Answer to Question #220925 in Marketing for Nachiket Pawar

Question

Bharat Motors has been selling the “Konard” brand of passenger cars in India for the last

60 years. Their car has been the leading car market share wise for the last 50 years. But,for the last 5 years the scenario has changed. Many multinational car companies have

entered the country and introduced highly fuel efficient, user friendly, & high performance

models in the country. The buyers have thus seen the market change from sellers to

buyers’ market. Spectacular product characteristics have become the rule of the day.

Resultantly Konard has rapidly and constantly lost the market share. Realizing that the

company has no other alternative, they have tied up with a leading car company of Korea

and are now ready to launch an absolutely new and drastically improved version of the old

faithful Konard.

Answer 1

In their article in Harvard Business Review, “Competing with Giants: …….. Local Companies in Emerging Markets”, Niraj Dawar and Tony Frost asserted that the barriers of the protectionists fall apart in emerging markets all across the world. Seeing the advantage, MNCs are rushing towards India to harvest new opportunities and growth. Technology can shape up market and transform consumer tastes and preferences and therefore being rigid to old model of vehicle can easily push him out of the market. Bharat Motors should go ahead and tie up with the leading car company of Korea and launch the new model and improved Konard to sustain their market share. Further, It should engage in research and development (R&D) to improve their current models as well as maintaining of up to date vehicles required in the market.