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Mahindra and mahindra strategy
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Satender Kumar
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Associate at Goldman Sachs Asset Management um Goldman Sachs
19. Mar 2011
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Mahindra and mahindra strategy
19. Mar 2011
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Satender Kumar
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Mahindra and mahindra strategy
1.
2.
3.
4.
5.
6.
7.
Bring down the
break-even point from 54,000 units to 35,000 units by 2003.
8.
Only company to
make profit in 2001 when the domestic market collapsed.
9.
10.
Product Technology
11.
Market Reach
12.
Quality Systems &
Processes
13.
Scalability
14.
Openness Of Management
15.
16.
Product/Technology Filter
17.
Price/Earning Filter
18.
Attractive But Low
Volume Market
19.
Price Sensitive But
High Volume Market
20.
21.
22.
23.
30 % stake
of JMCG was owned by U.S Ford Motor Company.
24.
Factory located at
Nanchang with production capacity of 10,000 units & 3,000 engines annually.
25.
Operated in 20
– 30 hp range with 42 dealerships.
26.
27.
Contribution of JTC
in JMCG turnover fell from $1billion to $3.5 million.
28.
JMCG decided to
de-focus on JTC by offloading 80% of tractor affiliate.
29.
30.
Partnering with local
universities for new technology development.
31.
More focus on
global market inspite of only 2.5% domestic market share.
32.
33.
34.
35.
Attractive but low
Volume Market
36.
37.
38.
JTC -
Focus on Quality
39.
State owned
enterprise –local brand name readily available “Feng Shou”.
40.
Technically skilled
team of JTC readily available.
41.
Govt. Support
42.
Influence on
manufacturing facilities from Ford & Isuzu who were collaborated with JTC.
43.
44.
Over head
cost & surplus resources of JTC.
45.
Lack of
Efficiency in new plant layout.
46.
Multi franchise.
47.
Ineffective Dealership
– often switched to competitors.
48.
JTC global
focus.
49.
50.
Easy entry
to Chinese market with support of local partner.
51.
To export
the Chinese tractors range to India & Indian tractor range to China to suit the demand respectively.
52.
If M&M
provided after sales services they can be more competitive in Chinese market.
53.
Expected growth
of 13.2% 2004 to 2008.
54.
55.
Legal considerations.
56.
JTC was
part of JMCG & even Ford holding 30% stake, so 3 companies were involved in JV.
57.
58.
59.
Asset transfer
contract.
60.
Protocol for
takeover of plant equip., inventory, land & building.
61.
Finalizing contracts
with suppliers and dealers of JTC.
62.
Game Changer
– After Sales Services.
63.
Restructuring.
64.
65.
Improve the
existing accounting and costing system.
66.
67.
Establishment in
Chinese market.
68.
After Sales
services.
69.
70.
71.