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.

Learning Objectives

The case is structured to achieve the following Learning 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

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