MAHINDRA & MAHINDRA LTD.: RACING TOWARD CREATIVE
DISRUPTIONS CASE STUDY SOLUTION
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SYNOPSIS
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The case portrays the strategic initiatives that Mahindra & Mahindra Ltd. (M&M), an Indian automotive
giant, pursued to retain a leadership position in the domestic automotive space. With the intensifying
competition in the Indian automotive market involving many domestic and foreign players, M&M would
not survive long term if it concentrated only on improving its production capabilities. Instead, despite little
n
expertise in research and development (R&D) and limited capital compared to the foreign original
tio
equipment manufacturers (OEMs), M&M shifted its focus from low-cost production and SUV
manufacturing to technology leadership.
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Placing technology leadership as one of its business drivers, M&M created a new vertical—Advanced
Technology Solutions (ATS)—to spearhead technology development within the automotive and farm
sectors. ATS was challenged to balance the structure and strategies within the vertical and maintain an
So
The Case Solution Starts From page 5
,ASSIGNMENT QUESTIONS
1. What issues and challenges does a domestic automaker face in India? What are the critical success
factors for such a firm because of the changing Indian market landscape?
2. How do technology development strategies differ from one firm to another? How does an OEM’s
technology strategy typically evolve?
3. What are the determinants of corporate entrepreneurship or intrapreneurship? How does organizational
culture influence its performance?
4. What challenges did ATS encounter in developing technology competence to offer customers new
value propositions and attain a sustainable competitive advantage?
5. Which strategic frameworks did Bhardwaj use over the years to build ATS as an entrepreneurial
organization?
6. How should ATS formulate its strategies for spearheading the technology development initiatives?
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The Case Solution Starts From page 5
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ANALYSIS
1. What issues and challenges does a domestic automaker face in India? What are the critical
success factors for such a firm because of the changing Indian market landscape?
lu
After the economic liberalization in 1991, competition in the automotive space intensified with
So
multinational OEMs entering India. The multinationals enjoyed several advantages, such as economies of
scale, financial stability, and access to skilled labour and technological knowledge, thus challenging the
domestic manufacturers and forcing them to adopt and assimilate innovative business practices faster than
the competitors to survive in a highly competitive market.
Information presented in case Exhibit 5 provides evidence of the increasing competition faced by the
domestic automotive companies in their own market. Most of the Indian automotive companies had an
advanced and well-developed product development division with a skilled workforce that was competent
in developing products and bringing innovation to the product offerings. However, the companies lacked
The Case Solution Starts From page 5
, EXHIBIT 3: ACCEPTANCE OF ATS TECHNOLOGY PROJECTS
Business
Business Interest
Sponsored
Technology
Development
Project Proposal
Acceptance
Research
ATS Sponsored
Interest
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EXHIBIT 4: TECHNOLOGY COMPETENCE FRAMEWORK
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The Case Solution Starts From page 5
DISRUPTIONS CASE STUDY SOLUTION
e
pl
SYNOPSIS
m
Sa
The case portrays the strategic initiatives that Mahindra & Mahindra Ltd. (M&M), an Indian automotive
giant, pursued to retain a leadership position in the domestic automotive space. With the intensifying
competition in the Indian automotive market involving many domestic and foreign players, M&M would
not survive long term if it concentrated only on improving its production capabilities. Instead, despite little
n
expertise in research and development (R&D) and limited capital compared to the foreign original
tio
equipment manufacturers (OEMs), M&M shifted its focus from low-cost production and SUV
manufacturing to technology leadership.
lu
Placing technology leadership as one of its business drivers, M&M created a new vertical—Advanced
Technology Solutions (ATS)—to spearhead technology development within the automotive and farm
sectors. ATS was challenged to balance the structure and strategies within the vertical and maintain an
So
The Case Solution Starts From page 5
,ASSIGNMENT QUESTIONS
1. What issues and challenges does a domestic automaker face in India? What are the critical success
factors for such a firm because of the changing Indian market landscape?
2. How do technology development strategies differ from one firm to another? How does an OEM’s
technology strategy typically evolve?
3. What are the determinants of corporate entrepreneurship or intrapreneurship? How does organizational
culture influence its performance?
4. What challenges did ATS encounter in developing technology competence to offer customers new
value propositions and attain a sustainable competitive advantage?
5. Which strategic frameworks did Bhardwaj use over the years to build ATS as an entrepreneurial
organization?
6. How should ATS formulate its strategies for spearheading the technology development initiatives?
e
pl
m
Sa
n
tio
lu
So
The Case Solution Starts From page 5
, e
pl
m
Sa
n
tio
ANALYSIS
1. What issues and challenges does a domestic automaker face in India? What are the critical
success factors for such a firm because of the changing Indian market landscape?
lu
After the economic liberalization in 1991, competition in the automotive space intensified with
So
multinational OEMs entering India. The multinationals enjoyed several advantages, such as economies of
scale, financial stability, and access to skilled labour and technological knowledge, thus challenging the
domestic manufacturers and forcing them to adopt and assimilate innovative business practices faster than
the competitors to survive in a highly competitive market.
Information presented in case Exhibit 5 provides evidence of the increasing competition faced by the
domestic automotive companies in their own market. Most of the Indian automotive companies had an
advanced and well-developed product development division with a skilled workforce that was competent
in developing products and bringing innovation to the product offerings. However, the companies lacked
The Case Solution Starts From page 5
, EXHIBIT 3: ACCEPTANCE OF ATS TECHNOLOGY PROJECTS
Business
Business Interest
Sponsored
Technology
Development
Project Proposal
Acceptance
Research
ATS Sponsored
Interest
e
EXHIBIT 4: TECHNOLOGY COMPETENCE FRAMEWORK
pl
m
Sa
n
tio
lu
So
The Case Solution Starts From page 5
