The UzDaewoo Auto Project Assignment Example | Topics and Well Written Essays - 2000 words

The UzDaewoo Auto Project - Assignment Example Uzbekistan was and continues to self sufficient on the agriculture front. Uzbekistan is the fourth largest producer of cotton in the world producing more than 1.5 million tons every year. The country also produces 70 Tons every year of gold making it the leading producer in the region for the metal. It also produces 40 billion tons of natural gas. Uzbek remains one of the largest producers of molybdenum, tungsten, copper and zinc. Though the large desert lands in the middle of the country hurts the continuity of living space, the country boasts itself of a large natural resource and rich agricultural produce. We can possible conclude that there is immense potential for growth in the country with a high education background and an adult literacy rate of over 90%, this is going to be a major motivating factor for any investor. Political climate in the country was stable and was more for consistent economic and industrial growth which would result in better living standards of its people. Fourth reason that any investor should consider is, nearly 85% of the people hold driving license where as only one million cars were plying the roads of Uzbekistan in 1980s when the total population was 22 million and 85% of them could drive! The major competition in Uzbekistan market for cars was from Russia, other Korean companies, European companies and a few US companies like GM and Ford. Russians had positioned their low end model in the country and it was selling at around 6,000/- rubles and the Ford was selling its Escort as a C Class car at around USD 10,000/-. Taking all this into consideration3, Daewoo needs to position itself one at the lower end of the market where there is a huge market since the country has a huge population not having a car to drive but know driving4. There are also people in the market who already had a car but is in need of the luxury that only a better car could provide. There is also a requirement for Daewoo to position a van that would carry a larger number of people instead of the traditional four. Based on all these requirements and also on the fact that the climate and the road conditions in Uzbekistan is not congenial for standard low bodied and low chassis models, cars have to be redesigned to suit the conditions existing in that country5. Daewoo had to and did position a model for every one of these requirements faced by the company. There was a low end module, Tico, which was sold at around USD 6,790/- that catered to the needs described