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

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  • Hana Machková
  • Paul-Marc Collin

Abstract

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 Škoda, 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.

Suggested Citation

  • Hana Machková & Paul-Marc Collin, 2015. "Market Entry Strategies of Passenger Carmakers - The Case Study of the Czech Republic," Central European Business Review, Prague University of Economics and Business, vol. 2015(3), pages 23-34.
    • Handle: RePEc:prg:jnlcbr:v:2015:y:2015:i:3:id:130:p:23-34
    DOI: 10.18267/j.cebr.130
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    References listed on IDEAS

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    1. Mar�a C. Latorre, 2012. "Industry restructuring in transition after the arrival of multinationals: a general equilibrium analysis with firm-type costs differences," Post-Communist Economies, Taylor & Francis Journals, vol. 24(4), pages 441-463, June.
    2. Lukáš Mohelský & Hana Machková, 2012. "Is diversification a Strategic Advantage? The Example of Automotive Components in the Czech Republic," Central European Business Review, Prague University of Economics and Business, vol. 2012(2), pages 37-45.
    3. Maria Latorre & Antonio Gómez-Plana, 2011. "Multinationals in the Czech Motor Vehicles Industry: A General Equilibrium Analysis for a Transition Economy," Europe-Asia Studies, Taylor & Francis Journals, vol. 63(8), pages 1425-1447.
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    Cited by:

    1. Eric Thivant & Hana Machková, 2017. "An Analysis of French Mergers and Acquisitions in Different Sectors of the Czech Economy," Central European Business Review, Prague University of Economics and Business, vol. 2017(1), pages 48-60.

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    More about this item

    Keywords

    market entry strategies; car manufacturers; case study; Czech Republic;
    All these keywords.

    JEL classification:

    • F60 - International Economics - - Economic Impacts of Globalization - - - General

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