Quote:
Originally Posted by johnjacob And as long as people still prefer to buy those outdated products instead of the competition*, why wouldn't (and shouldn't) Maruti keep selling them? |
Very true.
On almost every thread we can see some reference to anguish/anger at dated products still being sold, older models not being phased out by the manufacturer etc.
I frankly don't understand why this should be the case, for atleast 3 reasons ;
First one being that, the consumers dictates demand/supply for products in a free market. If there are buyers, why not sell the product, however old it might be ? When no buyers are available, the manufacturer will anyway be forced to phase out that product.
Second reason is that, if the product serves a particular need of the target market and with no other alternative available, what is the harm in retaining it in the product portfolio ? Taking the example of the M800 which has been here for more than 2 decades (with only cosmetic changes), it is the stepping stone for people whose budget is limited and who want to move from bike to car. It is enough for a small family to move around in relative safety, when compared to a bike. The comfort, leg space, snob value etc might be lacking, but it still serves their purpose. Why phase out such a product, which meets consumer needs ? I started driving on an M800 in '85 and even after 20 odd years, I like the car. When faced with parking / FE issues with the Baleno, I sometimes think of getting an M800 just for the city driving and keep the Baleno for fun outings.
The third and important reason is that good competition can automatically force manufacturers to phase out old models. But then today, what competition does the M800 have ? Zilch. Let the competition come out with an answer to it and then see Maruti pulling its act together. Let Hyundai come out with a M800 equivalent and see the scene hotting up.
Also, it is not enough to just have competition. The competition should have a good product which has advantages over the existing product. A car is a package of various attributes like engine, looks, FE, stability, snob value, power, brand value etc. The mere fact that a new car is available in the market, which has different (not necessarily good) looks does not mean that the existing car should not be considered due to being dated-in-market. Let the competition bring in cars that better the existing one on the other attributes and then see the older cars being dumped. But as long as the competition brings only new looks without any significant improvement in the other factors, why phase out a car that is great to drive and own ?