Case Study: Mahindra in South Africa

MAHINDRA IN SOUTH AFRICA 1
MAHINDRA IN SOUTH AFRICA
Name
Institution
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Question One
Shah should make South Africa a hub that will sell all imported CBUs to other African
countries.
Advantages
 This could lead to more significant African markets
 African nations never suffered during the global recession hence recovered faster.
 South Africa is ranked top in the business environment compared to other nations.
 South Africa already exports vehicles; therefore, they can use the knowledge to rule.
Disadvantages
 Stiff competition from other vehicle exporting companies in South Africa
 Wastage of time since ordering a car from India to South Africa takes about three
months
 Fast-growing economies also are faced with macro-economic risks.
Question Two
M&M has shown a powerful admission-level occurrence in the confined market in
South Africa. In less than six years, the company was able to earn loyalty and trust from the
local population because it offered high-quality services (Roux, 2016). The company made
sure that it manufactured and exported vehicles that could operate on the local roads and also
made sure that the cars were cheap and easily affordable to the local population. The
company was able to manufacture SUV vehicles that were able to confide a market variety of

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1.1% of the total market share (Morrell, 2019). Many roads in African countries are poor and
have huge bumps; therefore, while manufacturing a car, such factors must be considered. The
dealers of the cars were localized in over six provinces in South Africa to help customers
from all regions of the country to have excellent access to the vehicles. This idea has helped
reduce transportation costs and taxes imposed on cars, therefore, attracting more customers to
the company. The manufacture of quality cars that are suitable for local roads has attracted
more customers to the industry. According to Sharma (2018), the industry has grown
exponentially over the past few years due to the use of correct market strategies and
operations. Every year the company has had an increase in the total number of customers due
to the good quality of services that are offered by the company. Through the capturing of a
broader market, the organization has been able to increase its revenue every fiscal year. The
local manufacturing of cars has boosted the sales of the firm hence earning more income.
Question Three
Masondo, (2018), stated that the South African automotive company accounted for
over 11% of the exports the country manufactures. The country has witnessed a stable
economic growth rate, that has played a vital role in development of the automotivebusiness.
Despite the rates of growth to below as compared to other developing countries, there has not
been a decline in its growth. Most of the South African citizens are middle class hence having
a higher disposable income, meaning they can purchase and own a car. Most Africans dreams
are owning big vehicles, and therefore, the company has provided a platform for this to
happen. The citizens prefer foreign cars over domestic cars, thus allowing M &M to thrive
best in the South African market. The locals believe that imported vehicles are of good
quality and cheap as compared to the domestic ones hence preferring them. The local
producers offer the vehicles at a higher price while the M&M provides its vehicles at
affordable prices. This strategy has assisted the company to thrive and outdo its close rivals in