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Ace Micromatic Group (AMG) was established in 1979 and is a well-known machine tools (MT) manufacturer in India. Under the leadership of Shrinivas Shirgurkar, Managing Director, the firm has been ambitiously seeking new opportunities. It is a ""niche entrepreneur"" company that focuses on MT and computerized numerical control (CNC) machines. MMT China was founded in 2007 as AMG's wholly owned foreign enterprise (WOFE). The overwhelming support of the local government impressed AMG. The structure of the MT market has shifted from pyramidal to diamond shaped. MMT China has successfully focused on small- and medium-sized businesses (SMEs). Its focus has been aesthetics, automation, customer experience, and dealer relationships. Despite this, it has encountered several challenges. One set of challenges was financing the purchase of its goods. Another concern was the gulf between its organizational ideals and Chinese business practices and culture norms, such as giving gifts and favors (guanxi, personal networks not related to business). MMT China has been able to overcome these challenges by providing high-quality products at competitive prices, supported by efficient after-sales service. It has overcome overwhelming odds and reaped the rewards of investing in China. The founders are hopeful and optimistic about initiatives such as "China Plus One" and "Make in China2025." Careful planning will be necessary to make the most of these changes.
Learning Objective:
- Understand the opportunities and challenges facing MMT China.
- Analyze MMT's expansion strategies aimed at establishing a strong presence in the Chinese market.
- Understand MMT's strategies for tackling the expansion-related challenges.
- Analyze how MMT China can improve its relationships with customers and distributors.
Pub Date:
Mar 31, 2022
Discipline:
International Business
Subjects:
Client Relationship Management Software, International Business
Industry:
Automotive industry, Machinery and equipment industry
Source:
Indian School of Business
Product #:
ISB301
Geography:
India
Length:
11 page(s)
₹399.00
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Ace Micromatic Group: A Hidden Champion in the Indian Machine Tools IndustryThe case study titled "Ace Micromatic Group: A Hidden Champion in the Indian Machine Tools Industry" 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, 2020 was a challenging year, with the COVID-19 pandemic impacting businesses worldwide. The case describes the concerns of the Managing Director 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 and how the group should allocate resources between different markets. Another development that Ramesh and his team followed closely were the disruptive technologies- electric cars and car-sharing platforms-that had already created waves in the automobile sector. The emergence and growth of automobile hiring and sharing economy platforms such as Uber and Ola meant that the public, especially the younger generation, 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?
Learning Objectives:- Understand the nature of the Indian machine tools industry and analyze the various challenges posed by the changing manufacturing map of the world.
- Better understand how disruptive technologies affect the Indian machine tools industry in general and AMG in particular.
- Learn how AMG effectively allowed responsive reshoring in the face of the COVID-19 epidemic and repositioned itself to meet changing business demands and stay ahead of the competition.
Published: May 31, 2022