STUDENT- PGDMINSTITUTE OF MANAGEMENT STUDIES, NOIDA

Prepared by –1.RAVISH ROSHAN (atulravish@gmail.com),9968009808 (m

ail ur comm

ents, please)

Analysis of case study of Analysis of case study of Mahindra and Mahindra and

Mahindra’s ScorpioMahindra’s Scorpio Nothing else will do…..Nothing else will do…..

Leadership strategy of Leadership strategy of M&M’s SCORPIOM&M’s SCORPIO

It catered to previously neglected nicheIt catered to previously neglected niche

Strongest turbo engine with 2600ccStrongest turbo engine with 2600cc

Computerized integrated systemComputerized integrated system

Lower cost of production due to various work Lower cost of production due to various work outsourcedoutsourced

Focused only on core competenciesFocused only on core competencies

Use of integrated design & manufacturing (IDAM)Use of integrated design & manufacturing (IDAM) “ “ It is easier to make what you can sell than to sell what you It is easier to make what you can sell than to sell what you

have made”have made”

Winners n QualifiersWinners n Qualifiers Car of the Year 2003Car of the Year 2003 BBC World’s WheelsBBC World’s Wheels Business Standard MotoringBusiness Standard Motoring CNBC-Auto carCNBC-Auto car Most successful brand launch of 2003Most successful brand launch of 2003 Business Standard Brand DerbyBusiness Standard Brand Derby Launch of the year IndiaLaunch of the year India Leadership Summit Leadership Summit Indian Express Excellence in Marketing and Brand BuildingIndian Express Excellence in Marketing and Brand Building EFFIES Silver for Advertising EffectivenessEFFIES Silver for Advertising Effectiveness EMVIES Gold for Media Innovation-Radio Scorpio CavalcadeEMVIES Gold for Media Innovation-Radio Scorpio Cavalcade EMVIES Gold for Media Innovation-PrintEMVIES Gold for Media Innovation-Print Scorpio Overdrive NFO Automotive Study Scorpio Overdrive NFO Automotive Study 2003Highest Ratings in Total Customer Satisfaction2003Highest Ratings in Total Customer Satisfaction

Work decentralizationWork decentralization

Completely automated press shop set Completely automated press shop set up with help from Fukui of Japanup with help from Fukui of Japan

Dies imported from FujiDies imported from Fuji Automated line for producing jigs and Automated line for producing jigs and

fixtures with Woo shin of Koreafixtures with Woo shin of Korea A state of the art Trim Chassis in A state of the art Trim Chassis in

collaboration with Fori automation collaboration with Fori automation USAUSA

Paint shop in collaboration with Durr, Paint shop in collaboration with Durr, Germany Germany

Corporate performanceCorporate performance Share price increased from Rs.100 to 400 with the Share price increased from Rs.100 to 400 with the

launch of Scorpio(within 3yrs.)launch of Scorpio(within 3yrs.)

Revenue increased from Rs18.27 B in the financial Revenue increased from Rs18.27 B in the financial year 2002 to Rs25.11 B in 2003year 2002 to Rs25.11 B in 2003

Made a spectacular growth of 37% in automobile Made a spectacular growth of 37% in automobile sectorsector

Overall UV market share is nearly 50%Overall UV market share is nearly 50%

M&M posted a 30% increase with the launch of M&M posted a 30% increase with the launch of ScorpioScorpio

Cost n QualityCost n Quality

Serving category C (luxury car) with Serving category C (luxury car) with price range of Rs 5-8 lacksprice range of Rs 5-8 lacks

Evolved a new approach of “Car Plus”Evolved a new approach of “Car Plus” QFD was developed after thorough QFD was developed after thorough

market researchmarket research

FEATURESFEATURES M&M M&M ScorpioScorpio

TATA TATA SafariSafari

TOYOTTOYOTA A Qualis Qualis

TATA TATA SumoSumo

M&M’s M&M’s Bolero Bolero

Look & Look & stylingstyling

******** ****** ** **** ******

Engine & Engine & performanceperformance

******** ****** ****** ******** ****

GearboxGearbox ****** ****** ********** **** ****

Space & Space & ComfortComfort

****** ******** ******** **** **

Ride & Ride & handlinghandling

****** ******** ******** **** ****

RefinementRefinement ******** ****** ******** **** ******

Fuel economyFuel economy **** **** ******** ****** ******

Value for Value for moneymoney

******** ****** ****** ****** ********

Performance appraisal Performance appraisal gradegrade

Company Sales (units)

Markets Share (%)

Mahindra & Mahindra Ltd 88,071 49.27

Hindustan motor Ltd 318 0.18

Maruti Udyog Ltd 3690 2.06

Bajaj Tempo Ltd 8046 4.5

Telco 42795 23.94

Toyota 30347 16.98

GM-Tavera 5490 3.07

Market share in UVS (January – October 2004 )

S.W.OT Analysis of M&M’s Scorpio

Strengths

Weaknesses

Opportunities

Threats

StrengthsStrengths Reliance on Reliance on strength,expertise & skill basestrength,expertise & skill base Leading strategic Leading strategic development of “car plus” development of “car plus” approachapproach Outsourced technology Outsourced technology upgradationupgradation Working together with Working together with support of supplierssupport of suppliers Offerings are of high quality, Offerings are of high quality, reliable,durable,ruggedness reliable,durable,ruggedness and of operational excellenceand of operational excellence

WeaknessesWeaknesses Confusion about selection of Confusion about selection of “niche”“niche”

Low status/par excellence in Low status/par excellence in SUV marketSUV market

Low levels of investment till Low levels of investment till started manufacturing plant at started manufacturing plant at NasikNasik

Took time in market scanningTook time in market scanning

OpportunitiesOpportunities Potential to take the leadPotential to take the lead

Exploration of previously Exploration of previously ignored nicheignored niche

Constant QFD updating by Constant QFD updating by variousvarious

autonomous and autonomous and heterogeneous groupsheterogeneous groups

ThreatsThreats International market International market competitors like pajero, competitors like pajero, hummer, land cruiser & pradohummer, land cruiser & prado Organizational turbulencesOrganizational turbulences No crash testing done, which No crash testing done, which is mandatory in international is mandatory in international marketmarket Indian market competitors Indian market competitors like Toyota’s Qualis and Tata’s like Toyota’s Qualis and Tata’s Sumo gives a stiff competition Sumo gives a stiff competition to Scorpio apart from Bolero to Scorpio apart from Bolero which is mahindra’s own which is mahindra’s own product product

Recommendations Recommendations

Crash testing should be done on Crash testing should be done on regular basis to capture the foreign regular basis to capture the foreign market as well.market as well.

To set one more manufacturing unit To set one more manufacturing unit to meet the growing demand apart to meet the growing demand apart from Nasik.from Nasik.

Should try to produce the Should try to produce the technologies itself rather than technologies itself rather than outsourcing themoutsourcing them

At the very end it would be right At the very end it would be right to say that M&M’s SCORPIO to say that M&M’s SCORPIO

proved to be :proved to be :

““Juice worth the Juice worth the squeeze”squeeze”

Thank you….Thank you….