Product details

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Published by: International Institute for Management Development (IMD)
Originally published in: 2005
Version: 09.09.2005
Length: 7 pages
Data source: Generalised experience

Abstract

Lars Eklund, Chief Executive Officer of Autostar, a (fictional) Nordic automotive company is seriously considering the introduction of a fuel-efficient car into the European market. His final decision has to take into account various factors such as: (1) a stagnating market growth; (2) pressure to earn cost of capital; (3) a trend towards more powerful engines and more customisation; (4) rising and volatile fuel prices; and (5) regulatory pressure to reduce emissions. In a situation, in which some competitors are actually intending to withdraw their models (eg Volkswagen the Lupo 3L), and others already successfully occupy their niche (Toyota with their Prius model), does it make sense to go for a market introduction? If yes, how can Eklund do it most effectively?
Industry:
Size:
EUR5.5 billion turnover
Other setting(s):
Mid-2005

About

Abstract

Lars Eklund, Chief Executive Officer of Autostar, a (fictional) Nordic automotive company is seriously considering the introduction of a fuel-efficient car into the European market. His final decision has to take into account various factors such as: (1) a stagnating market growth; (2) pressure to earn cost of capital; (3) a trend towards more powerful engines and more customisation; (4) rising and volatile fuel prices; and (5) regulatory pressure to reduce emissions. In a situation, in which some competitors are actually intending to withdraw their models (eg Volkswagen the Lupo 3L), and others already successfully occupy their niche (Toyota with their Prius model), does it make sense to go for a market introduction? If yes, how can Eklund do it most effectively?

Settings

Industry:
Size:
EUR5.5 billion turnover
Other setting(s):
Mid-2005

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