Entry Mode for Tata Nano in Hungary
Table of Contents
Executive Summary 2
Product 12
Price 12
Place and Promotion 13
Branding 13
Segmentation 13
Targeting 14
Positioning 14
Differentiation 14
Conversion model: 14
Executive Summary
The organization
Product/Service
Market Opportunity Analysis
Basic characteristics
Economic Environment
Political and
Legal Environment, Government
Cultural Environment
Entry mode
The number of passenger car in Hungary is 305 per 1000 people according to the European Automobile manufacturers association. The estimated car sales in Hungary is 3 Million and from the sales figures it would take 60 years for all cars in Hungary to be exchanged for a new one. As per PWC report it shows that majority of Car dealers in Hungary are Family businesses that are usually associated with 1 national distributor. The majority of distributor operates in the Budapest area or the Pest County. Most of the dealers present in Hungarian market for more than 5 years now.
The main players in the automotive sector are Audi, Suzuki, Opel and individual multinational suppliers as well as the traditional Hungarian manufacturer Rába. Counting more than 600 players the country is widely considered as the supplier base for the manufacturers established in the region. There are outstanding opportunities for joint production with companies in the region, and also specific new opportunities in technology and know-how transfer. Especially after the 2007 EU enlargement, Hungary has gained a more central position in the EU area, and there is optimism that the established automotive industry may see growth opportunities stemming from this.
Low labor costs, cost of transport,
Executive Summary 2
Product 12
Price 12
Place and Promotion 13
Branding 13
Segmentation 13
Targeting 14
Positioning 14
Differentiation 14
Conversion model: 14
Executive Summary
The organization
Product/Service
Market Opportunity Analysis
Basic characteristics
Economic Environment
Political and
Legal Environment, Government
Cultural Environment
Entry mode
The number of passenger car in Hungary is 305 per 1000 people according to the European Automobile manufacturers association. The estimated car sales in Hungary is 3 Million and from the sales figures it would take 60 years for all cars in Hungary to be exchanged for a new one. As per PWC report it shows that majority of Car dealers in Hungary are Family businesses that are usually associated with 1 national distributor. The majority of distributor operates in the Budapest area or the Pest County. Most of the dealers present in Hungarian market for more than 5 years now.
The main players in the automotive sector are Audi, Suzuki, Opel and individual multinational suppliers as well as the traditional Hungarian manufacturer Rába. Counting more than 600 players the country is widely considered as the supplier base for the manufacturers established in the region. There are outstanding opportunities for joint production with companies in the region, and also specific new opportunities in technology and know-how transfer. Especially after the 2007 EU enlargement, Hungary has gained a more central position in the EU area, and there is optimism that the established automotive industry may see growth opportunities stemming from this.
Low labor costs, cost of transport,
References: http://www.gartner.com/it/page.jsp?id=1173712 http://www.pwc.com/hu_HU/hu/kiadvanyok/assets/pdf/CDS-EN-2011.pdf http://www.acea.be/index.php/country_profiles/detail/hungary#text