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
• Two-wheelers
• SUV
• Tractors 
• School Buses

M&M has also built top industry-standard military vehicles and its Willys jeeps were used for transportation in World War II.

Competitors of Mahindra and Mahindra

Mahindra and Mahindra contest with companies across India. The topmost companies are:

• Ashok Leyland
• Force Motos
• Maruti Suzuki
• Tata Motors
• Jeep

Now as we’re familiarized 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 high availability of spare parts to 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.

(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 customise their pitch.

Not only dealers but M&M approach to the process of digitisation is to offer easement to customers with a user-friendly website, applications, 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 come from its automotive business which makes it vulnerable to any breakthrough in the industry or slowdown in the market.
• Product Recalls Affects 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 be benefited from the growing demand.
• Emerging Nations: M&M should look forward to tapping the emerging nations around the world which have high potential. M&M should build over its global footprint to tap the 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 Put 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.

This ends our detailed SWOT analysis of Mahindra and Mahindra. Let us conclude our learning below.