Ford India in 2009 (A): Need for a Strategy Change?
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Please note:
This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Case Details: |
Price: |
| Case Code |
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BSTR370 |
For delivery in electronic format: Rs.
300;
For delivery through courier (within India): Rs. 300 + Shipping & Handling Charges extraThemes
Competition in the Indian passenger car market
The small car segment of the Indian passenger car market
India as a global manufacturing hub for small cars
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| Case Length |
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18 Pages |
| Period |
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2004-2009 |
| Pub Date |
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2010 |
| Teaching Note |
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Not Available |
| Organization |
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Ford India Pvt. Ltd |
| Industry |
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Auto and Ancillaries |
| Countries
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India |
Abstract:
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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.
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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 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
Ford India in 2009 (A): Need for a Strategy Change?
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