The Pact Between Tata Motors and Fiat

1551 WordsJul 13, 20187 Pages
Analyzing and serving the consumer International marketing is an important factor in serving organizations to develop into becoming globally competitive. Companies who operate within domestic markets purely are having difficulties competing with a global organization. Therefore, what does it take to move an organization globally? According to Cateora, Gilly, and Graham (2013), “international marketing is the performance of business activities designed to plan, price, promote, and direct flow of the companies goods and services to consumers of users in more than one nation for profit” (p. 10). International marketing strategies and its effectiveness assists in the expansion of an organization. The development of global markets was…show more content…
The joint venture had its benefits for both parties and India was at first the primary focus but their strategies include servicing global markets as well. A great advantage was their program would be enabled without the need for great investments. Fiat needing a partner As previously indicated, Fait was faced with economic issues. They turned to their defined strategy which consisted of a targeted coalition through the automobile value chain (Cullen & Parboteeah, 2011). This meant that the two organizations would syndicate together in product development, the manufacturing of the products, the sourcing of raw materials, and the distribution of their goods. Both companies would utilize each other to gain strength in the automobile industry. This strategy was a strong move towards gaining market share within India and other global markets such as Europe and Latin America. Fiat was extremely slow-moving in acclimating to the changes in the economic market and needed an innovative vision to be successful. Fiat and Tata as partners Fiat had some very tough competition in India and one of the fiercest was Tata Motors. In the business world it is essential to erect a relationship with your partners (Prabhakar, 2010). This theory proved to work for Fiat. This partnership help both companies experience growth through the use of each other’s grouped strategies. An example of this collaboration was Fiat took advantage of sourcing of spare parts

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