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Mahindra USA-A Case Study on Reverse Innovation

By Motortrend India Staff   |   29 January,2013

Mahindra USA Inc., a wholly owned subsidiary of Mahindra & Mahindra Ltd., is a Tuck Executive Education case study on reverse innovation at present. Vijay Govindrajan, Professor at the Tuck School of Business at Dartmouth College, USA, has brought this into limelight in his book “Reverse Innovation: Create Far from Home, Win Everywhere” which is jointly written with Chris Trimble, a well-known innovation speaker, consultant and a faculty at Tuck.

While commenting on this, Prof. Govindrajan said, “The Mahindra USA case study is one of the excellent examples whereby senior leaders at our Executive Program can understand the challenges as well as the frustrations they will face on the road to innovation. The tapestry of geographies and cultures in which executives pursue efforts in reverse innovation are likely to demand considerable adaptation and sometimes even improvisation. The Mahindra USA story can show executives that in the pursuit of reverse innovation’s rewards, one can be both disciplined and flexible.”

Mahindra USA entered the US tractor market in 1994 targeting a smaller agricultural niche comprising of landscapers, hobby farmers and building contractors.

“Reverse Innovation is any innovation that is adopted first in the developing world.” This is not in tune with the dominant innovation pattern which depicts that the innovations originate in rich and developed countries and later is spreaded to various parts of the world. Prof. Govindrajan described Mahindra as one of the “emerging giants”.

Mahindra USA’s sales is increasing at an average of 40 percent every year since 1999 to 2006. David C. Everitt, president of Deere’s agricultural division, said “Mahindra could someday pass Deere in global unit sales.” At present Mahindra occupies the first position in the list of tractor makers worldwide, in terms of volume.

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