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Mahindra & Mahindra Case Study of International Market Expansion

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Added on  2020-04-21

Mahindra & Mahindra Case Study of International Market Expansion

   Added on 2020-04-21

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Mahindra & MahindraChronology (Théo)Economic & Political Influences At its domestic peak in 2010, Mahindra & Mahindra rose to become India’s fourth largest automaker, in order to experience growth the company needed to look to expand to international markets. The global automotive is of particular importance in the mature economies including the United States of America and emerging economies including China and India, as well as wealth the industry provides a lot of job opportunities to locals. Data from the KPMG report attributes the automobile industry as one of the key driver’s in India’s economy, accounting for approximately 4% of the gross domestic product and over 200 000 jobs in 2010.As the Indian economy has grown at a steady rate so to has the percentage of people who are able to afford vehicles, which has resulted in a rise in demand. This rise also saw Mahindra & Mahindra look to international markets and alliances to ensure access to the best technology and infrastructure.Political factors that aided expansion into global markets resulted from the changing economic state which say the breakdown of trade and investment barriers. In regardsto the Indian government's input in the future of automobiles they need to provide thesupport to ensure growth trends are maintained as well as encourage ecologically sustainable vehicles, this will come through closely regulating environmental standards. Stakeholders and Concerns (Michael)Evaluation and solutions (Sam)India's large enterprises have many similar aspects, one of which is involved in the industry is very wide, covering different areas. The advantage of this strategy isenterprise could easily achieved economies of scale effect, winner takes all. Meanwhile, across different industry could makes its product line wider and use differentiation strategy (porter’s generic strategy) it’s helpful to find out the potential business opportunities. However, its disadvantage is obvious as well, because of the wildly operating, its capital can not been used concentratelly. Its capital advantage is splitted. Therefore, the product line with opportunities will not receive enough supportfrom company. Although, those companies always get policy and capital support from local government. In global period, over rely on government support without improve its power , company will not spread its advantage at domestic market from all over the world.
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