Human Human Top Management Centre for Creative Leadership, USA
Physical Mahindra research & valley, Chennai (Pro dev, testing, validation) Plants at Nasik, Chakan, at 8 different locations Mahindra Samriddhi (soil & water testing labs)
CAPABILITIES(FUNCTIONAL) Distribution HR Effective rural dealership channels
Creating synergy between Tech Mahindra and Satyam employees
Yuvraj-215 Tractor received Golden Peacock Award,2010 for innovative product and Scorpio won Autobid technology award for its Micro Hybrid technology Successfully diversifying into IT, Hospitality, Financial services sectors
R&D Management
VIRU ANALYSIS Capability Valuable Costly to imitate Yes Rare Unmatchable Competitive Consequences Sustainable Competitive Competitive Parity Competitive Parity Performance Implication Above Avg. Return Average to above avg. Return Average to above avg. Return Below Average Return Avg. Return Competitive Parity Average Return Largest Producer of Tractors in world SUVs: Bolero Sales Scorpio: Own R & D; Mahindra Satyam Mahindra Finance Brand Value Yes Yes No
Yes Yes
No Yes
No No
Yes No
No Yes Yes
No No No
No Yes No
No No No
INTEGRATION 2002: SUV 1999:Launch of Bijlee, a battery-operated, environmental-friendly 3-wheeler 2007:Mahindra Navistar Automotives Ltd. 1965: LCV 1963: Tractors 1949 :Assembly of Willys Jeep 1958:Machine tool Div 1986: Tech Mahindra 1975 :Engine Mafg plant(Igatpuri) 2009: Electric car segment(REVA) 2010: SUV(SsangYong Motor Company)
1962:Mahindra Ugine Steel Company 2005:Manufacture of gears and transmission shafts
VALUE CHAIN ANALYSIS(Xylo)
Simplified Planning Practices to Reduce Planning Costs
Support Activities
Effective Training Programs to Improve Worker Efficiency and Effectiveness
Easy-to-Use Manufacturing Technologies
Systems and Procedures to find the Lowest Cost Products to Purchase Raw Materials Highly Efficient Systems to Link Suppliers Products with the Firms Production Processes
Investments in Technology in order to Reduce Costs Associated with Manufacturing Processes Frequent Evaluation Processes to Monitor Suppliers Performances Effective Product Installations to Reduce Frequency and Severity of Recalls
Located in Close Proximity with Suppliers
Efficient Plant Delivery Schedule Small, Highly Scale to Minimize that Reduces Trained Sales Manufacturing Costs Force Costs Products Priced to Generate Sales Selection of Low Volume Organizational Cost Transport Learning National Scale Carriers Advertising
10%
5%
5%
0%
Cost Reduction Of 21%
Primary Activities
VALUE CHAIN ANALYSIS
MERGER & ACQUISITION
c In Dec1999 Mahindra-Gujraat Tractor(60%) In Jan 2007 Mahindra- Schoneweiss, Germany(90%) In March 2008 Mahindra- G.R.Grafica Ricerca Design (GRD) In July 2008 Mahindra-Punjab tractor In July 2008 Mahindra-Kinetic (80%) In April 2009 Tech Mahindra Satyam In Apr 2010 Mahindra-Logan In May 2010 c In May 2010 Mahindra- GippsAero,Australia In Aug 2010 Mahindra- Ssangyong Motor Company In Nov 2005 Mahindra-Navistar Truck, USA (51:49) In March 2010 Mahindra + Yueda Group = MYYTCL
Joint Venture:
ACQUISITION Year Dec1999 Jan 2007 March 2008 Acquisition
` Stake % 60 90 -
Mahindra-Gujraat Tractor Mahindra- Schoneweiss, Germany Mahindra- G.R.Grafica Ricerca Design (GRD)
July 2008 July 2008 April 2009 Apr 2010 May 2010
Mahindra-Punjab tractor Mahindra-Kinetic cc Tech Mahindra Satyam Mahindra-Logan Mahindra- Reva
63 80 100 55
May 2010 Aug 2010
Mahindra- GippsAero,Australia Mahindra- Ssangyong Motor Company
Proposed
Joint Venture: Nov 2005 March 2010 Mahindra-Navistar Truck, USA Mahindra + Yueda Group 51:49 51:49
BCG DATA Product Current Market Share(%) 0.8 10.1 Key Competitor Competitor s' Market Share(%) 59 63.6 X Industry Growth(%) 26 25.9
Two wheeler Three wheeler Logon (mid size) Tractor Bolero(UV) Scorpio (SUV) Xylo (MPV)
Hero Honda Bajaj
0.013 0.15
1.9 41.4 26 22.5 6.8
Honda TAFE Force Trax Ford Endeavour Innova
17 22 13 19.4 31
0.12 1.8 2 1.15 0.22
14.2 28.3 20 29.3 40.9
BCG MATRIX 50 High
Industry Growth(%)
Tractor (1.8 X) 27.8
Scorpio (1.15 X)
Xylo (0.22 X)
Bolero (2 X)
Three Two wheelers wheelers (0.013 X) Logon (0.15 X) (0.12 X)
Low 100 X
High
Relative Market Share
Low
0.01 X
GE MATRIX
Agri Equipments
Automobile
Mahindra Finance Real Estate
MARKET ATTRACTIVENESS
Mom and Me Two wheelers
Tech Mahindra Mahindra First Choice Defense
COMPETITIVE STRENGTH
Agri Equipments
Automobile
Mahindra Finance Real Estate
MARKET ATTRACTIVENESS
Mom and Me Two wheelers
Tech Mahindra Mahindra First Choice Defense
COMPETITIVE STRENGTH
INTERNATIONAL STRATEGIES Internationalization: It is a process of increasing involvement of an enterprise in international markets. Strategies : Exporting Franchising Licensing Joint Ventures
Acquisitions Production Sharing BOT Concept
Green-Field Development Turnkey Operations Management Contracts
INTERNATIONAL STRATEGIES Exporting :
The company exports its products to several regions
including Europe, Africa, South America, South Asia and the Middle East. Exports tractors to Turkey Scorpio, as Mahindra Goa in Italy Mahindra Pik Up & Bolero Pik Up (Cimarron) in Africa Xylo Cargo Van in S. Africa Mahindra Agribusiness (MSSL) exports grapes, pomegranates and apples to Europe & UK
INTERNATIONAL STRATEGIES Joint Ventures :
In Nov 2005, Mahindra signed a JV with Navistar International Corporation known as Mahindra International Engines Ltd. (51:49). Mahindra Yeuda Tractors Co. (80:20) has setup R&D and Engine facility in China in Mar 2010. Mahindra is now in talks with Proton, an auto giant from Malaysia for a joint venture.
INTERNATIONAL STRATEGIES Acquisitions :
In Jan 2007, Mahindra acquired Schoneweiss & Co., Germany through its subsidiary Mahindra Forgings. In May 2010, Mahindra acquired Gippsland Aeronautics one of the Australias most reputed aircraft producer and Aerostaff Australia, a aircraft component maker.
In Aug 2010, it is planning to acquire Ssangyong Motor Company of South Korea.
INTERNATIONAL STRATEGIES Franchising :
Mahindra Ocean Blue Marine Pvt. Ltd. which manufactures powerboats for Indian marine and defence sector is finding international franchisees for enthusiastic customers of recreational boating.
