Mahindra and Mahindra
~ Entering the US market with a SUV ~
Mainly known for being a tractor manufacturer along with other farm products, Mahindra and Mahindra has recently began to produce sport utility vehicles which they would like to bring to the North American market along with an upcoming diesel-electric hybrid SUV model as well. The company enjoys a global reputation for bringing performance and productivity together in their tractors, helping them secure favorable perceptions of being an excellent company.
Given its background in producing vehicles for sale mainly in India, Mahindra and Mahindra lacks exposure to the global market and faces a slew of barriers that raise the following three critical issues:
Unfamiliarity to the US market
Carrying only a core competence in manufacturing tractors
Stiff competition from hybrid vehicles such as Toyota, Ford or Honda
It is highly recommended that to tackle these issues, Mahindra and Mahindra should first consider further market research to understand the tastes and culture of the US consumer.
Concurrently, the company can test out their SUV in a brand new market such as Egypt or Brazil first in order to minimize the possible effects of failure in a huge market such as USA. Failing in such a lucrative market may even cause damage to the sales of their existing tractors in this region.
Moving forward, the company should enter into discussion with Ford Motor Company in USA to bring their new hybrid SUV model to the North American market through a possible joint venture. This would build on their previous relationship with Ford as both companies worked together to launch car models in India already.
Finally, to remove their image as a tractor company, Mahindra and Mahindra will have to engage in heavy advertising and promotion to build their new...