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International business

Undergraduate/graduate/executive education.

China has become the world's largest producer of automobiles, surpassing the USA and Japan. The Chinese auto industry differs quite significantly from those countries though. While the industry exhibits a substantial degree of concentration in the USA and Japan in early 2011, it remained highly fragmented in China. The Chinese Central Government had announced a desire for consolidation, yet it remained unclear whether a significant shakeout would occur in the near term.

Like many Chinese automakers, Chang'an partnered with well-known global auto makers to develop, produce, and distribute its products. In the coming years, Chang'an hoped to develop more independence from its foreign partners, including the production and distribution of self-branded cars. However, the company grappled with how it could strive for independence while managing its existing joint ventures. Executives worried too about how to compete with foreign automakers who had achieved global economies of scale.

The case provides a rich description of the evolution of the Chinese auto industry, and it documents how the Chinese industry differs from other global markets. Readers can analyze the extent to which they believe scale economies provide foreign firms an advantage over smaller Chinese rivals, and they can evaluate the conventional wisdom regarding the industry's minimum efficient scale. The case also provides a detailed account of Chang'an's rise to prominence. The case concludes by offering an in-depth description of the firm's key rivals, and it presents the key questions being considered by Chang'an executives in 2011.

Enables students to examine how and why an industry's structure can differ substantially across geographic markets.

Enables students to examine whether the need to achieve economies of scale may cause substantial consolidation in the Chinese auto industry.

Provides an opportunity to evaluate the pros and cons of the joint venture strategies employed in China.

Provides an opportunity to examine how a relatively small firm can position itself against large multinationals in a high-growth emerging market.

Teaching notes.

Marketing Management, Product Management, Marketing Strategy.

Bachelor of Business Studies, MBA, Executive MBA.

The case throws light on the intensely competitive Indian passenger car market and its unique challenges faced by Hyundai Motors India Limited (HMIL). It tries to capture the evolution of this dynamic industry, which is characterized by regular product launches and re-positioning efforts. The students are expected to assess the performance of HMIL and the success of its positioning efforts through multiple quantitative and qualitative data points given in the case. The students need to come up with recommendations whether, amidst intense competition, Government regulations and changing consumer expectations, HMIL should launch new products in its portfolio? If, yes, in which segments? And what should be the guiding philosophy behind such product launches?

The case is expected to guide students: 1. in comprehending the various macro-environmental factors that has made India an attractive passenger car market to invest and operate in, to virtually all multinational players across all segments; 2. in analyzing how the passenger car market is segmented in India; 3. in assessing the product-driven segment-wise performance by HMIL specifically and organizations in general and what are its implications on decision-making; this is indicative of the brand portfolio management based on BCG Brand/Product Portfolio Growth Share Matrix; 4. in assessing the impact of re-positioning on the firms performance judged before and after the re-positioning efforts by the firm; 5. in analyzing the market potential of SUVs and MUVs in India and whether HMIL should launch new products/brands for these segments; and 6. in deliberating on the guiding philosophy in new product launches around the concept of “Consumer Perceived Value”.

Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

CSS 8: Marketing.

Marketing management, services marketing, customer relationship management and strategic marketing management.

This case can be taught effectively to MBA/MS students.

Hyundai Motor India Ltd (HMIL) commenced operations in India in 1996 and launched its first car in India – the Hyundai Santro – in 1998. Since then, there has been no looking back for the company. Its domestic and export sales figures have risen manifold each year and the car maker has gone on to become the second largest manufacturer in the Indian car market with a market share of 18.10 percent as of 2010-2011. By 2009-2010, most of the major international car makers were setting up production facilities in India. The market was set to become highly competitive and it became imperative for manufacturers like Maruti Suzuki India Ltd (MSIL) and HMIL to retain their customers in order to maintain their market share. Nalin Kapoor, General Manager (Sales & Marketing) was contemplating the marketing strategies he could use to counter the stiff competition. Customer retention was one of the major problems in the automobile industry as the purchase time span varied between three and five years and the cost of brand switching was nil. HMIL had been pursuing customer relationship management activities but its customer retention ratio was declining. Kapoor and his team decided to study the loyalty programs of some companies in the automobile industry to ascertain whether launching a loyalty card could solve their problem of retention. The marketing strategy department with the help of a management intern extensively studied the existing loyalty program of Hero Honda, MSIL, and Ford to identify how those programs were designed and promoted to the customer. The reports also indicated the shortcomings of each program and the features which were highly accepted by the customer. The loyalty program also had cost implications as there was a need for a strong technical support team to run it successfully. With the reports in hand, Kapoor was in a dilemma on whether launching a loyalty card would be feasible or not. If yes, then how should it be structured to motivate the customers to stay loyal to the company? Also, how could the cost in terms of promotion, training, and technical support be justified? If not a loyalty program, then what marketing strategies should the company pursue to retain customers effectively? The problem demanded immediate attention and action and Kapoor was well aware of the implications that a delay in decision making would have for the market share of the company in the growing and dynamic automobile industry in India.

These include: the concept of customer relationship management; relationship marketing; customer retention; customer loyalty; customer profitability segments; relationship bonds; and designing loyalty programs.

Teaching notes are available for educators only. Please contact your library to gain login details or email: support@emeraldinsight.com to request teaching notes.

Students identify promotion, price, place, segment, targeting, and positioning for marketing “the world’s cheapest car.” This case is effective for MBA, undergraduate, and executive learners studying market segmentation, pricing, cannibalization risk, pricing, and break-even sales in the face of different price and cost scenarios. Has Tata chosen the right marketing strategy? Does the Nano represent an evolution or a revolution in automobile marketing?

Mergers and acquisitions, corporate strategy.

This case could be applied in several courses: a mergers and acquisitions (M&A) course, to introduce the various motives for firms doing M&A, a strategy course exploring a company's strategy exploration and decision processes, or in a marketing course as an example about emerging and global market interaction. The target audience is primarily final year or Masters' and MBA students. It would also be useful for executive education seminars.

The Case provides learning opportunities about how companies encounter threats due to changing market or fiscal conditions, find ways to address their individual challenges yet achieve mutual benefit, by taking advantage of market-induced opportunities for strategic change, which have been triggered by a combination of situational factors.

The case can be used to illustrate and discuss several important aspects of the growth of companies in emerging markets, including: motives for making M&As; strategic options and selection in the emerging industry; and how regional firms can respond to globalization.

Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

The learning outcomes of this paper will help students in understanding the dynamics of the formation of industry clusters and the benefits associated with industry clusters. The case will give stimulus towards the cluster competition.

The case describes the dilemma of a potential investor of a tyre company that wants to diversify its product line and is searching for a new strategic location. The investor is thoughtful about the Pithampur auto industry cluster for its upcoming investment. The case demonstrates how Pithampur has transformed into an “industry cluster” and the benefits it provides to firms in it. However, Pithampur is not the only auto industry cluster in India, clusters like Chakan-Pune is in competition with Pithampur for attracting investments. This is a cause of worry for the cluster’s stakeholders. The case projects amalgamation of concerns of the stakeholders of the clusters and those of potential investors in evaluating and benchmarking it with other clusters for a competitive future.

Suitable for both undergraduate and post-graduate students (MBA students).

Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

CSS: 11: Strategy.

Maruti Suzuki India Limited (MSIL), a joint venture between Maruti Udyog Limited, India and Suzuki Motors, Japan, is considering repositioning its WagonR brand amidst issues of overall decline in sales in the automobile industry. With a market share of more than 53%, MSIL is the market leader in passenger vehicle segment in India, yet it is facing difficulties in driving up sales. The company’s portfolio comprises entry-hatch, mid-hatch, premium-hatch, sedan, SUV/MUV, crossover and van. The case dilemma involves the decision that MSIL’s management should take for the repositioning of WagonR, a compact hatchback, at a time when the automobile industry is showing no signs of recovery. Is it opportune to reposition WagonR, given the current situation of the passenger car market in India? If yes, what can MSIL learn from its past positioning efforts and how can it use insights about consumers’ current perceptions of WagonR’s brand image to arrive at a repositioning decision?

Using the case will help address the following objectives: to expose students to the challenges of repositioning an established brand; appreciate the need for and importance of repositioning established brands; evaluate existing positioning and market conditions for making a sound decision; and develop analytical skills that will prepare them to make decisions in real business scenarios.

The study is suitable for Masters level students in courses on Marketing Management, but it can also work well in elective courses such as brand management.

Teaching notes are available for educators only.

CSS 8: Marketing.

AutoDx Case narrates an exciting story of how organizations in one industry (buyers, suppliers, and suppliers of suppliers), who fiercely compete with each other in the marketplace, collaborated to develop an online platform which would bring in significant efficiency in the system and benefit all the players. The case shows that first attempt to develop such a platform failed in the late 90s. However, similar attempt, later on, was inching towards success. That shows the impact of timing of technology and Shared Beliefs. While Case A narrates the problems faced by a few managers and needs for autoDx, Case B details how the project became successful and was under the process of adoption by various organizations.

The case collates secondary data pertaining to Maruti’s current position, Nexa, the premium retail sales channel of Maruti, and recent developments in the Indian automobile industry. It presents the facts and data published on websites, newspapers and magazines in the form of a case study.

Nexa was launched by Maruti in 2015 to enhance the buying experience of its premium customers and to re-position itself as a premium brand. It started offering customized services to car purchasers through its well-trained employees, attractive store environment and omni channel experience. Through all these facilities, though Nexa had a bumpy ride for selling its first product, it managed to pace up and perform better in the next few years. It remained to be seen how Maruti would handle competitor and cost challenges and how it would strategize its efforts to strengthen its footprint in the Indian automotive industry.

This case can be used in retail management, sales and distribution management, marketing management and related courses/modules at the master’s level.

There had been many pieces of research on international expansion approaches, and they continued to grow. However, research about the firms belonging to emerging nations and that went global were still in the early stages. It had been argued that most theories on international expansion had focused on explaining the internationalization of large firms, majorly originating in developed countries. This case study offers an intriguing reading about an Indian MNC, successfully entering the developed markets and competing thereof amidst tough and complex world. Moreover, the leaders like Baba Kalyani met the stiff challenge from complexities and disruption successfully through entrepreneurial mindset. The case study offers insights into “Creating Value Through Entrepreneurial Leadership Framework”.

The case study has been developed through secondary data sources. The published online resources, the firm's annual reports formed the basis of the research work. Author accessed online news articles, auto component industry experts' views and reports from global consultancy firms, and auto industry body such as SIAM (Society of Indian Automobile Manufacturers) reports helped the research. The views and interviews by promoters of the company are available online for deeper insights and analysis.

An Indian multinational, Bharat Forge Limited (BFL), was a shining example of achieving global manufacturing standards through perseverance and entrepreneurial leadership. For more than the past four decades, BFL faced complexities, uncertainties and disruptions multiple times, and every time, the business world saw a resurgent company, Bharat Forge. The company achieved growth through diversification, related and unrelated, acquisition, product innovation, portfolio expansion and expansion in domestic and global development. Competitive market, economic slowdown, innovation and technology disruption had not deterred BFL from growing into a worldwide auto component giant. BFL overcame all hurdles with grit and enterprise. It achieved a paradigm shift with over half the revenue from non-automotive sectors such as defence, electric vehicle components, e-mobility, power electronics and aluminium light-weighting.

This case is planned for MBA students, primarily in the second half of the course curriculum. It can be executed in marketing, strategic marketing and strategic management courses. The conceptual framework pertaining to corporate strategy, global expansion, diversification, product development, innovation, disruption, market development and entrepreneurial leadership can be taught through the case. The case is suitable for MBA executive students as well, in courses mentioned above in addition to courses such as strategic leadership.