3. 1967: Foundation of Daewoo Group
1977: Tried to Enter into the joint venture with
US auto Major GM but failed
1991: Daewoo bought out GM’s 50% stake in
the venture for US$ 50 millions
1991: Take over 50% equity in DCM-Toyota
and company renamed as Daewoo
Motors
1997: Raised the stakes of DCM to 92%
2000: Daewoo was declared bankrupt
BACKGROUND HISTORY
6. STRENGTH
• First Movers in India
• Entered in 1995
• 3 Versions -CIELO, CIELO GLX & GLE
• Only Competitor ( MUL)
AD
• Successfully tried and trusted strategy
• Technology with aesthetics
• Feature rich , luxury car
•Acquisition with DCM Toyota
7. • Positioning
“Technology with
aesthetics”/ family car
•Targeting
Premium class /middle class segment
•Segmentation
No concept of segmentation available when CIELO was
launched
WEAKNESS
8. • Quality defects
• Complaints on Fuel Inefficiency
• No Training was provided to sales staff .
• Positioning of NEXIA and CIELO could not be
independent of each other.
WEAKNESS
10. WEAKNESS
• High Import Content
• high prices compared to competitors
• Ineffective Incentive
• Pass on benefits
• Prevailing finance rates – 23%
• Offered Finance rates – 14.33%
11. OPPORTUNITIES
• Targeted the mid size car segment
• Val-you Campaign-1998
• Encash on the Matiz image
• Scope in the Indian automobile
market
12. THREATS
•Middle class boom did not take place as
expected
• Recessions
• Competition from other international players
• Creditors refused to give fresh loans
