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Case Details

Case Code: BSTR521
Case Length: 9 Pages 
Period: 2000-2017   
Pub Date: 2017
Teaching Note: Not Available
Price:Rs.300
Organization :General Motors Company  
Industry :Automobile 
Countries : India
Themes: Business Strategy/ Business Environment
Case Studies  
Business Strategy
Marketing
Finance
Human Resource Management
IT and Systems
Operations
Economics
Leadership & Entrepreneurship

GM Exits India

 

ABSTRACT

 
This case is about US-based automaker General Motors Company’s (GM) exit from India and the resultant complications to its dealers and customers. The move came after GM’s efforts at expanding its market share in the country failed to gain much traction. GM started on a successful note in India with its Opel cars and later on with Chevrolet cars but it failed to sustain the momentum due to its lack of consistency in leadership, brands, and models. The tough competition in the Indian auto car market and the dominance of Maruti Suzuki and Hyundai in the small car segment only added fuel to the fire. GM was not able to survive in the Indian market with less than 1% car sales in the country and decided to exit. GM said it would, however, continue its production in India owing to the cheap cost of production and export the cars to Mexico and Central and South America. GM’s strategic failure to even moderately succeed in the booming Indian car market could be attributed to the company’s inability to understand the Indian market and the customers’ preferences and to make viable cars that suited the Indian market.
 
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Issues

The case is structured to achieve the following teaching objectives:
  • Understand the nature of problems faced by General Motors in India.
  • Examine the reasons that prompted General Motors to exit India.
  • Understand the implications of leaving demanding markets.
  • Study and analyze General Motors’ divestment strategy in India
  • Understand the nature of problems faced by foreign companies like General Motors in developing markets like India.
Contents
INTRODUCTION
BACKGROUND
EXHIBITS

Keywords

General Motors,Business Strategy,International operations,Globalization,Indian automobile Market,Divestment strategy,Competition,Entry Strategy

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