Mahindra

1. Strategies in light of Mahindra & Mahindra
Submitted to-
Prof. Karunesh
Saxena Sir
Submitted by-
Jaya Patidar
Manish Kalal Meghna
Samar
Prachi Swarnkar
Ranish Mehta
Sejal Chawat

2. Strategies
• Strategy is a move that managers make to achieve at least one of the
organization's objectives. Strategy can likewise be characterized as "An
overall course set for the organization and its different segments to
accomplish a desired state later on in future. Strategy results from the
detailed strategic planning process".
Types of strategies
❖ Grand Strategy or Corporate Strategy
❖ Generic Strategy or Business level Strategy
❖ Functional Strategy

3. Generic Strategies
Cost leadership Differentiation
Cost
focus
Differentiation
Focus
Generic

4. CHINA MARKET- ENTRY STRATEGY
Step 1 A team & tractor were sent to China from India to test the market
opportunity.
Step 2 The team targeted a single province having large land
holdings suitable for company’s 25-75 hp range of tractors.
Step 3
Solid tractors at a price 20% higher than the rivals
(John Deere), Sending strong message of,
“Superior Quality & Performance”
Step 4 Tie- up with a local partner

5. Jiangling Tractor Company: A to Z
History
❖Part of government owned Jiangling Motor Company (JMCG).
❖30% state of JMCG was owned by U.S. Ford Motor Company.
❖Factory located at Nanchang with production capacity of 10,000 units & 3000
engines annually.
❖Operates in 20-30 hp range with 42 dealership.
❖work force of 710 people which was 50% more than the requirement.

6. BUSINESS STRATEGY OF JTC TO OVERCOME
DOWNTURN
❖Concept of, “Reverse Engineering” was implemented.
❖Partnering with local universities for new technology development.
❖More focus on global market in spite of 2.5% domestic market share.
❖Still struggled to sustain in the market.

7. Grand Strategies
Grand
Strategy
Stability
Expansion Retrenchment
Combination

8. GRAND STRATEGY ADOPTED BY
M&M
● Two year prolonged startegy to fuel growth.
Mahindra & Mahindra Ltd had devised a two-pronged strategy to
strengthen its brands’ presence and also make inroads with its
latest range of products this year.This strategy involves both urban
and rural markets as the automobile firm expects strong growth
this year, helped by a favourable monsoon and from sales of its
new products launched a few months ago.

9. MAHINDRA & MAHINDRA
History
✔ incorporated as Muhammad & Mahindra in 1945 by the brothers J. C. Mahindra and K. C.
Mahindra, and Malik Ghulam Muhammad in Ludhiana, Punjab to trade steel.
✔ In 1948, K. C. Mahindra changed the company's name to Mahindra & Mahindra.
✔ They also won a contract to manufacture Willys Jeeps in India and began producing them
in 1947.
✔ In 1961 Mahindra start Venturing into farm equipment with the International Harvester
Company of Chicago, USA.
✔ In 1996 Mahindra partners with Ford. joint venture with Ford Motor Co., USA, to
manufacture two popular Ford passenger cars for the Indian market – Escort and Fiesta.
Later on, we went on to manufacture the Scorpio, our best-selling SUV, built for the global
market.

10. ✔ Mahindra & Mahindra Limited is an Indian multinational vehicle manufacturing corporation
headquartered in Mumbai, Maharashtra, India.
✔ It is one of the largest vehicle manufacturers by production in India and the largest
manufacturer of tractors in the world. It is a part of the Mahindra Group, an Indian
conglomerate.
✔ M&M has a global presence and its products are exported to several countries. Its global
subsidiaries include Mahindra Europe S.r.l. based in Italy, Mahindra USA Inc., Mahindra South
Africa and Mahindra (China) Tractor Co. Ltd.
✔ The Group had become so diverse that it undertook a fundamental reorganization, dividing into
six Strategic Business Units: Automotive; Farm Equipment; Infrastructure; Trade and Financial
Services; Information Technology; and Automotive Components (known internally as Systech).
✔ They follow a unique business model of creating empowered companies that enjoy the best
of entrepreneurial independence and Group-wide synergies. This principle has led growth into
a US $16.5 billion multinational group with more than 180,000 employees in over 100 countries
across the globe.
Business empire

11. CASE STUDY (GRAND STRATEGY)
SSANG YONG AND MAHINDRA
● EXAMPLE OF GRAND STRATEGY LAID BY M&M.
● As part of expansion, M&M, signed a definitive agreement to buy a 70
per cent stake in the ailing South Korean automaker, SsangYong Motor
Company (SYMC), for $463 million (Rs 2,100 crore).
● Mahindra intended to launch as many as three new SsangYong models
in the next few years in an attempt to revive sales of the company, fifth
largest in the sector in that country. Ssangyong had sought bankruptcy
protection after continued dismal sales.
● This deal was made by automotive and farm equipment sectors, M&M.
● Here M&M can be clearly seen setting example of EXPANSION
THROUGH MERGER AND ACQUISITIONS.
● M&M has also showed an example of diversification through
HORIZONTAL LINES but an UNRELATED one.
● As articles quoted “ MAHINDRA OFFERS COMPETENCE IN SOURCING
AND MARKETING STRATEGY WHILE SSANG YONG HAS STRONG
CAPABILITIES IN TECHNOLOGY”.

12. CASE STUDY (GENERIC STRATEGY)
MAHINDRA RISE
● EXAMPLE OF GENERIC STRATEGY LAID BY M&M THROUGH
DIFFERENTIATION.
● If we talk about the product differentiation, Mahindra rise was the first
company in two wheeler manufacturing to introduce Height Adjustable
Seat, Anti-Theft Alarm with Engine Immobiliser, Find Me Lamps and
Remote Flip Key among many others.
● Their high performance and innovative products are a manifestation of
the strong technological capabilities that have been developed highly
advanced R&D Centre at Pune. It is equipped with state-of-the-art
facilities to develop world-class products.
● The Mahindra Two Wheelers R&D facility is headed by two-wheeler
experts who lead various futuristic technology and product development
projects.
● They are rapidly expanding their already significant distribution and
customer service networks across the country. And have more than
1500 touch points and are constantly widening their reach.

13. Future course of actions
⮚ Mahindra also makes trucks in partnership with Navistar, two-wheelers,
sedans and electric cars with Reva. The company will Increase their share
in two wheeler market in India and surpass their competitors like Hero,
Bajaj. Mahindra plans smaller petrol engines for future compact models of
cars and to make a compact SUV that would compete with small cars in
pricing but would offer the rugged capabilities that become the group’s
trademark.
⮚ E-mobility is only one among the several fronts on which Mahindra is
waging a battle of aspirations, to future-proof the $19-billion tractor-to-
technology conglomerate

14. Future course of actions cont..
• The flagship auto firm is in the throes of a mobility, artificial intelligence (AI) and big
data-led digital transformation, disrupting the organisation across its value chain.From
a product standpoint, the auto business now increasingly rests around three key focus
areas -- electric cars, shared mobility and autonomous vehicles -- which are convergent
trends that will drive the industry’s future.
• M&M unveiled its much-awaited driverless concept for tractors, developed at Mahindra
Research Valley in Chennai, where 1,500 in-house engineers work to drive technology-
driven R&D.Mahindra believes agriculture is the “most fertile ground” for autonomous
vehicles, even as most global carmakers place their bets squarely on passenger cars --
a pipe dream in the Indian context.
• Mahindra and Mahindra sets aggressive goals for farm equipment business. also plans
to significantly increase its play in the domestic market where it is already ahead of its
rivals Tafe, Escorts, Sonalika Tractors by a wide margin

15. • Mahindra and Mahindra, (M&M) a market leader in tractor and
farm equipment, has set itself an aggressive goal for both
domestic and overseas business as it charts the next phase of
growth.
• it aspires to increase its share in the domestic tractor market
form the current 43 per cent to 50 per cent.
• strategy will be driven by efforts to increase revenue in the
Americas, Japan and Eastern Europe, a volume ramp of the
recently launched tractor platforms will be key to meeting the
aspiration to control half the domestic market.
• the farm equipment sector is the cash-cow for the tractor-
technology conglomerate

16. Conclusion
As per the above facts we can coclude that Mahindra has follows a mix of
various strategies to gain market share and earn revenues.
In case of generic strategies the company has followed differentiation and
focus strategies like they are focused on farm equipment sector .
Its differentiated products are various models of suv, tuv, thar segment,
mahindra bolero.
In case of grand strategies it has expanded through – farm support
services, mahindra applitrac, mahindra subh-labh, samriddhi initiative.
Its stable sector is farm, tractors, jeeps etc.
It has joined hands with ford.

17. REFERENCES
● Youtube Channels
- https://www.youtube.com/watch?v=Et7CqvttXnI
-https://www.youtube.com/watch?v=KyiQqYOLtL0&t=28s
● Websites-
-https://www.business-standard.com/article/companies/mahindra-buys-70-in-
ssangyong-110112400046_1.html
-https://www.financialexpress.com/auto/car-news/mahindra-invests-rs-316-crores-
more-in-ssangyong-motors-heres-why/1446252/