Tata Motors And The Fiat Auto: Joining Forces

1491 words - 6 pages

Introduction
The motor industry is one of the most competitive arenas in the business world. Fiat and Tata have been on the forefront in providing diverse car model in the Indian market. This case study considers the dynamics involved in the merger between Fiat and Tata Motors.
Business Opportunity in India
India is a diverse community having rich and poor individuals living in a dynamic community setting. Indian population has been on the rise and the need for more cars to satisfy their needs has been on the rise. India provides the motor industry with a unique taste of cars. According to Dhawan, Swaroop, and Zainulbhai (2012), India is a leading market that offers motor companies to acquire competitive advantage through diversification of its operations.
India has a growing motor industry (Dhawan, Swaroop & Zainulbhai, 2012). The ability to invest in India’s motor industry makes it possible for companies to acquire a unique position. The demand for new car models is increasing. However, this increase in demand for new car models needs to be complemented with models that are fuel-efficient.
Dhawan, Swaroop, and Zainulbhai (2012) notes that India posses the ability for close collaboration within individual industries. The regulatory framework encourages collaboration making it easier for companies to form mergers or partnerships for better market positioning. This is made possible by the ever-increasing competition in the market. Companies that need to increase their market presence in India need to form strategic partnership for better market coverage through production and promotion of unique car brands. Current statistics indicate growth inclined towards inorganic route, which is an inimitable opportunity in the Indian Market.
How Fiat will Benefit from the Partnership
Fiat will benefit from the partnership in several ways. First, Fiat Auto’s reputation has been tarnished in different markets especially in Italy where corruption is rampant. The formation of this partnership will enable Fiat to improve its reputation in a competitive market. Fiat will take advantage of the fact that Tata Motors is an Indian Company that has a considerable market presence and commands a lot of respect in this highly competitive market. This will create an extraordinary opportunity for Fiat to build its brand name under the umbrella of Tata Motor’s name.
From the case study, it is clear that Fiat is a relatively new market entrant. Fiat needs to capture as market share as it can possibly get. This strategic partnership offers Fiat the opportunity to benefit from the merger by improving on market coverage. Fiat does not need to create distribution stores throughout India because this is a huge investment that will drain the company of its ailing financial position. Fiat can use the already established distribution system under Tata Motors to distribute its brands alongside Tata’s products. This will enhance market presence with minimal financial burden.
Fiat...

Find Another Essay On Tata Motors and the Fiat Auto: Joining Forces

The Rise and Fall of General Motors Company

1592 words - 7 pages , both declined due to a lack of large capital from Durant. Durant declined and General Motors was founded on 16th Sep 1908.By 1910 the company owned 20% of the American auto industry by buying up numerous smaller competitors but at the expense of significant debt. Durant was removed from his position as the leader of GM and replaced him with a board of trustees. Durant went on to start another company and Incorporated Chevrolet Motor Company in

World War I The positives and negatives for the US joining the war

722 words - 3 pages Untitled World War I began in a frenzy of debate. Should the U.S. join the war or stay uninvolved? If they were to join, which alliance would they support? Even today people still deliberate whether or not America should have joined the war and if they had anything to gain. The positives and negatives of joining WWI vary from reimbursement to death toll. Many controversial events also instigated the entrance of the United States into

World War I the pros and cons of joining the war

722 words - 3 pages Untitled World War I began in a frenzy of debate. Should the U.S. join the war or stay uninvolved? If they were to join, which alliance would they support? Even today people still deliberate whether or not America should have joined the war and if they had anything to gain. The positives and negatives of joining WWI vary from reimbursement to death toll. Many controversial events also instigated the entrance of the United States into

The Cause and Effect of Joining a Gang with reference to Mara Salvatrucha 13

1663 words - 7 pages The Cause and Effect of Joining a Gang with reference to Mara Salvatrucha 13 According to the Cambridge Dictionary (n.d.), a gang is defined as, “a group of criminals that work together.” Gangs are a powerful force that is a constant threat against society. As of 2011, the National Gang Center (n.d.) estimates there to be 782,500 gang members in the United States alone. Mara Salvatrucha 13, also known as MS-13, is one of the biggest and most

Identify the Forces that have promoted Globalisation and analyze the outcomes of these forces

1019 words - 4 pages Identify the Forces that have promoted Globalisation and analyze the outcomes of these forces.Globalisation refers to the increasing economic integration between countries leading to the emergence of the global market place and the creating of an ever-spreading web of global production networks. There exist several forces that promote globalisation and are generally supported by most governments around the world and through this there are

The primary internal and external influence on the General Motors Corporation

3834 words - 15 pages organization is discussed one by one.Internal influence: StrengthsThis section analyzes the internal strengths of the corporation. The General Motors are rich in brands and product lines. The General Motors Corporation acquired and mergers many brands and auto companies in the early stage of its history. The General Motors Corporation acquired Buick and Oldsmobile after it is founded. Then it brought Cadillac, Elmore and Oakland and so on. As a

The General Motors and Fisher Body Case Study by Benjamin Klein, Robert Crawford, and Arman Alchian

1426 words - 6 pages The General Motors & Fisher body Case Study The first paper referring to the case study was written by Benjamin Klein, Robert Crawford, and Arman Alchian, "Vertical integration, appropriable rents and the competitive contracting process." (Klein et al, 1978). It discusses "possibility of post contractual opportunistic behaviour" (Klein et al., 1978 p297) and is a great example of vertical integration used to relieve a hold up in the face of

Australian and American Female Nurses in the Armed Forces

2375 words - 10 pages Australian and American Female Nurses in the Armed Forces To what extent were Australian and American female nurses treated as professionals in the armed forces? "We have made partners of the women in this war; shall we admit them only to a partnership of suffering and sacrifice and not to a partnership of privilege and right?" U.S President Wilson, September 1918 My research for this essay showed that although there were

Porter's Five Forces Model and The Movie Rental Business

916 words - 4 pages or partners better by supplying quality products and virtual service to promote brand lifting, customer feedback, great customer experience, and offering the right product to the targeted market. Porter's Five Forces Model is one of the frameworks that help businesses develop their market strategy and analysis. This paper will focus on the Porter Model to evaluate a prospective market entrance for a potential movie rental business. Therefore, the

A brief description of the pros and cons of joining the Euro, and the problems that may be faced by the UK in the future

659 words - 3 pages inflation rate and this would hopefully be able to keep inflation low. There are claims that not joining the euro is leading to job loses and a lack of investment however, in 1999 investment in the UK created over 50,000 jobs. Countries like Japan and the US are investing and it seems unlikely that they will stop in the near future. In the past currency unions have collapsed so the UK would just be putting itself at risk by joining the single currency

Compare and Contrast the Way in Which Poets Present Ideas About Soldiers Leaving for War in Joining the Colours and The Send Off

1053 words - 4 pages The writers of 'Joining the Colours' and 'The Send Off' both use poetry to express their feelings about soldiers leaving for war. Each have similar attitudes about the subject, but use different approaches to try and get their message across. Both question the popular concept of war, including ideas such as heroism and glory. Katherine Hinkson, the poet who wrote 'Joining the Colours', shows the scene from two different perspectives, that of the

Similar Essays

The Pact Between Tata Motors And Fiat

1931 words - 8 pages successful in tapping into new markets will be described. Tata Motors and Fiat Auto Tata Motors has a long history and a solid presence in India starting with commercial vehicles. As described in Fiat Auto and Tata Motors announce forming a joint venture in India (2006), “Tata Motors is India's largest automobile company, with revenues of US$ 5.5 billion in 2005-06. With over 4 million Tata vehicles plying in India, it is the leader in commercial

Analysis Of Tata Motors And Gm

986 words - 4 pages The mission statement of Tata motors is broad and ambiguous and is mostly concerned with customer satisfaction, whereas, G.M mission statement not only addresses the customers but also the investors, employees and business partners. Mission statements set the objectives of companies, therefore keeping these targets in mind the companies form their strategies and business models. Tata has kept the road structure and conditions of India into

Globalization Of The Auto Industry: Competition And Cooperation

2319 words - 9 pages The invention of automobiles has been success in world history. It’s even been said that the invention of the automobile took place in United States. American Auto industries such as The Model T Ford and General Motors launched great success in the beginning of the manufacturing of cars. The gasoline automobiles have dominated over the lands and have made the world smaller. Cars became mass-produced into the auto industries across countries

A Comprehensive Review Of Economic Indicators And The Auto Industry

5498 words - 22 pages any other type of machinery and the three surviving American auto companies, Ford Motor Co., General Motors, and Chrysler Corp., could not be happier about it (Wright, 1996). Automakers are some of the biggest consumers of steel, aluminum, copper, and plastic. They also use most of the lead and rubber in the United States (Wright, 1996). Approximately one in six Americans participates in the building, selling or maintenance of automobiles and the