We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

General Motors and AvtoVaz of Russia - Essay Example

Comments (0) Cite this document
Summary
Case Analysis - General Motors and AvtoVaz of Russia The case context clearly reveals that the Russian consumers were extremely sensitive to car prices since the average income level of Russians was very low as compared to other industrially developed countries…
Download full paperFile format: .doc, available for editing
Polish This Essay93.5% of users find it useful
General Motors and AvtoVaz of Russia
Read TextPreview

Extract of sample
"General Motors and AvtoVaz of Russia"

Download file to see previous pages However, GM could not market their automobiles at this price even though the company had employed different tactics on manufacturing and distribution. Similarly, AvtoVAZ, the largest automobile producer in Russia, had been struggling with sales declines due to product quality issues and tax evasion allegations. In addition, the firm had no sufficient capital to rebuild their business although it had innovative product designs including Niva. Hence, either GM or AvtoVAZ was not in a position to develop and market the Niva without an external assistance. At this juncture, they jointly decided to integrate AvtoVAZ’s domestic market dominance with GM’s technical expertise and market repute. Evidently, the proposed Joint venture (JV) is potential for both organizations. This JV strategy will certainly add value to GM’ global expansion vision since Russia is a potential emerging market. From the case study, it is clear that GM failed to operate successfully in Russian market even though it had practiced the traditional emerging market approach of manufacturing complete cars in its own plants and reassembling the deassembled parts in Russia with local labor. The main cause of failure of GM in Russian market was low income levels of Russians that forced the company to fix extremely cheaper prices for its products. If GM operates its plants in Russia, it can avoid shipping charges and import duties and ultimately use the economies of domestic production to set affordable prices for Russian customers. Furthermore, AvtoVAZ is the most leading player in Russian automobile industry although it currently struggles with some quality issues. Therefore, the JV will assist GM to take advantages of widespread business territories as well as deep Russian market experience of AvtoVAZ. In addition, the national distribution network established by the AvtoVAZ dealers will be beneficial for the GM to skip from the difficulty of developing a dealer network from scratch. Hence, the proposed integration would promote value creation, a process of identifying competitive alternatives to trim down costs and thereby to provide maximum benefits to customers. Many of the economists hold the view that business integration would contribute to value creation due to operational efficiencies from an internal market and selection of distributors and suppliers (Means of corporate strategy, slide 6). Likewise, the case background clearly points out that it would be very difficult for the firm to compete in Russian automobile market. The Russian automobile sector noticeably lagged behind other huge players in the industry even though the Russian government had specifically focused on the industry’ modernization and development. The case report reflects that the Russian automobile industry’s “inadequate capital, poor infrastructure, and deep-seated mismanagement and corruption resulted in outdated, unreliable, and unsafe automobiles” (“General Motors and…:, 2). In addition, the instability of Russian economy often causes problems to automobile manufactures as a result of unexpected tax impositions and changes in regulations. Intense political issues in Russia adversely affected the sustainable growth of the country’s automobile industry. Increased rate of defects in new cars was another issue, which persuaded the people to boycott Russian made automobiles. Finally, higher crime rates in the country forced the foreign marketers and ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“General Motors and AvtoVaz of Russia Essay Example | Topics and Well Written Essays - 1250 words”, n.d.)
Retrieved from https://studentshare.org/management/1436756-case-analysis-general-motors-and-avtovaz-of-russia
(General Motors and AvtoVaz of Russia Essay Example | Topics and Well Written Essays - 1250 Words)
https://studentshare.org/management/1436756-case-analysis-general-motors-and-avtovaz-of-russia.
“General Motors and AvtoVaz of Russia Essay Example | Topics and Well Written Essays - 1250 Words”, n.d. https://studentshare.org/management/1436756-case-analysis-general-motors-and-avtovaz-of-russia.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
General Motors
However after gaining industry dominance, Nancy Koehn - Harvard’s James E. Robison Professor of Business Administration – points out at the same executive for leading the company to decline due to a failure of leadership (Staff 14). Nancy Rottering, a former finance executive at GM, describes how GMs executives isolated themselves from the rest of the company (“The Rise and Fall of General Motors” 4).
2 Pages(500 words)Research Paper
General Motors
Stiff competition that is experienced by local and international firms calls for adequate measures to maintain the productivity of the employees and reduce labor turnover that has affected the profitability of some companies. One of the notable strategies of enhancing the performance of the employees is through motivation
3 Pages(750 words)Article
General motors
Disciplined action, power of ideas and technology driven focus has helped the automaker into one of the greatest name in automobile industry (Newbold, 2002). The headquarters of the company is located in Detroit, Michigan. The company is involved in designing, manufacturing, marketing and distribute vehicle and vehicle parts and selling of financial services.
8 Pages(2000 words)Essay
General Motors
automakers, are having their problems as well. With gasoline prices at an all-time high, auto manufacturers are hard-pressed to curb their losses. Over the past ten years GM has lost almost half its value, and the past year has been especially dismal for the company.
3 Pages(750 words)Essay
General Motors Global Strategy
Its vehicles are sold in 200 nations and in the year 2004, GM recorded sales of about 9 million cars and trucks worldwide registering a growth of 4% compared to the previous year being the second highest in its history. The sales figures went up to 9.17 million in 2005 covering brands such as Cadillac, Chevrolet, Buick, GMC, GM Daewoo.
5 Pages(1250 words)Essay
General Motors Essay
GM's effort to increase their market share seems like a desperate bid to plug the dike with short-term incentives related to the high cost of fuel and its focus on the company's On-Star computerized system. In the meantime, other areas such as decrease in customer satisfaction and employee loyalty are weakening the structure.
4 Pages(1000 words)Essay
Strategic management study case analysis of AvtoVAZ
This report will provide us a concrete analysis and details regarding the external factors that affects the whole automobile industry in Russia as well as how these
12 Pages(3000 words)Essay
Economics 1- General Motors
erger solved the problem of duplication in manufacturing and immediately, economies in the operations resulted and this brought about favorable financial results. When duplications are removed there is more efficiency and cost synergies (or savings) are the result. To answer
3 Pages(750 words)Essay
General motors
The company has 21,000 dealers working across the world and manufactures and sells cars of different models such as electric and min-cars, heavy-duty trucks, and monocabs and convertibles. General Motors is recognized for innovation and
10 Pages(2500 words)Essay
General Motors

Born in Detroit Michigan in 1910 General engines has delivered a steady of vehicles, for example, Chevrolet, Pontiac Cadillac, and Buick which have ended up family unit names in the U.s. As being what is indicated, the General Motors Brand is decently established in America as well as all through the world.

3 Pages(750 words)Case Study
Let us find you another Essay on topic General Motors and AvtoVaz of Russia for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us