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Published by:
IMD (2017)
Version:
29.12.2017
Revision date:
13-Mar-2018
Length:
16 pages
Data source:
Field research

Abstract

The case focuses on the business and leadership challenges at the intersection of corporate ownership and entrepreneurship. Mahindra and Mahindra Ltd is the leading utility vehicle manufacturer in India and the largest-selling tractor brand by volume in the world. The company launched its aftermarket business in 1999, and by 2012/13 it had stabilized into two independent companies, each with a CEO who was responsible for growth and profitability. Mahindra First Choice Services (MFCS) focused on providing affordable and reliable servicing for out-of-warranty vehicles, and Mahindra First Choice Wheels (MFCW) focused on creating an ecosystem for used car ownership. Both companies were bold and innovative, and aimed to create new markets to address an unmet need in India's burgeoning used car industry. However, profits were elusive. Three strategic questions emerged: (1) Should parent Mahindra and Mahindra Ltd. continue to own MFCS and MFCW? (2) Should MFCS and MFCW be combined into a joint entity? (3) What ownership models (company owned, franchise or others) should be adopted to achieve success?

Topics

Strategy; Car; Sales; Services; Value; Entrepreneurship; Company ownership; Private equity; Franchise; Business model; Sustainability; Growth; Profitability
Locations:
Other setting(s):
2008 - 2017

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