IIPM Ranked No. 1 B-School In Global Exposre - Zee...
Indeed, irrespective of the present fracas, M&M recorded strong y-o-y growth numbers earlier and is only now, like others in the industry, has been hit by the slowdown. Speaking to 4Ps B&M, in better times, Nayar had pointed, “M&M volumes have grown from 30,000-44,000, a CAGR growth of 20%. This is when the industry grew by only 7%. In pickups, we are the market leaders with 83% market share. Here, Mahindra grew at 77%, a full 33% more than the segment.” So where did things go wrong for M&M and that too suddenly?
According to analysts, M&M’s travails can be perhaps linked to the failed effort in the fast growing D segment, where the company’s Logan failed to impress. Success of the Logan could have hedged or at least supplemented sales of the company. The saloon, brought into India as a result of a partnership with Renault, was strategically positioned in a segment where petrol was the mainstay. The diesel variant of the model came with an appealing price that could kill the competition at its own game.
However, the dated looks of the saloon, which shared its structure from the same model sold by Dacia (Renault’s Romanian division), failed to appeal to the Indian consumers, who were already spoilt for choices. With sales of 10,284 units, Logan’s sales declined by almost 30%. Maruti Suzuki, Hyundai and Tata continued to enjoy an increase in sales in the period, proof that M&M perhaps went wrong in its D segment strategy. Even though Anand Mahindra, MD, M&M termed the Logan launch as a “milestone that marks M&M’s entry into the most competitive segment of the automotive market,” the model has been far from being perfect as a ‘segment entry’ effort. Clearly, a saloon does not fit perfectly into the M&M portfolio and as such the auto major certainly needs to introspect its core strategy.
For more articles, Click on IIPM Article.
Source : IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and Arindam Chaudhuri (Renowned Management Guru and Economist).
Read these article :-
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Indeed, irrespective of the present fracas, M&M recorded strong y-o-y growth numbers earlier and is only now, like others in the industry, has been hit by the slowdown. Speaking to 4Ps B&M, in better times, Nayar had pointed, “M&M volumes have grown from 30,000-44,000, a CAGR growth of 20%. This is when the industry grew by only 7%. In pickups, we are the market leaders with 83% market share. Here, Mahindra grew at 77%, a full 33% more than the segment.” So where did things go wrong for M&M and that too suddenly?
According to analysts, M&M’s travails can be perhaps linked to the failed effort in the fast growing D segment, where the company’s Logan failed to impress. Success of the Logan could have hedged or at least supplemented sales of the company. The saloon, brought into India as a result of a partnership with Renault, was strategically positioned in a segment where petrol was the mainstay. The diesel variant of the model came with an appealing price that could kill the competition at its own game.
However, the dated looks of the saloon, which shared its structure from the same model sold by Dacia (Renault’s Romanian division), failed to appeal to the Indian consumers, who were already spoilt for choices. With sales of 10,284 units, Logan’s sales declined by almost 30%. Maruti Suzuki, Hyundai and Tata continued to enjoy an increase in sales in the period, proof that M&M perhaps went wrong in its D segment strategy. Even though Anand Mahindra, MD, M&M termed the Logan launch as a “milestone that marks M&M’s entry into the most competitive segment of the automotive market,” the model has been far from being perfect as a ‘segment entry’ effort. Clearly, a saloon does not fit perfectly into the M&M portfolio and as such the auto major certainly needs to introspect its core strategy.
For more articles, Click on IIPM Article.
Source : IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and Arindam Chaudhuri (Renowned Management Guru and Economist).
Read these article :-
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global (Print Version)
The Indian Institute of Planning and Management (IIPM)
IIPM Campus
ZEE BUSINESS BEST B SCHOOL SURVEY
For More IIPM Info, Visit below mentioned IIPM articles.
1500-plus IIPM students placed across the country with 44 bagging international offers
IIPM set to beat economic slowdown
IIPM, GURGAON
IIPM - Admission Procedure
IIPM awards four Bengali novelists
The Hindu : Education Plus : Honour for IIPM
IIPM ranked No.1 B-School in India, Management News - By ...
IIPM Ranked No1 B-School in India
Moneycontrol >> News >> Press- News >> IIPM ranked No1 B-School in ...
» IIPM ranked No1 B-School in India :: Education, Careers ...
The Hindu Business Line : IIPM placements hit a high of over 2000 jobs
Deccan Herald - IIPM ranked as top B-School in India
India eNews - IIPM Ranked No1 B-School in India
IIPM Delhi - Indian Institute of Planning and Management New Delhi ...
domain-b.com : IIPM ranked ahead of IIMs
IIPM makes business education truly global-Education-The Times of ...
