Professional Documents
Culture Documents
Group 7 SecB Mahindra
Group 7 SecB Mahindra
Term: Term V
Vision: 'We don't have a group-wide mission statement. Our Core Purpose is what makes all of
us want to get up and come to work in the morning.' - Anand G. Mahindra
Mission: To be on the forefront for increasing global presence in developing countries through
acquisitions and mergers
Purpose:
We’ve made humanity’s innate desire to Rise our driving purpose. We challenge conventional
thinking and innovatively use our resources to drive positive change in the lives of our
stakeholders and communities across the world, to enable them to Rise. This purpose is why we
exist, come to work every day, and strive continuously in delivering our promise.
Core Values:
Professionalism:
We have always sought the most appropriate people for the job and have given them
the freedom and the opportunity to grow under our wings. We support and celebrate
innovation, out-of-the-box thinking, well-reasoned risk-taking and reward performance.
Customer first:
At Mahindra, we follow an internal metric called the ‘Customer as Promoter Score’. This
is one of the ways in which we measure the success of our businesses by their level of
customer-centricity. This is designed around our goal to create and sustain a positive
experience for our customers, because of whom we exist and prosper.
Quality focus:
We put quality at the forefront, not just in our products but also in our actions and
interactions. Each of our businesses achieves its goal through individual strategy, while keeping
a close eye on maintaining quality, in every step of the way.
Dignity of Individual:
For us, the cornerstone of our business is our human resource – our people. This is not
something we merely preach, but something we truly believe in and practice, at all times. We
respect the time and efforts of our stakeholders and all our policies are designed, keeping their
well-being and betterment in mind.
Vivid Description: Strive to enable people everywhere to rise. Create value by leveraging the
interlinkages between these interdependent resources. Aligned its businesses to the nation's
needs and priorities and globalization through entering the developing countries.
Vision: We aim to always make journeys smooth, hassle-free and an experience like no other.
Mission: To equip and empower farmers to ensure their prosperity and to raise productivity in
farms across all continents on earth
BHAG: To have equal contribution of domestic and foreign revenues in total revenue of
automotive and farm equipments.
Arenas
Staging Vehicles
Differentiator
-Penetration in developed
markets and diversification in
new markets
Opportunities Threats
O1: High industry growth in China T1: New government regulations like:
and European countries, where Change in axle load norms
Mahindra is well established Push for fully covered heavy
trucks
O2: High growth in HCV segment
T2: With 100% FDI, new global
O3: Government initiatives like
players are investing more, thus
Pradhan Mantri Gram Sadak Yojana increasing the competition
and Golden Quadrilateral highway T3: Due to fall out of IL&FS, NBFC
network to improve industry growth became cautious in lending thus,
denting new purchases
Strengths
Opportunities
Threats
O1: With rise of aggregators like
Ola/Uber, new market is T1: Government regulations like
developing New Motor Vehicle Bill and BS VI
O2: Various state governments
norms
buying more cars for government
officials and police patrolling T2: Increased excise duty on diesel
O3: Bigger middle-class with personal vehicles
higher disposable income, as GDP
T3: Recent slowdown in the Indian
growth increases
O4: Government initiatives like automobile industry with a growth
Pradhan Mantri Gram Sadak Yojana rate of only 5% in FY18-19
and Golden Quadrilateral highway
network to improve industry growth
Strengths
The threat due to rivalry among existing competitors is high due to various reasons. There are
huge number of competitors who are coming up with new models in this field and making heavy
investments. Many foreign companies are entering the market with new and technologically
advanced products. The industry growth has slowed down and many huge companies are
reducing production due to decrease in demand. Also, product differentiation is low, and M&M
does not have any established PoDs in this product category. Barriers to exit are in this industry
are high due to huge investments that have been made earlier and hence, involves a high cost.
The Barriers to entry in this category are high due to huge capital requirement, government laws,
and product differentiation. Hence, M&M has low threat from new entrants. The biggest threat is
due to availability of substitutes as a large number of similar products are available at customer’s
disposal. Threat due to bargaining power of suppliers is low as there are a lot of substitutes
available and the industry being huge, it is important to the supplier. The threat due to
government actions is also large as government may come up with new laws and regulations, and
also heavy custom duties on exports.
Strategies that can be adopted by M&M in Sedan category:
1. From the Porter’s Five Force Analysis, we come to a conclusion that M&M should
discontinue the sedan product line and stop the production of Verito and Verito Vibe.
2. The company shall invest in production of e-Verito as it can be branded as a good option
for commercial use and implement a B2B strategy for the same. A lot of emphasis has
been put by the government on electric vehicles, and the company has a good R&D
capacity in this segment. Hence, M&M must continue to invest more in this category to
develop e-Sedans.
Porter’s Five Forces Analysis: SUV Product Line
Mahindra and Mahindra was first known for assembly under license of iconic willys Jeep in
India. At present M&M is largest SUV maker in India. The government policies on Indian
automobile industry have been framed in order to aid in the expansion of the automobiles sector
in India. At present, the automobiles sector contributes 4 % to the GDP. The share of SUV sales
across the country was approximately 25 percent in fiscal year 2018, up from around 16 percent
in fiscal year 2014.
The SUV segment in automobile industry is characterised by stiff competition with major
players like Hyundai, Maruti Suzuki, TATA occupying a major part of the market share. In
Indian automobile sector there are more than 500 suppliers in organised market and more than
5000 in unorganised market. Along with that, there are globally available sources, which have
excelled in technology. Hence, we can say that suppliers have low to moderate bargaining power
in the market. The Consumers enjoys the greatest power in this relationship due to the
standardized nature of the product. We also notice the availability of various modes of transport
such as Two-wheeler, Bus, Train, Airplane, Cabs etc. substitutes for SUVs along with used cars,
which are becoming popular. Hence, threat of substitutes is high. Since huge investments are
required for automobile manufacturing, assembly, distribution etc. the cost of exit is also high
and thus leads to lower attractiveness of this industry.
Thus the major strategies that can be adopted by Mahindra Automobiles in the SUV category:
1) Mahindra and Mahindra needs to maintain their Leadership in SUV segment by through
innovation by introducing new age technology features in their SUVs. The introduction
of SUV world can be coupled with exciting new features such as Voice Control, Parking
Assist etc.
2) Mahindra and Mahindra as a brand is highly renowned and has good amount of brand
loyalty in SUV segment. This can be substantiated by M&M’s plan of launching six
models in near future, which will be introduced in Compact SUV segment. However
there is more amount of strategic spending required for brand building, awareness and
promotional activities needs to be done in order to aggressively market its compact SUVs
and build Mahindra SUVs as stylish and ergonomic car brand along with the sturdiness
and cost effectiveness it is known for.