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ASSIGNMENT
MAHINDRA
AND
MAHINDRA
SEC-DEF
Group Members:
Akriti Mishra-2015193
Alisha Ansari-2015257
Anchit Chhabra-2015264
Kanika Kashyap-2015280
Rohit Trivedi-2015297
Vishal Rathi-2015317
WOT
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SWOT Analysis of the Company
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Porters Model
1. Bargaining Power of Suppliers
There is a low cost of switching suppliers. This is beneficial to the company as this reduces the
bargaining power of suppliers. The critical production inputs are similar, making it easier to mix
and match, further reducing their bargaining power. The suppliers are reliant on high volume
orders that are again in the favor of the company. Overall, owing to its large size and being well
established in the automobile sector, Mahindra and Mahindras suppliers do not enjoy a high
bargaining power.
2. Bargaining Power of Customers
There are large numbers of options in the automobile market, making the bargaining power of
the customers strong. With multiple utility vehicles available in various brands and styles and a
suitable option for every households requirement, the customers have the power of choice,
giving them a greater bargaining power.
3. Threat of New Entrant
The entering cost in this sector is quite high. The upfront capital requirement, building upon your
brand equity in the market, establishing and extensive distribution channel, etc. takes both time
and money. Further, there are well established firms in this sector and the market seems
saturated. Coming into the market and posing a competition to automobile giants like Maruti,
Honda and Toyota is a very difficult task. Therefore, the chances of a new entrant in this sector
looks slim.
There is no such threat of a substitute product. Automobiles are the main means of transport on
road and will continue to be so. But with more awareness about the environmental pollution and
fuel prices soaring, many people are shifting to public transport. With the local trains, subways,
monorails catching up, they could be a reason for loss of sales in the future. With this trend,
electric cars might catch up in the market soon. Mahindra and Mahindras e2o might have a
bright future.
5. Competitive Rivalry
New launch of vehicles as well as existing vehicles of firms definitely pose a threat to Mahindra
and Mahindra. Their main competitors are Toyota, Honda, Hyundai, Nissan Tata Motors, etc.
SUVs like Toyota Fortuner, Renault Duster and many other poses serious competition. The lack
of product differentiation is the main reason for tough competition in the automobile sector.
Hybrid cars which are more fuel efficient are catching up and could pose a serious threat.
M&M needs to work on their service network for passenger vehicles as they operate in
highly competitive market with major players of the industry like TATA and AL. M&M
can tie-up with local service providers and train the local mechanics which allows them
drop simplicity, no matter how complex the process. It also creates workflows that guide
sales agents through qualification conversations, intelligently recommend next steps on a
deal, or automate manual tasks like filling out orders or putting together complex
proposals.
To analyse the effective of sales force of any company it is important to study the three
important aspects:
1. The percentage of companys sales quota who meet or exceed sales quota.
2. The percentage of companys sales organization overall revenue plan attainment.
3. The win rate of forecast deals
The company has to oversee all the above mentioned aspects to determine the efficiency
and effectiveness of the sales force. Since Mahindra lags behind in all these aspects,
therefore, to rectify or re-engineer their sales force it is important for Mahindra and
Mahindra to make sure that they fulfill all the aspects mentioned above.
The companys after sales services does not meet the industry standards as such, and
therefore, it is losing its market share. So the company has to oversee the after sales part
so that they have satisfied customers. Also as per a survey, they need to work on their
branding part as some of their cars are taken as cars which are mainly for people holding