Mahindra and Mahindra Limited (M&M)
Mahindra SCORPIO
“Nothing else will do”
(Under the Guidance of Dr. Kanwal Kapil)
Abhinav Garg (14P002) Deepak Shinde (14P015)
Kamakshi Kaul (14P023) Rohit Shankarmani (14P040)
Tushar Sharma (14P055) Wazeem Ashraf (14P060)
Executive Summary
This aim of this project was to conduct a market analysis of the Mahindra Scorpio released by Mahindra and Mahindra, in 2002, with the aid of different tools and to study its positioning strategy and provide recommendations for improvement
Methods of analysis used include SWOT, PEST and Porter’s 5 Forces
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It also has mHawk diesel engine that provides a whopping 120BHP power and acceleration from 0 to 60 in 5.7 seconds providing the customer a truly sports vehicle feel.
3. Continuous Up gradation: After the success of initial launch, Mahindra Scorpio was upgraded at regular periods with more safety features (ABS and airbrakes to get a 3 star ANCAP rating), better exterior and utility interior features and also a hybrid diesel-electric model was launched in 2012. IT plans to come with a new Scorpio facelift with redesigned front and rear fascia’s.
4. Proper Positioning in India: The combined features of luxury and ruggedness were played properly by Mahindra by promoting it in tier-2 cities and semi-urban segment as well. Moreover the competitive price boosted its sales
5. Supplier Autonomy: Mahindra involved the suppliers in the complete product development process and provided full autonomy to the suppliers. Best suppliers were chosen for reduction in costs. They also provided indigenous development facility in the company manufacturing plant itself for the suppliers.
6. 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
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Global Market: Mahindra vehicles have gone on display to auto enthusiasts around the world, participating in prestigious automobile shows in Paris, Rome, Bologna, Johannesburg and São Paulo. More participation in such shows can provide a great opportunity to build customer base in the foreign markets.
2. Increasing purchasing power of the consumers and growing target base: These provide great opportunity for the SUV market for substantial growth through growing base of prospective customers.
3. Leverage strong brand name by more advertising: Mahindra Scorpio is already a big brand name which can be leveraged through Ad-Campaign. It can target new customers and also retain interest in the existing SUV market.
4. Newer innovations: Innovations like Revolutionary Micro-Hybrid Technology provide an edge to Scorpio and similar innovations would further propel its growth in the SUV market. It has sustained the top position by coming up with new variants and innovative features such as more leg space, better exterior looks etc. can boost more
The company has been operating fine for years and total dollar sales have been increasing each year. If the company sticks to the status quo, they will continue to stay profitable. 2. Increase brand awareness
It is widely recognized by the customers for introducing a variety of innovative and high-quality products to the market while the competitors could not do the same. “During this period of time, the company grew at a very fast rate and expanded its market to Europe, Asia, and Latin America” (dynacorp case study). However, Dynacorp’s glory did not last long. The company started to face many problems while its competitors began to close the technology gap and gained back the
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It has one of the fastest growing tourist destinations, with a safe environment in means of security. It is classified as a high income developing economy by the IMF (International Monetary Fund). The geographical location of the country itself, being located between Asia, Europe and Africa is a huge advantage to the investors. SWOT ANALYSIS To evaluate the company in ways of progress, success and the faults of the company, an analysis called the ‘SWOT ANALYSIS’ is used. It is a strategic planning tool that creates a response towards the strengths, weaknesses, opportunities and that the threats of the business.
Although they are experiencing extreme competition among the market, Verizon remains on top. This is credited to the diversification strategy that Verizon has put in place. They have adapted to the changing environment, and created new and innovative ways to sell products in the market. New products and services consistently lead the industry and Verizon has continued to be the market leader. They have also acquired companies that have already proven to be successful, in order to help them thrive in online and streaming
And achieve as a result, the growth for its brand, market share, and sales
The adoption of new technologies and trends is being facilitated in the industry for the competition and the customer’s overall experience. Many suppliers that are having similar strategies face a strong competition. The barriers for exiting the markets are high. Products and services of are undifferentiated leading the customer to focus on the prices offered. Low market growth, so it can be increased only by taking another firm’s market share.
Strong reputation and a recognizable brand 3. Good quality products at a low price 4. Value added in store services. Ex. Financial services.
If a suppliers they decrease the quality of components, the quality of the finished product will slow-down or suffer so that manufacturer will lower its price or loses. Switch costs and supplier concentration, we need to have constant suppliers and we did not change any suppliers so that we no need to face any problem about switching cost. If the switching costs are high, fewer buyers will change the suppliers because of switching costs. Indeed, without top quality technologies, organizations like LEAFXPRO Bicycles would not possess the capability to build innovative bicycles that are able to surpass
The Indonesian Mattress and bedding industry will be analyzed using the Porter’s 5 forces model: Porter five forces that determines an industry’s competitiveness (Porter, 1979), which will give an indication of how the industry affects DAP. The five forces are the “Bargaining Power of Suppliers, threat of new entrants, threat of substitute, bargaining power of buyers, and the industry’s rivalry. Threat of Substitute products or services: Low As a mattress manufacturer, DAP supplies Spring Bed Mattresses, Box Spring Mattresses, Memory Foam Mattresses (Tempur-Pedic) and Latex Mattresses.
Firstly, the Boston Consulting Group (BCG) matrix that concentrate the market position of different products. Secondly, the experience curve and the Profit Impact of Market Strategies model which identified a number of strategic variables. Furthermore, competitive advantages model (Porter, 1985) which focus on five different forces in environment of organization, but suit with only stable market. Generic strategy was developed strategies under this school, especially it can identify position in the market. Advantages: -Provide content in a systematic way to the existing way of looking at strategy -Particularly useful in early stage of strategy development, when date is analyzed -This school emphasis on analysis and calculation can be a very strong support to the strategy development process -This strategy suit with big businesses or organization which have ability for operate effective market research in the environment
Internal strengths work as the main success factors for an organization. The main strength of the company was its Research and Development section in which it spends almost 9% of its total sales amount. Again the company had very high innovation aggressiveness which led the company to remain in its price differentiation strategy. Moreover the company always had been under the supervision of charismatic leaders which accounted for its strategic success. Lastly, the simple and user friendly premium looking device with uniqueness accounted for the brand loyalty of its
For the company, it gets the raw materials like wood and wood fiber from its internal suppliers and other raw materials like metal from its external suppliers. At this stage, parties like IKEA Industry and IKEA’s external suppliers are involved. Since IKEA has to purchase materials from numerous suppliers, the company has 31 trading service offices in 26 countries so that new idea testing, production monitoring, quality checks and price negotiations can be carried out efficiently. This ensures that the material costs are at its lowest and at the same time, material comes in good
Table of Contents 1.0) Executive Summary 3 1.1) Objectives 3 1.2) Mission 3 1.3) Keys to success 3 2.0) Product and Services 4 2.1) Sourcing 5 2.2) Technology 5 3.0) Market Analysis Summary 5 3.1) Market Segmentation 6 3.2) Target Market Segment Strategy 7 3.2.1) Market Trends 7 3.2.2) Market Needs 8 3.2.4) Market growth 8 4.0)
Their cars however, are mostly tailored to the budget of developed countries and so, while their motorcycles may be found everywhere in the streets of Pakistan or India, their cars most certainly won’t. Nissan’s strategy mirrors that of Toyota as the climbing sales in the UK are due to the manufacture of several mid-range vehicles. Also, 25% of its marketing budget is being spent on digital channels. Nissan stands a close third to General