Subject category:
Strategy and General Management
Published by:
IBS Case Development Center
Length: 9 pages
Data source: Published sources
Share a link:
https://casecent.re/p/66310
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Abstract
AvtoVAZ is the largest passenger car maker in Russia, having one of the biggest production lines (144 kilometres) in the world. Until 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 a new lifestyle. Due to a huge demand for cars, many foreign car makers started foraying into Russia, and with customer preference shifting to foreign cars, AvtoVAZ started losing market share. The case, while highlighting the growth of AvtoVAZ in the protected centrally- planned Russian economy, offers scope to discuss the competitive strategies of the company to fend off foreign competitors in its domestic market and to regain its lost market share.
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Abstract
AvtoVAZ is the largest passenger car maker in Russia, having one of the biggest production lines (144 kilometres) in the world. Until 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 a new lifestyle. Due to a huge demand for cars, many foreign car makers started foraying into Russia, and with customer preference shifting to foreign cars, AvtoVAZ started losing market share. The case, while highlighting the growth of AvtoVAZ in the protected centrally- planned Russian economy, offers scope to discuss the competitive strategies of the company to fend off foreign competitors in its domestic market and to regain its lost market share.



Russian language
