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Case Title:

Shanghai Volkswagen: Losing First Mover Advantage?

Publication Year : 2006

Authors: Krishnakumar

Industry: Automobiles

Region:China

Case Code: COM0230C

Teaching Note: Not Available

Structured Assignment: Not Available

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Abstract:
Shanghai Volkswagen Automotive Company (SVW) Ltd. was the first foreign car maker to enter mainland China in 1984. Since then it enjoyed market leadership in China. In June 2004, SVW lost leadership in the car market when its market share fell to an all-time-low of 16%. A number of factors including growing competition, coupled with weak sales and marketing teams, and a slow deterioration in relationship with its joint venture partner, seemed to contribute to the fall in market share.

The case discusses the dilemma and various challenges faced by SVW to regain its top position in the Chinese car market.

Pedagogical Objectives:

  • To discuss the various challenges faced by SVW to regain its top position in the Chinese car market.

Keywords : Volkswagen, Shanghai Automotive Industry, First Automotive Works, Marketing Strategies Case Study, Passenger car, market leadership, joint venture, WTO, Chinese Auto Industry, Confidentiality Agreement, Localisation, Santana, General Motors

Contents : 
Background of the case
Auto industry in China
China Passenger Car Sales
World’s Top Ten Automakers in China
New and Old Automotive Industry Polices
Regulations as a result ofWTO entry

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