Competitive Strategies of Foreign Original Equipment Manufacturers in the Indian Passenger Car Industry

An Analysis of Competitive Advantage in the Small to Mid-Size Segment

Bachelor Thesis , 2012 , 96 Pages , Grade: 1.0

Business economics - Business Management, Corporate Governance

This thesis analyses the competitive strategies of foreign OEMs in the Indian small to mid-size passenger car industry and explains why some companies were able to achieve a competitive advantage while others failed to do so. It can be said that two factors were crucial for gaining a competitive advantage in this industry: the date of resource commitment and the degree of localization in the value chain. A foreign OEM holds a competitive advantage to (1) a foreign OEM that entered at the same time but had a lower degree of resource commitment and to (2) a foreign OEM with the same degree of resource commitment but a later entry date. Moreover, a foreign OEM holds a competitive advantage to a foreign OEM with a lower degree of localization in the value chain.

Inhaltsverzeichnis (Table of Contents)

• Introduction
• State of the Problem
• Objective of the thesis
• Structure
• Focus and Definitions
• Limitations
• Literature Review on Competitive Strategy
• An institution-based view on Competitive Strategy
• An Industry-Based View on Competitive Strategy
• A Resource-Based View on Competitive Strategy
• Date of Entry and Competitive Advantage
• The Degree of Localization of the Value Chain and Competitive Advantage
• The Indian Passenger Car Industry
• Development of the Indian Passenger Car Industry
• Until 1980: The First Steps of an Indian Passenger Car Industry
• 1980-1990: First wave of delicensing
• 1990-2000: Economic Liberalization
• 2000-2010: A booming Industry
• Status Quo of the Indian Passenger Car Industry
• Key Facts and Figures
• OEMs in the small to mid-size passenger car segment in India
• The Indian Customer of Small to Mid-Size Passenger Cars
• Future Outlook
• Analysis of Competitive Advantage in the Indian Small to Mid-Size Passenger Car Segment
• Methodology
• Analysis of the Impact of the Date of Entry on Competitive Advantage
• Correlation between date of entry and market share
• Economic Factors
• Pre-Emptive Factors
• Social Factors
• Moderating Effects
• Late-Mover Advantage
• Conclusion
• Analysis of the Impact of the Degree of Localization of the Value Chain on Competitive Advantage
• Research & Development
• Manufacturing
• Procurement
• Marketing
• Sales & Service
• Conclusion
• Conclusion
• References
• Appendix
• Appendix A – Business System and Value Chain
• Appendix B – Major Policies, Acts and Plans in India since 1947
• Appendix C – Production Sites of Foreign OEMs in India

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This thesis analyzes the competitive strategies of foreign OEMs in the Indian small to mid-size passenger car industry and explains why some companies were able to achieve a competitive advantage while others failed to do so. The main question that is answered is: "How could leading foreign OEMs in the Indian small to mid-size passenger car segment gain a competitive advantage?". The key themes that are explored are:

• The impact of the date of entry on competitive advantage
• The role of resource commitment in achieving competitive advantage
• The impact of the degree of localization of the value chain on competitive advantage
• The importance of understanding and responding to the specific needs of the Indian car customer
• The future outlook for the Indian passenger car industry

Zusammenfassung der Kapitel (Chapter Summaries)

The first chapter introduces the topic and outlines the main question that will be answered in the thesis. The second chapter provides a comprehensive literature review on competitive strategy, focusing on the institution-based view, the industry-based view, and the resource-based view. The chapter discusses two key factors for gaining a competitive advantage: the date of entry and the degree of localization of the value chain. The third chapter provides an overview of the development and status quo of the Indian passenger car industry, covering key facts and figures, OEMs in the small to mid-size segment, the Indian customer, and the future outlook. The fourth chapter analyzes the impact of the date of entry and the degree of localization on competitive advantage, exploring the various factors that contribute to each. The chapter also discusses the moderating effects of industry growth, competition, firm size, entry mode, and resource commitment. The final chapter summarizes the key findings of the thesis and discusses their implications for both managers and scholars.

Schlüsselwörter (Keywords)

This thesis focuses on the competitive strategies of foreign OEMs in the Indian small to mid-size passenger car industry. The key terms and concepts discussed include: competitive advantage, resource-based view, date of entry, resource commitment, degree of localization, value chain, cost-leadership, differentiation, emerging markets, Indian customer, and future outlook.

• College: Berlin School of Economics and Law
• Grade: 1.0
• Author: Bernhard Wallner (Author)
• Publication Year: 2012
• Pages: 96
• Catalog Number: V202893
• ISBN (eBook): 9783656288978
• ISBN (Book): 9783656289227
• Language: English
• Tags: competitive, strategies, foreign, original, equipment, manufacturers, indian, passenger, industry, analysis, advantage, small, mid-size, segment