The Economic Characteristics Of The Global Motor Vehicle Industry

2045 Words9 Pages
1. Describe the economic characteristics of the global motor vehicle industry. Global vehicle industry has experienced several changes due to internal and external factors. External factors were such as the effects of Great Recession and following credit crunch, which has made it hard for consumers to undertake loan for vehicle purchasing causing a slowdown in depend, which was further compounded by uncertain economic conditions. Since vehicles are dependent on gas, the industry overall has been influenced by oscillating price of gas. Certain vehicle manufactures did not foresee a change in trends, that the times of high prices, consumers were looking for more efficient and low fuel cars, which has spurred another branch of motor…show more content…
Having extensive support network, it really can solidify a company in a certain geographic area as a leader. Many Americans shy away from buying European cars (and vice versa) due to lack of this support. Other key factors is ever increase in ever growing increase in commodity prices, so having available to locate resources at the cheaper price point is important., however, increase in commodity pricing would have effect on all manufactures. Competing in global economy, a currency exchange rate cannot be discounted. 3. What are Tata Motors’ internal strengths and weaknesses? Identify competencies and capabilities that the company’s major competitors are lacking. What market opportunities does the company have and what threats can you identify that may negatively impact the company’s future? Strength - ability to interpret a need in Indian market for a low cost - brand recognition in local market and target markets - Tata has entered into several acquisitions and joint ventures, which when combined offer a joint and diverse human capital across various departments such as R&D, marketing, sales and operations Tata’s management is strengthened by thecollective experience of its partners and acquired companies - Tata has great purchasing power due to its size Weakness - no credit and financing opportunity - Tata Nano needs a major overhaul to meet emissions and safety standards, along
Open Document