AvtoVAZ, the Russian Car Maker: Facing Up the Foreign Competition


Code : COM0058

Year :

Industry : Automobiles

Region : Russia

Teaching Note:Available

Structured Assignment :Available

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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 21st 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.

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

    Contents :
    The Russian Car Industry: Competition Restricted
    AvtoVAZ: The 'Protected' Jewel?
    The New Realities

    Case Introduction >>

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