Where would you place Maruti Swift DZire in the competitive matrix and why?

Fig: Competitive Matrix

Fig: Factors in Competitive Matrix

The two factors, namely Value Advantage and Productivity Advantage determine a products
position in the matrix.

For a product to have a cost advantage, it should have the following:

-Capacity utilization -Asset utilization

-Inventory reduction -Integration with all the ancillary units is vital.

Though all the factors are very important, in a time of JIT and other similar process, there is very
little that a company can do to differentiate itself on this front. This is when the Value advantage
comes in. The factors to be considered in this would be

-Customized services -Reliability

-Responsiveness

In the end, everything boils down to the experience of buying and how the customer is made to feel
at each and every point of contact.

The following matrix says something about the Cost-Value gap.

Fig: Cost-Value Gap

Competitive advantage means achieving a bigger gap than your competitors between the
value your customers see in your product and the costs you incur in providing that product.
When you compete on costs, you are really competing only against yourself. Winning on
value is much tougher. You have to out-compete your rivals.
 Fig: Maruti Swift Dzire in Competitive Matrix

Maruti Swift Dzire will be placed in the Cost and service Leader quadrant as indicated in the matrix
above. The reasons for the same would be:

 Comparative analysis between Maruti Swift Dzire and Tata Indigo Manza places Swift Dzire in a
better position with respect to market penetration and performance
 Comparative analysis between Swift Dzire and Hyundai Verna places Swift Dzire in a better
position with respect to mileage and reliability.
 Swift Dzire is placed higher in terms of engine performance, and handling than many of the cars
in its segment
 It is priced lower than many cars in its category.
 The after sales service of Maruti, the number of service centres and availability of spare parts
makes gives the customer a value advantage over other car manufacturers.
 Maruti is renowned for its inexpensive spare parts. Hence the customer does not have to worry
about giving his car for service
 Maruti and its manufacturing processes have a world class rating. This is the reason why Maruti
can price its car lower than its competition. Maruti believes in the volumes. Hence the world
class manufacturing and cost advantage.

(Source: www.gaadi.com)