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The case study has been prepared for management students/business executives to understand electric vehicle (EV) business, business environment, industry competition and strategic planning and strategy implementation.

The size of the Indian passenger vehicle market was valued at US$32.70bn in 2021; it was projected to touch US$54.84bn by 2027 with a Compound Annual Growth Rate (CAGR) of more than 9% during the period 2022–2027. The passenger vehicle industry, a part of the overall automotive industry, was expected to grow at a rapid pace, as the Indian economy was rising at the fastest rate. However, the Government of India (GoI) had put a condition on the growth scenario by mandating that 100% of vehicles produced would be EVs by 2030. Tata Motors (TaMo), a domestic player in the market, had been facing a challenging competitive environment. Although it had been incurring losses, it had successfully ventured into the EV business. TaMo had taken advantage of the first mover by creating an electric mobility business vertical to enable the company to deliver on its aspiration of providing innovative and competitive e-mobility solutions. TaMo leadership had been putting efforts to scale up the electric mobility business, thus, contributing to GoI’s plan for electric mobility. Shailesh Chandra, president of electric mobility business, had a big task in hand. He had to scale up EV production and sales despite insufficient infrastructure for charging and shortages of electronic components for manufacturing.

The case study has been prepared for management students/business executives for strategic management class. It is recommended that the case study is distributed in advance so that the students can prepare well in advance for classroom discussions. Groups will be created to delve into details for a specific question. While one group will make their presentation, the other groups will question the solution provided and give suggestions.

Teaching notes are available for educators only.

CSS 11: Strategy.

The case deals with the unforeseen uncertainties faced by Reva, the first electric car of India, while entering the Indian market. The company was able to take up the challenge of making an energy efficient car. As a new product, Reva achieved operational success, developing an electric, low energy car. Its marketing strategies had limited consumer pull and had to be strengthened to gain consumer acceptance. The ecosystem worldwide is looking for support from governments on the concept and the infrastructure of this product category.

The case study “Maruti Suzuki – toward cleaner mobility” has been written keeping in view the requirements in the field of strategic management. The key learning objectives are as follows:• Analysis of business environment.• Product development strategy – creating market segment to gain competitive advantage by leveraging available organizational capabilities.• Strategic decision-making – understanding strategic decision-making process in a complex and highly competitive business scenario.

Maruti Suzuki, a leader in Indian automotive market with around 50% market share in passenger cars, was likely to face intense competition because of disruption by electric vehicles. As electric vehicles adoption was increasing globally in developed countries, automotive companies shaped their strategy accordingly to stay relevant. Maruti Suzuki was yet to be ready with electric vehicles and approached this space differently than other competitors. However, with Indian Government pushing toward cleaner mobility, it was yet to be seen how the company would manage to comply with legislations and compete effectively in marketplace. Indian Auto major, Maruti Suzuki, was on the edge to decide future strategy on electric vehicles to sustain its leadership position. The Indian automotive sector was going through the transformation where auto original equipment manufacturers were bringing electric vehicles and supporting policies from government likely to accelerate its adoption. Maruti Suzuki was striving to counter the competition with available resources to create competitive advantage in changing environment and continue to remain profitable with leadership position in Indian automotive market. The company had successfully maintained its leading position over three decades and transformed the automotive space with its strategies ahead of the curve. Now the company was standing at crossroads with regard to future technology on cleaner mobility. Mr Bhargava had to decide whether to throw the hat in EV ring or wait for other alternate technology disruption.

Management studies and executive development programs.

Teaching notes are available for educators only.

CSS 11: Strategy

Quality management among multiple business units of a large organization is often difficult if each unit is run independently in terms on their quality standards. In this case, participants will discuss how Bukhari Group of Companies should establish a common brand image through standardized quality. Participants should also understand that common brand image for diverse products does not mean identical level of rejection or customer complaints. It should be understood that different markets have different tolerance for product failures. The participants can chalk out the measures the protagonist of the case should be able to take to effectively steer the Bhukari Group to achieve profits and excellence.

Republic Electric is faced with the need to engage in a systematic process of evaluating vendors for its just-in-time manufacturing. The case gives students the opportunity to think through the process for vendor selection in the context of real-world constraints for a specific organization, to become acquainted with the Delphi technique for developing consensus, to gain hands-on experience with linear averaging, to engage in calculations of value indexes, and to recognize the marketing implications of effectively evaluating vendors. A key takeaway for students is the fact that vendor selection decisions are multifaceted and will vary among organizations depending on each organization’s particular strategic needs, operational constraints, and human judgment.

The case is based upon a consulting assignment with the company that is represented by Republic Electric. The experience was gained first-hand by one of the authors.

This case is targeted at undergraduate students in marketing, materials management, supply chain management, and purchasing, but can work well in a variety of business courses in which supply chains or the development of evaluation tools is studied, to include graduate classes.

The concept of vendor assessment is well developed in the literature and represents a pragmatic, but often neglected, step in the practice of choosing suppliers.

International business

Undergraduate/graduate/executive education.

China has become the world's largest producer of automobiles, surpassing the USA and Japan. The Chinese auto industry differs quite significantly from those countries though. While the industry exhibits a substantial degree of concentration in the USA and Japan in early 2011, it remained highly fragmented in China. The Chinese Central Government had announced a desire for consolidation, yet it remained unclear whether a significant shakeout would occur in the near term.

Like many Chinese automakers, Chang'an partnered with well-known global auto makers to develop, produce, and distribute its products. In the coming years, Chang'an hoped to develop more independence from its foreign partners, including the production and distribution of self-branded cars. However, the company grappled with how it could strive for independence while managing its existing joint ventures. Executives worried too about how to compete with foreign automakers who had achieved global economies of scale.

The case provides a rich description of the evolution of the Chinese auto industry, and it documents how the Chinese industry differs from other global markets. Readers can analyze the extent to which they believe scale economies provide foreign firms an advantage over smaller Chinese rivals, and they can evaluate the conventional wisdom regarding the industry's minimum efficient scale. The case also provides a detailed account of Chang'an's rise to prominence. The case concludes by offering an in-depth description of the firm's key rivals, and it presents the key questions being considered by Chang'an executives in 2011.

Enables students to examine how and why an industry's structure can differ substantially across geographic markets.

Enables students to examine whether the need to achieve economies of scale may cause substantial consolidation in the Chinese auto industry.

Provides an opportunity to evaluate the pros and cons of the joint venture strategies employed in China.

Provides an opportunity to examine how a relatively small firm can position itself against large multinationals in a high-growth emerging market.

Teaching notes.

Supply chain management.

The case is suitable for post graduates in management, and for those managing small sector supply and manufacturing systems.

ACPL is an organisation which moved from trading to manufacturing a technology product instrument transformers (ITs) for power utility companies for 11 years, competing with the best in industry, reducing internal costs, and modernising the supply chain. ACPL was started as a trading organisation in electrical items in Delhi by Munish Kumar, an engineer by profession in 2001. In 2004 he ventured into manufacturing, which expanded in two locations in Ghaziabad, NCR Delhi. Later his two sons, engineer and management graduate, respectively, joined the organisation. In less than a decade, by 2007, ACPL had grown to be a private limited organisation. ACPL manufactures ITs required by power boards and companies for conversion and usage of high voltage (11 kV/33 kV) transmitted power into 220 V single phase/440 V three phase power. From tender/enquiry through manufacturing to inspection and despatch takes a long supply chain cycle time holding space as well as inventory. An interview with the chairman of ACPL in the case highlights issues affecting its margins and growth. The long process to delivery time may be in vogue in this type of industry but this holds up a huge inventory. The company management has been working to resolve this crisis along with an urgent need to grow in a competitive environment. The problem is being addressed.

This case study should help students to understand the concept of the supply chain and supply cycle, in a manufacturing company in particular. It has been found that students understand the supply chain as part of the marketing function dealing with finished stocks, warehousing and delivery to end customers as per agreements, and arranging payments from customers. The supply chain also deals with in bound materials management. Raw materials planning, purchasing, inventory management are crucial for effective business operations management in any organisation.

Teaching notes are available; please contact your librarian for access.

Mahindra Trucks and Bus Division (MTBD) of Mahindra & Mahindra is at an interesting stage of its evolution. Having gone through a bad patch with a product that was not quite up to the mark, it appears to have got the product right by early 2018 and truck sales had been going up in the country for the previous four years. While Mahindra & Mahindra as a company is a large firm with revenues of more than USD 15 billion, MTBD itself is a small player (INR 2400 crore, USD 350 million) within the firm and in an Indian truck industry that is dominated by goliaths, Tata Motors and Ashok Leyland that between them had more than 81% market share and a customer mindset that was loath to leave the comfort of a known brand. The case provides data on product specifications, prices, marketing communication, channels, positioning, the context and competition. The intention is to use the case to go through the steps involved in evaluating and developing and creating a marketing plan for MTBD to increase its market share from the 4% in 2018 to an intended 8% in 2022.

Andreas Stihl AG is the world's leading manufacturer of chain saws and other outdoor handheld power equipment. Based on marketing challenges in its high-volume retail channel—mass merchants such as The Home Depot and Lowe's—Stihl's U.S. unit has narrowed its distribution system to a single channel: independent retail dealers specializing in yard maintenance equipment. This risky and highly publicized decision has proved extremely successful, raising profits, attracting more dealers into exclusive relationships with Stihl, and strengthening the brand's top-quality positioning. But Stihl management are concerned that this channel system may not fit tomorrow's demographics, dominated by homeowners from the so-called Generation X and Generation Y. The case outlines Stihl's business and channel systems and customer needs, then poses a series of questions that management believes must be answered to determine whether to maintain or move away from reliance on its specialty retailers and how to adapt its system.

To understand issues related to retail channel strategy development in fast-changing consumer markets, as well as the challenges of adapting legacy routes-to-market systems to changing consumer service output demands.

Rockwell Automation's Allen-Bradley division was considering how to deal with the threat posed by national distributors in the maintenance, repair, and overhaul (MRO) business for its industrial automation products. National distributors were consolidating the MRO distribution channel, offering national account customers an integrated multichannel solution for their MRO needs. Allen-Bradley had traditionally served its customers through high-touch, high-value-added local distributors, but this channel was inadequate for the demands of large MRO customers. An effort by Allen-Bradley and other manufacturers to create an industry-wide electronic sourcing consortium called SourceAlliance.com had failed. Now the company had to choose between redesigning its traditional channel by creating a virtual network of local distributors, striking an alliance with a national distributor, or withdrawing from the MRO market. It had to contend with difficult channel conflict issues in choosing a channel strategy.

To analyze the competitive strategy of a company serving the MRO market.