Acquisition Strategy Analysis: Tata Motors
Economic environment during the deal period Another key reason for this deal to be attractive for Tata Motors was the economic downturn of 2008. It impacted the automotive industry in a big way and remained till 2010. The crisis primarily affected America and Canada but the impact was global. The fuel prices skyrocketed, discouraging the demand of big fancy luxury or high performance cars. Trend changed towards frugal cars and small to medium sized cars became the preference for majority of buyers. The credit crunch had turned the situation critical and most of the cars manufacturing companies were seeing double digit declines in sales. Ford was also facing such crisis and Tata Motors and few other bidders looked for opportunities to get a relatively economical deal and entry into foreign markets. Acquisition Strategy Analysis Strategic Fit Strategic fit is the extent to which an organization matches its capabilities and resources with the opportunities in the external environment. It’s a handy tool to evaluate company’s performance or in strategic opportunities like M7A or divestitures. It’s related to internal resources of the firm and suggests profitability is not only possible through selecting relevant industry or positioning but rather through an internal focus. Combining key resources and capabilities can lead to competitive advantage, which each company thrive for. Tata Motors JLR Major Markets India Europe, U.S Product Range Commercial, Low-Mid Segment
Target Corporation Business Strategy
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Tata Motors Case Study
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Competitive Intelligence Process
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