SDM

ASSIGNMENT
MAHINDRA
AND
MAHINDRA

SEC-DEF
Group Members:
Akriti Mishra-2015193
Alisha Ansari-2015257
Anchit Chhabra-2015264
Kanika Kashyap-2015280
Rohit Trivedi-2015297
Vishal Rathi-2015317

Brief About Mahindra and

Mahindra
Mahindra & Mahindra Limited is a flagship company of the Mahindra Group, which through its
subsidiaries is primarily engaged in manufacturing and marketing a range of utility vehicles. It
also provides farm equipment services, steel trading and processing services, financial services,
infrastructure development, hospitality services, information technology and other services. The
group operates in Asia, America, Europe, Middle East and Africa and Australia. Headquartered
in Mumbai, India the company employs 40,163 people as of 2014.
For this project we have based our analysis on the Passenger Vehicle segment of Mahindra &
Mahindra. Overall, the company has 19 products in their passenger vehicle category; the
company manufactures Mahindra NuvoSport, Mahindra KUV100, Mahindra Bolero, Mahindra
Quanto, Mahindra Scorpio, Mahindra Thar, Mahindra TUV300, Mahindra Verito, Mahindra
Verito Vibe, Mahindra XUV 500 and Mahindra Xylo. Mahindra as a brand also takes care of the
selling of cars in India manufactured by ssangyong. The cars manufactured by ssangyong and
sold by Mahindra in India are ssangyong Actyon, ssangyong Actyon Sports, Chairman W,
Kyron, Korando, Rexton, Rodius and Tivoli.
In the following segment, we present the generic strategy, Porters five model, and other theories
for the passenger vehicle segment of Mahindra & Mahindra.

WOT
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SWOT Analysis of the Company
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Porters Model
1. Bargaining Power of Suppliers

There is a low cost of switching suppliers. This is beneficial to the company as this reduces the
bargaining power of suppliers. The critical production inputs are similar, making it easier to mix
and match, further reducing their bargaining power. The suppliers are reliant on high volume
orders that are again in the favor of the company. Overall, owing to its large size and being well
established in the automobile sector, Mahindra and Mahindras suppliers do not enjoy a high
bargaining power.
2. Bargaining Power of Customers

There are large numbers of options in the automobile market, making the bargaining power of
the customers strong. With multiple utility vehicles available in various brands and styles and a
suitable option for every households requirement, the customers have the power of choice,
giving them a greater bargaining power.
3. Threat of New Entrant

The entering cost in this sector is quite high. The upfront capital requirement, building upon your
brand equity in the market, establishing and extensive distribution channel, etc. takes both time
and money. Further, there are well established firms in this sector and the market seems
saturated. Coming into the market and posing a competition to automobile giants like Maruti,
Honda and Toyota is a very difficult task. Therefore, the chances of a new entrant in this sector
looks slim.

4. Threat of a Substitute Product

There is no such threat of a substitute product. Automobiles are the main means of transport on
road and will continue to be so. But with more awareness about the environmental pollution and
fuel prices soaring, many people are shifting to public transport. With the local trains, subways,
monorails catching up, they could be a reason for loss of sales in the future. With this trend,
electric cars might catch up in the market soon. Mahindra and Mahindras e2o might have a
bright future.
5. Competitive Rivalry
New launch of vehicles as well as existing vehicles of firms definitely pose a threat to Mahindra
and Mahindra. Their main competitors are Toyota, Honda, Hyundai, Nissan Tata Motors, etc.
SUVs like Toyota Fortuner, Renault Duster and many other poses serious competition. The lack
of product differentiation is the main reason for tough competition in the automobile sector.
Hybrid cars which are more fuel efficient are catching up and could pose a serious threat.

Current Sales Force

Re-engineering sales force of

Passenger Cars for Mahindra &
Mahindra

M&M needs to work on their service network for passenger vehicles as they operate in
highly competitive market with major players of the industry like TATA and AL. M&M
can tie-up with local service providers and train the local mechanics which allows them

to spread their network across the nation.

Sales force automation (SFA) software is a type of program that automates business tasks
such as inventory control, sales processing, and tracking of customer interactions along
with analyzing sales forecasts and performance. Businesses may have a custom version
developed specifically for their needs, or choose from among the increasing number of
sales automation software products. SFA packages typically include a Web-ready
database, an e-mail package, and customizable templates. A module-based design is
generally used, to allow users to customize the package to suit their needs.
With the sales process management solution in Salesforce Sales Cloud, the company can
save time and simplify approvals by automating the sales processes with just a few clicks.
This also helps to share and maintain the data of a process that is taking place at some
other location at the central level to the highest concerned authority. This easy-to-use
workflow automation software allows to visualize and create any process with drag-and-

drop simplicity, no matter how complex the process. It also creates workflows that guide
sales agents through qualification conversations, intelligently recommend next steps on a
deal, or automate manual tasks like filling out orders or putting together complex

proposals.
To analyse the effective of sales force of any company it is important to study the three
important aspects:
1. The percentage of companys sales quota who meet or exceed sales quota.
2. The percentage of companys sales organization overall revenue plan attainment.
3. The win rate of forecast deals
The company has to oversee all the above mentioned aspects to determine the efficiency
and effectiveness of the sales force. Since Mahindra lags behind in all these aspects,
therefore, to rectify or re-engineer their sales force it is important for Mahindra and
Mahindra to make sure that they fulfill all the aspects mentioned above.

The companys after sales services does not meet the industry standards as such, and
therefore, it is losing its market share. So the company has to oversee the after sales part
so that they have satisfied customers. Also as per a survey, they need to work on their
branding part as some of their cars are taken as cars which are mainly for people holding

negative value in the society.

The company should follow the below mentioned model which is known as Sales
Transformation Process (STP). To re-engineer the sales force Mahindra needs to work on
this transformation process which, when carefully analysed can give great results.