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Tata Motors International Acquisition Strategy

Better Essays

2/28/2010

ACAD GROUP 27 - good effort, stock trend could be simpler and thus effective- 19.6
Bhawna Jain PGP-09-110
Chetan Mehta PGP-09-111
Ranjan Singh PGP-09-154
Shounak Parida PGP-09-163
Vimina Bt PGP-09-177
Visram R PGP-09-179
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 Company Profile
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.
Established in 1945; over 4 million Tata vehicles ply on Indian roads, since …show more content…

Differentiating or increasing willingness to pay Tata Motors will have perpetual and exclusive right to use Daewoo trademarks in Korea and other overseas markets for DWCV’s product range. Tata Motors' technology was focused on the lower end of heavy trucks of up to 210 hp. The DWCV trucks ranged between 210 to 450 hp. New and better product range for markets.
Improving industry attractiveness or bargaining power The “World Truck” and higher capacity trucks to help Tata Motors to check competition from Volvo's Indian unit. The size of the deal makes Tata one of the major players in global markets increasing bargaining power with suppliers.
Normalizing or optimizing risk Company's global plans to reduce domestic exposure, domestic commercial vehicle market is highly cyclical in nature & prone to fluctuations in the domestic economy. Tata Motors has a high domestic exposure of ~94% in the MHCV segment and ~84% in the light commercial vehicle (LCV) segment.
Generating knowledge and other resources Tata Motors recently introduced the 25MT GVW Tata Novus from Daewoo’s platform. Leverage on the strong presence of TDCV in the heavy-tonnage range and introduce products in export and domestic market where major improvement in the road infrastructure underway.
2. Hispano Carrocera (Spain, 2005 – Acquisition)
Sensing opportunity in fully built business segment, Tata Motors acquired Hispano Carrocera S.A., one of the

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