Mahindra and Mahindra: An Emerging Global Giant?

Mahindra & Mahindra
Name
Institution
Mahindra & Mahindra
Introduction
The history of Mahindra & Mahindra (M&M) dates back to 1945 when two brothers J.C. Mahindra and K.C. Mahindra came together with Ghulam Mohammed, an established entrepreneur, and forced Mahindra & Mohammad, a steel manufacturing company based in Mumbai, India. When India attained its independence in 1947, Ghulam Mohammed exited the company to become the first finance minister of Pakistan. The Mahindra brothers regained full control of the company and entered into an agreement with Willys-Overland Corporation to acquire and assemble the Willy’s Jeep for the Indian market. Over the years, the company grew to become one of the leading producers of motor vehicles. After establishing itself in India, M&M began spreading in other nations with its organizational culture being collaborating with other organizations. Upon establishing a market, the company would seek partnership with other established organizations in those countries. This paper analyses the strategies that emerging marketing companies such as M&M use in pursuing globalization, as well as the alternatives that the companies can employ to be successful in their globalization efforts.
Strategies used by emerging markets companies pursuing globalization
Emerging markets employ certain unique strategies when they are pursuing globalization. In most cases, such companies first establish dominance in their home markets then register the international scene by joining those markets that are similar to their own. Joining the familiar markets is an important strategy since it gives the emerging markets an opportunity to gain experience on how they can operate their businesses at the international level. In order to build their name in the global markets at a faster rate, some emerging markets such as M&M choose to enter into partnerships with well established companies in those nations. Apart from the mergers, the emerging markets might decide to fully acquire foreign companies and introduce their operating culture in those organizations. Most companies do not have a problem with this strategy since at this level they are operating at an environment that is similar to the one in their home environment. This explains why most emerging markets at this level do well as opposed to entering into the already established markets. Instead of just immersing themselves in operations that they are already familiar with, emerging markets can seek to offer services that are not yet available in the international markets where they set up operations (Soule, Swaminathan, & Tihanyi, 2014).
Strategies that M&M can use to enter the US market
Although M&M were familiar in international operations having operated in international markets, finding a market for their SUVs in the United States was bound to be challenging. Unlike in the other nations where M&M, as well as other emerging markets thrived on acquisitions and mergers, the U.S. is different since it is already a developed market. For M&M, the first thing that they need to do before starting focusing on their core business is to try and create a niche for themselves within the developed ec...