Central European Business Review 2015, 4(3):23-34 | DOI: 10.18267/j.cebr.130

Market Entry Strategies of Passenger Carmakers - The Case Study of the Czech Republic

Hana Machková1, Paul-Marc Collin2
1 Prof. Ing. Hana Machková, CSc., Rector, Faculty of International Relations, University of Economics, Prague, W. Churchill Sq. 4, 13067 Prague, Czech Republic, machkova@vse.cz
2 Paul-Marc Collin, Lecturer, IAE Lyon, Université Jean Moulin Lyon 3, 6 cours Albert Thomas, 69355 Lyon, France, paul-marc.collin@univ-lyon3.fr

In 2014, the Czech automotive industry had a record-breaking year with 1 278 000 motor vehicles manufactured. This was a result of the investment of three major carmakers, who entered into the Czech Republic, because they believed in the industrial capacity of the country and its strategic location in Central Europe. The goal of this article is to analyze the different entry strategies into the Czech market and to compare the results of different strategic approaches for both foreign private investors and the recipient country. The main research method used in this article is a case study. In our case studies, we will analyze the cases of the Volkswagen group and its acquisition of the manufacturer ©koda, the greenfield investment of Hyundai, and the strategic alliance of the French car producer PSA with Japanese Toyota who had founded the TPCA joint venture in the Czech Republic. All three case studies show examples of good practices and prove that foreign direct investment (FDI) has the potential to generate employment, raise productivity, transfer skills and technology, enhance exports and contribute to the long-term economic development of the country.

Keywords: market entry strategies; car manufacturers; case study; Czech Republic
JEL classification: F60

Received: August 1, 2015; Revised: September 20, 2015; Published: September 30, 2015  Show citation

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Machková, H., & Collin, P. (2015). Market Entry Strategies of Passenger Carmakers - The Case Study of the Czech Republic. Central European Business Review, 4(3), 23-34. doi: 10.18267/j.cebr.130
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