As mentioned earlier Tata Motors being the largest automobile firm in India, it is admired to be the most reliable and futuristic manufacturers in today’s world. Tata vehicles and their new cars are preferred globally for their advanced technologies and handiness with over 130 models of passenger vehicles and trucks which tend to boost the Indian market internationally. Tata Motors have various core competencies that further make it different from others in the market place. As stated earlier, a core competency for Tata Motors is the acquisition of jaguar and Land Rover in order for an expansion internationally, directly giving them an ultimate competitive
Given the domestic challenges in India, Tata Motors established as one of the powerhouses to strengthen the economy in the late 2009. Considering the younger population at the time, transportation became one of the largest spending categories in the early 2000s. By 2004 Tata Motors established itself as India’s largest automotive company in terms of revenue. It established a strong base in the R&D skill sets with producing high quality cars at a low price. It did leave its presence outside India for the first time by establishing an office in South Korea. The international business initiatives focused on positioning and marketing in selected countries. South Africa produced around 360,000 units annually comprising of passenger cars and mainly pick-up trucks. Products were made in India and shipped to Africa thereafter. Sri Lanka had similar strategy but producing heavy and light weight commercial vehicles to cut Japanese market in Sri Lanka while exporting around 700 vehicles to meet the deadlines around 2005 and 2006. The expansion in Russia and East Europe targeted LCV trucks with operations assembly in Ukraine. These strategies helped Tata become major players in the global market and to sustain competitive advantage, developed two-pronged strategy. The following “inorganic growth planning” philosophies were as follows:
During this time of economy unrest, consumers will be more cautious and controlled over the usage of their disposable income, with preference for a lower-priced alternative. Even though being seen as a brand for affordable cars, Tata Motors seemed to be taking a hit on its brand appeal, with a slowdown in consumer demand for the Nano (Muralidhar, 2013).
Her case focuses on how the initial strategies for launching and positioning Tata Nano as a “People’s Car” backfired and its shortcomings and mistakes that led to the wrong positioning of Tata Nano as “Worlds Cheapest Car”. The consumers did not find pride in owning the cheapest car, it brought down there social status in the society. In India owning an expensive car is still a luxury. The reasons for Nano getting wrongly positioned was the failure of its primary positioning strategy that is its Price Positioning Strategy Tata Nano was positioned on the price attribute dimension and was widely publicized as the world's cheapest car. Now if the consumers brought the car there was the inherent danger of being viewed by his social group as poor as they were owning a car that is thought off as cheap. The actual market realty is that the car which was supposed to be a game changer has miserable failed to take off, in spite of the massive hype and the goodwill of Brand
Economic Analysis: Operating in numerous countries across the world, Tata Motors functions with a global economic perspective while focusing on each individual market. Because Tata is in a rapid growth period, expanding or forming a joint venture in over five countries world-wide since 2004, a global approach enables Tata Motors to adapt and learn from the many different regions within the whole automotive industry. They have experience and resources from five continents across the globe, thus when any variable changes in the market they can gather information and resources from all over the world to address any issues. . For instance, if the price of the aluminum required
Tata Motors, India’s largest auto manufacturer have created the world’s cheapest car priced at $2,500 allowing drivers to be able to afford a car. Tata Group is a global enterprise whose headquarters are located in India, founded in 1868. The group contains over 100 independent operating companies, located in more than 100 countries. Each company is under control of their own board of directors and shareholders. One of the subsidiaries of Tata Group that will be focused on in the paper will be Tata Motors. They were founded in 1945, which is headquartered in Mumbai produces different types of vehicles. These vehicles include passenger cars, trucks, vans, buses and military vehicles. Over the years Tata Motors have used a global strategy to
Opportunities: The external environment plays directly to Tata Motors advantage. In India the average household earned roughly 4,000 U.S. dollars, and only 38 out of every 1,000 people owned a car. With the poor economic state of India, Tata Motors was able to produce and sell the Nano car for 2,500, giving India an affordable alternative to motorcycles and scooters. Being able to produce a low-priced car is huge for Tata Motors considering the majority of India and China’s adult population do not own a car. Producing the lowest priced car on the market is putting Tata Motors in a position to corner the market in India and China. Also a huge opportunity for Tata Motors is that there are
Through the Tata Megapixel marketing campaign need for a stylish, reliable, ecofriendly and economic vehicle will be created.
The higher exposure of revenues from export markets for TATA is contributing to the valuation of the company. In China the revenues in the past few years for JLR was stunning. This contributed to the immense revenues as well as the improved stock market performance. But slowdowns in growth rate in China, USA, UK and Europe is a cause of concern. But in this regard TATA JLR’s prospects is not hindered because the company targets its vehicles to the upper segments of the society. This can thus bring in more numbers.
Tata motors have many other challenges as they are operating in many countries they have pay attention on their regional policies and environment. In this way, an organizational issue can address quickly or promptly without any hassle.
In the times where fuel and oil prices are touching sky, Hybrid vehicles have a great demand and more support from the government due to its ecofriendly emissions. The UK government has introduced financial measures to favor cars with lower CO2 emissions. If the automobile has a high CO2 emission rate there will be high tax charge. The government of India set up R&D bodies which help them govern the industry in turn helping them. Since Tata Motors operates in multiple countries across Europe,
Tata Nano has invented a car that has a couple of strong competitive advantages. The most important advantage is that the car is relatively cheap and therefore affordable for more people than regular cars like Volkswagen and Ford. But does this competitive advantage also apply for the Dutch market? In the following market-entry report this will be analyzed through a SWOT-Analysis. But first some background
Ratan Tata, chairman of Tata Motors Ltd., hoped to raise the status of Middle class families in India by offering the Tata Nano. Expectations were increasing amongst the customers regarding the product features and its efficiency. Competitors were eagerly waiting for its arrival to find out what they were going to be up against. It had strong and convincing features and was actually a good product. Unfortunately there were too many strategic marketing problems that kept it from being as big as they thought it was going to be. We will explain the problems it met and showcase some alternative solutions that could be implemented.
Indian automobile industry and the small car segment in particular was witness to history being created when Mr. Ratan Tata unveiled ‘Nano’ – the Rs. 1 Lakh ($2,500) small car from Tata Motors. Nano is conceptualized and designed to fulfill the middle income Indian household’s dream of owning a car. It is projected that Nano is going to expand the