Mahindra and Mahindra is a famous Indian automobile manufacturing company. Being part of Mahindra Group, Mahindra and Mahindra Ltd. It is the largest manufacturer of tractors and vehicles in India. With its headquarters in Mumbai, it has achieved a reputation as a global brand. Earlier it had a collaboration with Ford and built passenger cars. But in 2024, Mahindra covers a wide range of vehicles. 20 models of cars, LCVs, tractors, two-wheelers, school buses, and three-wheelers all come within its production.
SWOT Analysis Mahindra and Mahindra:
A SWOT analysis refers to the evaluation of the strengths, weaknesses, opportunities, and threats of a company. It also covers the internal and external factors that affect the company’s failure and success. Thus, by analyzing them, a SWOT analysis develops a strategic plan.
SWOT Analysis: Strengths of Mahindra and Mahindra
- Multiple Sectors: Mahindra and Mahindra operates in various sectors including automobile, agriculture, real estate, aerospace & defense, energy, hospitality, and financial services. So, it can spread leverage opportunities in different sectors.
- Strong Market Share: Mahindra and Mahindra has a high market share in tractors, passenger vehicles, utility vehicles, and commercial vehicle segments. The strong market share helps the company to focus on innovation and improvement.
- Research & Development: The research and development section of Mahindra and Mahindra emphasizes manufacturing new products and technologies. The company also focuses on designing modularity and value engineering strategies.
- Innovation: The company is associated with innovation and reliability. It has proved its robust brand presence in international markets.
- Collaboration: Collaborations with international companies allow Mahindra and Mahindra to expand their market reach.
- After-Sales Service: Mahindra and Mahindra provides a robust after-sales service network, especially in the automotive and tractor segments. So, it increases customer trust.
- Community Engagement: Mahindra and Mahindra Is committed to CSR (corporate social responsibility) initiatives. It is actively engaged in community development projects. The community engagement of the company enhances trust among stakeholders.
SWOT Analysis: Weaknesses of Mahindra and Mahindra
M&M company needs to work on weaknesses to succeed more.
- Economic Downtime: The company receives a significant portion of its revenue from India. So, it is vulnerable to uncertain situations like high inflation or economic downtime.
- Revenue Collection: The company depends on a major part of the revenue collected from the automotive industry. Any harm to the automotive industry will adversely affect the company’s revenue stream.
- Two-wheelers: Mahindra and Mahindra is yet to be successful in the two-wheeler sector, it is a giant company in the tractor and four-wheeler sectors though.
- Complex Structure: The company’s complex organizational structure leads to a slow decision-making process.
- Global Competition: As the company competes with the international giants, it needs to keep up with global technological advancements.
- Delay in Product Launch: Sometimes delayed product launches result in a potential loss of market share.
SWOT Analysis: Opportunities of Mahindra and Mahindra
- Hybrid Electric Vehicle: The demand for hybrid electric vehicles is rising day by day across the globe. This demand will grow by 20% in the next 6 years. Mahindra and Mahindra is expected to set a benchmark regarding hybrid electronic vehicles in the coming years.
- Emerging Markets: Many emerging markets have populations with high potential. M&M company has the opportunity to expand its global footprint to catch the emerging markets.
- Growth in Production:The Indian automotive industry has been growing by 12% since 2021. The industry will grow by 13% in the next 4 years. This is a great opportunity for M&M to expand its business.
SWOT Analysis: Threats of Mahindra and Mahindra
- Tough Competition: Mahindra and Mahindra company has many competitors in the automotive sector. Automotive companies like Tata Motors, General Motors, Ford, and Volvo are throwing challenges at M&M company and putting pressure on the company to innovate new technology.
- Threat From Giant Companies: Mahindra Group is a conglomerate of many businesses. Its other sectors like the IT sector are facing challenges from IT giants Infosys, IBM, etc. Its other sectors are also getting threats from giant companies. So, the company’s market share gets reduced.
- Government Rules: The government and other environmental agencies put strict rules and regulations on M&M regarding emission and noise levels. It increases the compliance cost of M&M.
- Prices of Raw-materials: Changes in the prices of raw materials in the automotive sector can impact the cost structure of the company.
- Geopolitics: As M&M is a global company, it is vulnerable to geopolitical risks.
Conclusion
Mahindra and Mahindra has an unparalleled presence in the domestic market. It’s a dynamic brand with its footprints in the international markets. Its consistent efforts and inclination toward innovation have led the company toward success. The company has faced several challenges during its journey, yet it has held a dominant position in the automotive sector in India.
