Advantages and Failure of Ford and Mahindra Alliance

This article discusses the advantages and failure of the strategic alliance between Ford and Mahindra in the area of technology, product, and distribution, including the future mobility programs, electrification of cars, and connected vehicle project. The alliance helped Mahindra to expand their share in the external international market and gave the potential to share high ended innovative technology in the business to grow and develop the product. However, the alliance might fail due to the difficulty of increasing the sales of EV in just 3 years and the inability of Ford India to continuously invest in the new low-cost EV platform created by Mahindra.

Running Head: Global Business Strategy
Global Business Strategy

Global Business Strategy 1
“Advantages and Failure of Ford and Mahindra alliance”
The Mahindra and Mahindra came into strategic alliance with Ford company so as to explore the
in the area of technology, product and distribution, including the future mobility programs,
electrification of cars and connected vehicle project. This process helped the company Mahindra
and Mahindra to expand their share in the external international market. It also gave the potential
to the company to share high ended innovative technology in the business to grow and develop
the product (Warter, & Warter, 2017). This process triggered sustainability policies, increase of
use of new technology and mobility in new urban share model. This alliance will help the
company to Ford to enter in the target market of Mahindra (that is India), and increase sales in
that market. The company’s production in this case grew by 28% in 2017 that led export of 2.52
lakh units. This alliance can ultimately make ford earn money in world’s fifth largest vehicle
market that is India (Thakker, 2017).
But subsequently Ford alliance with Mahindra will fail. It should be noted that everything seems
to be good in this alliance but the main difficulty will arise when the company Mahindra will not
fully accomplish the goal of selling cars in the market of India. People of India are not well
known aware of this transformation that can affect the sales of the company (Saranga, Mudambi,
& Schotter, 2017). Also, the biggest failure of this alliance can be the time frame as it is very
difficult for an organization like Mahindra to increase the sales of EV in just 3 year. But the
company Ford India is not in a position to continuously invest on the new low cost EV platform
created by the company Mahindra (Mahendra, 2017). So, these can be some of the reasons due to
which Ford’s alliance with Mahindra might in the real world business conditions.

Global Business Strategy 2
References
Mahendra, A., (2017). Why the Mahindra, Ford alliance for electric vehicles is good news but
doesn’t mean much. Retrieved from
https://www.financialexpress.com/auto/car-news/why-the-mahindra-ford-alliance-for-
electric-vehicles-is-good-news-but-doesnt-mean-much/861789/
Saranga, H., Mudambi, R., & Schotter, A. P. (2017). Mastering the make-in-India
challenge. MIT Sloan Management Review, 58(4), 59.
Thakker, K., (2017). M&M enters into strategic alliance with Ford to explore collaboration on
electric vehicles. Retrieved
from<https://economictimes.indiatimes.com/industry/auto/news/industry/mm-enters-into-
strategic-alliance-with-ford-to-explore-collaboration-on-electric-vehicles/articleshow/
60731811.cms>
Warter, L., & Warter, I. (2017). The Phenomenon of Merger and Acquisition within the
Automotive Industry. North Economic Review, 1(1), 208-215.