International Business Strategy: Case Study of General Motors in India

INTERNATIONAL BUSINESS STRATEGY

INTERNATIONAL BUSINESS STRATEGY
Table of Contents
Literature Review............................................................................................................................3
Justice and fairness of the case....................................................................................................3
Business sustainability in the case...............................................................................................4
Themes observed in the case.......................................................................................................5
Conceptual framework.................................................................................................................6
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INTERNATIONAL BUSINESS STRATEGY
Literature Review
Justice and fairness of the case
The move of exiting India came into effect when GM had given effort at expanding their share
market in the country but failed to achieve success. According to Kale (2017), the Opel cars were
a point of success for the company as a new entrant in the Indian Market and later with the
Chevrolet cars. However, the momentum of sustainability was disrupted due to lack of
leadership consistency, models and branding. Maruti Suzuki and Hyundai were the tough
competitors of GM in the small car sections that had been an extra factor of GM’s failure. GM
faced a crisis of business prosperity where it had to see less than 1% car sales and decided to
leave India. The verdict of GM for the quitting on Indian market in a purpose of selling still hold
them to grab a position as manufacturers where it gets it done at cheap cost and export the cars to
South and Central America, Mexico, etc. The strategic failure of GM in Indian market is
considered to be the inability of the company in understanding the attributes market and analyse
the preferences of the customers to make choices on viable cars. Entering the liberalised country
of India again in the year 1994 after exiting in 1954 have made them working with zeal (Chris
Culver,2014). India is not a country with poor opportunities but the American companies have
started restraining unnecessarily as the fastest growing and major economy of the world. India is
concerned about attracting and claim foreign direct investments more from China. There had
been key American players until now who achieved sustainability in modern India. In terms of
considering the justification of the country as a market, it is observed that the home companies
have been able to provide a tough competition to GM and hence, it is not that India is lacking
opportunity but have variable client handling plan. On the contrary, GM itself could not feel the
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