Ford India in 2009 (A): Need for a Strategy Change?
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Case Details:
Case Code : BSTR370
Case Length : 18 Pages
Period : 2004-2009
Pub Date : 2010
Teaching Note :Not Available
Organization : Ford India Pvt. Ltd
Industry : Auto and Ancillaries
Countries : India
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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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Introduction
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India, China, and other emerging economies were expected to be the major markets for the growth of automobile sales in the 21st century. Ford Motor Company, a century-old manufacturer of automobiles, was one of the global leaders in the automotive industry.
However, it lagged behind its competitors in terms of sales volumes in the Asian region. For example, though it had entered the Indian auto market in 1995 and introduced mid-sized car models, its sales growth had not kept pace with the growth in the market.
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As of February 2009, India had a 3 percent share of the global market for passenger cars and commercial vehicles whereas China's share was 12 percent.4 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. A strategic decision had to be taken on Ford India Pvt. Ltd.'s 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...
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