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Mahindra &mahindra - A Strategic Perspective: Group 5
Mahindra &mahindra - A Strategic Perspective: Group 5
Mahindra &mahindra - A Strategic Perspective: Group 5
– A Strategic Perspective
Group 5
Abhinav Pratap Singh 0911215
Emmanuel Joseph PRESENTATION NAME
0911233
Sagar Gaikwad 0911235
K Vamsi Praveen Company Name
0911240
Sumon Das 0911276
Agenda
Industry Definition
Defining the Problem
Recommendations
Industry Analysis
Company Analysis
Plans for Implementation & Timeline
Financial Projections
Defining the Industry
Consists of all two –wheeler companies Consists of all three wheelers, trucks and other vehicles used for commercial purposes
Passenger Cars SUV MU
Defining the Industry
• Indian Passenger vehicle industry falls under the
broader category of the automobile industry
• The passenger vehicle industry consists of 3
segments – Passenger cars, SUV’s and MUV’s
• Passenger cars has the major market share in this
industry of 78.6% with a CAGR of 12-13 %
• The rest of the market is accounted for by MUV’s
and SUV’s
Mahindra & Mahindra
• Mahindra & Mahindra manufactures automobiles
since 1949
• Only commercial vehicles till it started launching
Utility Vehicles. Scorpio gave the visibility.
• About 7% market share in Passenger Vehicle
Industry & more than half market share in Utility
vehicles segment.
• Mahindra & Mahindra was ranked second in the
prestigious Most Trusted Car Company in India
survey by TNS
Defining the Problem
Indigenous development
Industry Analysis
Internal Rivalry
Medium attractiveness
Rivalry
Moderate number of
competitors No. of competitors
High growth rate of 12- 5
13%
Startegic stakes Industry Growth
High Fixed cost– less
rivalry
High Differentiation –
Low rivalry
High switching cost 0
High openness in terms
Openness of terms of sales Fixed Cost
of sale – Low rivalry
Strategic stakes are
high for competitors
power of incumbents
Less chance of Forward
integration by suppliers
High chance of Backward Contribution of cost 0 Switching Cost
integration by industry
High contribution to quality
– Low power of incumbents
Contribution to quality Supplier's threat of forward integration
High contribution to cost for
incumbents Industry's threat of backward integration
Industry’s importance to
supplier is high
Threat of Substitutes
Medium – High
attractiveness Threat from substitutes
Availability of
Low availability of close close subsitutes
substitutes – Other
modes of public 5
transport are not close
substitutes to replace
passenger cars
Low attractiveness
Barriers to exit
The equipment used is Assets Specialisation
highly specialized and
4
cannot be used in other
industries – High barrier to
Exit
2
High cost of exit
Low Government
Restrictions post 0
liberalization – Low barrier
to exit
Low attractiveness
Government Regulations
Low industry protection
post liberalization
Industry
Low industry regulation – Protection
Attractive to incumbents 4
Government Regulations
Highly restrictive custom 2
4
Moderate to High rivalry as
Rivalry among
industry has established Government Actions Competitors
players whose strategic
stakes are high 2
Low bargaining power of
buyers – attractive to
incumbents
0
Low bargaining power of
suppliers – attractive to Threat of substitutes Barriers to Exit
incumbents
High barriers to entry and
exit – high capital investment
Low availability of
substitutes – attractive to
incumbents Power of Suppliers Power of Buyers
advantage
IT ski ll s
skills
Weakness
4. Geographical
engineering
3. Quali
1. Low i nvestment
3. Large mi ddl e clinass
R&D
4. Geographical
3. Quality
2. 4.
Fragmented components
Transportation i ndustry
i nfrastructure
Low cost,
SWOT
1. Competition
2. Direct
1. Competition
2. Direct
Threats
4. Goods and Service Tax (GST)
andand
countries
3. Foreign Players
Threats
4. Goods and Service Tax (GST)
2. High Growth Rate
Indirect
countries
3. Foreign Players
fromfrom
1. Quality products
2. High Growth Rate
Indirect
Opportunities
1. Quality products
low low
Taxes
Opportunities
costcost
Taxes
Emerging Trends
Mahindra-Renault Collaboration
Stations
RisingRising
1 . 2 2 .4 % growth in pas s enger Vehi cl e
Op portunities
2 . FDI increas ed at 4 7 .2 5 % YoY
Competition
Cost Cost
for Service
1 . 2 2 .4 % growth
3. Customs
in pasduty
s enger Vehi cl e
2 . FDI increas
4 . Excis e Duty
ed atdecreas % YoY
4 7 .2 5ing
Threats
Competition
TaxService
material
3. Customs duty
4 . Excis e Duty decreas ing
3. Rising
Threats
Tax for
material
2. Raw
3. Rising
1. Service
2. Raw
1. Service
SWOT
2. Diversification into unrel ated arenas
technology and substandard)
2. Diversification into unrel ated
1. Consumer Perception( Lowarenas
on
technology and substandard)
Weakness
1. Consumer Perception( Low on
Weakness
SWOT Analysis-M&M
Critical Success Factors
Sourcing &
Support
HR
activities Practices
Standardi-
sation M&M
Information
Technology
VRIO Analysis
Non- Non-
Resource Valuable Rare imitable Substit
utable
Standardisation of PQCDSM
Slack
●
Highly Labour intensive
●
Manufacturing units across the country- top management plays crucial role
Hold-up risk
●
Separate sourcing teams
●
Raw materials – gear manufacturing, forging
Value Chain
Cost Leader
Backward Integration
Services
Estimated Timeline
Market Launch
Development Stage
Conception Stage