1. 1.Identify the company you wish to analyze
• Mahindra Tractor company has been chosen for the
analysis.
2. 2. Perform an analysis using Porter's 5
Competitive Forces Framework
• Porter’s 5 competitive forces framework used
to make a structural analysis on identifying the
extent of competition within the tractor
industry. These 5 competitive forces are –
1) Threat of new entrant – Major threats of new
entrants are high. These are –
a) Diverse regional requirements.
b)Extensive rural distribution network.
c) Building brand name in rural area.
3. 2)Threats of substitute – In case of agriculture ,Human and
Animals labor like Bull-plough can be substitute. While for
transporting commercial vehicles can be used. Single
Tractor can be used to perform both tasks and many more.
Hence threats of substitute is less.
3) Bargaining power of suppliers – Bargaining power of
suppliers is less due to the following reasons –
a) Switching cost from one supplier to another is less.
b) Suppliers here generally do not have capital to do
forward integration.
c) Many numbers of suppliers are there for tractor industry.
4. 4) Bargaining power of buyers – It is low due to the
following reasons –
a) There are only few major players in tractor
insdustry in India ,they are M&M,Tafe,Escorts &
ITL acounts for 80% of tractor industry volumes.
b) High dependence of population on agricultural
sector leading to high consumer base to the
companies, hence low bargaining power.
5. • 5)Rivalry – Higher the degree of rivalry more
difficult to make profits.Rivalry is high due to
the following reasons –
a) Entry of foreign companies.
b) Continous technological innovation.
-Mahindra Group was recently awarded the
prestigious GNFC Porter Prize 2018 for
Creating Shared Value.
6. Porter’s framework of Mahindra Tractors
Rivalry among
existing
competitors are
HIGH
Bargaining power of
suppliers is LOW
Threat of new entrant is HIGH
Bargaining power of
buyers is LOW
Threats of substitute products are
LOW
7. 3. Analyze the Generic Strategy followed by the
company.
• The company follow Cost leadership strategy in
their Tractor division.This strategy is correct in the
following manner –
1) Mahindra tractors (Including Swaraj tractors)
accounts for largest in the world in terms of
volume of production. As the volume is high ,low
cost of the product also give adequate profits to
the company.
2)Low income of Indian farmers also make the
company to focus on cost leadership.
8. 4.Identify the manufacturing outputs that
the company must focus on
• As the tractors are used in
agriculture/transportation the most important
output that the company must focus on is the
performance of the product.
• Customers need the product to perform well
in the field and get maximum productivity
from it.
9. 5. Specify the type of customers and their
requirements that the company must satisfy
• Customers requirements are -
1)Customer need the product to perform well in the
field and get maximum productivity from it.
2)Best after sales services are required by the
customer.
3)Spare parts availability.
4)Easy to rectify breakdowns.
10. 5. Specify the type of customers and their
requirements that the company must satisfy
• Types of customers – Tractors are used in the
following fields by the customers –
1)Agriculture
2)Construction
3) Road building
4)Plantation
5)Transportation of goods.
11. 6. Identify how items 4 and 5 affect the
manufacturing levers
• These affects manufacturing levers of the company in the
following manner –
a)Human resources – Labor skills required are less.
b)Organization structure – Cost centre production system.
c) Sourcing – High trust to be maintained with the vendors.
d) Process technology – Machines are to be special purpose.
e) PPC – Push system works here due to mass production.
f) Facilities – High size facilities and product layout required.
12. 7.Locate the company on the Volume vs Flow
matrix and justify why it should be there
MASS
The volume vs flow matrix demonstrates
here that the product is in high volume
and low variety matrix. The high demand
of the Mahindra tractors among the
customers results in mass production.
Tractor industry market share in India Volume vs Flow matrix
13. 8.Evaluate which stage, per the article by
Wheelwright and Hayes, is the company at. Give
your reasons for the same.
• The company currently is at stage four level due to the
following reasons –
a) The company ensures involvement of all employees to
leverage the combnied knowledge.
b) The company also developed a common platform where
knowledge is being shared by every departments and is
used for the learning to others also.
c) Creative thinking of the employees are also encouraged
with prizes and rewards .There was one of such case in
developing low cost Ventilators in covid-19 situation by a
small group of team of kandivali & Igatpuri.
14. 9. Consider any Strategic Trade-offs made by the
company. Also, consider if there is Focus and
Strategic Fit among the activities of the
organization.
• The company made trade-offs to be the cost
leadership in the industry.
• Mahindra acquired PTL which helped in strategic
fit . PTL is a good strategic fit to the company, as
it comes with its strength of efficient design
strong R&D abilities and the Brand Swaraj, which
enjoys a strong customer loyalty for being sturdy
and reliable.
15. 10. Evaluate if the company has any core
competence. If so, what is it? Looking forward,
what capabilities would be strategically
important for the company to achieve? Give
reasons
• Following are the core competence of mahindra tractors -
low-cost labour, R&D capabilities, and a large pool of
talented individuals.
• Capabilities of Mahindra tractors include tacit knowledge .
• Capabilities among employees lead to discovering and
acquiring new capabilities .Facilitated by the mangement.
