Business strategy of automotive and farm equipment sector of the Mahindra & Mahindra Group of India

Abstract

Purpose

This paper traces the historical evolution and growth trajectory of the automotive and farm equipment sector, which is a very significant entity of the Mahindra & Mahindra (M&M) group. The purpose of this paper is to understand and provide a pragmatic framework through which the authors can see what were the internal and external factors and the spirit of the contemporary times that led to the changes in the nature of the group.

Design/methodology/approach

The “Greiner curve” model has been applied to interpret the evolutionary growth of the group and strategic trajectory explaining characteristics in its different phases.

Findings

M&M initially went through its share of learning and grew through pragmatic and, orchestrated entrepreneurial risk. The group made a very successful transition from a proprietorship model to a professionally managed group. It is found that rapid growth has been possible through innovation led collaboration. The group is increasingly organizing its innovation activities around the development of responses to specific challenges.

Research limitations/implications

This study suffers from methodological limitations associated with a stage model that the estimated length of the time the organizations will stay in a phase is not known. It is unclear whether passage through all stages is necessary; or whether, in some circumstances, one or more stages may be omitted, and if variations in sequencing can occur. The data for the initial years was not available in primary form and the paper had to depend entirely on the secondary sources.

Practical implications

Various strategies adopted by the group from time to time have practical implications for Indian economy. The group has faced many challenges, but challenge-led collaboration-driven approach represents a new type of innovation process that contrasts with other methods of business strategies and provides a sharper focus for managerial and technical issues and brings together stakeholders with diverse interests, expertise and perspectives.

Originality/value

This study is a unique attempt in India to trace the evolution of the strategic interventions in the context of a major business group, which is considered to be a symbolic representation of Indian economic history. The paper has got both academic as well as managerial utility.

Citation

Prasad Mohanty, R. and Augustin, P. (2014), "Business strategy of automotive and farm equipment sector of the Mahindra & Mahindra Group of India", Journal of Strategy and Management, Vol. 7 No. 1, pp. 64-86. https://doi.org/10.1108/JSMA-01-2013-0011