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M& M Case Summary

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At first Mahindra was a company dedicated to manufacturing general-purpose
Utility vehicles that later turned into a conglomerate with interests in oil drilling, bearings, time-share results, and instrumentation along with jeeps and tractors. In 1991 the Harvard educated scion told M&M that they would not continue business with them if they didn’t have global potential, resulting in the businesses being regrouped into four strategic business units (SBUʼs) such as; automotive, farm equipment services, IT services and trade and financial services. The company anticipated an economic downturn in the tractor industry that resulted in M&M creating the Operation Blue Chip. The drive was launched in 2000 and later in 2001 the domestic market for tractors collapsed as expected, and M&M was the only tractor company in the Indian industry that made profits. India was the worlds second largest tractor manufacturer and in the 1990s the country was expanding to more competitive markets such as the United States. M&M capitalized quickly on this opportunity and set up an assembly plant in Tomball, Texas in 1994. Elsewhere, the Indian tractor industry categorized 13 players in the Indian tractor industry on the basis of power delivered by the engines horsepower that also included three multinational corporations; New Holland, John Deere, and SAME.
Because of an emphasis by the federal government on increasing share of agricultural in the gross domestic product, the flow of farm credit had been rising over the years, contributing to one of the several growth drivers in the Indian tractor industry. Agricultural businesses were entering alliances with farmers for guaranteed returns on purchase of farm purchase and large-scale irrigation projects were taking place in Indian states, which showed a potential increase in the supply of farmland. Because the infrastructure sector was

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