Kai S Write Up For Fiat And Tata Essay

There were certain competitive threats due to opening up the Indian economy. One brand, instead of many, will create a strong equity that will benefit all Tata companies to fight competitors entering Indian market.

According to me the main reason is when they came into existence they didn't have any competitors all they need to do is manufacturing and selling of the car. As I have stated earlier before 80s Indian automobile market was seller's market which means manufacturing companies have the command on the market not the customers. Having customer's command on the market is essential otherwise the development stops. The same thing happened, ambassador remains the same car as it was when it was first introduced. Hindustan Motors didn't promote the car because as a single Indian car it was already famous. Distribution was not that much difficult because car owners were few. The price of the ambassador was relatively high because those who needed the car didn't have another option. Also the government rules on importing the components were harsh and company was paying high prices for them. It seems obvious what the company did during those years. But when the scenario changed during 90s the market became open to all the government rules became soft and lots of other car manufacturers jumped into the Indian automobile market. This was the time when the ambassador should have changed its strategies. However they didn't make considerable changes on the other side new companies like Maruti Suzuki got the nerve of an Indian customer and introduced cheapest car in the market. Due to this drastic change once giant Hindustan Motors has become a company in loss with one of its most successful car an ambassador in

They has been pioneer in car industry and in the following years will be the same and focused on coming out on top in option fuel propulsion.They need to be driving merchant inside of the

Difficulty in finding similarities in markets or operational capabilities; Tata has more than 100 operating companies in seven main business groups doing business in 80 countries: chemicals, information systems and communications, consumer products, energy, engineering, materials, and services. It’s difficult to find similarities in markets or operational capabilities, so they need more effort to develop to different strategies for different markets especially for consumer products. More complex and challenging process of managing strategically it face.

2. What benefit does fiat hope to gain from its arrangement with Chrysler what potential

Internal competition to Fiat come from the "big Three", Ford, GM, and Chrysler, whilst external competition comes from makers such as Toyota, Honda, and Hyundai. Since Fiat will also be using the Alfa Romeo Giulietta model it will also be faced with competition from other manufacturers of that model that included Nissan, Mazda, Volkswagen, BMW, Audi, and Mercedes . The competition will rest on factors such as size of vehicle, fuel economy, seating, engine, and price with safety being a primary factor for many families.

Chapter 7: Merger and Acquisition Strategy ---- House of Tata: Acquiring a Global Footprint (written by Tarun Khanna, Krishna G. Palepu, and Richard J. Bullock)

What were the key challenges facing Tata Motors in the process of moving to produce passenger cars from successfully producing commercial vehicles?

bonding quality. All the firms under the Tata group followed their own strategy and often their

It has made its name in the global market and has given a good competition to other companies in automobile sector.

In the Fiat’s Group it is noticed a high impact turnaround, the re-launch of the company had been made possible by the identification and implementation of a very clear strategic choices which had a significant effect on the firm’s business model in relation to its competitors. The positive aspects of their strategy is the risk reduction due to the diversification of the Group’s business, which in turnaround process lower

1. Given that, Fiat existed and operated in India for long why did it decide to form a strategic alliance with Tata?

Economic With business practices all over the world , Tata Motors concentrates on global economies while focusing on individual markets within countries. In recent years Tata Motors has experienced high growth since 2004. They have created joint ventures with 5 countries across the

Since its establishment, Tata has shown a strategy of incremental change. Arguably, that point was important because so the group might vary within the current market. In the nineteenth – century steel was seen as an unprofitable section. Even more than 50 independent steel producers went into bankruptcy in the USA (Business Monitor International Ltd, 2010: 54).

Tata Motors marks the biggest turnarounds in the history of Indian automobile manufacturing industry which happened in 2001. This success story of Tata Motors can be entirely attributed to the timely change adopted by the Tatas and the then MD Ravi Kant who led the change.