MGT302 International Business Strategy Case Study: Volkswagen Analysis

This case study examines Volkswagen's international business strategy, focusing on its expansion into the Russian market and its relationship with global medical tourism. The analysis explores the company's initial success in Russia, driven by increased per capita income and foreign direct investment, as well as the challenges posed by economic downturns. It also highlights the innovative approach of Global Medical Tourism, which combines medical care with tourism. The study references the company's strategic moves, market access, and profitability. This case study explores the company's ability to adapt to changing market conditions and maintain its presence in Russia. The document includes references to academic literature, providing a comprehensive overview of the subject.

International Business Strategy
A Case Study of Volkswagen and Global Medical Tourism

International Business Strategy:
The International Business Strategy refers to the system that
guides the commercial transaction overseas. It is the plans and policies
that are done between the countries between the private companies in
order to speculate the business policies, with the goal to achieve
increased profit (Verbeke, 2013).
The Global Medical Tourism and the Volkswagen, have seen to be
using this Strategy into their business conducts, which have been
described in the following slides.

Global Medical Tourism
Global Medical Tourism is an American organization that has put
together Tourism and Medical health of the country. America has fewer
number pf medical specialists, as compared to the population of the
country, and the medical charges are quite expensive for the inhabitants
of the country, who do not belong to affluent backgrounds. Therefore,
the organization plans for medical assessments, in the developing
countries, like India, and at the same time, also plan for them a vacation
in the country, thus bringing the two concepts, health and vacation,
together (Banerjee et al., 2018) .

Volkswagen in Russia
In the 2000s, the company Volkswagen, saw that there is an
increase in the per capita income and living standard among the people of
Russia. This made them to take an initiation in expanding their business
in the said country. Initially, Volkswagen did a great business in the
country, which enabled them to open two production plants within almost
10 years of stepping into the market (Pezzuto, 2019).
However, the recent scenario of decreased rate of oil in the country,
has shaken their economy, which in turn made the company to reduce
their production. It was believed that Volkswagen would retreat their
production plan, but the company has stated, that they would be a helping
hand in this crisis situation, to the country.

Why did they easily flourish?
Both the companies had seen easy access and acceptance into the
market and has observed huge rate of profit within some years.
The Global Medical Tourism came up with a dynamic approach
to the medical world of America, which had put health and tourism
together that was new and attractive and thus got an easy access into the
market.
The Volkswagen had cleverly put Foreign Direct Investment into
the country, which not only helped the country to get rid off its rivals of
the time, but also impacted upon the economy oh the country (Pezzuto,
2019).

References:
Banerjee, S., Nath, S. S., Dey, N., & Eto, H. (2018). Global medical tourism: A
review. In Medical Tourism: Breakthroughs in Research and Practice (pp.
1-19). IGI Global.
Pezzuto, I. (2019). Turning Globalization 4.0 into a Real and Sustainable Success
for All Stakeholders. Pezzuto, I.(2019). Turning globalization, 4, 8-18.
Verbeke, A. (2013). International business strategy. Cambridge University Press.