mahindra and mahindra international strategy

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Mahindra and mahindra entry in south africa..

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Page 1: Mahindra and Mahindra International Strategy

Mahindra and Mahindra

EUROPE MIDDLE EASTNORTH & SOUTH AMERICA AFRICA AUSTRALIAINDIA

Page 2: Mahindra and Mahindra International Strategy
Page 3: Mahindra and Mahindra International Strategy

Mahindra & Mahindra

Mahindra & Mahindra Limited is part of the Indian

Industrial Conglomerate Mahindra Group based in

Mumbai.

Founded 1945

Key People -:

J.C.MAHINDRA

K.C.MAHINDRA

G. MOHAMMAD

KESHUB MAHINDRA(CHAIRMAN)

Page 4: Mahindra and Mahindra International Strategy

Industry AutomotiveFarm Equipment

Revenue 23,803.24 crore (US$5.31 billion)

Net income 2,871.49 crore (US$640.34 million) Employees 119,900

Major automobile manufacturer of utility

vehicles, passenger cars, pickups, commercial

vehicles, and two wheelers.

M&M has partnerships with international companies like

Renault SA, France and International Truck and

Engine Corporation, USA.

Its global subsidiaries include Mahindra Europe

Srl. based in Italy, Mahindra USA Inc., Mahindra South

Africa and Mahindra (China) Tractor Co. Ltd.

Mahindra & Mahindra

Page 5: Mahindra and Mahindra International Strategy

Joint venture

MAHINDRA AND MAHINDRA

Ford called Ford India Private Limited to

build passenger cars.

Kinetic Motors in India for two wheeler .

REVA Electric Car Company

South Korea's SsangYong Motor

Company.Renault SA for LOGAN

France and International Truck

and EngineCorporation,

Mahindra Europe Srl USA

Mahindra USA IncMahindra South Africa and Mahindra (China)

Tractor Co. Ltd.

Mahindra Tractors(China) Co. Ltd

Page 6: Mahindra and Mahindra International Strategy

SWOT Analysis

SWOT

Strength

Weakness

Opportunity

Threats

Page 7: Mahindra and Mahindra International Strategy

SWOT Analysis

• New Product Strong, recognizable brand name: M&M.

• Good Reputation among customers

Strength

• Economic Crash• Competition between

other companies.Weakness

Page 8: Mahindra and Mahindra International Strategy

SWOT Analysis• Higher chance to spread the

reputation of the new product. • Unfulfilled customer needs. • Advancement of technology. Opportunities

• Possible shifts in consumer tastes.• Possible increase in trade barriers

due to the economic crash.• New trading regulations.Threats

Page 9: Mahindra and Mahindra International Strategy

OF MAHINDRA & MAHINDRA

Page 10: Mahindra and Mahindra International Strategy

PEST ANALYSIS – South Africa

PoliticalType:

Parliamentary democracy.

South Africa is a multiparty

parliamentary democracy in

which constitutional

power is shared between the

president and the Parliament.

Laws are strict.

The bill of rights also guarantees

fundamental political and

social rights of South Africa's

citizens.

Economical: GDP (2010): $357.3 billion.

Real GDP growth rate: (2008) 3.7%; (2009) -1.8%;

(2010) 2.8%.

Approx. 11% growth in automobile industry

Page 11: Mahindra and Mahindra International Strategy

Cont…Socio-

culture Current

Population 50.5

million.

South African culture

is diverse

The South African black

majority still has a

substantial number of

rural inhabitants

Many Asian

population in urban areas

The country's manufacturing output is increasingly technology-intensive, with high-tech manufacturing sectors – such as machinery, scientific equipment and motor vehicles

South Africa's technological research and quality standards are world-renowned. The country has developed a number of leading technologies, particularly in the fields of energy and fuels, steel production, deep-level

mining and telecommunications

Page 12: Mahindra and Mahindra International Strategy

How Did They entered South AfricaSet up a 50:50 joint venture

with a South African company Africa Automotive Investment

Corporation in 2004.

launched Scorpio - sports utility vehicle

(SUV).

Imported vehicles from India.

Created Dealers and distribution channel.

Page 13: Mahindra and Mahindra International Strategy

Establishment in SA

Started with 50:50 venture in 2004.

Page 14: Mahindra and Mahindra International Strategy

SA automotive industry Sales Sep 2011

Source: http://www.naamsa.co.za/flash/portal.asp

MANUFACTURER VOLUMETOYOTA

10171VOLKSWAGEN GROUP SA

9382JAGUAR LAND ROVER 436SUZUKI AUTO 387TATA 386FIAT GROUP 351UD TRUCKS 328VOLVO CARS 304MITSUBISHI MOTORS SA

229MAN 210MAHINDRA 155SCANIA

120NAVISTAR TRUCKS SA 94SUB TOTAL47384

Page 15: Mahindra and Mahindra International Strategy

M & M in USA

1994: Incorporation of Mahindra USA Inc. as wholly owned subsidiary of M&M

2003: worldwide sales hit 1 million 2nd US facility opens in California2005: 3rd US facility in Red Bluff

2007: Japan Quality Metal2010: No.1 in Tractor Sales in worldwide

Page 16: Mahindra and Mahindra International Strategy

B2B in USA

Mahindra Ugine Steel Co and Mahindra Gears and

Transmissions: Caterpillar and John

Deere

Mahindra Composites supplies GE

IT service solution for Exxon Mobil, Shell,

Motorola, Nike, Palm, and LSI Logic

Page 17: Mahindra and Mahindra International Strategy

M&M USA site

Mobile-friendly compatibility to allow users access via any tablet or smartphone device

Rich imagery and helpful content for first-time tractor buyers

Simple, accessible information

simple new look, with extraneous information

Build Your Own Tractor

Mahindra USA earned our 98 percent loyalty rating

Page 18: Mahindra and Mahindra International Strategy

Management Strategy in USA

STRONG DEALERSHIPS

Best service to consumer

Low-rate retail financing

Innovative Approach : AE50 Outstanding Innovation Award 2007 from ASABE

(American Society of Agricultural and

Biological Engineers) for Mahindra Shaan

Page 19: Mahindra and Mahindra International Strategy

M&M Tractor Products

• Mid Compact (18-22 hp)

• Compact (23-42 hp)

• Utility (43-83hp)

Page 20: Mahindra and Mahindra International Strategy

Poka Yoke

Page 21: Mahindra and Mahindra International Strategy

J-Bar Assembly

Buy SmartDraw!- purchased copies print this document without a watermark .

Visit www.smartdraw.com or call 1-800-768-3729.

Page 22: Mahindra and Mahindra International Strategy

Computer Aided Engineering

Page 23: Mahindra and Mahindra International Strategy

Competitive Edge

1. Cold testing of engines

2. Dust proof CED Paint shop

3. Extensive Testing and Quality

assurance facilities

4. Highly flexible tractor assembly

lines

Page 24: Mahindra and Mahindra International Strategy

Financial OverviewMMFSL is a

Mahindra and Mahindra

subsidiary, one of India’s leading

tractor and utility vehicle manufacture

r

The Company is

one of India’s leading non-bank finance companies

focused on the rural and semi-urban

sector

MMFSL finances

purchase of utility vehicles, tractors, cars, commercial

vehicles and used vehicles

The Company’s goal is to be

the preferred provider of financing

services in

the rural and semi-urban

areas of IndiaThe Company has 439 branches covering 25 states and 2 union territories• in India

FITCH has assigned

AA(ind) rating and CRISIL has assigned a AA-

ratingto the Company’s long term

debt reflecting a high degree

of safety

Page 25: Mahindra and Mahindra International Strategy
Page 26: Mahindra and Mahindra International Strategy

Business Strategy

Conti

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market

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nd se

mi

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omobile fi

na

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Simple documentation and prompt loan approval procedures

Nati

onwi

de

net

work

of

bra

nc

hes a

nd l

ocally recr

uite

d e

mpl

oyees

hel

p

devel

op a

nd

mai

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ust

omer relati

ons

hi

ps

Diversify Product Portfolio

a joint-venture with De Lage Landen Financial Services

Page 27: Mahindra and Mahindra International Strategy
Page 28: Mahindra and Mahindra International Strategy

PRESENTED BY :

VIKAS SHERE 52NIKHIL KULKARNI 34ROHAN BIRADAR 06ASHISH MITTAL 36TEJAS GARJE 23MANGESH PATIL 39SUDARSHAN BUDGEMWAR 08