Tata Motors: Current and new business strategies

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Tata Motors: Current and new business strategies

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Abstract

With USD 8.8 billion revenues in 2007-08, Tata Motors is the largest Indian automobile company; it holds a very good place on the Indian market because it is the leader in commercial vehicles and among the top three in passenger vehicles. The company is also the world's fourth largest truck manufacturer, and the world's second largest bus manufacturer. The company was established in 1945
and has more than 23,000 employees onboard Since the creation, about 4 million Tata vehicles circulate on Indian roads.

The company now is more global with commercial and passenger vehicles marketed in Europe, Africa, the Middle East, South East, South Asia and South America. Tata Motors has numerous franchisees and joint venture assembly operations in Kenya, Bangladesh, Ukraine, Russia and Senegal. Tata Motors also has few partnerships through subsidiaries and associate companies; it operates currently in the UK, South Korea, Thailand and Spain. Tata Motors also acquired two British brands Jaguar and Land Rover in 2008.

Tata Motors offers a large range of products which permits to reach out to numerous customers in B2B and B2C (Business to Business and Business to Customers).

After this quick analysis of the company, we are going to analyze the current strategy of Tata Motors, which will enable us to know which strategy Tata could adopt in order to increase its market share internationally.

Introduction and Presentation of the company
Tata Motor's: Current business strategy
1. Introduction
2. Recently implemented plans
3. Sales analysis
4. New product development
Tata Motor's: New business strategy
1. Introduction
2. Strategy for Brazil and China
3. Strategy for Africa
Competition
An analysis of the benefits and risks associated with new suggested internationalization strategy
Conclusion

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[...] While on the other hand, Tata Motors has its potential and more developing space for its internationalization, which will hopefully bring Tata Motors more sales and new breakthroughs in international market share. Internationalization Strategy FAW Export, overseas production facilities, joint ventures, licensing, OEM (original equipment manufacturer), sales and marketing agencies and subsidiaries. Fiat Export, subsidiaries, dealer network, set up overseas plants, and 178 project. Tata Motor Export, joint venture, overseas operations 4 Competitive advantages FAW is China's oldest and largest automotive manufacturer, therefore, the local people attach a lot of emotional feelings to FAW products. [...]

[...] If we set up a business in China, we have to take this into account because China is well-known to have majored in espionage The legal risk The company has to know where it can lodge a complaint against somebody or another company 5 The cultural risk The language is the first barrier, but there are many others, indeed the company has to be aware about the current wage practices, the influence of syndicates, the relation between minority and majority ethnic groups, the influence of the religion on individual behavior and working conditions. [...]

[...] TATA MOTORS: CURRENT BUSINESS STRATEGY 1 Introduction Tata Motors is one of the leading automotive vehicle manufacturing companies in India. It holds a strong image in the Indian automobile industry. In India, the manufacturing plans are situated in Jamshedpur, Pune, Lucknow, and Uttarakhand. Tata Motors mainly deals with the designing, manufacturing, assembling right until the distribution of vehicles. The company is engaged in the production of vehicles like Passenger cars, Utility vehicles, Trucks, Commercial passenger carriers and Defense vehicles. Tata Motors occupys the leading position in the Indian market for commercial vehicles. [...]

[...] Tata Motors has to think about its current products, but one of its current advantages is its innovation and its good understanding of the market. Tata Motors is launching the Tata Nano which is the new star on the market of the automotive. An internationalization of our firm will permit to export and sell our extra stock on these new markets as well as permit to prepare the arrival of our new product on these markets. As it was said in the introduction, the internationalization of this product is the only salvation in reason of the low margin got for one car sold. [...]

[...] It has been observed that people who are from middle class in India mainly drive either scooters or motor bikes simply because they cannot afford to buy an expensive car but Tata targeted and made the strategy to launch a new car with reasonable price which anyone can purchase. The percentage of motor bikes and motor scooters are very high in India as opposed to cars. Since Tata has launched its new low priced car, there will be a definite conversion of motor bike and motor scooter drivers into car drivers. [...]

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