In pursuit of end to the end marketing strategy of Mahindra and Mahindra. Take a glance to learn more about Mahindra and Mahindra’s strengths, weaknesses, opportunities, and threats in this article of the SWOT analysis of Mahindra and Mahindra.
Mahindra and Mahindra – One of the largest vehicle manufacturers by production in India is an Indian multinational automotive manufacturing corporation headquartered in Mumbai, Maharashtra, India. It is a part of the Mahindra Group, an Indian conglomerate. It was ranked 17th on a list of top companies in India by Fortune India 500 in 2018.
How do Mahindra and Mahindra grab the major chunk of the automobile industry? The reason for the company’s giant reach to the people is because of the marketing strategy and the marketing efforts. As the world tries to go online, marketing also has to change ways to reach out to the customers and if you want to learn more about it, do check out Free Digital Marketing Masterclass by Karan Shah the founder and CEO of IIDE.
In this blog, we will have an elaborate SWOT Analysis of Mahindra and Mahindra and unravel the answer. Before we delve, let us discover more about Mahindra and Mahindra’s, it is founding, inventions and services, financial status, and competitors.
About Mahindra and Mahindra
(Mahindra & Mahindra, Source: NDTV)
Today’s global brand, Mahindra and Mahindra, began as a steel-trading venture seven decades ago in Ludhiana as Mahindra & Muhammed by brothers M.G. Muhammad and J.C. & K.C. Mahindra. They came a long way since 1945 and as they accelerate into the 21st century, they aim at achieving even more.
It formerly had a joint venture with Ford called Ford India Private Limited to build passenger cars. But now, Mahindra produces their wide range of vehicles, including MUVs, LCVs and three-wheelers. It manufactures over 20 models of cars, including larger, multi-utility vehicles like the Scorpio and the Bolero.
They also own many assembly plants and manufacturing plants. Its assembly plants are located in China, India, Brazil, and the United Kingdom.
|Founder||J.C. & K.C. Mahindra, M.G. Muhammad|
|No. of Employees||2,50,000|
|Market Cap||$ 13.56 Billion (2021)|
|Annual Revenue||$ 9.9 Billion (2021)|
|Net Income/ Profit||$ 440 Million (2021)|
Products by Mahindra and Mahindra
Mahindra and Mahindra are involved in and cater to the demands which include farm equipment, utility vehicles, and commercial vehicles. Their portfolio covers a wide range of products:
- Heavy trucks
- Light trucks
- School Buses
M&M has also built top industry-standard military vehicles and its Willys jeeps were used for transportation in World War II.
What’s new with Mahindra and Mahindra
- In September 2021, Mahindra and Ford ended their collaboration. The collaboration was formed in 2017 to develop new vehicles, technologies, and markets.
- According to Mahindra and Mahindra company, the domestic passenger vehicle sales have increased by 25% in the month of August to 37,270 units from 29,852 units.
- On September 1 utility vehicle segment sold its highest-ever SUVs 37,270 vehicles, it also included 38,164 vehicles.
- Mahindra and Mahindra became the associate sponsor for the ICC men’s cricket World Cup 2023.
Target Audience of Mahindra and Mahindra
Below is a buyer persona for Mahindra with various aspects for a better understanding of their target audience.
- Financial Growth
Interest & Hobbies
- Financial Markets
- Travel and Adventure
- Technology Enthusiast
- Financial Planning
- Urban Mobility
- Eco-conscious Lifestyle
Social Media Presence
Now that we’re familiar with the company’s brand and business let’s scoop into the SWOT analysis of Mahindra and Mahindra.
SWOT Analysis of Mahindra and Mahindra
A SWOT analysis compares an organization’s strengths, weaknesses, opportunities, and threats against those of its competitors. It’s a fantastic tool for determining whether a company is prospering, failing, or expanding. So, let’s look at the SWOT analysis of Mahindra and Mahindra.
With the growing neck-and-neck rivalry in membership warehouses, it is critical for organizations like Mahindra and Mahindra to examine the business environment.
To better understand the SWOT analysis of Mahindra and Mahindra, refer to the infographic below:
Now first let’s begin with the strengths of the company from the SWOT analysis of Mahindra and Mahindra.
Strengths of Mahindra and Mahindra
Business strengths are competitive advantages that allow a firm to outcompete, generate value and achieve efficiency.
- Market Leader in Multiple Automotive Segments: Mahindra & Mahindra has a leading market share in tractors as well as in the utility vehicles segment. Also, the company has a strong market share in the commercial vehicle as well as passenger vehicle segment. Strong market share provides a competitive advantage to the company and allows the company to focus on innovation.
- Strong Research & Development (R&D): M&M has a highly focused R&D department constantly focusing on developing new products and technologies. M&M majorly focuses on the Value addition and Value Engineering (VAVE) approach, designing modularity, use of alternate materials, etc.
- Excellent Products According to Indian Road Conditions: Mahindra & Mahindra’s SUVs are suited perfectly to Indian road conditions especially, Mahindra Scorpio which has been an outstanding performer for many years.
- Low After-Sale Cost: M&M has a competitive advantage on after-sale cost since it is lower than the industry average and also has a high availability of spare parts in different parts of the country.
- E-commerce: One of the biggest strengths of M&M is that with the use of e-commerce M&M is achieving results from both sides one in which the business wants to head from an outcomes point of view and how digitalization in business can help them achieve those results, and another side is addressing the needs of their customers.
- Strong Branding and Advertising: M&M’s advertisements are heartwarming and are often telecasted on commercial TV which has helped them to create strong branding.
(M&M Leveraging Digital Transformation In The Auto Division, Source: Mahindra)
Did You Know? M&M dealers’ sales force in the field is equipped with 8,500 digital tablets to convincingly communicate product attributes and customize their pitch.
Not only dealers but M&M’s approach to the process of digitization is to offer easement to customers with a user-friendly website, applications, and interchangeable options on social media and other online platforms, said Anish Shah – The Group President at M&M.As you can understand how firmly a business run when digital marketing approaches are applied within the organization.
If you are also upgraded to the latest digital marketing skills and keep the ability to apply these approaches in the firm then we can assure you that you will earn recognition from top digital marketing agencies and brands such as M&M.
Weaknesses of Mahindra and Mahindra
A company weakness is any resource or process that your business lacks but needs to succeed. Weaknesses limit your company’s ability to reach its full potential.
- Geographic Dependence: Mahindra & Mahindra is dependent on the majority of its revenue (over 60%) from India, which would affect its business in case of any economic slowdown or high inflation.
- Overdependence on the Automotive Industry: Mahindra & Mahindra’s major part of revenues comes from its automotive business which makes it vulnerable to any breakthrough in the industry or slowdown in the market.
- Product Recalls Affect Brand Image: Mahindra & Mahindra has had to recall many of its products in the recent past. For instance, In February 2015, M&M recalled XUV500 manufactured before July 2014. Such incidents affect the brand image of the company and consequently affect sales.
Opportunities for Mahindra and Mahindra
In the market, there also exist a lot of opportunities through which a company can grow. Let’s see some among them.
- Growth in the Indian Automotive Industry: The Indian automotive industry is growing year on year with over 12% growth from the previous 3 years. The industry is expected to grow at a CAGR of 13% in the next 4 years. This growth can be beneficial for M&M.
- Increasing Demand for Hybrid Electric Vehicles: There is an increasing demand for Hybrid Electric Vehicles (HEVs) around the world. The demand for HEVs is expected to grow at a CAGR of 19% in the next 3 years. M&M has a strong portfolio of HCVs and is set to benefit from the growing demand.
- Emerging Nations: M&M should look forward to tapping the emerging nations around the world that have high potential. M&M should build over its global footprint to tap emerging markets.
Threats to Mahindra and Mahindra
Threats include anything that can negatively affect your business from the outside, such as supply-chain problems, shifts in market requirements, or a shortage of recruits.
- Competition in Other Businesses Puts Pressure on M&M: Mahindra group faces strong competition in other businesses as well.
- Stringent Regulations: M&M is subject to strict regulations by the government and environmental agencies in terms of emission levels, noise levels, etc. Such regulations keep changing and thus increase compliance costs for the companies.
It’s vital to anticipate threats and to take action against them before you become a victim of them and your growth stalls.
Before we conclude the study on SWOT Analysis of Mahindra and Mahindra. Let us have a look at their competitors.
Top 5 Competitors of Mahindra
1. Tata Motors Limited: Tata Motors is an Indian multinational automotive manufacturing company, headquartered in Mumbai, India, which is part of the Tata Group. The company produces passenger cars, trucks, vans, coaches, and buses.
2. Suzuki Motor Corporation: Suzuki is a Japanese multinational corporation headquartered in Minami-ku, Hamamatsu, Japan. Suzuki manufactures automobiles, motorcycles, all-terrain vehicles, outboard marine engines, wheelchairs, and a variety of other small internal combustion engines
3. Ford Motor Company :(commonly known as Ford) is an American multinational automobile manufacturer headquartered in Dearborn, Michigan, United States.
4. Ashok Leyland: It is an Indian multinational automotive manufacturer, with its headquarters in Chennai. It is owned by the Hinduja Group.
5. Bajaj Auto Limited: Bajaj is an Indian multinational automotive manufacturing company based in Pune. It manufactures motorcycles, scooters, and auto rickshaws. Bajaj Auto is a part of the Bajaj Group. It was founded by Jamnalal Bajaj in Rajasthan in the 1940s.
This ends our detailed SWOT analysis of Mahindra and Mahindra. Let us sum up our learning below.
All in all, Mahindra and Mahindra is a distinct company and brand that has sustained itself efficiently over the years. Their focus on innovation and technology has always come in handy and helped them grow. In the domestic market, their strong presence is undeniable. As the industry experiences further development, there is huge potential for the company to capitalise on the latest demands.
Their marketing efforts, both traditional and digital are quite up to the mark. Notably their campaigns and use of popular brand ambassadors. Being one of the oldest companies in the industry, M&M has faced numerous challenges during its journey. Still, it is one of the most trusted brands in the industry. They are adapting to new trends and executing new schemes constantly.
Over the past decades, there has been enormous growth in the spectrum of digital media. Business firms have become more conscious regarding their branding, advertising, and also their engagement on social media platforms.
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