Ford India in 2009 (A): Need for a Strategy Change?


Ford India in 2009 (A): Need for a Strategy Change?
Case Code: BSTR370
Case Length: 18 Pages
Period: 2004-2009
Pub Date: 2010
Teaching Note: Not Available
 Price: Rs.300
Organization: Ford India Pvt. Ltd
Industry: Auto and Ancillaries
Countries: India
Themes: Business Strategy
Ford India in 2009 (A): Need for a Strategy Change?
Abstract Case Intro 1 Case Intro 2 Excerpts

Abstract

Ford Motor Company had entered the Indian auto market in 1995 and introduced mid-sized car models, but its sales growth in the next 15 years had not kept pace with the growth in the market. As of February 2009, India had a 3 percent share of the global market for passenger cars and commercial vehicles.

Unlike the US market, the Indian market for passenger cars was dominated by small cars. To capture a significant share of this high-volume, high-growth segment of small cars, many companies - both multinational and Indian - were gearing up with new product launches.

The case concludes with questions on the strategic decision that had to be taken on Ford's loss-making Indian subsidiary, in terms of its course of action for the domestic market and how it would contribute to the long-term success of the parent company in other emerging markets.

Issues

The case is structured to achieve the following teaching objectives

  • The market performance of Ford's Indian subsidiary, relative to its competitors - both Indian and multinational
  • The significance of small cars in an automaker's product mix for volume growth in the Indian market
  • Ford India's strategic options for long-term growth and success in the Indian market
  • Potential for Ford India to contribute to the global competitiveness of the parent company

Contents

Keywords

Ford India Pvt. Ltd., Ford Motor Company, Indian automotive industry, Asia-Pacific and Africa regions, Growth strategy, Domestic sales, Export potential, Global competitiveness, Society for Indian Automobile Manufacturers (SIAM), Passenger cars, A2 - Compact car, Sedans, Price-conscious consumers, Automotive Mission Plan 2006-2016, Small car hub, Emerging markets, Maruti Suzuki India Ltd, Hyundai Motor India Ltd, Tata Motors Ltd, General Motors (GM) India Pvt. Ltd., Chevrolet Spark, Aveo U-VA, Beat, Fiat India Pvt. Ltd, Toyota Kirloskar Motor Pvt. Ltd., Polo, Micra

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