7/27/2019 An Indian Company Going Global

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An Indian Company Going Global

Submitted by:

Sanjoli Jain 43A

India being at the pinnacle of its growth prospect stands a tremendous opportunity

to enter the global economy. It is producing some of the world's fastest-growing,

most competitive companies. As the domestic market is maturing, the knowledge

and quality gap with respect to foreign companies is reducing. Now they are not just

low-cost alternatives, but fierce competitors in the global market.

India as a market has a lot of private players with their strength in skill-intensive

intermediate products and services. Going global is not just about acquiring foreign

companies, but its presence abroad in the form of subsidiaries, manufacturing and

servicing facilities, access to capital markets and technical abilities and most

importantly the value proposition.

One of the finest examples of such a rise is Mahindra and Mahindra, which was

started as a steel trading company in 1945 by two enterprising brothers named J.C.

Mahindra and K.C. Mahindra to become a US $16.2 billion corporation employing

more than 155,000 people around the world.

Taking advantage of potentially growing Indian economy, they identified the market

opportunities and diversified its businesses to other sectors such as oil drilling,

bearings, time-share resorts, instrumentation and transportation, particularly MUVs.

Vision:-

Indians are second to none in the world. The founders of our nations and of our

company passionately believed this. We will prove them right by believing in

ourselves and by making M&M Ltd. Known worldwide for the quality of its products

and services.

And it has succeeded in doing so. The business strategy adopted by M&M then was

to restructure it into 4 SBUs: Trade and financial services, IT services, Farm

equipment services and Automative. Each was headed by President- part of group

Management board. It adopted the policy of lateral recruitment in the company.

Business Strategy

Their business strategy was mainly carried out in two stages:

1. Market Selection

Industry filter Product/technology filter Price/earning filter Attractive but low volume market Price sensitive but high volume market High tech and high hp market

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This lead them to choose China over other options like USA, Australia and Africa.

2. Company selection

Product portfolio Product technology Market reach Quality systems and processes Scalability Openness in management Liabilities

It selected Jaingling Motor Company.

It initially entered the Chinese market with a thought after strategy, including the

following steps:

1. A team and tractors were sent to China from India to test the marketopportunity.

2. The team targeted a single province having large land holdings suitable forcompanys tractors.

3. Sold tractors at a price 20% higher than the rivals sending strong message ofSuperior Quality & Performance.

4. Tie up with a local partner.It initially faced a lot of challenges and had to struggle to sustain the market. It

implemented the concept of Reverse engineering. It partnered with local

universities for R&D and concentrated on global market despite a low domestic

market share. Internally, they follow three basic tenetsaccepting no limits,

thinking alternatively, and driving positive change in everything they do. These

brand pillars guide all their actions and business decisions from deciding whether or

not to enter a new field or planning a portfolio of services. There has been no

looking back since then. Now they are internationally connected through

partnerships and multinational workforce offering a wide range of services.

They entered South Africa by starting a 50:50 joint venture in 2004 and increasing

the stakes to 90% by 2009. They launched various products there and now they plan

to start local assembly there. To establish their market in the US, they maintainedstrong dealerships and offered low-rate retail financing and best services to the

consumers. The company with its exceptional skills to strategize in the international

market has come a long way, and shall continue to grow.