Reasons Why Suzuki Failed in the UAE | Suzuki UAE Case Study

Suzuki is a Japanese car manufacturer. It had a presence in the UAE for many years, and it was one of the most popular brands in the country. But after several years, it failed to meet the expectations of customers, and it was forced to shut down its operations in Dubai.

Why Did Suzuki Fail?

There are several reasons why Suzuki failed in the UAE:

Poor Marketing Strategies

Suzuki relied on its website for most of its marketing efforts. There were no advertisements on television or radio stations and no billboards in major cities across the country. This kind of marketing strategy is not effective because many people rely on online reviews when they are looking to buy a new car. If they don't see any positive reviews then they won't even consider buying from your brand.

Unreliable Customer Support

The customer support of Suzuki wasn't reliable at all times because their employees were not trained properly or they weren't motivated enough to provide quality service to their customers. This resulted in many complaints from customers who bought their cars from this company and later experienced problems with them because of poor customer care services provided by Suzuki UAE.

Low-Cost Cars

Suzuki’s business model in the UAE was based on low-cost selling, which means that there was no margin for error when it came to pricing and marketing. This proved to be a costly mistake for Suzuki as other brands were able to undercut its prices and gain market share.

Suzuki did not have any service centres in the UAE and this affected their sales significantly because people were not convinced about buying from them if there was no support after the sale.

Poor entry strategy

Suzuki Motor Corporation (SMC) entered the UAE market with a huge fanfare but failed to sustain its presence. The company was unable to attract and retain the right people in the market. It also lacked a clear understanding of local market dynamics, which led to poor entry strategies as well as product portfolio decisions.

The main reason why Suzuki failed in UAE is its inability to understand local customers’ needs and preferences. The company did not have a clear understanding of the market and did not have any business partners here. In addition, the company failed to launch products that met local customers’ requirements and tastes.

Poor product quality

The company's sales have been declining for years and its products are not competitive in the UAE market. The company's cars are priced above average, and their quality is substandard. Suzuki has also failed to keep pace with technology as compared to its competitors.

Lack of product differentiation

Suzuki has failed to differentiate its products from those of its competitors. It produces only one model of car that does not allow it to compete with other brands on features such as safety or comfort. Its cars' designs are outdated and do not appeal to modern consumers who prefer more stylish vehicles with more features.

Poor distribution network

Suzuki's poor distribution network has also contributed to its failure in the UAE market. Consumers in this region expect easy access to products they want, while Suzuki's distributors are few in number and far apart from each other, making it difficult for customers to access their services easily.

Suzuki is a flop brand in the UAE, but you can choose other well-known brands if you’re travelling to Dubai. For your ease, we suggest you book your next car from rentalcarsuae.com for a superior experience and the lowest pricing.