Case Study

Mahindra & Mahindra (B): An Emerging Global Giant?

This case study is a sequel to Mahindra & Mahindra (A): Transformation of an Indian Family Business into a Globally Competitive Firm. This case study illustrates how companies from emerging markets like Mahindra & Mahindra (M&M) from India are competing globally by leveraging on their core competencies. Global companies, for a long time, came from developed countries. However, the scenario at present is changing as companies from emerging markets are taking advantage of the resources of their home countries like low-cost labour, R&D capabilities, and a large pool of talented individuals. M&M has also capitalised on these resources and built globally competitive products in the automotive segment. The company exports its tractors to the US, China, Sri Lanka and Bangladesh. It is planning to export the company's flagship product, ‘Scorpio’, to the US and Europe as well. The company's future plans include entering into a variety of segments in the automotive segment using its R&D capabilities.

 Emerging-market companies like M&M, however, suffer from a few challenges like institutional voids, constant changes in consumer behaviour and lack of brand recognition, that test their ability to compete with global giants. Moreover, the low-cost model alone cannot always formulate a winning strategy. Will M&M be able to address these challenges and make a mark in the global automotive segment? Does it make sense for an emerging-market company like M&M to expand its product portfolio considering the challenges it is facing? Will M&M be able to manage its strategies for new products and new markets simultaneously?

QUESTIONS:-

1.       Explain whether M&M would be successful in selling its SUV – Scorpio – in the land of SUVs, US.

2.      Do the SWOT Analysis of the case study.