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MAHINDRA &

MAHINDRA

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PORTERS FIVE FORCES ANALYSIS

Threat from new entrant:-

Govt. has approved 100% FDI.

Competitors are very reactive towards new entry.

The existing companies have control over the suppliers &

Need of a large dealer network.

High startup capital is required for new company.

Entry through strategic partnership and M & A.

Government restrictions or legislation.

Products are nearly identical.

There is low customer loyalty.

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PORTERS FIVE FORCES ANALYSIS

Threats from buyers:-

Getting SUV at such a affordable price.

Few buyers chasing too many goods

Product is not differentiated

Buyers cost of switching to a competitors product is high

Shopping cost is Buyers are price sensitive

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PORTERS FIVE FORCES ANALYSIS

Threat from supplier:-

Car is manufactured through global alliance of companies each

company handling different sets of areas.

The suppliers do not pose any threat of forward integration

Suppliers are concentrated and well organized

a few substitutes available to supplies

Their product is most effective or unique

Many number of supplier are there for Automobile industry

Switching cost, from one suppliers to another, is less.

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PORTERS FIVE FORCES ANALYSIS

Threat from substitution:-

There are many substitute products available

Customer can easily find the product or service that

youre offering at the same or less price

Quality of the competitors product is better

Substitute product is by a company earning high

profits so can reduce prices to the lowest level.

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PORTERS FIVE FORCES ANALYSIS

Threats from competitors:-

The rivalry is extremely high owing to the

consolidation that the industry is witnessing

Opening of world market

Entry of foreign players

Continuous technological innovation

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PORTERS FIVE FORCES ANALYSIS

There are number of small or equal competitors and less

when theres a clear market leader.

Customers have High switching costs

Industry is growing Exit barriers are high and rivals stay and compete

Fixed cost are high resulting huge production and reduction

in prices

No presence of SUV at this price.

Continue

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COMPETITORS

1.Honda2.Toyota3.Nissan

4.Hyunda5.Mitsubishi

6.Maruti Udyog7.Tata Motors8. Skoda9. Toyota10. Volkswagen11. Ford

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MARKET SHARE

1. Maruti Suzuki - 44.17%

2. Hyundai - 15.42%

3. Mahindra and Mahindra - 10.99%

4. Toyota - 5.97%

5. Tata Motors - 5.63%

6. Honda - 3.84%

7. General MotorsChevrolet - 3.73%

8. Renault - 3.01%

9. Volkswagen - 2.67%

10. Ford - 2.2%

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STRATEGIES

Pawan Goenka- (President Automotive & FarmEquipment Sectors of Mahindra)

Revealed that Mahindras cheapest vehicle is Bolero while the

most expensive models are the XUV 5OO variants and that

there is no scope for one more product.

Thus, if Mahindra launches a new product it will be replacing anexisting one, otherwise the segment portfolio will become toocrowded.

49% stake in MUSCO, Anand Mahindra is President and DeputyManaging Director of the company and excise the managingcontrol over steel company.

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STRATEGIES

However, along with the brand new models, few of its age oldstars will be retained by the company, of course with majorupgrades to continue their success.

Just for example, the Mahindra Bolero is 13 years old and stillgoing very strong with the sale of over 10,000 units per month.Then again, a decade old Scorpio has been selling 4,000 units amonth and has its own place in the hearts of the Indianconsumers.

Thus, keeping with the sentiments and the sales rate, it is veryunlikely that these models would be replaced by any newmodels. But, yes they would definitely immerge as new cars withheavy upgrades from Mahindra & Mahindra.

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THANK-YOU..