DEVELOPMENT AND ANALYSIS OF A MODLE FOR SUPPLIER SELECTION USING ANALYTICAL HIERARCHICAL PROCESS: A CASE OF AUTOMOBILE INDUSTRY

Abstract

Global automobile industry is well- positioned for next level of growth, most of which is likely to come from newer technologies and capturing new markets and increasing market share in existing markets. The new technologies will be made available at a premium to the consumers belonging to upper income, vehicles for emerging markets like India where the passenger car penetration is still as low as 4-5 cars per 1000 of population will support growth through product innovation and higher value for money. While the growth is something that all Original Equipment Manufacturers (OEM) have upbeat sentiments about, they are simultaneously confronted with the challenges from price and positioning of vehicles. Price is what they are more concerned with due the fierce competition that they face in their attempt to woo the customers by adding new features to the vehicles, adding new vehicles to the portfolio at rate faster than ever. The case in point is India’s own Maruti Suzuki India Limited that has been dominating Indian passenger car market since 1984 with current market share of around 41% launches a new model or facelifts the existing portfolio once every year. The story of Hero Moto Corp, world’s largest 2 wheeler manufacturer is no different. It bring to the market a new motorcycle or a new version of the motorcycle every year, at least. All said and done they are not way head with their respective competition.