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Tata Motors Essay

1689 words - 7 pages

1. Describe the economic characteristics of the global motor vehicle industry. The characteristics of the global motor vehicle industry are a boom in certain places and a bust in others all due to economic conditions in different nations. Four years after tow of Detroit Michigan’s big three went into bankruptcy American car makers are going “full throttle” with sales in August hitting an annual rate that if substantiated can take them back over 16 million and that is a rate that was last hit before the economic crisis and 80% higher than 2009 when GM and Chrysler went into bankruptcy. The opposite is happening in Europe being in its sixth year slump now and with a weak economy, high ...view middle of the document...

I believe the first key factor for a successful firm in the global motor vehicle industry is to have sustainable practices be it the wages they pay, dealer networks, or operating cheap effective factories to produce high selling luxury cars at an affordable rate. The next factor is to have a quality, compelling products that innovate and capture the customers attention. This is clear in that while people are statistically staying away from buying a car in exchange for public transportation especially in England, that luxury cars are selling well in worldwide poor economies. I would say the next factor is to create cars to sell to the U.S. market. Take the foreign market for example where the Ford focus in the United states is a clear C list car that isn’t that desirable is a great seller in countries like Germany where it is highly desired. The third factor is public perception. Auto makers must capture the public attention for sales, not just make the “best” or cheapest car. For years in America we have an opinion that due to the bailout for example that foreign cars are better and as such seek out Mercedes, Audi, BMW, Jaguar etc. and not a Cadillac. We seen this with GM who was trying to sell the ponaic G8 that was half the cost of European performance sedans and was a failure in the U.S. despite being one of GM's most exciting cars ever made for the market. The forth factor would be to study the market carefully. Motor vehicle companies must compete globally to make a living and as such must examine the growing markets worldwide and examine what cars sell and what customers want to see in the future of automobiles. In summery take Japan for example in that operational efficiency, product differentiation and customer satisfaction were key factors in the success of Japanese automakers. Localization also played an important role in capturing market share. All of these factors show the changing dynamics of the global automotive industry. 3. What are Tata Motors' internal strengths and weaknesses? Identify competencies that the company's major competitors are lacking. What market opportunities does the company have and what threats can you identify that may have negatively impact the company's future? One of Tatas strengths is that the strategy to keep local managers in new acquisitions seems to be a key for Tata. That along with only transporting a couple of senior managers from India into new markets seems to work for them. This allows them to trade expertise such as learning a work discipline and getting the product right the first time as it is stated from them that they learned after the Daewoo acquisition. The ownership of Jaguar and Land Rover is in my oppion there greatest strength due to that these brands have been giving Tata there only success and profitability in the global market while they are losing market share in their home market. Tata also has the strengths of being the number 1 manufacturer in India, 3rd largest bus manufacture...

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