Chevrolet's Market Expansion Strategy in Bangladesh

management

Contents
Introduction of Chevrolet................................................................................................................4
Reasons or the need to expand.........................................................................................................4
Market exploration of Bangladesh...................................................................................................5
The growing economy or economic growth of Bangladesh............................................................5
Bangladesh - SWOT analysis..........................................................................................................9
The strategy to enter the market....................................................................................................10
Merger or acquisition with a local car manufacturer.....................................................................10
Benefits and challenges.................................................................................................................11
References......................................................................................................................................12

Introduction of Chevrolet
Chevrolet is a division of GM (General Motors) company introduced in 1911. The company is an
American automobile company founded by William Durant that was further undertaken by Louis
Chevrolet. The company sells its vehicles in majority of world. Moreover, in North American
market, the company manufactures a huge range of automobiles ranging from subcompact cars
to medium-duty trucks. The company has been continuously awarded for its ability for the last
few years 2015, 2016 and 2017, 2018 and 2019. In 2019, the company was awarded for most
dependable small car, large heavy duty pickup and compact SUVs (General Motors, 2017). The
market share of the company for last three years was nearly 17% as General Motors is among the
leading companies of manufacturing in the world (General Motors, 2017). While seeing the
profitability of the company-
Year Net Profit (% of total revenue)
2015 12.06%
2016 13.08%
2017 13.92%
2018 9.31%
Reasons or the need to expand
The main reason behind expanding is to access larger market share and increase profitability.
Even though the company has a well-minded customer base, there always lies an opportunity to
add new customers especially when the company expands. Chevrolet can be benefited from
economies of scale when business grows, the possibility of discounts and offering in regards to

incentive system for suppliers and vendors increases. Moreover, expansion gives the company an
opportunity to offer huge range of products and diversifying the revenue streams that signifies
that you do not exclusively rely on selling core products. Chevrolet may think to expand to
diversify the assets, its actions which ultimately protect the company`s bottom line to protect the
uncertain events. For example- if the company operates in more countries, it reduces the risk of
offset negative growth in the market as its other establishments help them in maintaining their
revenue and market share.
Market exploration of Bangladesh
With increasing population in last few years, Bangladesh`s labor force has been growing as there
is a large proportion of young people born in 1960s and 1970s. As per EIU country profile, labor
force of Bangladesh has doubled in last two decades. In regarding to facts viable for Chevrolet, it
is seen that Bangladesh is progressing in each sector which will contribute political and
economic growth that includes manufacturing of steel, glass, and world class electronics.
Although, the country is working to improve automobile industry but it is very slow as this
industry still produces locally designed Mishuk and three-wheeler motor vehicle (Centre for Policy
Dialogue (CPD), 2018). Mishuk utilizes the engine of Honda. For the last two years, the use of
vehicles have been increasing with the increase in population, improved standard of living,
increased mobility of people, and enhanced infrastructure. While seeing the manufacturers of
automobiles, it is seen that there is a lack of manufacturers of local cars, a state run enterprise
“Pragoti industries” that produces vehicles for Japan-based company “Mitsubishi” at low cost.
The growing economy or economic growth of Bangladesh
All the sectors of the country has been experiencing significant growth which was far below than
the speed of business sectors. The government pays special attention in order to improve