cielo - swot
DESCRIPTION
CIELO - SWOTTRANSCRIPT
CIELO : A CAR IN TROUBLE
GROUP MEMBERS
Diya Basu
Harshpreet Singh
Mayank Narang
Smita Jain
Varun Jenveja
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
1995-96 1996-97 1997-98 1998-99 1999-2000
43261
13776
90065512
4213
CIELO SALES IN INDIASales (no. of units)
SWOT ANALYSIS
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
• Positioning “Technology with
aesthetics”/ family car
• Targeting
Premium class /middle class segment
• Segmentation No concept of segmentation available when CIELO was launched
WEAKNESS
• 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
WEAKNESS• Incompatible management style for Indian
market
• Diwali Bonanza Scheme
• Lottery schemes
WEAKNESS
• High Import Content • high prices compared to competitors
• Ineffective Incentive • Pass on benefits• Prevailing finance rates – 23%• Offered Finance rates – 14.33%
OPPORTUNITIES• Targeted the mid size car segment
• Val-you Campaign-1998
• Encash on the Matiz image
• Scope in the Indian automobile market
THREATS
• Middle class boom did not take place as expected
• Recessions • Competition from other international
players• Creditors refused to give fresh loans
THANK YOU