GAZ case solution
RUSSIAN BUSINESS CONTEXT
FINAL ASSIGNEMENT
GAZ Group Russia: the Gazelle light commercial truck
1. What were the major challenges facing Bo Andersson when he assumed the CEO role at
GAZ Group Russia? When Bo Andersson assumed the CEO role at GAZ in 2009 the company was not in a good situation: GAZ in this period was carachterized mainly by cash flows problems, thousand of unsold vehicles and an high debt.
In order to better describe the situation in late 2009 i am going to use the Porter’s Five
Forces and SWOT analysis as instruments.
Porter’s five forces analysis
1
Competitive Rivalry: The competition in the automotive sector and specifically in the one of the light commercial trucks was quite high because the huge quantity of brands. Despite this situation GAZ in late 2009 was onwing approximately the 50 % of the market share in the commercial vehicle sector (Gazelle was the most popular light commercial vehicle in
Russia) while KAMAZ represeted the main competitor in this sector.
In the whole automotive sector were presented numerous foreign manufacturing company such as Ford, Toyota, GM, Hyundai, Nissan and Scania, WK, Skoda, Peugeot-‐Citroen and
Volvo which leads to a huge competition. Furthermore,foreign brands such BMW, Kia and
Cadillac were partner with local auto manufacturer such as Avtotor while Avtoframos was in a joint venture
FINAL ASSIGNEMENT
GAZ Group Russia: the Gazelle light commercial truck
1. What were the major challenges facing Bo Andersson when he assumed the CEO role at
GAZ Group Russia? When Bo Andersson assumed the CEO role at GAZ in 2009 the company was not in a good situation: GAZ in this period was carachterized mainly by cash flows problems, thousand of unsold vehicles and an high debt.
In order to better describe the situation in late 2009 i am going to use the Porter’s Five
Forces and SWOT analysis as instruments.
Porter’s five forces analysis
1
Competitive Rivalry: The competition in the automotive sector and specifically in the one of the light commercial trucks was quite high because the huge quantity of brands. Despite this situation GAZ in late 2009 was onwing approximately the 50 % of the market share in the commercial vehicle sector (Gazelle was the most popular light commercial vehicle in
Russia) while KAMAZ represeted the main competitor in this sector.
In the whole automotive sector were presented numerous foreign manufacturing company such as Ford, Toyota, GM, Hyundai, Nissan and Scania, WK, Skoda, Peugeot-‐Citroen and
Volvo which leads to a huge competition. Furthermore,foreign brands such BMW, Kia and
Cadillac were partner with local auto manufacturer such as Avtotor while Avtoframos was in a joint venture