Case Study

1193 Words Jan 29th, 2012 5 Pages
Case III: LATE MOVER ADVANTAGE?

Questions

1. Why has the ‘late corner’s strategy’ of Toyota failed in China, though it succeeded in India?

2. Why has Toyota failed to capture the Chinese market? Why is it trailing behind its rivals?

1.ans – Toyota failed to get a strong hold in the Chinese market due to poor understanding of the market. The reasons being mainly due to high pricing of the vehicle with which it entered the market in China as Toyota followed the price skimming strategy while entering China. The existing car companies like Volkswagen, Honda, and Hyundai had priced their vehicles keeping in mind the price sensitive customers in China.
Toyota entered into a joint venture with First Auto Works Group
In
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* the Chinese market has existing players and have a sound knowledge of the Chinese markets. * Toyota failed to attract the market as it prices were three times as expensive as the other car players in the market. * Standardized ads could not gain to attract customers * Japanies market sold only single brand of cars while on the other hand the Chinese markets sold multiple brand of other car companies also. * Sales people are paid commissions and most dealers sell multiple brands. Obviously, loyalty plays little role in motivating either the sales staff or the dealers, who will ignore a slow selling product should a more profitable one turn up.

CASE: IV DELVING DEEP INTO USER’S MIND: 1. What product strategy did WOI adopt? And why? Global standardization? Local customization?
Ans. Whoopool was an American based company and while entering the Indian markets with it products it adopt local customization. It designed its products keeping in the mind the Indian consumers and their beliefs and values.
The strategies adopted for local customization were * Entering into a joint venture with TVS group which is an Indian company having a sound knowledge of the functioning of the Indian market. * The Indian market was dominated by an existing player, Videocon which was a leader in the washing machine segment by pricing the products keeping in mind the price sensitive customers

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