UNO MINDA LTD.: EXPANDING THE REACH IN AUTO COMPONENTS
FOR ELECTRIC VEHICLES CASE STUDY SOLUTION
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SYNOPSIS
Uno Minda Ltd. (Uno Minda) is a leading manufacturer of automobile components for vehicles running on
an internal combustion engine (ICE). The company’s strength is in its proactive management, strong
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relationship with automobile manufacturers, and a vast network of long-standing international partners for
joint manufacturing of components. The Indian government and users are willing to adopt electric vehicles;
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however, the penetration rate is presently low. Uno Minda is convinced of the long-term prospects of electric
automobiles in India and is determined to diversify into manufacturing components for electric vehicles. The
company can develop its expertise by investing in in-house research and development (R&D), acquiring a
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domestic or international company, or forming a joint venture with a renowned international player. All three
entry options have their advantages and disadvantages. Uno Minda has to choose among these.
So
OBJECTIVES
• Understand the dynamics of setting up and running a family-owned business.
• Identify the opportunities for business growth in the automobile component market.
• Learn how to leverage current competencies to build new competencies for future growth.
• Assess the suitability of different modes of entry to a new business.
• Decide the most appropriate option for entering the electric vehicle (EV) auto component market.
The Case Solution Starts From page 5
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ASSIGNMENT QUESTIONS
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1. Identify the sources of core competencies for Uno Minda as it evolved from a small family-run business
to a professional organization.
2. Using an appropriate theoretical framework, assess Uno Minda’s decision to enter the EV component
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segment as a growth strategy.
3. Could Uno Minda gain a competitive advantage in the EV component by leveraging its resources?
4. Which entry mode should the company use for the EV component market?
The Case Solution Starts From page 5
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ANALYSIS
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1. Identify the sources of core competencies for Uno Minda as it evolved from a small family-run
business to a professional organization.
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1. Ability to identify the opportunity early: The company was among the first companies in India to
determine the potential of cars when the penetration of cars in India was abysmal. It developed
conviction in the product and invested time and resources that yielded dividends in future. The same
n
ability helped the company add premium and technologically advanced components to its portfolio.
2. Strong relations with clients: The company started its business by servicing two-wheeler manufacturers
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Royal Enfield and Bajaj Auto Ltd. The fact that these two companies are still their clients speaks volumes
of the relationship orientation. The participants may cite Maruti Suzuki India Ltd., which has been
working with Uno Minda since its inception. The long list of long-standing domestic and international
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clients reflects that the company has been able to attract and retain its customers all these years. Thus, the
ability to forge and sustain strong relations with clients is a core competence of the company.
So
3. Strong global orientation: The participants can see that Uno Minda has proactively identified and
The Case Solution Starts From page 5
, EXHIBIT -2: ANSOFF’S MATRIX
Products
Existing New
Existing
Market penetration Product development
Markets
New
Market development Diversification
e
pl
m
Sa
n
tio
lu
So
The Case Solution Starts From page 5
FOR ELECTRIC VEHICLES CASE STUDY SOLUTION
e
pl
m
Sa
SYNOPSIS
Uno Minda Ltd. (Uno Minda) is a leading manufacturer of automobile components for vehicles running on
an internal combustion engine (ICE). The company’s strength is in its proactive management, strong
n
relationship with automobile manufacturers, and a vast network of long-standing international partners for
joint manufacturing of components. The Indian government and users are willing to adopt electric vehicles;
tio
however, the penetration rate is presently low. Uno Minda is convinced of the long-term prospects of electric
automobiles in India and is determined to diversify into manufacturing components for electric vehicles. The
company can develop its expertise by investing in in-house research and development (R&D), acquiring a
lu
domestic or international company, or forming a joint venture with a renowned international player. All three
entry options have their advantages and disadvantages. Uno Minda has to choose among these.
So
OBJECTIVES
• Understand the dynamics of setting up and running a family-owned business.
• Identify the opportunities for business growth in the automobile component market.
• Learn how to leverage current competencies to build new competencies for future growth.
• Assess the suitability of different modes of entry to a new business.
• Decide the most appropriate option for entering the electric vehicle (EV) auto component market.
The Case Solution Starts From page 5
, e
pl
m
Sa
n
tio
ASSIGNMENT QUESTIONS
lu
1. Identify the sources of core competencies for Uno Minda as it evolved from a small family-run business
to a professional organization.
2. Using an appropriate theoretical framework, assess Uno Minda’s decision to enter the EV component
So
segment as a growth strategy.
3. Could Uno Minda gain a competitive advantage in the EV component by leveraging its resources?
4. Which entry mode should the company use for the EV component market?
The Case Solution Starts From page 5
, e
pl
ANALYSIS
m
1. Identify the sources of core competencies for Uno Minda as it evolved from a small family-run
business to a professional organization.
Sa
1. Ability to identify the opportunity early: The company was among the first companies in India to
determine the potential of cars when the penetration of cars in India was abysmal. It developed
conviction in the product and invested time and resources that yielded dividends in future. The same
n
ability helped the company add premium and technologically advanced components to its portfolio.
2. Strong relations with clients: The company started its business by servicing two-wheeler manufacturers
tio
Royal Enfield and Bajaj Auto Ltd. The fact that these two companies are still their clients speaks volumes
of the relationship orientation. The participants may cite Maruti Suzuki India Ltd., which has been
working with Uno Minda since its inception. The long list of long-standing domestic and international
lu
clients reflects that the company has been able to attract and retain its customers all these years. Thus, the
ability to forge and sustain strong relations with clients is a core competence of the company.
So
3. Strong global orientation: The participants can see that Uno Minda has proactively identified and
The Case Solution Starts From page 5
, EXHIBIT -2: ANSOFF’S MATRIX
Products
Existing New
Existing
Market penetration Product development
Markets
New
Market development Diversification
e
pl
m
Sa
n
tio
lu
So
The Case Solution Starts From page 5
