but new models are expected to be Suzuki's first attempts at going head to head with the Honda Accord or Toyota Camry. One model is likely to be based on the stylish Kizashi, a concept car, unveiled at the Frankfurt Motor Show in early September. "You can see it in the direction we're heading—more aspirational," says Gene Brown, vice-president of marketing at Suzuki North America. "Our lineup is really going to expand and get more sporty." Whether Suzuki has what it takes to edge away from cheap SUVs and fuel-sipping compacts is a thorny question. If Suzuki's success stems from avoiding markets where rivals are strong, why change now? "It's controversial for industry-watchers," says CSM Worldwide's Yokoi.

Suzuki could do well to realise that ford had a similar strategy in trying to cater to all segments but that kind of failed miserably suzuki should not not loose touch with what it does best at the same time not trying could be an ever bigger mistake.Its a very fine balance that suzuki has to maintain and we could soon see another major Japenese automobile manufacturer.

[Source:BusinessWeek]