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5According to Thakur, the South African automotive market was also witness to three other trends that contrasted white African and black African consumers. White Africans earned more and also spent more, 4South Africa.info, “South Africa’s Population,” , accessed August 18, 2011. 5Bronwen Chase et al., “A Seismic Shift in South Africa’s Consumer Landscape,” McKinsey Quarterly, June 2010, Africa, accessed August 16, 2011. Authorized for use only by Nayla Hamid in Global Supply Chain Management at Western University from Jan 08, 2018 to Apr 10, 2018.Use outside these parameters is a copyright violation.
Page 6 9B11M106leaving them with less disposable income to invest in discretionary purchases, such as automobiles. Black Africans earned less but also spent less and seemed to have higher disposable incomes. Second, white Africans were buying used vehicles rather than new vehicles although their brand preferences remained. Black Africans, on the other hand, were buying new vehicles. Third, white Africans preferred functional attributes (such as good mileage), whereas black Africans preferred features, based on aesthetics, design and comfort, in their automobiles.M&M COMPANY BACKGROUND M&M was founded as a steel trading company in Mumbai, India, in 1945, by two brothers, J. C. Mahindra and K. C. Mahindra. Two years later, M&M entered into automotive manufacturing by launching Willys, the iconic World War II jeep, on a franchise from Willys-Overland Motors, the American maker of general purpose utility vehicles (UVs). Willys was the country’s first UV. The company began manufacturing farm equipment in 1960. The UV and tractor platform gradually became the company’s core competence. The company had extended its core competence, over time, into the full spectrum of the automotive value chain. By 2011, it was producing two-wheelers at one end, small turbo prop aircraft at the other, and trucks, buses, pickups and cars in between. Positioning itself on the platform of “motorized mobility,” the company had also started making powerboats, securing a presence in the transportation media across “land, sea and sky.” The mobility platform had generated opportunities for synergies across the company’s auto categories. Broadly, they prevailed in sourcing, product development and quality control. Common for all products was the use of raw materials such as steel and aluminum, which were used in castings and forgings. The automotive and tractor divisions had a common engine development team. The processes for quality improvements at the supplier end were uniform across categories. Synergies also prevailed at the level of operations. For example, transmissions and other aggregates were shared between different vehicles.