Case | HBS Case Collection | October 2011

Dongfeng Passenger Vehicle Company: Marketing Challenges for the “Underprivileged Latecomer”

by Willy Shih and Nancy Hua Dai

Abstract

As Mr. Li Chunrong visited the new assembly line for the Dongfeng Passenger Vehicle Company in Wuhan, China, he contemplated the position his business unit found itself in: a latecomer. As a state-owned enterprise Dongfeng had entered into numerous joint ventures to produce automobiles under foreign brands, but its foray into selling vehicles under its own brand had only started recently, and now the unit faced a crowded market filled with fierce competition. As he walked back to the office, he reflected on the time it was taking to establish the Dongfeng brand. Would his business unit grow strong enough in their five province geographic focus before other hungry competitors looking for growth piled into these market areas? Or should they go more aggressively to attack the coastal areas with its new 2000 cc model to be launched in late 2011?

Keywords: Market Entry and Exit; Problems and Challenges; Auto Industry; China;

Citation:

Shih, Willy, and Nancy Hua Dai. "Dongfeng Passenger Vehicle Company: Marketing Challenges for the “Underprivileged Latecomer”." Harvard Business School Case 612-029, October 2011.