1. Introduction
This case study looks into the growth of Mahindra & Mahindra Limited (M&M), an Indian multinational automobile manufacturing corporation, regarding strategies that helped them to climb up the ladder in global and international market in automotive sector.
2. Automobile Industry
2.1 Background
Mahindra & Mahindra was established in 1945 as a steel trading company. It took hold of business opportunity in the manufacture and selling of MUVs. Its first vehicle was the assembly of Willy's jeep in India. It was soon able to establish as a jeep manufacturer in India. It later started manufacture of light vehicles (LCVs) and agricultural tractors. UV Scorpio, a product of Mahindra & Mahindra is one of the best selling SUV in India.
In 1977. International Tractor Company of India merged with M&M to become its tractor division and managed to be the market leaders of Indian tractor market to this day. IN 2005. M&M entered into a joint venture with Navistar Inc USA to build a range of indigenously developed commercial vehicles for Indian terrain
The Brand Trust Report ranked M&M has the 10th most trusted brands in India. It is a US $ 16.7 billion corporation employing more than 180,000 people all around the world. It has not limited itself only to the field of automobile industry but also in financial services, leisure and information technology.
The automobile industry in India is one of the largest and fast growing automotive markets in the world. It is also the 6th largest manufacturing industry in the world.
2.2 Product and services
The initial products were mainly focused on utility vehicles and tractors but by 2005, it focused on midsized sedan in India called Logan which was a joint venture with Renault to manufacture ...
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• Substitute modes such as public transport like trains, metro and buses
Sustainability of Automobile Industry
Fuel prices and consumption is increasing day by day so it is necessary to find an alternate fuel energy driven vehicle. Foreseeing the future, Mahindra started production of vehicles that run on alternate energy called e2o. The hybrid car market is not fully established and therefore Mahindra will need time to make developments.
Distribution and Logistics
Mahindra is continuously innovating and evolving to reduce the supply and shop distance. Various methodologies have been made practice like the just in time supply chain. Just in time supply chain means the storage of unused inventory is a waste of resources.
It recognizes the importance of just in time supply chain management for greater efficiencies in operation and reduced cost of inventory
Imagine that you have just earned your business degree and have been hired as a hospital administrator at a small hospital that, like many others, is experiencing financial problems. Having studied finance, you know that efficient cash management is important to all firms in all industries to meet the day-by-day operations of the firm. One way to ensure such efficiency is to use a carefully planned and managed inventory control system that can reduce the amount of cash an organization has tied up in inventory. Being familiar with Just-In-Time Inventory, you know it is a proven system that helps reduce the costs of managing inventory.
In the future the global car market is full of potential. There are currently 44 million vehicles and by the year 2002 experts estimate that number will grow to 64 million. That growth is not expected to be in the US, rather in countries such as: China, India, The Pacific Rim, South Africa, and South America. In America, a current trend is for the neighborhood car dealer to be purchased by a large manufacturer, such as GM, so cars can be sold through retail outlets. Other future endeavors include low emission cars, which are expected to provide expansions in sales. Some major automakers are investing in fuel cells, devices that convert liquid hydrogen into elec...
The view from Tata motors perspective would be more central to seek out companies with more business plans and The company has a long term benefit like access to market knowledge and the development of firm presence on the new market and advantage would be that it limits the possibility of technology or knowledge transfer. Market commitment and Decision understand the requirement of a new market also the decision and implementation concerning foreign investment are made incrementally due to market uncertainty. The company have different approaches and implementation which are seen in the background and has different prior knowledge acquisition (Johanson & Vahlne,1977, p.34).Tata motors have understood that the arrangement was based on its acquired about the market and industry dynamics. Consequently the company had to have the commitment to allow constraint in the case of its freedom with the supplier and surrounded technology. Current activities is somewhat fascinating on how precisely the crucial of Tata motors are consistent with Uppsala theory and the result was Tata motors acquisition and in the longer terms is to move up in the value chain as much as possible, with the
In the competitive environment, it is necessary for moving products involves reception of products at an intermediate location, store, repackage, clear customs and transport to final destination. The other factor in the supply chain logistics is speed given information flows fast in the internet era. The customer expects everything quick accustomed to the instant status access to the information. With the real time inventory, customer expects the location of the product, it is next scheduled movement and the final delivery schedule.
With an average growth of 2% annually, car industry has been one of the fastest growing industries in the world. The industry has been keeps on changing and it had been become one of the most competitive markets and it has been globalize radically due to its growth. But now there are only a few major players that dominate the global market as mergers and union has been occurring regularly between them. Previously, the car industry has been dominated by the Europe and American car industry but it has been facing heavy competition from the emerging Latin America and East Asia car manufacturers in the global market recently.
Tata Motors Limited is an Indian multinational company that is headquartered in India and a subsidiary of Tata Group. The products of the company include passenger cars, truck...
Maruti Suzuki India Limited is an Indian car manufacturing company which formed an alliance with Japanese car maker Suzuki Motor Corporation. Maruti Suzuki India Limited also referred as the people’s car maker over the last thirty years, they have changed the face of the car industry in India. Maruti Suzuki India Limited first started out as Maruti Udyog Limited by nationalizing Maruti motors limited in 1981. A joint venture and license agreement was signed between Maruti udyog ...
Anand Mahindra was born on 1 May 1955. He is the chairman and managing director of Mahindra Group. His grandfather JC Mahindra co-founded the company in Mumbai, India. Founded as a steel trading company, the Group today has a presence in multiple sectors from agribusiness to aerospace. It is considered to be one of the most reputed Indian industrial houses with market leadership in many business verticals including utility vehicles, tractors (world's largest tractor company by volume), after market (India's largest multi-brand pre-owned car company), finance (largest rural Non-Banking Financial Company in India), Holidays (India's largest vacation ownership company) and IT (top 5 Information Technology service provider).
BMW was founded in 1916 as an aircraft-engine factory in Munich. In 1923, BMW built the first motorcycle and then in 1928 bought a car factory with license to build a small car called the Dixi. It continues growing and expanding its business with a good reputation and high quality of products which both satisfy its customers.
- Bhattacharya, S. (2014). This has been also due to various manufacturers locally based which helped in the Indian Automotive achieve a position on a global rank and recognition globally as well. One of the major corporates to do so is Tata Motors. Their recent model the Nano launched in 2008 was launched with the perception of creating and manufacturing the worlds cheapest automobile and this was mainly due to the supply requirement by the vast amount of population being deprived of a motor vehicle. Originally a company for trucks and buses, Tata motors had entered the passenger vehicle segment in the 1998. Tata Engineering and Locomotive Company (renamed Tata Motors in 2003), which was primarily engaged in the production of commercial vehicles and utility vehicles till the mid-1990s, rolled out its small car “Indica’ in 1998. Indica was well received in the market and emerged as one of the prime competitors to MSIL. Gupta, V. (2009). But all the glory does come with criticism, as briefly said by S. B., Vikram, S., & D, S. G. (2011), according to the Draft automotive mission plan, issued by Government of India in September 2006, for the period 2006-2016, the industry not only needs to think big in terms of scales but also needs
After General Motors (GM), Toyota Motor Corporation is the second largest automotive maker around the globe; although, Toyota ranks in first place in profit, revenue and net worth. Toyota was established by Kiichiro Toyoda in 1937, as a by-product of Sakichi Toyoda's Toyota Industries Company, to produce Toyota automobiles. Headquartered in Bunkyo Tokyo, Japan (as well as Toyota, Aichi); Toyota offers pecuniary services with their Toyota Financial Services division. Toyota Industries, along with Toyota Motor Corporation, make up the Toyota Group. The Toyota Group consists of Daihatsu Motors, Scion, Lexus, Fuji Industries, Yamaha Motors, Isuzu Motors and of course, Toyota Motors.
In the last few decades, America’s automotive industry has been losing revenue, decline of market share, and employment reduction but international business in the auto industry has been the opposite. For instance, General Motors (GM) have been doing poor in the automotive business while Honda, a Japanese manufacture have been increasing their sales, market shares and employment.
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It is undeniable that Inventory Management is an important key to success at Walmart. This paper will discuss the two main methods of Inventory Management used by Wal-Mart: Material Requirements Planning and Just-in Time. Next we write about the technical means of keeping track of inventories, like RFID tags. We conclude by discussing how Wal-Mart, one of the world’s largest retailers, manages its inventories. Material Requirements Planning (MRP) Walmart needs to make sure that consumers are satisfied all the time, not only with the quality of service being provided to them, but with the quality of the product they are planning.
Typical manufacturing ends with order fulfillment to customers, retailers, and end users, it also includes remanufacturing, repair, and warranty claims. Just in Time manufacturing practices compete with those concepts and methods, but they also have application downstream from manufacturing too. But unlike the outdated large batch type manufacturing, Just in Time manufacturing was labeled by a manufacturer-to-retailer model developed in the U.S. in the 1980s as quick response, and has morphed over time to what is called fast fashion.