Mahindra In South Africa Analysis

Mahindra & Mahindra in South Africa Analysis This analysis is to cover the Mahindra & Mahindra in South Africa article that was given to us. Through the information provided there will be four different areas that will be discussed and then there will be an appropriate avenue chosen. This will consist of the contract assembly, manufacturing on their own by using South Africa as a hub, or a wait and watch approach. Each will have an appropriate background and analysis. Then from the individual points the conclusion will be adjusted to the most appropriate response. The Mahindra & Mahindra Company has tried these ventures in the past but has to make a decision based on historic content. There are upsides and profit to be made from each

This would be the need for growth beyond the current assembly they have tried and to corner a more global market for future endeavors as well as building brand loyalty. There is a four member board that would need to come to a consensus on where the company would head in the future and which factor will be implemented as the only option. This is critical in how the company will grow and make a larger profit margin in the future and to gain brand loyalty. The Mahindra & Mahindra Company had been established in 2005 in the South African region (Schaan, 2011). The majority was held by the parent group and the other minority was held by a local investment group. The vehicles had been tested in various regions of the world so that they could withstand the harsh environment of South Africa. Being able to launch new brands in India the same year they could in South Africa would help build on the current market so that the brand can create a buzz as soon as they came out. A major factor to bring the vehicles production to South Africa for the immediate

The Mahindra & Mahindra Company would have to keep a high inventory which might hurt the bottom line in the long term. Production values could not taper off in the coming years as to keep the volume at a point to reach a profitable margin. With the cost variant being a fixed rate there has to be a minimum to maintain (Schaan, 2011). This could be the main point to not use this since the demand would also have to keep up with the manufacturing end so there was not a huge amount of product not being sold. The issue of having an over stalk would then cut into the profits as they would have to be sold at a reduced