The document discusses how Mahindra & Mahindra Finance Services empowers rural customers in India. It outlines the company's competitive advantages in rural markets, which include their ability to provide superior customer service and an easy application process without requiring collateral due to their local employees' cultural and social knowledge. This localized approach gives the company restrictions over competitors and first mover advantage. While the model lacks intellectual property protection, its simple "earn and pay" structure would be difficult for competitors to imitate. It is argued that if applied to urban markets, the strategy could also be successful there due to meeting customer needs underserved by banks and moneylenders.

1. MAHINDRA AND MAHINDRA
FINANCE SERVICES LIMITED:
EMPOWERING RURAL
CUSTOMERS IN INDIA
Group Members :
Gandavaram Bharath Kumar Reddy- 034014
Rishabh Jain- 034039
Shounak Banerjee- 034044
Akarsh Kumar Pandey- 143006

2. ASSESSMENT AND ADVANTAGE
Rural Employees
 Inherent behavioural traits
 Internal communication
 Local language
 Social connections
 Loyalty
 Image building

3. COMPETITIVE
ADVANTAGE
• Better customer service
• Customer loyalty
• Easy application and repayment process
• Unique application processing system
• No third party requirement
• No collateral required
Superior access to customers
• Knowledge base of villages and culture
• Size of business
• Service Portfolio
Restrictions on competitors’ options

4.  Superior access to customers
 Better customer service
 Customer loyalty
 Easy application and repayment process
 Unique application processing system
 No third party requirement
 No collateral required
 Restrictions on competitors’ options
 Knowledge base of villages and culture
 Size of business
 Service Portfolio

5. IMITATION BY POTENTIAL
COMPETITORS
For
 Customer trust
 First mover advantage
 Market penetration
 Knowledge gained and experience
Against
 No intellectual property
 Simple “earn and pay” model

6. IF MF WERE TO ADOPT THE SAME STRATEGIC MODEL
TO PENETRATE URBAN MARKETS, DO YOU THINK IT
WOULD BE SUCCESSFUL? WHY OR WHY NOT?
Yes, I do think that if Mahindra finance adopts the same
strategy model to penetrate in the urban markets it would be
very successful as company’s primary aim is to focus on the
future productivity growth and revenue, concentrating on the
integrity of the customers along with the business plan, by
the customer that needs funding. The company also
overcomes all the hardships between the moneylender, who
charge a significant premium, and public sector banks.
The company’s product portfolio includes housing finance,
personal loans, gold loans, loans for construction equipment,
vehicle loans, fixed deposits, insurance broking, used vehicle
financing, and mutual fund distribution, and these all
instruments are also used by people in the urban markets.
So, the same strategy model can be useful here too.

7. CREDIT
WORTHINESS
& EXTRA
STEPS
• Recoverable Loan Amount
• Field Knowledge
• Good Record in terms of Transaction and
Business
• MF Loan Recovery Policy
Credit Worthy or Not:
• Trade Reference
• Integrity Check
Extra Steps by Kishore: