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Company Background Michio Suzuki founded Suzuki Loom Works a privately owned loom manufacturing company in 1909 in Hamamatsu Japan In 1952 the company began manufacturing and marketing a 2-cycle 36 cubic centimeter cc motorcycle which became so popular that in 1954 the company introduced a second motorcycle and changed its name to Suzuki Motor Company Ltd SuzukiIn 1985 American Suzuki opened its automotive division and was the first manufacturer in the United States compact utility Vehicle SUZUKIS MARKETING STRATEGY IN THE US MARKET ENTRY STATEGY Suzuki changes its policy many times according to the market requirements At first they entered in the US market as exporter of a single product only motor cycle with pure vertical integration In 1964 Suzuki began exporting motorcycles to the United States It established a wholly owned subsidiary US Suzuki Motor Company Ltd to serve as the exclusive importer and distributor of Suzuki motorcycles Then it began to export multi products and out sources its one brand In 1983 General Motors GM purchase 5 of Suzuki hand helped the company a subcompact car for the US market The car name was Chevrolet Sprint it was the first entry into the continental US automobile market And it was introduced regional basis only in the West Coast At last they decide to go for manufacturing in foreign land GMs success with Sprint showed Suzuki that a market existed for its cars in the continental of United States So the company planned to introduce several unique vehicles into the US market over time Suzuki had no guarantee how ever the GM would be willing to market the vehicles Therefore Suzuki decided to establish its own presence in the US automobile industry Japans voluntary restrain agreement VRA quotas made it impossible for Suzuki to export any cars other than the Sprint to USA in future So in 1985 Suzuki and GM began negotiations with the Canadian government to build a plant
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