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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Introduction Contd...
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MUSA, a division under M&M's Farm and Equipment Sector (FES),
was founded in 1994. (M&M's FES is the leader in the Indian tractor market).
Initially, MUSA imported tractors from India. Later, it started assembling them
from complete knock down (CKD)5 kits (imported from India), at its assembly plant
in Tomball, Texas, while also continuing to import fully built tractors.
The
company also entered into agreements with leading tractor companies in China and
Korea to distribute their tractors in the US.
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Right from the initial years, MUSA strove to differentiate
itself from tractor companies like John Deere6
(Deere) and Case-New Holland Global (CNH Global),7
who had dominated the tractor market in the US since the early 1900s.
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MUSA launched tractors in the compact tractor segment
-a segment that was overlooked by the established players. The company
succeeded in gaining a foothold in the US by the late 1990s, and by the
2000s, it was able to record more than 20 percent annual growth in
sales.
MUSA's success in the US was attributed to many factors. The company was
appreciated for the quality and design of its tractors as well as for
its competitive prices. Its efficient dealer and customer service system
were crucial in gaining the trust of US customers. With regular
introduction of new products, the company was able to increase its
market share from 5 percent in 1999 to around 10 percent in 2004... |
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