G L BAJAJ INSTITUTE OF MANAGEMENT AND RESEARCH

GREATER NOIDA

MINOR PROJECT REPORT

ON

Post Graduate Diploma in Management

Term-1 (Batch-2019-21)

Submitted by: Submitted to:

SHIVANSHI DWIVEDI DR. KIRTI DUTTA
Sec-D, Roll no-19185 (DEAN)

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 G L BAJAJ OF MANAGEMENT AND RESEARCH
GREATER NOIDA

CERTIFICATE
This is to certify that Ms Shivanshi Dwivedi (PGDM 19185) PGDM
2019-21,Term-1,work exemplified in Minor Project Report on
MAHINDRA RISE under my mentorship in GL Bajaj Institute of
Management and Research, Greater Noida(U.P).

Mentor Section in Charge Faculty in Charge

Dr. Kirti Dutta Mr Saurabh Mittal Dr. Dileep Singh

(Dean) (Assistant Professor) (Professor)

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AKNOWLEDGEMENT

The success and final outcome of this project required a lot of guidance and assistance from
many people and I am extremely privileged to have got this all along the completion of my
project. All that I have done is only due to such supervision and assistance and I would not
forget to thank them.

I respect and thank Dr. Ajay Kumar,Director GLBIMR for providing me an opportunity to do
the Minor project in two companies and giving us all support and guidance which made me
complete the project duly. I am extremely thankful to Dr. Kirti Dutta for providing such a
nice support and guidance, although he had busy schedule managing the corporate affairs.

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CONTENT
1.1 the product and services offered

2.1 Pricing details include list prices for key products and services.

3.1 Distribution Channel

3.2 Channel level

3.3 Business Marketing Channel

3.4 Multi-Channel(Def)

3.5 Functions and Distribution [Marketing] Channels perform: -

3.6 Dealers Perception

3.7 Capacity to provide

3.8 Dealer motivation

3.9 Managing the dealer network

4.1 Performance appraisal of individual dealers

4.2 Criteria for dealer appraisal

4.3 Dealer – principal relation

4.4 Dealer induction

5.1 The top 10 competitors in Mahindra's competitive set are: -

5.3 MARKET SHARE CHART

6.1 SWOT stands for strengths, weaknesses, opportunities, and threats.

6.1.1 STRENGTHS
6.1.2 Weaknesses
6.1.3 Opportunities
6.1.4 Threats

7.1 Competitive advantage boils down to why a customer likes them better

8.1 FINANCIAL ANALISYS

9.1 COMPETITORS

9.1.1INTRODUCTION

9.1.2 Development of the Business

9.1.3 Board of Directors

9.1.2SWOT ANALYSIS

9.1.2.1 STRENGTHS

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 Strong Market Position and Brand Recognition

9.1.2.2 WEAKNESSES

Deterioration of Products

9.1.2.3 OPPORTUNITIES

Positive Attitude towards “Green” Vehicles

9.1.2.4 THREATS

Intense Competition

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MAHINDRA RISE

1.1 THE PRODUCT AND SERVICES OFFERED

11 SECTORS. 22 INDUSTRIES. 150+ COMPANIES.

AEROSPACE
Airplanes speed up mobility, ensuring help is received when it’s most required. Our planes
act as air ambulances, supporting in rescuing animals and putting out wildfires, apart from
serving as aircraft for adventure. We also make airframe parts and assemblies for reputed
aircraft platforms. So, the next airplane you board may have Mahindra parts in it!
MAHINDRA AEROSPACE

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AFTERMARKET
Why shouldn't a used vehicle guarantee the quality of a new one? Mahindra Aftermarket
represents our pioneering efforts to professionalise the pre-owned car and car service
industry. Our range of offerings, from financing and exchange platforms, maintenance and
repair, and other services meet nearly every automotive need.
MAHINDRA FIRST CHOICE SERVICES
MAHINDRA FIRST CHOICE WHEELS

AGRI INDUSTRY
We empower farmers with the most relevant technology and agricultural know-how, and link
them to the market, so they get better returns. Our agricultural inputs, advisory services, and
output procurement businesses equip them to deliver continued Farm Prosperity, while our
Farm-to-Fork model ensures stringent quality checks throughout the supply chain.
MAHINDRA SAMRIDDHI
MY AGRI GURU
EPC BY MAHINDRA
SABORO FRUITS
SABORO DAIRY
NUPRO

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AUTOMOTIVE
We wanted to make the commute from point A to B, smoother. So, we introduced to India its
first utility vehicle. Our desire to keep identifying ways to enhance the automotive
experience, pushed us to foray into electric vehicles, pickups, and commercial vehicles.
Today, we are preferred for delivering on durability, reliability, environment-friendliness, and
fuel-efficiency.
AUTOMOTIVE PASSENGER VEHICLES
AUTOMOTIVE COMMERCIAL VEHICLES
MAHINDRA ELECTRIC
AUTOMOBILI PININFARINA
SSANGYONG MOTOR COMPANY
MAHINDRA CUSTOMIZATION
MAHINDRA SPARES

BOATS
The best way to explore open seas and water bodies is through our watercrafts. As India’s
first boat builder in the organised sector, we offer a bespoke fleet of state-of-the-art personal
and commercial crafts that effortlessly combine modern luxury with stellar performance.
Having created a new standard for watercrafts, we’ve now established an ISO 9001:2008
certified by TUV Austria facility to manufacture our sizeable fleet.
MAHINDRA MARINE PRIVATE LIMITED

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CLEAN ENERGY
We see tremendous opportunity for producing clean energy by harnessing the abundant
sunshine India receives. Mahindra Susten, our solar energy business is already a leader in the
Solar EPC space, offering extensive expertise in Solar PV EPC; both Utility Scale and
Distributed, Build Solutions, Operations and Maintenance and other Innovative offerings.
MAHINDRA SUSTEN

CONSTRUCTION EQUIPMENT
Our foray into this industry comes on the back of seven decades of experience in making
tough, rugged and durable utility vehicles, and tractors. Manufactured at our state-of-the-art
facility at Chakan, Pune, the Mahindra EarthMasterTM embodies our promise of providing
world-class construction equipment and services, backed by our famed and extensive dealer-
network.
MAHINDRA CONSTRUCTION EQUIPMENT

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CONSULTING
With the aim to positively impact our partners, we offer world-class consulting services in
three key verticals: information security and risk management, engineering consulting, and
business process management. We also work to better protect the information assets,
strengthen physical security and reduce risk for organisation, while offering BPM and
advisory services.
MAHINDRA CONSULTING ENGINEERS

DEFENCE
We aim to protect those who protect us. Our gamut of defence offerings encompasses land
systems, naval systems, defence electronics and security consulting. Aligned to the
Government of India’s defence policy, making our forces self-sufficient is a key pillar for us.
To this end, we’re aggressively scaling up our capabilities to meet the requirements of a
nation on the rise.
MAHINDRA DEFENCE SYSTEMS LTD.
MAHINDRA TELEPHONICS INTEGRATED SYSTEMS LTD.

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FARM EQUIPMENT
Farm prosperity remains at the heart of all our agri-related endeavours. Our tough and
durable tractors and implements raise productivity in farms across all continents on earth. The
world's largest selling tractor brand by volume, and India's no.1 tractor maker for over three
decades, we are the only tractor company to have won the Deming Prize and Japan Quality
Medal.
MAHINDRA TRACTORS
SWARAJ TRACTORS
MAHINDRA USA (TRACTORS)
MAHINDRA YUEDA (YANCHENG) TRACTOR COMPANY LTD - JINMA
TRACTORS
MAHINDRA GUJARAT TRACTORS
TRRINGO
MAHINDRA TRACTOR IMPLEMENTS

HOSPITALITY
We entered the Hospitality industry in 1996 to offer Indian families fun-filled and affordable
vacations in some of the most exotic locations in the country. Two decades later, we are

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amongst the largest vacation ownership brands in the world. With over 46 resorts in India and
abroad, we aim to keep this number growing and extend this experience to more families.
MAHINDRA HOLIDAYS & RESORTS INDIA LTD.

INFORMATION TECHNOLOGY
We have a leading presence in the fast-paced information technology (IT) industry. With
global expertise and seamless cross-platform functionality, we create IT solutions that
empower companies to focus on, and enhance their core businesses. Leveraging nearly three
decades of experience, we offer innovative solutions that integrate technology with business
for several Fortune 100 and 500 companies. Our services are delivered by a triage of
companies: Tech Mahindra, Bristlecone and Mahindra Comviva, with each of these
companies being a leader in their respective areas.
TECH MAHINDRA
MAHINDRA COMVIVA
BRISTLECONE

INSURANCE BROKING
We understand the importance of securing the future. So, we forayed into the business of
insurance, offering direct insurance and reinsurance broking services to corporate, retail and
individual clients. From standard policies to special solutions, from children’s plans to

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retirement plans and more, we hope to fulfil our customer needs through our bouquet of
solutions.
MAHINDRA INSURANCE BROKERS LTD. (MIBL)

LOGISTICS
As one of India’s largest 3PL solutions providers, we operate in two distinct business
segments, Supply Chain Management (SCM) and corporate People Transport Solutions
(PTS). We service 400+ customers across Automotive, Engineering, Consumer Goods,
Pharmaceuticals, Ecommerce, Bulk sectors for SCM and IT, ITES, Manufacturing, Banking,
Financial Services and Insurance (BFSI), Consulting businesses for the PTS business.
MAHINDRA LOGISTICS

POWER BACKUP
We know that power cuts eating into profits and inefficient DG sets cause losses. So, we got
into the gensets business to save businesses unnecessarily losses. As a result, we are today the
leading manufacturing brand of diesel & gas generator sets across India.
MAHINDRA POWEROL

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REAL ESTATE & INFRASTRUCTURE
We entered India’s real estate in 1994, aiming at re-defining sustainable urbanization. With
our green residential spaces and smart infrastructure, we work towards providing high-quality
affordable housing to Indians.
MAHINDRA LIFESPACE DEVELOPERS LIMITED
MAHINDRA WORLD CITY DEVELOPERS
MAHINDRA WATER UTILITIES

RETAIL
On one hand, our e-commerce platform M2All brings together the varied portfolio of all our
products together, on one platform. On the other, we aim to bring to our customers the
convenience of doorstep delivery of groceries too – fresh, organic produce, straight from the
farm.
M2ALL
MAHINDRA RETAIL PVT. LTD.
FIRSTCRY - A FIRSTCRY MAHINDRA VENTURE
EAST INDIA COMPANY

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RURAL HOUSING FINANCE
We aim to transform rural lives by helping people arrange funds for constructing, renovating,
and extending their houses. Set-up in 2007, we have today become the largest home finance
company serving rural India. In 2014, we were awarded the ‘Most Admired Service Provider
in Financial Sector’ at the Banking, Financial Services & Insurance Awards.
MAHINDRA RURAL HOUSING FINANCE

STEEL
Founded in 1945 as a Steel trading company, we continue to blaze new trails in the Steel
business, with a presence in specialty steel making, steel processing and trading. Mahindra
Sanyo Steel (earlier known as MUSCO), a tripartite venture between Mahindra, Sanyo and
Mitsui, Japan, are India’s leading maker of alloy and specialty steels. Mahindra Intertrade is
India’s largest non-captive steel processor in the organized sector, catering to the needs of a
variety of customers in the automotive, non-automotive and power industries.
MAHINDRA SANYO SPECIAL STEEL PVT. LTD.
MAHINDRA ACCELO

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TRUCKS & BUSES
Indian highways are notorious for their rough terrain, unpredictable weather, and unpaved
paths. So, we build our trucks and buses in India, for India. Combined with European safety
standards and state-of-the-art M-Power engines, our trucks and buses come in many shapes
and sizes, but with an unchanging promise: the goods will be delivered.
MAHINDRA TRUCKS & BUSES

TWO WHEELERS
From bringing back the iconic JAWA, to introducing the all-electric GenZe, we are working
to enhance the two-wheeler experience for our customers. Since the inception of this industry
in 2008, we have built a range of two-wheelers that offer distinctive styling, solid
performance, great mileage and superior ride quality on tough Indian roads.
MAHINDRA TWO WHEELERS
GENZE
SCOOT
BSA JAWA

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VEHICLE & EQUIPMENT FINANCE
By offering Vehicle and Asset Finance to rural Indians, we continue to empower millions of
customers across the country. We finance the purchase of new and pre-owned tractors,
commercial vehicles, construction equipment and two wheelers, and also provide specialised
assistance for hassle-free documentation and quick disbursal of loan amounts.
MAHINDRA & MAHINDRA FINANCIAL SERVICES LTD. (MMFSL)

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 2.1 Pricing details include list prices for key products and services.

* Mahindra XUV500 Rs. 12.3 - 18.62 Lakh*

* Mahindra Thar Rs. 9.59 - 9.99 Lakh*
* Mahindra TUV 300 Rs. 8.54 - 10.55 Lakh*
* Mahindra Marazzo Rs. 9.99 - 14.76 Lakh*
* Mahindra KUV100 NXT Rs. 4.88 - 7.94 Lakh*
* Mahindra Alturas G4 Rs. 27.7 - 30.7 Lakh*
* Mahindra Xylo Rs. 9.17 - 12.0 Lakh*
* Mahindra e2oPlus Rs. 6.07 - 6.83 Lakh*
* Mahindra Verito Rs. 7.6 - 8.99 Lakh*
* Mahindra TUV 300 Plus Rs. 9.92 - 11.42 Lakh*
* Mahindra E Verito Rs. 13.17 - 13.53 Lakh*
* Mahindra Bolero Power Plus Rs. 7.49 - 9.08 Lakh*
* Mahindra Verito Vibe Rs. 6.58 - 7.51 Lakh*
* Mahindra Bolero Pik-Up Rs. 6.9 - 7.19 Lakh*
* Mahindra XUV300 Rs. 8.3 – 12.69 Lakh*
* Mahindra Scorpio Rs. 9.99 – 16.63 Lakh*

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3.1 DISTRIBUTION CHANNEL: (Def) A set of interdependent organizations in the
process of making a product or service available for use or consumption by the consumer or
business users. The distribution channel transport & store goods & services from producers to
consumers. Distribution channels can be described by the number of channel levels involved.
3.2 CHANNEL LEVEL: A layer of intermediaries that performs some work in bringing the
product and its ownership closer to the final buyer is Channel level. Because the producer and
the final consumer both perform some work, they are part of every channel. We use the
number of intermediary levels to indicate the length of a channel.
There are two types of marketing channel.
a). Direct Marketing channel
b). Indirect Marketing channel

a). A market channel that has intermediary levels is called “Direct marketing channel”.
b). A market channel containing one or more intermediary level. Below figure shows several
consumer distribution channels of different lengths
CHANNEL 1.
Channel 1 Called a direct marketing channel, has no intermediary levels. It consists of a
company selling directly to consumers.
Ex: - AMVAY---etc; sell their product door to door or through home and office sales parties.
The remaining channels in figure are indirect market channels.
CHANNEL 2.
Channel 2 contains one intermediary level. In consumer market this level is typically a
retailer. Ex: - The makers of televisions, cameras and many other products sell their goods
directly to large retailers. Such “Wal-Mart” and “Sears” which then sell the goods to final
consumers.
CHANNEL 3.
Channel 3 contains two intermediary levels, a wholesaler and a retailer. Small manufacturer
of food drugs, hard ware and other products often uses this channel.
CHANNEL 4.
Channel 4 contains three intermediary levels. In the meat packing industry. For example,
Jobbers buy form wholesalers and sell to smaller retailers who generally are not served by
larger wholesalers.

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Figure 1:
Channel 1 manufacturer
consumer

Channel 2 Manufacturer
Retailer consumer

Channel 3 Manufacturer Wholesaler Retailer consumer

Channel 4 Wholesaler Jober

Manufacturer Retailer consumer

A CUSTOMER MARKETING CHANNEL

Figure 2: -
Consumer and business marketing channel
Channel 1
Manufacturer Industrial customer

Channel 2

Manufacturer
Industrial distribution
Industrial customer

Channel 3
Manufacturers’ Industrial customer
Manufacturer
Representatives or sales
branch

Channel 4

Manufacturer Manufacturers’ Industrial Industrial

Representatives or sales Distribution customer
branch

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3.3 Business Marketing Channel
In the past many companies used a single channel to sell to a single market or market
segment. Today with the proliferation of customer segments and channel possibilities, more
and more companies have adopted “Multi channel” distribution system often called “Hybrid
marketing channel”.

3.4 Multi-Channel(Def)
A distribution system in which a single firm sets up two or more marketing channels to reach
one or more customer segments is called “Multi Channel” distribution system.

3.5 Functions and Distribution [Marketing] Channels perform: -

This channel performs many key functions. Some help complete transactions by gathering
and distributing information needed for planning and aiding exchange by developing and
spreading persuasive communication about an offer
by performing contact work finding and communicating with prospective
buyers;
by matching shaping and fitting the offer to the buyer’s needs and by entering in to
negotiation to reach an agreement on price and other terms of the offer so that ownership can
be transferred.
Other functions help to fulfil the completed transaction by offering “Physical Distribution”
transporting and storing goods.
Financing acquiring and using funds to cover the costs of the channel work.
Risk taking assuming the risks of carrying out the channel work.

3.6 DEALERS PERCEPTION: -

Dealer Selection:
Marketing take great care in the selection and appointment of dealers granting franchise to
under serving dealers will be detrimental to the business interests or the firm.
The firm should take for a number of essential qualities and qualification in their prospective
dealer. Some of these qualifications are irrespective of products lines and such alitiesare
financial strength, credit worthiness, salesmanship, experience and reties, business capacity;
etc. in practice, the firm may sometimes find it difficult to locate dealers possessing all the
desired qualifications and attributes. Out of the available candidate’s dealers should be

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selected carefully. In the case of specialty. Products, selections of dealers require elaborate
efforts. Qualities to be looked for while selecting dealers:
• Credit worthiness
• Financial soundness & willingness to invest in line
• Previous experience in the field
• Business reputation
• Business capacity & salesmanship
• Willingness to provide credit Capacity to offer:
• Required assortments of product
• Required service
3.7 Capacity to provide: -
Good relation with:
• Concerned government officials, sub – dealers if any, consumers, Banks and other financial
institutions.
• Storage facilitates, show rooms, Shops, Service Workshops, Sales and serviceman,
consummate with expected business.
• Social status.
Positive attitude towards the company on the part of the dealer and his key personnel.

3.8 Dealer motivation: -

To be effective the dealers have to the constantly motivated. The firm should constantly
strive the needs of the dealers. It is applied said that a wise firm gets a good band of dealers
settle down with firm. Dealer’s motivational elements are as follows.
1. Harmonious dealer’s motivation is very important in dealer motivation.
2. Ensuring good store image and deriving promotion advantage though the store image.
3. An attractive trade margins are not doubt. The primes factor in dealer motivation.
4. Ensuring dealers support in merchandising is another important aspect of dealer’s
management and dealer’s motivation.
5. Prompt delivery, efficient service and incentives.
3.9 Managing the dealer network:
The designing of the channel and the creation of the channel are not everyday tasks in
channel management. It is the administration of the dealer’s network that constitutes

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everyday tasks channel management. In the broadest sense, managing the dealer network will
include the dealer servicing, dealer administrating, co – dealer compensation, dealer
motivation and dealer development.

4.1 Performance appraisal of individual dealers: -

Periodical evaluation of the performance of the dealers is yet another important Aspect of
channel management. The performance appraisal must be done with a view to identifying the
specific strengths and weakness of the dealers. If the performance is below the desire level,
remedial action must be taken promptly
4.2 Criteria for dealer appraisal: -
 Market awareness
 Sales point facilities
 Public relation
 Storage space provided
 Inventory handling support
 Market intelligence
 Efficient of service provided to customers
 Sales intensity
 Enrollment of new accounts
 Promotional support
 Submission of reports
 Timely payment of bills
 Maintaining of business records
The appraisal of dealer’s performance should lead an important in their performance in
addition to proper performance appraisal of individual dealers, periodic review of the dealer
network as a whole and removal of weakness in the network must also be take – up. Hence,
we can say that dealer’s job is a continuous job.
4.3 Dealer – principal relation: -
The relations between a firm and a dealer revolve largely around the following factors.
1. Services or functions to be performed by the dealer.
2. Territory of operation.
3. Services or functions to be performed by the principal.

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4. Remuneration to the dealer.
The firm normally expects a dealer to establish the product in the market, maintain fair trade
practices, and provide serviced to consumers and help in promoting the products. The dealer
in turn expects the firm to deliver a quality product, make adequate and reasonable profits for
the Delaware in the price structure and render good sales promotion support.
4.4 Dealer induction: -
Proper induction of the dealer in to the organization is another important part of dealer
management. Many firms view dealers as synonymous with dealer training. While induction
does include a training component, it needs to be handled as a distinct function. It should lead
to the smooth assimilation of the dealers in to the organization.
About area offices and their addresses, and Dealers address and distance from
ZAHEERABAD.
NORTH ZONE: -
AREA OFFICE CHANDIGAR NEW DELHI/ JAIPUR LUCKNOW
H KARNAL
ADDRESS Sco33,sector Mahindra Tower 408,4th floor, Mahindra
26G,Madhya 2A, BIKAJI GANAPATH Towers, Gopal
Marg, CAMAPLACE, I PLAZA,MI Tirath plaza,
Chandigarh 160 New Delhi/ sco- Road Jaipur – Auto Sector,
026 15,sector 8,Main 302 006 Opp. HALL,
market,karnal13 Izabal
2 001 Road,Lucknow,2
2 6 016
Distance from Km Km Km Km
ZAHEERABA 1950 1609/2000 1730 1494
D By Own 2100 2010/2060 1730 1627
power By
Carrier/Trucks

24 Dealers attached to the CHANDIGARH area office in those 8 main dealers (MD), 5
Mahindra authorized dealer branch (MADB), 5 Mahindra authorized service centre (MASC),
and 5 stockiest.

31 Dealers attached to the NEW DELHI/KARNAL area office in that 10 main dealers (MD),
1 Mahindra authorized dealer branch (MADB), 7 Mahindra authorized service centre
(MASC), 7 stockiest.

36 Dealers attached to the JAIPUR area office in those 10 main dealers (MD), 8 Mahindra
authorized dealer branch (MADB), 12 Mahindra authorized service centre (MASC), and 2
stockiest.

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 39 Dealers attached to the LUCKNOW area office in those 34 main dealers (MD), 0
Mahindra authorized dealer branch (MADB), 0 Mahindra authorized service centre

(MASC), and 2 stockiest. Totally 129 dealers attached to the north zone.

EAST ZONE: -
AREA OFFICE CALCUTTA GUWAHATI PATNA
ADDRESS 7, KYD Street, 3rd 1st floor, 3rd floor, J-J
floor, kolkatta-700 consultancy house, complex, East
016. mani ram deven Boarding, Conal
road, bamuni road, Patna – 800
maidan. 001.
Distance from Km Km Km
ZAHEERABAD
By own power 1765 2956 1632

By trucks/carrier 1767 3300 1632

16 Dealers attached to the CULCUTTA area office in those 5 main dealers (MD), 0
Mahindra authorized dealer branch (MADB), 7 Mahindra authorized service centre (MASC),
and 3 stockiest.
14 Dealers attached to the GUWAHATI area office in that 7 main dealers (MD), 1 Mahindra
authorized dealer branch (MADB), 3 Mahindra authorized service centre (MASC), 2
stockiest.
10 Dealers attached to the PATNA area office in those 10 main dealers (MD), 0 Mahindra
authorized dealer branch (MADB), 0 Mahindra authorized service centre (MASC), and 0
stockiest.
3 Dealers attached to the AGARTALA area office in those 2 main dealers (MD), 15
Mahindra authorized dealer branch (MADB), 5 Mahindra authorized service centre (MASC),
and 5 stockiest.

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 21 Dealers attached to the BHUBANESHWAR area office in those 5 main dealers (MD), 8
Mahindra authorized dealer branch (MADB), 4 Mahindra authorized service centre (MASC),
and 3 stockiest.

Totally 64 dealers attached to the east zone.

WEST ZONE: -
AREA MUMBAI/ PUNE NAGPUR BHOPAL AHMEDABAD
OFFICE GOA
ADDRESS Mahindra 6, Jagatap A1- 2nd floor, APG bungalow
Towers, marg, indrasagar, quality no.12,
ground floor, ambedkar ravindranath business N.C.marg,sha
worli road road, pune tagore road, centre, plot hibaug,
no. 13, 411 001 civil lines, no: 7, zone ahmedabad380
mumbai4000 nagpur-440 II, M.P. 004
018 001. nagar,
commer
complex,
Bhopal.
Distance Km Km Km Km Km
from Goa-730 1025 1150
Zaheerabad Goa-730 1025 1150
By own
power By
trucks/carrier

16 Dealers attached to the MUMBAI/GOA area office in that 8 main dealers (MD), 1
Mahindra authorized dealer branch (MADB), 1 Mahindra authorized service centre (MASC),
5 stockiest.
21 Dealers attached to the PUNE area office in those 12 main dealers (MD), 4 Mahindra
authorized dealer branch (MADB), 2 Mahindra authorized service centre (MASC), and 0
stockiest.
10 Dealers attached to the NAGPUR area office in those 7 main dealers (MD), 0 Mahindra
authorized dealer branch (MADB), and 0 Mahindra authorized service centre (MASC), 0
stockiest.
27 Dealers attached to the BHOPAL area office in those 3 main dealers (MD), 6 Mahindra
authorized dealer branch (MADB), 6 Mahindra authorized service centre (MASC), and 3
stockiest.
17 Dealers attached to the AHMADABAD area office in that 12 main dealers (MD), 1
Mahindra authorized dealer branch (MADB), 2 Mahindra authorized service centre (MASC),
1 stockiest.

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 14 Dealers attached to the COHIN area office in that 1 main dealer (MD), 8 Mahindra
authorized dealer branch (MADB), 2 Mahindra authorized service centre (MASC), and 2
stockiest. Totally 105 dealers attached to the west zone.
SOUTH ZONE: -
Area office BANGOLORE CHENNAI HYDERABAD
Address APH, Raheja APG, Bharat Mahindra house,
chamber, 1st floor, Insurance TSR complex,1-7-
husum road, Buld,129,annasalai, 1,Park
bangalore-560 001. chennai-600 002 lane,secenderabad-3
Distance from Km Km Km
ZAHEERABAD By 750 825 120
own power By 850 900 ---
trucks/carrier

15 Dealers attached to the BANGALORE area office in those 8 main dealers (MD), 2
Mahindra authorized dealer branch (MADB), 5 Mahindra authorized service centre (MASC),
and 0 stockiest.
18 Dealers attached to the CHENNAI area office in that 15 main dealers (MD), 2 Mahindra
authorized dealer branch (MADB), 1 Mahindra authorized service centre (MASC), 0
stockiest.
19 Dealers attached to the HYDERABAD area office in those 7 main dealers (MD), 3
Mahindra authorized dealer branch (MADB), 6 Mahindra authorized service centre (MASC),
and 2 stockiest

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 5.1 The top 10 competitors in Mahindra's competitive set are: -
 Ashok Leyland,
 Eicher,
 Tata Motors,
 Toyota,
 Ford,
 Hyundai Motor,
 Volkswagen,
 Maruti Suzuki,
 Honda
 Nissan.
Together they have raised over 801.0M between their estimated 1.8M employees

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 5.3 MARKET SHARE CHART

Carmakers' market shares in India (FY 2017-18)

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6.1 SWOT stands for strengths, weaknesses, opportunities, and threats.
6.1.1 STRENGTHS

 Maruti Udyog limited (MUL) is in a leadership position in the market with a market
share of 48.74
 Major strength of MUL is having largest network of dealers and after sales service
centers in the country.
 Good promotional strategy is adopted by MUL to transfer its thoughts to
the people about its products.
 Maruti Suzuki recorded highest number of domestic sales with 9,66,447 units from
7,65,533 units in the previous fiscal. It recently attained the 10million domestic sales
mark.
 Strong Brand Value and Loyal Customer Base are big strengths for MUL
 There are around 15 vehicles in Maruti Product portfolio. Has good product lines with
good fuel efficiency like Maruti Swift, Diesel, Alto etc
 Alto still beats the small car segment with highest number of sales
 MUL is the first automobile company to start second hand vehicle sales through its True-
value entity.
 MUL has good market share and hence it’s after sales service is a major revenue
contributor.

6.1.2 Weaknesses

 Low interior quality inside the cars when compared to quality players like Hyundai and
other new foreign players like Volkswagen,Nissan etc.
 Government intervention due to having share in MUL.
 Younger generations started getting a great affinity towards new foreign brands
 The management and the company’s labor unions are not in good terms. The recent
strikes of the employees have slowed down production and in turn affecting sales.
 Maruti hasn’t proved itself in SUV segment like other players.

6.1.3 Opportunities

 MUL has launched its LPG version of Wagon R and it was a good move simultaneously

 Start R&D on electric cars for a much better substitute of the fuel.
 Maruti’s cervo 600 has a huge potential in tapping the middle class segment and act as a
strong threat to Nano
 New DZire from Maruti will capture the market share and expected to create the same
magic as Maruti Esteem (currently not available)
 Export capacity of the company’s is giving new hopes in American and UK markets
 Economic growth of the country is constantly increasing and the government is working
hard to increase the gdp to double digit.

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6.1.4 Threats

 MUL recently faced a decline in market share from its 50.09% to 48.09 % in the

previous year (2011)

 Major players like Maruti Suzuki, Hyundai, Tata has lost its market share due to many
small players like Volkswagen- polo. Ford has shown a considerable increase in market
share due to its Figo.
 Tata Motors recent launches like Nano 2012, Indigo e-cs are imposing major threats to
its respective competitor’s segment
 China may give a good competition as they are also planning to enter into Indian car
segment
 Launch of Hyundai’s H800 may result in the decline of Alto sales

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7.1 Competitive advantage boils down to why a customer likes them better

Chart Title
8
7.9
7.8
7.7
7.6
7.5
7.4
7.3
7.2
7.1
7
Category 1

HONDA MAHINDRA VOLKSWAGEN MARUTI FORD TOYOTA

SKODA NISSAN HYUNDAI GM TATA

A study assessment of quality of Automobile services was conducted by VOICE Society with
support from union ministry of consumer affairs. Government of India, under “JAGO
GRAHAK JAGO” campaign Mahindra ranked 2nd in India in overall satisfaction shown by
customer.
 Quality of product.
 Guarantee & warranty.
 Services.
 Service on road anywhere.
 Customization service

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8.1 FINANCIAL ANALISYS

Mar
Mar 19 Mar 17 Mar 16 Mar 15
18

Per Share Ratios

Basic EPS (Rs.) 40.29 36.64 30.69 53.05 56.23

Diluted EPS (Rs.) 40.13 36.47 30.54 52.80 53.66

Cash EPS (Rs.) 55.86 49.04 87.09 72.10 72.64

Book Value [ExclRevalReserve]

287.09 254.58 451.22 378.36 325.40
/Share (Rs.)

Book Value [InclRevalReserve]

287.09 254.58 451.22 378.36 325.58
/Share (Rs.)

Dividend / Share(Rs.) 8.50 7.50 13.00 12.00 12.00

Revenue from Operations

449.93 409.14 742.12 689.71 658.53
/Share (Rs.)

PBDIT/Share (Rs.) 69.89 61.01 98.72 92.30 84.92

PBIT/Share (Rs.) 54.28 48.58 73.01 74.27 68.44

PBT/Share (Rs.) 53.08 51.28 79.56 72.29 70.49

Net Profit/Share (Rs.) 40.25 36.61 61.38 54.07 56.16

Profitability Ratios

PBDIT Margin (%) 15.53 14.91 13.30 13.38 12.89

PBIT Margin (%) 12.06 11.87 9.83 10.76 10.39

PBT Margin (%) 11.79 12.53 10.72 10.48 10.70

Net Profit Margin (%) 8.94 8.94 8.27 7.83 8.52

Return on Networth 14.01 14.37 13.60 14.29 17.25

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/ Equity (%)

Return on Capital Employed (%) 16.86 16.95 14.28 12.49 13.85

Return on Assets (%) 9.10 9.18 9.11 9.02 10.08

Total Debt/Equity (X) 0.07 0.09 0.10 0.08 0.14

Asset Turnover Ratio (%) 101.74 102.67 110.22 115.14 118.21

Liquidity Ratio

Current Ratio (X) 1.26 1.24 1.31 1.18 1.13

Quick Ratio (X) 0.99 1.03 1.02 0.91 0.86

Inventory Turnover Ratio (X) 13.96 18.02 15.97 15.21 15.98

Dividend Payout Ratio (NP) (%) 19.43 21.24 23.08 26.42 22.44

Dividend Payout Ratio (CP) (%) 14.00 15.85 16.26 19.82 17.34

Earnings Retention Ratio (%) 80.57 78.76 76.92 73.58 77.56

Cash Earnings Retention Ratio (%) 86.00 84.15 83.74 80.18 82.66

Valuation Ratios

Enterprise Value (Cr.) 78,800.35 88,050.00 77,347.75 71,245.22 70,763.66

EV/Net Operating Revenue (X) 1.47 1.81 1.76 1.74 1.82

EV/EBITDA (X) 9.46 12.13 13.20 13.03 14.09

MarketCap/Net Operating Revenue (X) 1.49 1.81 1.73 1.75 1.80

Retention Ratios (%) 80.56 78.75 76.91 73.57 77.55

Price/BV (X) 2.34 2.91 2.85 3.20 3.65

Price/Net Operating Revenue 1.49 1.81 1.73 1.75 1.80

Earnings Yield 0.06 0.05 0.05 0.04 0.05

Source : Dion Global Solutions Limited

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9.1 COMPETITORS

9.1.1INTRODUCTION

Company Background

Toyota Motor Corporation (トヨタ自動車株式会社) is a Japanese automotive

manufacturer which headquartered in Toyota, Aichi, Japan. The company was founded
by Kiichiro Toyoda in August 28, 1937 as a spinoff from his father’s company Toyota
Industries to create automobiles. In 2014, the multinational corporation consisted of
30,038,875 employees worldwide. Toyota was the largest automobile manufacturer in
2012 (by production) ahead of the Volkswagen Group and General Motors. Toyota is
the first automobile manufacturer to produce more than 10 million vehicles per year
around the world. In 2014, Toyota was the largest listed company in Japan by market
capitalization and revenue since it worth more than twice as much as Soft Bank in Japan
(Ng, 2015).

9.1.2 Development of the Business

Toyota was founded in August 28, 1937 as a spinoff by the son, Kiichiro Toyoda
from his father, Sakichi Toyoda’s company Toyota Industries to create automobiles.
Sakichi Toyoda had completed the non-stop shuttle change type Toyoda automatic
loom (Type-G) in years 1924-1929 (as shown in Figure 1, Appendix 1). In year 1940-
1949, many vehicles are produced such as BM truck, SB small truck, and SA compact
passenger car (as shown in Figure 2, 3, & 4, Appendix 1 & 2). They are started to
produce domestically. In 1950, there is an issue regarding financial crisis or labor
dispute or voluntary retirement. Thus, Toyota Motor Sales Co., Ltd. and Minsei

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 Spinning Co., Ltd. (currently Toyoda Boshoku Corporation) are established. They
begin a Creative Idea Suggestion System. After establishment of Towa Real Estate Co.,
Ltd., Corporate slogan “Good Thinking, Good Products” is established. The great
achievement in these years was the first time in the centuries, Japanese passenger car
(Crown) was exported to the United States.

In 1961, first model of Toyota Corolla (as shown in Figure 5, Appendix 3)

dealership started to operate and Total Quality Control (TQC) is adopted throughout
the company. Toyota signed for labor management joint declaration in 1962. Quality
business starts developed and Toyota had won award in Deming Prize (as shown in
Figure 6, Appendix 3) for major advance in quality improvement. Then, Toyota joined
business partnership with Hino Motors, Ltd, Higashifuji Proving Ground, and Daihatsu
Motor Co., Ltd. Toyota managed to reach cumulative exports of 1 million units, as well
as annual domestic sales with 1 million units. In 1970-1979, the business kept boosting
and won the first Japan Quality Control Award. Toyota vehicles started producing
worldwide in 1972. For this time frame, the cumulative export had increased as
compared to previous years. They reached export cumulative of 5 million units in 1975.
The cumulative total of export production keep inclined steadily to almost 10 million
units.

In the early 1980, Toyota started to run Toyota Vista dealership. There was
occurrence of restructuring where Toyota Motor Co., Ltd. and Toyota Motor Sales Co.,
Ltd. was merged and formed Toyota Motor Corporation. Toyota also formed joint
venture with the New United Motor Manufacturing, Inc. (NUMMI) and managed to
make 20 million units on cumulative export and produced up to 50 million Toyota
vehicles in local in that year. Several developments like operation of Kasugai Housing
Works and Toyota Memorial Hospital is seen. Toyota Motor Manufacturing had made
the total annual domestic revenue up to 2 million units. The business developed by
making duo dealership with Volkswagen and Audi cars open in early 1990. RAV4L
and RAV4J are introduced and their overseas annual profits more than 1 million units.
This time gains from overseas sales had reached to more than 3 million units.

They started initiating in oversea of Toyota Financial Service Corporation in the

early 19 century. Sichuan Toyota Motor Co., Ltd started to broad the manufacturing
business in China. They started to publish Toyota FCHV (as shown in Figure 7,

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 Appendix 4) in limited editions sales and they managed to achieve 100,000 units of
worldwide. Their sales had exceeded 10 million on Camry Sedan. In this century also,
they started to move to green vehicles and start Leasing Advanced Fuel Cell Hybrid
Vehicle (as shown in Figure 8, Appendix 4). They also breakthrough their design and
come out designs for F1. From year 2010 till recent years, the business keeps
developing by joint venture and strategic partnership. For example, they make
agreement with Mazda on Hybrid System Technology License, joint EV development
with Tesla Motors, form strategic partnership with Microsoft and partnering with
BMW.

9.1.3 Board of Directors

Chairman Tetsuro Toyoda

President Akira Onishi
Executive Vice  Chiaki Yamaguchi  HirotakaMorishita
Presidents  Kazue Sasaki
Senior Managing  Shinya Furukawa  Masaharu Suzuki
Directors  Norio Sasaki  Toshifumi Ogawa
 ToshifumiOnishi  Takaki Ogawa
 Kan Otsuka  Taku Yamamoto
Directors
 Keiichi Fukunaga  Fujio Cho
 Shuzo Sumi

9.1.4 Vision and Mission

9.1.4.1 Vision

Through improvements of conventional technology, as well as

pioneering efforts in the application of new technologies, Toyota is taking great
steps to develop eco-cars which will help us become a low carbon society.

9.1.4.2 Mission

 Provide world-class safety to protect the lives of customers

 Provide optimization of energy / infrastructure to local communities

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  Putting high priority on safety and promote product development
with the ultimate goal of “completely eliminating traffic causalities”
 Deliver cars that will stimulate and even inspiring and that will
thereby earns smiles from our customers
 Addressing employees’ education under “Genchi-genbutsu”
philosophy, which is to go to the source to find the facts to make
correct decisions, build consensus, and achieve goals at our best
speed
 Through true mutual trust with partners, contribute to development
of new technology and improved expertise
 Contribute for economic development of local communities with
R&D operations functioning effectively in each region


9.1.2SWOT ANALYSIS

SWOT refers to strengths, weaknesses, opportunities and threats. SWOT analysis is a

process where the management team identifies the internal and external factors that will affect
the company’s future performance (Hill, 2015). Strengths and weaknesses are internal factors
that affect a company’s capabilities. Strengths can be defined as a company’s advantageous
characteristics and main capabilities whereas weaknesses refer to any inner limitations a
company encounters in developing or implementing plans. On the other hand, opportunities
and threats are external factors that occur independently of the company. Opportunities can be
defined as company’s advantageous conditions in the environment that could create rewards
for the company while threats refer to conditions or obstacles that may restraint the company
from accomplishing its objectives. Now, we are likely to provide a brief description of Toyota’s
SWOT analysis (as shown in Figure 9, Appendix 5).

9.1.2.1 STRENGTHS

Strong Market Position and Brand Recognition

Toyota Company has a strong market position in different geographies

across the world. The company has been recognized as the Top 10 of the best
global brands. Toyota is the most valued automotive brand in the world.
According to the Inter-brand Rankings (2014), Toyota’s brand value has

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 increased from 35,346$ million in 2013 to 42,392$ million in 2014 with 20%.
Its majority of market share are in Japan with 45.5%. Apart from that, Toyota
has market share in Asia (excluding Japan and China) with 13.4%, North
America with 12.2%, and Europe with 4.3%. Such strong market position
allows the company to gain competitive advantage in domestic markets, as well
as to expand into international markets.

Strong Quality Management

Toyota Company is one of the most innovative automotive companies

and it always focused on constant innovation. It starts with “Innovative
International Multipurpose vehicle” plan (IMV) and Toyota Production System.
Toyota production system emphasizes in just-in-time (JIT), Jidoka, Kaizen,
environment and health and safety. For JIT, they link all production activity to
real marketplace demand and rely on finely tuned processes in assembly
sequence. Jidoka and Kaizen will be the incorporate quality check into every
step of the production and team members in all part of organization continually
look for ways to improve operation. This is one of the innovative strength in
production systems that seldom apply in other company (Toyota Production
System, 2015).

Extensive Production and Distribution Network

Toyota Company has an extensive production and distribution network.

Toyota and its affiliates produce automobiles and related accessories through
more than 50 manufacturing companies in 27 countries and regions besides
Japan. Toyota is also well-known for its environment friendly, safe and durable
cars that are sold in more than 170 countries. According to Nkomo (2013), the
company has produced 3,940,000 vehicles in Japan and 3,495,000 vehicles
across all other manufacturing locations in 2012. In addition, Toyota has an
extensive distribution network. While the company’s geographically well
spread production base diversifies business risks, its extensive distribution
network provides a wider reach, thus boosting revenues.

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 9.1.2.2 WEAKNESSES

Deterioration of Products

The fast expansion of Toyota made it more reliant on suppliers outside

Japan to provide the spare part and more senior engineers to proper supervise
the production. When they do not have enough resources and expertise, it can
result in deterioration of product quality. It is proven when product recalls have
increased in the recent year which can affect the brand image and overall sales
of the company (Andrews et al. 2011). Toyota reputation is built on quality and
safety. When recalls occur too often, it brings the company’s image get under
way. For instance, Toyota faces Congressional hearings after recalled about 8.5
million vehicles globally in three separate actions and some models of vehicles
had been halted in United States for its sales and production (Kosdrosky, 2015).

Poor Allocation of Resources

Toyota has shown a poor profitability of financial services segment. The

poor profitability related to the expenses of post-retirement benefits for senior
employees, as well as the payment of dividend for the shareholders (Yousigma,
2011). Huge investment in scheme of post-retirement by Toyota Company and
the demands of Toyota’s shareholders to pay high dividend have led to low of
return in the company. In May 2009, Toyota had reported a record yearly net
loss of US$4.2billion. In 2014, Toyota’s return on equity (ROE) and return on
assets (ROA) were 5.7% and 2.6% respectively. Low ROE and ROA are due to
the failure of the company in spending the shareholders’ money effectively and
efficiently. It may result to low returns for its shareholders (Toyota Industries
Report, 2014).

9.1.2.3 OPPORTUNITIES

Positive Attitude towards “Green” Vehicles

Today, consumers are more aware of the negative effects (air pollution)
caused by cars and thus moving their needs to a more environmental friendly
vehicle. With the increase in fuel prices, it opens up larger market for these
hybrid cars. Toyota Company takes alternative to produce Toyota hybrids to
attract customers. Consumers are more likely to buy new hybrid and electric

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 cars as they emit less carbon dioxide that can harm life on the earth and cause
greenhouse effect. Toyota hybrids are designed to create harmony between man,
nature and machine. By introducing new car models, Toyota satisfy varies
consumers’ tastes and needs by designing varies new hybrids, including
Highlander Hybrid, Avalon Hybrid, and Prius Family (Jurevicius, 2013).

Growth of Global Automotive Market

The global automotive industry was severely affected by the economic

downturn and declination of revenues occurs. To recover the declination of
sales, government of China had reduced taxes to attract more customers and the
State Bank of India (SBI) decreased interest rates on automotive loans in year
2009. This provides opportunities for Toyota to increase revenues and grow.
According to Pantong (2013), in Thailand, Toyota Motor Thailand (TMT)’s
record sale breaks a new record of 500,000-unit mark, compares to previous
high of over 300,000 units in 2010. Toyota has become the first to achieved
record sales of 750,000 units after gone through lots of ups and downs in the
past.

Growth through Acquisitions

Toyota has successfully acquired other car companies in the past to grow
together. One of the acquisitions is between Toyota and BMW. They are
partnering to cooperate on hydrogen fuel cells, vehicle electrification,
lightweight materials and a future sports car (Reed & Bryant, 2012). The
growing partnership between the two companies boosts the technological know-
how of the companies and develops new products to increase revenues. Toyota
also benefits in term of cost-savings and boosting operational margins. For
instance, they are collaborating on lithium-ion batteries and other fuel-saving
project which these technologies are expensive and through the partnering,
Toyota can offset costs and share risks (Tschampa & Rosemain, 2013).

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 9.1.2.4 THREATS

Intense Competition

In the rating of best global brands, Toyota managed to rank in the Top
10 list. However, Mercedes and BMW are closely followed behind and they
also showed great increase in brand value (Interbrand Rankings, 2014). Toyota
faces strong competition from automotive manufacturers in its various markets
in the extension of globalization and consolidation in the worldwide
automotive. According to Kallstrom (2015), socioeconomic trends,
infrastructure development, customer requirements, and government
regulations drive the intense competition. Intense competition can lead to lower
vehicle unit sales, which may result in downward pricing pressure when there
is larger inventory, thus impacting the financial condition and results of
operations of the company.

Natural Disasters

Toyota has several manufacturing services in Japan, Thailand, China

and Indonesia. Some countries located in the Pacific volcanic ring are often
subject to natural disasters like volcanoes and earthquakes that disrupt
manufacturing in the amenities and causing declination in Toyota’s production
volumes. Indonesia, especially, sits between the world’s most active seismic
regions and meant the islands experience some of the strongest earthquakes and
most powerful volcanic eruptions known on Earth (Israel, 2010). In Tahara City,
Toyota Motor Corporation signed an agreement to reinforce coordination of
disaster aid activities and create disaster-resilient communities in local
stakeholder (Toyota Global Newsroom, 2015).

Yen Currency Swings

Toyota’s revenue comes from the sale in different foreign countries. The
profits earned abroad must be sent back to Japan, headquarter of Toyota and
converted into Japanese Yen. Toyota is sensitive to the fluctuations in foreign
currency exchange rates and is principally exposed to fluctuations in the value
of the Japanese Yen, the US dollar and the Euro. The strengthening of the
Japanese Yen against the US dollar and fluctuations in foreign exchange rates

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 would have a material adverse effect on Toyota’s reported operating results,
which in turn would impact the valuation of the company (Nkomo, 2013). When
there is escalating yen exchange rate against other currencies, the profit rear by
Toyota will be declined. There are always fluctuations in yen exchange and this
is a threat to the earnings of Toyota sales.

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 Company background

This is a Ford Motor Company SWOT analysis for 2013. The original analysis can be found at

Ford SWOT analysis. For more information on how to do SWOT analysis, please refer to us

article.

Ford Motor Company is one of the first American automotive companies that even today

successfully manufactures and sells automobiles, trucks, buses and automotive parts. Ford is

the second largest US automaker and the fifth largest vehicle seller in Europe and the world,

based on 2010 vehicle sales. You can find more information about the company in its official

website or Wikipedia‟s article.

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 Company background

Name Ford Motor Company

Industries served Automotive

Geographic areas served Worldwide

Headquarters U.S.

Current CEO Alan R. Mulally

Revenue $ 134.3 billion (2012)

Profit $ 5,665 billion (2012)

Employees 164,000 (2011)

Main Competitors Bayerische Motoren Werke AG, Chrysler

Group LLC, Daimler AG, General Motors Company,
Honda Motor Company, Nissan Motor, Tata Motors,
Ltd., Toyota Motor Corporation, Volkswagen AG and
many other automotive companies.

Ford Motor Company SWOT analysis

Strengths
1. Strong position in US market

2. ECOnetic initiative

3. Sound financial performance

4. „One Ford‟ approach

5. Significant growth in China

Weaknesses

1. Poor environmental record

2. High cost structure

3. Unprofitable Europe operations

Opportunities
1. Positive attitude towards “green” vehicles

2. Increasing fuel prices

3. New emission standards

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 4. Growth through acquisitions

Threats
1. Decreasing fuel prices

2. Rising raw material prices

3. Intense competition

4. Fluctuating exchange rates

SWOT

Strengths
1. Strong position in US market. Ford is the second largest automaker in US, the second
largest vehicle market in the world. Ford has great reputation in its home market
and strong commercial vehicle sales that are the most profitable Ford‟s vehicles.
2. ECOnetic initiative. Ford‟s ECOnetic initiative is an effort to produce highly fuel-
efficient engines by improving existing engines rather than new hybrid engines. The
result of this initiative is the Ford Fiesta, currently the lowest emitting
massproduced car in Europe and Ford Focus ECOnetic that has better fuel
consumption that Toyota Prius.

3. Sound financial performance. Ford was the only big US car company that didn‟t need
the government bailout and was the first to get investment status back. The firm‟s profit
margin is high compared to competitors with the highest liquidity ratio.

4. „One Ford‟ approach. Ford has decided to produce single, streamlined global lineup
of its models. The carmaker no longer produces customized vehicles for different regions
but focus on designing and engineering the car that fits different regional tastes and
regulations. It significantly decreases costs for Ford and drives record profitability.

5. Significant growth in China. Ford, although not the strongest player in the China has
experienced the significant growth in the largest automotive market in the world for the
2012. It grew its sales by 46%, according to Ford press release.

Weaknesses
1. Poor environmental record. Ford has been criticized for poor efforts to decrease
environment pollution. University of Massachusetts Amherst have rated Ford as the
seventh worst air polluter due to its manufacturing plants. The US Environmental
Protection Agency also linked Ford to 42 toxic waste sites.

2. High cost structure. Although „One Ford‟ initiative led to substantial cost reduction,
Ford still has a high cost structure, compared to other automobiles manufacturers.
Ford’s costs are driven by its generous employee compensation and pension plans.

3. Unprofitable Europe operations. In 2012, Ford lost $1.75 billion in Europe and plans to
experience losses in the region until 2015.

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 Opportunities
1. Positive attitude towards “green” vehicles. Cars that are fuel inefficient and emit large
quantities of CO2 heavily pollute air and negatively affect the environment. Consumers
are aware of this negative impact and are more likely to buy “green” vehicles that emit
much less CO2 and are fuel-efficient.

2. Increasing fuel prices. Ford‟s strong emphasis on engineering fuel-efficient vehicles

(Ford Fiesta and Ford Focus ECOnetic) with flexible fuel and hybrid engines will pay off
due to increasing fuel prices in the world.

3. New emission standards. A new wave for stricter regulations on vehicle emission
standards would positively affect Ford position in automotive industry. Ford invests
large amounts of money to produce fuel-efficient engines and reaped some success with
its ford Fiesta and Ford Focus ECOnetic models.

4. Strategic partnerships. Ford has great experience in creating strategic alliances and
partnerships with other automotive companies. Due to current competitive pressure, all
companies are more likely to enter into such partnerships to drive R&D costs down,
access new markets and gain some new skills.

Threats
1. Decreasing fuel prices. Some analysts forecast that future fuel prices will drop due to
extraction of shale gas. This would negatively affect Ford as it focus on compact fuel-
efficient hybrid and flexible fuel cars that are less attractive when the fuel price is low.

2. Rising raw material prices. Rising prices for raw metals will lift the costs for auto
manufacturers and result in squeezed profits for the companies.

3. Intense competition. Ford faces more intense competition from other auto
manufacturers more than ever, especially in small cars segment with hybrid engines.

4. Fluctuating exchange rates. Ford, including other largest automotive companies, may
negatively be affected by fluctuating exchange rates as it earns more than half of its
profits outside the US. The profits may be lower due appreciating dollar against other
currencies.

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