The Czech Republic has become the most attractive territory for investments in the automotive industry in Central and Eastern Europe. The country is highly integrated into the global automotive value-chain, offering a qualified labour force, developed infrastructure and innovation capacities. Four major car manufacturers - Volkswagen, Toyota, PSA Peugeot Citroën and Hyundai - decided to invest in the Czech Republic. This case-study focuses on the different market entry strategies they developed to succeed in this challenging market.
The students are asked to explain the location choices, market entry modes and strategic orientations chosen by the four investors and to elaborate their future perspectives in the Czech Republic.