Abstract

The case ‘SKODA AUTO’s ‘India 2.0 Project’: A Lesson for Foreign Automakers in The Indian Market’ describes how Skoda Auto India had a firm strategy in place to achieve sustainable growth in the Indian market. The case seeks to highlight the need for automakers to take a relook at their existing strategies and make the necessary investments in order to grow market share and brand value. The case touches upon the background and the salient features of the India 2.0 strategy. It then describes how the VW Group made the required changes by establishing a new management structure to use the existing synergies more efficiently and establish more agile coordination processes so that decisions could be made more quickly. Next, the case describes in detail the two models which Skoda Auto launched under the ‘India 2.0’ project tailored to the requirements and wants of local customers. The case also focuses on Skoda Auto’s customer satisfaction initiatives. The case ends with Skoda Auto’s plans to increase its exports of cars manufactured in India for the global market and on the next strategic move (India 2.5 project).

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Recognize the importance of strategic level decisions in business growth
• Examine the role of customer satisfaction in the automobile industry
• Identify the role of levels of product experience in improving brand image
• Evaluate the Country-of-origin (COO) concept and its relationship with brand personality and purchase intention

Keywords

Business strategy; Generic Strategies; Growth strategy; Consumer Research; Product development; Customer satisfaction; Customer Relationship Management; Service Operations; Strategy Implementation