Mahindra Tractors in the United States
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Case Details:
Case Code : BSTR298
Case Length : 14 Pages
Period : 1994-2008
Pub Date : 2008
Teaching Note :Not Available
Organization : Mahindra USA
Industry : Auto and Ancillaries
Countries : United States
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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Excerpts
Background
The history of the Mahindra Group dates back to the mid 20th century. In the early 1940s, K.C. Mahindra visited the US while working as the Chairman of the India Supply Mission. There he met Barney Roos, the designer of the 'general purpose vehicle'that later became popular as the Jeep...
Mahindra Tractors in the US
M&M planned to enter the US market in the 1990s. Its initial
research found that most of its prospective competitors like Deere, CNH Global
and AGCO Corp.
Tractors marketed a range of large tractors with 75 or higher HP engines and
that there was a potential market for compact utility tractors -the kind that
it sold in India and elsewhere (Refer to Exhibit II for more about compact
tractor categories)...
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The Secrets of MUSA's Success
Analysts highlighted several reasons for MUSA's success in a competitive market
like the US. One reason was effective market segmentation. The company
specifically targeted hobby farmers, turf managers, nursery operators, and
small-scale farmers. Therefore, it focused only on models with 75 HP or lower
capacity engines...
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Outlook
On January 21, 2008, MUSA announced the launch of a
new tractor model, 2525, for the US market (Refer Exhibit VI for a photo
of the product). The tractor sported a 25 HP engine and had 1702 lbs of
lift capacity.
It was sleek and stylish, and at the same time was said
to be convenient to use. It also had many features such as accessible
drawbar, cup holder, tiltable rollover protection system, etc... |
Exhibits
Exhibit I: Verticals under Mahindra Group
Exhibit II: Compact Tractor Categories
Exhibit III: Major Competitors of MUSA
Exhibit IV: Mahindra Tractor Models (by horsepower) in the US
Exhibit V: MUSA - Dealer Support Services
Exhibit VI: A Photo of Mahindra 2525
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