Renault in India Harvard Case Solution & Analysis

INTRODUCTION:

The CEO of Renault has contemplated to enter into India through a joint venture with Mahindra and Mahindra. Renault came up in a JV in 2005 with Mahindra and launched Renault Mahindra Logan.It ended its JV with Mahindra within a shorter span of time i.e. five years and since then, has been planning to strengthen its network through launching new and high quality cars by the end of 2011 and target new market i.e. India. Renault has placed high hopes and expectations on the product being offered, Logan, which is a mid-sized automobile. But the vehicle with its high pricing and dated looks has failed to hit a chord with the consumers in India. Due to this, the joint venture was killed in 2010. Ironically, the failure of the Logan laid the success foundation of Renault.

Despite of the success foundation, while entering into market exposes many challenges.Therefore, strategies and planning are required originally to sustain market growth. Would this approach and planning let the company get its ducks in a row to provide exceptional quality products to customers? Understanding the customers in a new market and having a closer look over market trends, extent of competition in the market and the knowledge about local market are required to gather larger market and to enjoy greater market share while competing with the major competitors and building positive image and reputation in the market arena. It would require making some future strategies in order to ensure steady growth in the new market.

Renault in India Harvard Case Solution & Analysis

Mahindra Background

Mahindra and Mahindra is a car manufacturing company, originated in 1945 as a steel trading company in Ludhiana. It is headquartered in Mumbai, Maharashtra. It was originated as Mahindra and Mohammad by the two brothers Kailash Chandra Mahindraand J.C. Mahindra and Malik Ghulam Mohammed. When India got independence, Mohammad migrated to newly formed country Pakistan and became the first finance minister. The name of the company became Mahindra and Mahindra in the calendar year 1948.

The company realized business opportunity by expanding into selling and manufacturing larger MUV’s in India. It then manufactured jeeps in India, and also contemplated to manufacture agricultural tractors and light commercial vehicles. Over the period of time, the company did show greater interest in the foreign markets and new industries. It has entered into the 2 wheeler industry and has taken over Kinetic Motors.

It acquired SsangYong Motor Corporation Industries of South Korea in 2011. In 2014, it successfully acquired 50 percent controlling stake in another automobile industry i.e. Peugeot Motorcycles. In recent year 2017, the company also pondered acquiring 75.1 percent equity stake in a farmer equipment company,Hisarlar Makina Sanayi ve Ticaret Anonim Şirketi (Hisarlar) and has new target market in Turkey. In September 2017, the company also acquired a tractor maker in Turkey and has gather larger market through offering efficient cars (Mahindra & Mahindra, 2017)

Mahindra and Mahindra offers a variety of high quality cars to its customers.Its tractors are its largest manufacture all around the world. The company has also expanded its product in order to include many farm-support services through Mahindra ShubhLabh (protection of crop, seeds and market linages), AppliTrac (mechanization products), as well as Samriddhi Initiative (farm information and counselling services)...........................

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