Mahindra Tractors in the United States
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Case Code: BSTR298 Case Length: 14 Pages Period: 1994-2008 Pub Date: 2008 Teaching Note: Not Available |
Price: Rs.300 Organization: Mahindra & Mahindra Industry: Auto and Ancillaries Countries: United States Themes: International Business, Entry and Expansion Strategies |
Abstract Case Intro 1 Case Intro 2 Excerpts
Excerpts
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)...
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...
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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