AMBASSADOR- HINDUSTAN MOTORS

BY B.M.BIRLA

TOPICS TO BE DISCUSSED:
Introductio
n

Recommend
ations

AMBASSADO
R

Porters 5
Forces
Theory

SWOT
Analysis

Presented by:
Sandeep Francis-129
Bhavishya Bhatt-130
Karishma Shekhawat-131
Akash Solomon-132
Pavan Swarnkar-134

Introduction
HINDUSTAN MOTORS
Car Pioneers - West Bengal in1942 by Mr B. M. Birla
AMBASSADOR
Ambassador was a leader in car sales in production
since 1958
Morris OxfordIII model, 1st made atCrowley, Oxfordin
the United Kingdom from 1956 to 1959.
Ambassador was considered as a ultimate Indian car
and was fondly called "The king of Indian roads
The only automobile to ply Indian roads for more than
five decades

 A solid and suited car for Indian roads with a powerful

engine, spacious interiors and an imperial quality
Ambassador was the first diesel car in India with1489cc
Jawaharlal Nehru was given the first model of the
Mark II in 1963
Ambassador was embraced by the politicians and
officials, a trend which continues till date because of
the feeling associated with the name even when much
better and affordable alternatives are available

Down-Fall of Ambassador Brands

Traditional Management Style- Reluctant to changes
Ignorance of consumers needs- Comfort & technology
No investment in marketing and promotions
Disregard towards competition
Tried capturing globally though resulted in failure!

Ambassador-SWOT Analysis

TRENGTHS

Recognized Brand
Sturdy and Spacious car
Easy to repair
Authentic Indian car

PPORTUNITIES

W
T

High price
Slow decision making
process
Resistance to change
Lack of understanding
No Promotion
No advertisement

Internal
factors

HREATS

Unique Selling Proposition

(USP)
New Innovation
New technology
Target audience

Positive

EAKNESSES

Negative

Bargaining power of consumers

External
Growth rate of Automobile
factors
industry
Low technological innovations
Intense Competition

Porters Five Forces Indian Car Market

Rivalry
Degree

Earlier
Now

High

Medium

Low

t
e
k
ar
M

re
a
h
n
Co

n
ce

ti
a
tr

on
an
r
B

e
Id

it
nt

Sw

it

in
h
c

st
o
c

The Key players by year 2000

Sales

5% 6%
17%
19%

52%

Maruti
Hyundai
Tata motors
Honda
Others

By the year passing, HMs market share went low and was considered as

others in the segment

Buyer Power
Degree

Earlier
Now

High

Medium

Low

r
e
y
u
B

l
vo

e
m
u
if
D

.A

n
a
dv

ge
a
t
e
y
Bu

rm
o
f
In

on
i
at

st
b
Su

it

es
t
u

Supplier Power
Degree

Earlier
Now

High

Medium

Low

pp
u
S

r
e
i
l

c.
n
o

Fw

I
d.

at
r
eg
t
n

n
io
st
b
Su

t
tu

ts
u
p
In

Barrier to Entry
Degree

Earlier
Now

High

Medium

Low

t
ov
G

y
ic
l
o
.P
it
p
a

u
q
e
R
l

t
n
e
m
e
ir

ss
e
cc
A

to

ts
u
p
In
d
n
a
Br

e
Id

it
t
n

Threat of Substitutes
Degree

Earlier
Now

High

Medium

Low

Sw

ch
it

ng

d
ro

t
s
o

t
c
u

rm
o
rf
e
P

e
c
n
ct
u
od
r
P

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lit
e
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ub

Recommendati
Index
on
At this point of time, in the year 2016. HM highly
needs to restructure their financials with international
funding.
They should outsource R&D department while develop
a all new engine technology by their own.
Company should come up with more variants of car
and should revamp interior and exteriors of car with
latest features and technology
All the employees except top chain should be on third
part contact basis, making it east to manage work
force issues.
Marketing and adverting budget should be set out
aside well planned, unlike what was done previously.
They should stay on with their classic brand image and
try to attract those audience which have special

CONCLUSIO
Index
Automobile is a sector
of innovation. Ever coming
N
year consumers demand higher feature, fresh designs
and value for money product. Hindustan Motors have
its own brand asset as Ambassador which holds a
high level of respect in this sector.
Company should come up with revived model of
Ambassador with latest features, excellent fuel
efficiency, excellent after sales service.
As per its Brand image of Big fat Lady, Ambassador
should feature first in Sedan class segment and later
move up to luxury car market.
Above all there should be drastic change in
companys management and top level managers
should be hired out of industries best talent
irrespective of reference only system which was
followed previously in the company. They should also
go for hiring of Part time management executives
from leading B schools of Mumbai. It is said people are

Index

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