Mahindra & Mahindra Limited (M&M)

Mahindra & Mahindra Limited (M&M) is indeed an Indian multinational automotive manufacturing
corporation with its headquarters in Mumbai, India. Mahindra & Mahindra has a significant presence
in the Indian automotive market and is known for its sturdy and reliable vehicles. The company has
also expanded its global footprint and operates in several countries including the United States,
South Africa, Brazil and Australia many more. In addition to automotive manufacturing, Mahindra &
Mahindra has subsidiaries and joint ventures involved in diverse industries like information
technology, hospitality, two-wheelers, financial services, and agricultural equipment.

Mission, Vision and Goal

Mission:

Mahindra & Mahindra's mission is to provide innovative and sustainable mobility solutions by
bringing about a positive change in society, thus creating value for its stakeholders. They strive to
deliver products and services of superior quality to enhance the lives of their customers.

Goal:

The primary goal of Mahindra & Mahindra is to be a global leader in the automobile sector by
consistently delivering superior products and services, maintaining strong customer relationships,
continuos innovation, and driving sustainable growth.

Vision:

Mahindra & Mahindra's vision is to be a leading global player in key sectors, driving positive change
and creating a better future for all stakeholders. They envision themselves as a company that
embraces technology, sustainability, and social responsibility to make a meaningful impact on
society. They aim to be a preferred choice for customers, partners, and employees by offering
products and solutions that are reliable, efficient, and aligned with the evolving needs of the world.

SWOT Analysis

Strengths Weakness
- Wide range of automobiles - Net cash flow has been flat from the
demonstrating strong R&D team past two years.
- Strong global presence
- Strong upward trend in revenue and
profitability showing an efficient
operations
- Rising trend in EPS.
- MFs and FIIs increasing stakes from last
year.
Opportunity Threats
- With a strong R&D and operations - Disruptions in the auto sector, switching
teams, it can be a leader in the EV from conventional petrol/diesel
sector. vehicles to electric vehicles.
 - Launching of the 5-door SUV segment. - Global chip shortage
- entered the dual-fuel segment in the
small commercial vehicle space with
the launch of Supro CNG Duo

Porter’s Five Forces

Threat of New Entrants:

Mahindra operates in various sectors, including automotive, aerospace, defense, agriculture, and
more. While the automotive industry is highly competitive, Mahindra's diversified portfolio and
established reputation act as barriers to entry for new competitors. Additionally, significant
investments in research and development, manufacturing capabilities, and distribution networks
create further entry barriers.

Bargaining Power of Suppliers:

Mahindra is a strong and established name in the auto sector. If we come to the sector analysis, it is
one of the sector leaders alongside Tata Motors and Maruti Suzuki. So, it has a tremendous brand
value which enables it to dictate terms with its suppliers.

Bargaining Power of Buyers:

Due to the presence of others leaders (Tata Motors and Maruti Suzuki), buyers generally enjoy a high
bargaining power in this sector. But, due to the presence of a strong R&D team and wide distribution
network, M&M’s order book is full till the next one year or more. In some of its models, it charges
more money if you want a same year delivery because of producing stylish trending models.

Threat of Substitutes:

In the automotive industry, there are several substitutes available, such as public transportation,
bicycles, and ride-sharing services. However, Mahindra's diverse product portfolio, including
passenger vehicles, commercial vehicles, and tractors, caters to different customer needs and
reduces the impact of substitute products.

Competitive Rivalry:

Competition in the automotive industry is intense, with both domestic and international players
vying for market share. Mahindra faces competition from companies like Tata Motors, Maruti Suzuki,
Hyundai, and global giants like Toyota and Ford. To maintain its competitive edge, Mahindra relies on
product differentiation, technological innovation, quality, and customer service.

PESTLE

Political factors

Political factors play a significant role in shaping the operations and business strategies of companies
in the automobile industry. In the case of Mahindra & Mahindra (M&M) and the Indian automobile
industry, the stability of government's political framework is a crucial factor. The scrappage policy of
the government removing older vehicles from the road, creates a demand for new vehicles. Also,
M&M has also aligned with the government goals (reducing pollution) to introduce electric vehicles
boosting further business.

Economic factors

Economic factors such as increasing inflation, rising recession, income and employment level play a
major role in the sales of automobiles. Tariffs, taxation, and import-export duties have the potential
to significantly raise the selling price of automobiles. The increasing fuel prices and the impact of the
Goods and Services Tax (GST) are key considerations that can affect the demand for this particular
vehicle manufacturer. In rural areas, additional factors such as lower household income and a
reduced employment rate need to be taken into account when implementing sales strategies.
Mahindra & Mahindra's success will depend on its ability to adapt to these factors and capitalize on
the potential for growth in the market

Social Factors

Working class living in urban areas like cities prefer to have a social status and for that they tend to
buy their own personal vehicles. Even a big family prefers 4 wheelers rather than 2 wheelers which
gives them value for money. This firm has ventured into E-vehicles with low running costs which has
huge demand potential. There is a lot of opportunity to target different market segments with
different business and functional strategies. Due to fear of COVID-19 pandemic spread, people
started buying more cars as compared to travelling in public transportation. Mahindra & Mahindra
can gain a big market share by analysing and operating in the market properly.

Technological Factors

This auto company is actively pursuing the growth of the EV market. It has invested over Rs. 500
crores in its EV project under the new EV policy of the Government of Maharashtra. It is the first auto
company having its products well integrated onto a cloud-based technology platform. It is also
leveraging the latest technologies like IOT to automate its manufacturing. It needs to continuously
upscale its technology and invest in research and development in order to compete with the Global
and national automobile manufacturing firms.

Legal Factors

Legal factors in the automobile sector are really stringent as it concerns the safety and security of
passengers, customer data privacy, environmental laws, patents, labour laws in the manufacturing
plants etc. work environment, safety of employees, wage policies etc. Mahindra & Mahindra need to
follow all relevant laws to build market trust and loyalty. It needs to focus on its product failures
during the testing phase properly to avoid any lawsuits after delivery. The safety laws need to be
adhered to while designing and rolling out the vehicle in the market. This company can increase its
market share by abiding to all legal practices in its business operations.

Environmental Factors

The environmental factors are really important for Mahindra & Mahindra to make a sustainable
business model in the long term. The climate change and focus on reducing vehicular pollution which
is adding up to global warming is crucial to be considered. This firm is already making many eco-
friendly business operations to drive a positive impact on the environment. Its focus on reducing
carbon footprints is immense in its business strategy. It has been ranked as one of the top 100 most
sustainably managed companies.
VRIO Analysis

V(Value) R(Rarity)
- Strong brand reputation - Expertise in utility vehicles and tractors
- Diverse product portfolio - Strong R&D
- Strong distribution network
I(Imitability) O(Organization)
- Expertise in utility vehicles and tractors - Strong leadership and management
- Strong customer relationships - Skilled workforce

Guesstimate

Population of India = 1,352,642,280

Urban population of India = 4,98,179,071

Rural population of India = 1,35,26,42,280 – 49,81,79,071 = 85,44,63,209

Let, toothbrush penetration in India be 75%.

Therefore, toothbrush used by:

Urban population = 0.75*4,98,179,071 = 37,36,34,303

Rural population = 0.75*85,44,63,209 = 64,08,47,407

On a yearly basis,

Average toothbrush changing frequency in urban area = 4 times

Average toothbrush changing frequency in rural area = 2 times

On a yearly basis,

Toothbrush sold in urban areas = 4 * toothbrush used by urban population = 4 * 37,36,34,303 =

Toothbrush sold in rural areas = 2 * toothbrush used by rural population = 2 * 64,08,47,407 =

So, total toothbrushes sold in a year = Total toothbrushes sold in both urban and rural areas =
1,49,45,37,212 + 1,28,16,94,814 = 2,77,62,32,026

Hence, total toothbrushes sold in a month = (total toothbrushes sold in a year)/12 =

Total number toothbrush sold in a month in India = 23,13,52,669