Mahindra Swot Analysis

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INTRODUCTION

Mahindra & Mahindra Limited (M&M) is an Indian multinational manufacturing corporation with headquarters in Mumbai. It is one of the largest vehicle manufacturers by production in India and the largest seller of tractors across the world.
After 1994, the company reinvented the strategies for boosting the sales of its existing products. When those strategies exhausted, the company conceptualized the birth of a new market leader through “Project Scorpio” to enter into the Utility Vehicle (UV) market. It started IDAM: Integrated Design and Manufacturing, with a multifunctional project team. It conducted a consumer research drive: “static and drive” clinic to get consumer insights about the perception about the company and its products. …show more content…

Low Maintenance Cost: The low maintenance cost was a major booster for Scorpio sales as Indian customers, even at top end of the pyramid are sensitive toward rugged and low maintenance cars.

WEAKNESSES

1. Limited International Presence: Although Mahindra still continues to be number 1 SUV in India, the market share outside India still continues to be low.

2. Rising Manufacturing costs: Rising inflation, wages, higher interest rates for capital rising was leading to rise in the manufacturing costs.

THREATS

1. Intense competition: There is stiff competition from SUV’s of global automobile giants with superior technological advantage like Renault Duster, Nissan Terrano, Toyota Qualis, Toyota Innova, Ford Ecosport etc.

2. Automatic Transmission only on Top-End Variant: Not all variants of Scorpio have automatic transmission which gives an Opportunity to competitors to take advantage of.

3. Government Regulations, Taxes and increasing fuel prices: Higher excise duty of 30% introduced in 2013 budget led to drop in sales of SUV car’s segment. This compels the prospective customers from switching to sedan car segment which are not under the purview of this higher tax. Also diesel price deregulation has escalated diesel prices and is a threat to diesel car sales which has seen good

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