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Case Details

Case Code: BSTR525
Case Length: 20 Pages 
Period: 1920-2017   
Pub Date: 2017
Teaching Note:Available
Price:Rs.600
Organization :General Motors India Pvt. Ltd.
Industry :Automotive Industry 
Countries : India, Global
Themes: International Business Strategy
Case Studies  
Business Strategy
Marketing
Finance
Human Resource Management
IT and Systems
Operations
Economics
Leadership & Entrepreneurship

General Motors' Exit from India – A Wise Move?

 

ABSTRACT

 
The case “General Motors’ Exit from India – A Wise Move?” talks about the circumstances that forced GM to exit the Indian auto market that was considered the fastest growing market in the world. The case starts out by providing a glimpse into GM’s early days in the 1990s, when it was the first multinational auto maker to enter India after the country’s liberalization. The case then documents how the company failed to create a space for itself in the highly competitive Indian auto market and the reasons for its market failure. It mentions the various motives of the company in exiting an auto market with high growth potential. The reactions of the company’s dealers, vendors, employees, and customers to the market exit are also provided in detail. The case ends with a look into GM’s future areas of focus from which it expected to make profits.
 
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Issues

The case is structured to achieve the following teaching objectives:
  • Devise the right market entry strategy for an emerging market .
  • Apply the BCG framework in devising a strategy to manage a business portfolio.
  • Develop an appropriate market exit strategy.
Contents
INTRODUCTION
BACKGROUND NOTE
A NEW CHAPTER
DECISION TO EXIT THE MARKET
GM’S VIEWPOINT
THE REASONS FOR GM’S TROUBLED INDIA STINT
REPURCUSSIONS OF GM’S EXIT
OUTLOOK
EXHIBITS

Keywords

General Motors,Market Exit,Strategic Alliance,Emerging Market,Auto Industry,BCG Framework,Market Entry Strategy,Business Portfolio,Indian Income Pyramid,Midway Trap Of MNCs,Customer Strategy,Corporate Leadership,Chevrolet,Opel,Brand Strategy

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