Reasons For Turnaround Of Jaguar Land Backover: Jaguar Land Turnover

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.

Jaguar was founded in 1922 as Swallow Chairs and originally operated as a sidecar and car trimmings company. In 1945 it officially became Jaguar Cars Ltd and had initial production of 1,132 cars. In the mid 1960’s it merged with other British motor companies to become British Leyland. After significant losses, the government found that BL was in serious financial trouble and acquired nearly all of their equity. During the next 20 years the government was able to turn the company around. The standards were increased and reputation for quality production was developed. Revenue growth grew 40% annually from 1980 to 1983 and employee morale and overall image improved with international races. In 1980, exports accounted for 60% of sales and by 1983 exports totaled 75% of sales. By 1984, Jaguar has come to be regarded as a leading manufacturer of luxury high-priced automobiles. However, the company

However, the two iconic British brand Jaguar and Land Rover failed to generate profit in the past and as a result were forced to merge with each other. Thus, the auto industry today if it wants to be competitive, it has to opt for delivering unprecedented levels of consumer value and service. Furthermore, intense competition among firms has been singled out as the one thing which is driving this unprecedented increase in consumer value and service. Therefore, the challenges facing (JLR) and other (MNC) is that because their subsidiaries in these emerging markets like China and India, find it harder to handle the performance management that’s required of them. Additionally, in order to drastically reduce production cost and deliver their products and services cheaply to consumers, (MNC) like (JLR) are entering into these joint ventures especially in China to handle production for them at such pace that causes concern among the traditional lover of the (JLR) brand.

Tata Motors on June 02, 2008 acquired the Jaguar Land Rover business from the Ford Motor Company for a net consideration of $2.3 billion.

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

With the failure of the J.V. between the companies, Tata Motors decided to launch a new product in the market. It was the year of 1988 when Tata Mobile came into the market to compete with other LCV. It was little different from a normal LCV as it was a combination of a Car and a LCV.

Brand value and firm’s brand performance can be explained 87 & 79 % by brand value co-creation. The benefits of co-creating value include- better product quality (Fuller et al., 2007), greater customer satisfaction (Nambisan and Baron, 2007), as well as reduced risk

Tata is confided for its recognition to strong values together with business ethics. Every single Tata company is run independently and has its individual BOD and in addition shareholders with whom it is responsible. There are more than thirty Tata publicly-listed subsidiaries. These subsidiaries possess an aggregate marketplace capitalization of around $152 billion and in addition the investor base of around 62 million (ET Bureau, 2011). Tata Group’s major subsidiaries are:

BMW is currently the 1st most valuable car brand in the world and the 23rd most valuable brand in the world; in 2011 it was the 2nd right behind Toyota. BMW’s brand value increased 10% while Toyota’s brand value decreased by 10%. It currently own “Rolls-Royce Motor Cars” which is a British manufacturer of luxury automobiles and “MINI” which is a British automotive marque which specializes in small cars.

* Seriously challenged with the problems unique to India. Did not have a clue how to solve them on their own e.g

TATA Motors is the flagship company of the TATA group & is India's largest automobile player with consolidated revenues of USD 14 billion in 2008-09. It is the leader in commercial vehicles in each segment, and among the top three in passenger vehicles with winning products in the compact, midsize car and utility vehicle segments. TATA Motors was listed on the New York Stock Exchange in 2004.

Political Tata Motors operates in a vast amount of places all across the world . They’ve had great success in regions like Europe, Africa, Asia, the Middle East and Australia. When it come to politics influences Tata Motors need to pay close attention to Laws and regulations as well as the governing bodies that control the area. Local governments regulate commerce, trade, and investments. The local markets and economies are all influenced by national and local influences.

Mercedes is known as the luxurious brand, and its target people, business professionals are always those with the highest income level in different countries. It is the best premium car in the world. The nature of market for Mercedes cars is oligopoly, as the industry is dominated by a few number of seller selling highly differentiated products of high quality, cost, speciality etc. It has real differences in terms of design and improvement through innovation like BMW, Audi etc.

There were only a few handful of cars in the Indian market in the 1980s. Most of these were outdated models like Hindustan Motors ' Ambassador (which is still produced and sold). The only car with the latest technology then was the Maruti 800. It became very popular because of the low price, high fuel efficiency and good reliability. Since then the market has grown with The Indian automotive industry has also greatly matured. The Tata Indica was indigenously developed by Tata Motors. Another Indian manufacturer Mahindra & Mahindra also came up with its own SUVs, the Scorpio and the Bolero. These cars have proved very popular here and are also exported to the European markets. An electric car is also manufactured by a local company, REVA. Tata Motors plans to produce the world 's first air powered in partnership with MDI of France.

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.