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 established by the needs of the consumer. If a domestic nation cannot supply what the consumer wants, this gives opportunity to the nations with the supply of the goods wanted.
Additionally, global awareness has become an essential proficiency in international business. In order to become globally aware, the managers of firms must be accepting of cultural differences, understand the culture, have an understanding of global economics and recognize the political trends (Cateora et al., 2013). A majority of problems chanced upon are the outcome of the oddness of the surroundings the organization will be operating in the host country. Moreover, as described by Gupta and Govindarajan, “the success of companies in exploiting emerging opportunities and tackling their accompanying challenges relies heavily on how deeply they understand the dynamics of their operating environment” (as cited by Abebe, Elmuti, & Minnis, 2005, p. 1024). In this paper, serving the customer and cultural understanding was essential for Tata Motors in being so 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 vehicles and the second largest in passenger vehicles” (para. 14).
Fiat, an Italian car maker, was a major player in Europe, Italy, and India. As indicated in Fiat Auto and Tata Motors announce forming a joint venture in India (2006), “One of the pioneer companies in the automobile industry, Fiat has produced more than 87 million passenger cars and light commercial vehicles, including no less than 400 models, since 1899, when the company was founded in Turin, Italy” (para. 13). Additionally, Fiat too had a strong existence in India.
Key issues for Tata Motors and Fiat
Economics began to get tough. The demand for commercial vehicles dropped and forced Tata Motors to increase concentration on the production of passenger vehicles and moving...