Abstract

Mahindra USA (MUSA), a wholly-owned subsidiary of Mahindra & Mahindra Ltd., a India-based automobile company, was established in 1994 in Tomball, Texas. The case discusses the company's entry strategy in the US, a market that was known for fierce competition. MUSA entered the US market with compact utility tractors, a segment that was underserved. The company began by importing tractors from India and later set up assembly plants in the US where it assembled CKD kits imported from low-cost manufacturing centers such as India and other Asian countries. The case then talks about the company's initiatives to build the business including customer relationship management, brand building, etc. The case ends with a brief discussion on MUSA's future prospects in the US.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Learn the entry strategy of an automobile company.
• Analyze the reasons for the success of a little known company from a developing country in one of the most competitive markets such as the US.
• Understand the importance of market segmentation, customer relationship management, brand identity, pricing policy.

Keywords

Mahindra & Mahindra, Entry strategy, Dealer management, Mahindra USA, American tractor market, Customer service, John Deere, CNH Global