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Case Title:

AvtoVAZ, the Russian Car Maker: Facing Up the Foreign Competition (Russian Translation)

Publication Year : 2005

Authors: R. Muthu Kumar & Sumit Kumar Chaudhuri

Industry: Auto Manufacturing

Region:Russia

Case Code:  COL0001

Teaching Note: Not Available

Structured Assignment: Not Available


OR


Abstract:
AvtoVAZ is the largest passenger carmaker in Russia having one of the biggest production lines (144 km) in the world. Till the end of the 20th century, AvtoVAZ dominated the Russian market with 90% market share. By the turn of the 21 st century, Russia's car market began booming due to a healthy economy and high export revenues, triggering off high purchasing power and the demand for new lifestyles. Due to huge demand for cars, many foreign carmakers started foraying into Russia, and with customer preference shifting to foreign cars AvtoVAZ started losing market share.

Pedagogical Objectives:

  • To highlight the growth of AvtoVAZ in the protected centrally planned Russian economy
  • To discuss the competitive strategies of the company to fend off foreign competitors in its domestic market and to regain it’s lost market share.

Keywords : Other Languages Case Study AvtoVAZ, the Russian car maker, Expansion strategies, Growth strategies, Competition, Lada car models, Russian car industry, CITIC Prudential, General Motors, Ford, Cost reduction, Acquisitions and partnerships, Import tariffs, Market share, New product development, Challenges for AvtoVAZ

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