Small Is Big!

“I care less for solutions from emotions, I believe more in the magic of logic”, said Rajiv Bajaj famously when Bajaj Auto pulled out of scooters. The argument is valid for businesses of all hues. But somehow companies refuse to learn their lessons. What else would explain Maruti Suzuki decision to renew focus on luxury cars? Maruti has burnt its hands several times trying to follow its Japanese peers Toyota and Nissan which boast of a Lexus and Infiniti respectively. Kizashi being the latest victim of the company desire to mount luxury. Maruti’s current contribution of 10 lakh and above segment cars is merely 13% while the Alto family, WagonR and Dezire are time tested bread and butter products. Having ceded space to competition three years ago, Maruti Suzuki has bounced back cornering 45% market share end 2014-15. It must remember small is big!

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