Subject category:
Strategy and General Management
Published by:
Indian School of Business
Version: May 31, 2022
Length: 15 pages
Data source: Field research
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https://casecent.re/p/191579
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Abstract
The case details the journey of Ace Micromatic Group (AMG): how a mid-sized Indian company founded in 1979 and headquartered in Bangalore grew to become India's largest machine tools company by 2005, a position it held until 2020. The case highlights how the group's cofounders have stayed together and committed to managing the group by adopting professional practices. With 700 on-field employees and over 55 service centers, AMG became the undisputed market leader in India. However, in 2020 was a challenging year, with the COVID-19 pandemic impacting businesses worldwide. The case describes the concerns of the MD and CEO of Micromatic Machine Tools (MMT) Private Limited, T K Ramesh, regarding the changing manufacturing map of the world. Ramesh wanted to envisage how this would affect AMG's expansion strategy. Another development that Ramesh and his team followed closely were the disruptive technologies - electric cars and car-sharing platforms. The emergence and growth of automobile hiring and sharing economy platforms such as Uber and Ola meant that the public preferred the convenience of on-demand automobiles on a pay-per-use basis to vehicle ownership. With the number of automobiles being produced and sold declining over time, how should AMG respond?
About
Abstract
The case details the journey of Ace Micromatic Group (AMG): how a mid-sized Indian company founded in 1979 and headquartered in Bangalore grew to become India's largest machine tools company by 2005, a position it held until 2020. The case highlights how the group's cofounders have stayed together and committed to managing the group by adopting professional practices. With 700 on-field employees and over 55 service centers, AMG became the undisputed market leader in India. However, in 2020 was a challenging year, with the COVID-19 pandemic impacting businesses worldwide. The case describes the concerns of the MD and CEO of Micromatic Machine Tools (MMT) Private Limited, T K Ramesh, regarding the changing manufacturing map of the world. Ramesh wanted to envisage how this would affect AMG's expansion strategy. Another development that Ramesh and his team followed closely were the disruptive technologies - electric cars and car-sharing platforms. The emergence and growth of automobile hiring and sharing economy platforms such as Uber and Ola meant that the public preferred the convenience of on-demand automobiles on a pay-per-use basis to vehicle ownership. With the number of automobiles being produced and sold declining over time, how should AMG respond?