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Mahindra and Mahindra

Mahindra USA's case study shows how senior leaders can understand the challenges of innovation. Their story demonstrates how being both disciplined and flexible is important when pursuing reverse innovation across different geographies and cultures. Mahindra USA entered the US tractor market in 1994 and targeted smaller niche markets like hobby farmers through personalized service and close dealer relationships, growing sales 40% annually from 1999 to 2006. Their approach proved effective for entering the US market through reverse innovation and adapting to local customer needs.

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Anchal Bipin
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100 views1 page

Mahindra and Mahindra

Mahindra USA's case study shows how senior leaders can understand the challenges of innovation. Their story demonstrates how being both disciplined and flexible is important when pursuing reverse innovation across different geographies and cultures. Mahindra USA entered the US tractor market in 1994 and targeted smaller niche markets like hobby farmers through personalized service and close dealer relationships, growing sales 40% annually from 1999 to 2006. Their approach proved effective for entering the US market through reverse innovation and adapting to local customer needs.

Uploaded by

Anchal Bipin
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Commenting on Mahindra USA being a case study “The Mahindra USA case study is 

one among the
excellent examples whereby senior leaders at our Executive Program can understand the challenges as well
as the frustrations they will face on the road to innovation. The tapestry of geographies and cultures during
which executives pursue efforts in reverse innovation are likely to demand considerable adaptation and
sometimes even improvisation. The Mahindra USA story can show executives that within the pursuit of
reverse innovation’s rewards, one are often both disciplined and flexible.”
Mahindra USA entered the US tractor market in 1994 and proceeded to determine itself as a successful
niche player using innovative marketing and sales strategies.
Rather than trying to develop a product that could compete with bigger brands, MUSA targeted a smaller
agricultural niche – hobby farmers, landscapers, and building contractors – and paired this strategy with
personalized service, building close relationships with dealers, customers and therefore the community at
large.
“Reverse Innovation is any innovation that's adopted first in the developing world.” this is often contrary
to the dominant innovation pattern which dictates that innovations typically originate in rich and developed
countries and later flow downhill to the developing world. Mahindra together of several “emerging giants,
the rising generation of multinationals headquartered within the developing world.
This approach proved highly effective with MUSA’s sales growing a mean of 40 percent per year, from
1999 to 2006.
M & M has been selling its tractors and utility vehicles in foreign markets, including the USA. a number
of the components for its products have been sourced from abroad. M & M features a 100 percent
subsidiary in the USA, Mahindra USA, with a robust network of 100 dealers. Mahindra features a five
percent market share in the US market in the 20-30 horsepower (HP) range.
As an element of the strategy aimed at building a global supply chain, Mahindra USA has signed a
memorandum of understanding (MoU) with the Korean tractor major Tong Yang, an element of the $ 2
billion Tong YangMoolsam group, consistent with which Mahindra will source high horse power (mostly
25-40 hp range) and sell them around the world under the M & M brand name. to start out with, the
premium range of tractors are going to be sold in the US. M & M's current tractor range is more utility-
oriented and lacks the aesthetic appeal that Tong Yang's tractors have, a requirement for a strong
presence in the US market.

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