SM ASSIGNMENT
CASE: Mahindra & Mahindra Ltd.: Racing Toward Creative
Disruptions
By Abhi Agarwal
220102001, PGDM (Finance)
Q1. As of February 2019, list Mahindra Rise strategic challenges and comment
critically on its alignment with ATS. List your recommendations separately for
countering both these challenges.
Mahindra Rise is a leading Indian conglomerate that operates in a range of sectors,
including automotive, agriculture, and technology. Some of the strategic challenges
that Mahindra Rise faces include:
Competition from global players: Mahindra Rise operates in a highly competitive
market, with global players such as Toyota, Ford, and Volkswagen competing for
market share. These players have significant resources and established brand names,
which can make it difficult for Mahindra Rise to differentiate itself.
Increasing demand for electric vehicles: The market for electric vehicles is growing
rapidly, and Mahindra Rise needs to keep pace with this trend to remain relevant.
This requires significant investment in research and development, as well as
manufacturing infrastructure.
Economic uncertainty: The global economy is subject to a range of factors that can
impact consumer behaviour and business operations, including inflation, political
instability, and trade disputes.
In terms of its alignment with ATS (Advanced Technology Services), it is important for
Mahindra Rise to ensure that its technology and innovation initiatives are closely
aligned with its overall business strategy. This requires a robust framework for
evaluating and prioritizing investment in new technologies, as well as strong
partnerships with technology providers and research institutions.
To address these challenges, Mahindra Rise should consider the following
recommendations:
Focus on innovation and differentiation: Mahindra Rise should continue to invest
in research and development to differentiate itself from global competitors. This
could include developing new products or services, as well as investing in emerging
technologies such as autonomous vehicles and artificial intelligence.
Embrace the shift to electric vehicles: Mahindra Rise should prioritize investment
in electric vehicle technology, including battery manufacturing and charging
infrastructure. This could help the company to capitalize on the growing demand for
sustainable transportation solutions.
Diversify geographically: To reduce its exposure to economic uncertainty in any
one region, Mahindra Rise should consider diversifying its operations geographically.
This could involve expanding into new markets, such as Southeast Asia or Africa.
Strengthen partnerships with technology providers: To stay at the forefront of
technological innovation, Mahindra Rise should seek out partnerships with leading
technology providers and research institutions. This could help the company to
access cutting-edge technologies and develop new products and services more
quickly.
Build a strong culture of innovation: To ensure that innovation remains at the core
of its business strategy, Mahindra Rise should foster a culture of innovation
throughout the organization. This could involve creating dedicated innovation teams,
providing employees with training and resources to develop new ideas, and
recognizing and rewarding innovative ideas and achievements.
Q2. Using the diagram for innovation landscape map, show M&M/ATS’
technology development strategy as of February 2019. Critically evaluate this
strategy from the perspective of making M&M Ltd. future ready for 2024.
To thrive in a sector where technology is undergoing radical change, Mahindra must
constantly watch shifts in customer requirements.
M&M/ATS’ focus on advanced materials, robotics, and data analytics aligns well with
some of the key trends and challenges facing the manufacturing industry, such as
increasing demand for smart, connected, and automated products and systems. By
investing in these areas, M&M/ATS may be able to differentiate itself from
competitors and capture a larger share of the market.
However, there are also some potential risks and challenges to this strategy. For
example, the rapid pace of technological change and innovation in these areas
may require M&M/ATS to continually adapt and update its technology and
products to remain competitive. Additionally, there may be significant
investment costs and other barriers to entry for new players in these areas,
which could limit the company’s ability to maintain its leadership position.
Overall, while M&M/ATS’ technology development strategy as of February 2019
appears to be well-aligned with some of the key trends and challenges facing the
manufacturing industry, there are also potential risks and challenges that the
company will need to navigate in order to remain future-ready in 2024 and beyond.
It will be important for M&M/ATS to maintain a focus on developing products and
technologies that provide real value to customers and differentiate the company
from competitors.
Q3. Evaluate critically the 4 launches of ATS for their relevance and alignment
for making M&M Ltd. future ready for March 2024. Explain your strategic
rationale.
Marazzo:
o It enhances Mahindra's reputation as a major Diesel SUV competitor in India.
o It also reflects Indian consumers' desire for fuel-efficient vehicles.
o It also aids in capturing a brand-new subgroup of diesel SUV owners.
o It deviates from the perception of Mahindra, and the market it attempted to
penetrate was unprofitable.
Ecosystem of carbon-neutral energy:
o It supports Mahindra's reputation as a creative business.
o It also benefited the company by fostering cooperation among its divisions.
o It also conforms to the ESG business model that the rest of the world is adopting.
By achieving synergy in an environmentally responsible manner, it will aid in the
development of a sustainable company.
Intelligent Tractors:
o It supports Mahindra's ambition to be a technology leader in the quickly changing
car sector.
o It could take over the tractor industry if it is good.
o Although it will take more than ten years, self-driving vehicles will benefit
Mahindra. It needs to be cautious when it comes to laws governing autonomous
trucks or vehicles.
Digisense 1.0:
o A company that prioritizes its clients by offering ease to them.
o as a potential source of revenue, it is consistent with the group's goal to expand.
(diversification)
o More and more vehicles will be IT-enabled by 2024. It will give Mahindra an
advantage going forward.
