Tata Motors has to be ready for the risks that come with such acquisition done at a period when there are recession uncertainties. Although many people may be tempted to think that Tata will perform well after acquisition because India has low production costs, the company needs effective strategies which will guarantee them success (Wharton University of Pennsylvania 2007). One important decision I to maintain manufacturing sites in the United Kingdom because immediate transfer may be affected by the political sensitivities that exist among leaders in the region concerning the impact of motor industry (Wharton University of Pennsylvania
Competitors – The industry that Nissan currently operates in provides lots of potential competitors for them as many automobile companies are developing electric cars which are something Nissan are very keen on focusing on. Nissan currently only run a small market share of the industry so many competitors are dominating the market such as Ford, Vauxhall etc. Nissans competitors have many strengths and weaknesses against Nissan. Some companies such as Ford focus heavily on fuel powered cars which means they will have an advantage against Nissans fuel powered range but Nissan will have an advantage over them with Nissans electric cars and the amount of research that has been put into it. Other companies such as Tesla whose main focus is electric cars are a fairly big competitor towards Nissan and the Nissan leaf range.
This is largely due to the significant investments it has made in research and development for the transformative technology in its cars. It is also the result of the rapid expansion the company has experienced in just a handful of years. The cutting-edge auto maker posted revenues of just over $200 million in 2011, while reporting sales of over $4 billion last year. Tesla is also investing heavily for the construction of its Gigafactory in Nevada, which has already begun producing battery packs and will likely manufacture lithium cell batteries by year’s end. Because of these large cash outlays, Tesla has reported negative free cash flows and earnings for nearly every year since its IPO.
It is one of the Fortune 500 companies with an annual revenue of €12.73 billion in 2014. The company focuses on large scale telecommunication infrastructure, technology development and licensing .In April 2014, Microsoft acquired the Nokia’s mobile phone business as a part of an overall deal totaling US $7.17 billion. 2. Kodak Kodak, is an American technology
Renault Group According to Renault’s annual report published in the end of 2014, Renault was founded in 1898, it designs, builds and sells vehicles all over the globe. Renault is employing a huge workforce of more than 117,000, it sold 2, 7 million vehicles in 2014. Renault had expanded its activity to every continent exceeding 350 plants and commercial establishments in more than 118 countries. Renault designs and builds a wide range of vehicles considered as environmentally-friendly vehicles. Nowadays, Renault is continuing expanding its activity, building new plants wherever it can has a competitive edge over the competition.
They also designed new products specific targets like women looking for luxury SUV etc. 4) Innovation and New Product Development TATA infused a new breeze of fresh air into the JLR product team and it resulted in refreshing the old JLR brands which revived them in the market and also introduction of new brands like Evoque which single handedly is turning the fortunes of JLR and hence TATA Motors. 5) Manpower Management: After TATA acquired JLR, the workforce was reduced by approximately 10000 from the figure of 27000. This reduces the expenses of Tata which can ultimately increase the profitability. Financial
Milestone Two: Nissan Case Study Nissan, one of the largest Japanese automobile company and how they endured some of the most significant challenges before and after the 9.0-magnitude earthquake in Japan. However, on March 11, 2011, a 9.0-magnitude earthquake and tsunami struck the coast of Japan resulting in a devastating impact on the Japanese economy were more than 80% of the automobile industry stop producing including Nissan original equipment manufacturers (OEM) (Schmidt & Smichi-Levi, 2013). Even though Nissan Motor’s net worth has reached 48.1 billion dollars today, a few years before the devastating earthquake Nissan automobile faced many obstacles like bankruptcy, along with the Global Liquidity Crisis before entering a global alliance with Renault of France (Staff, 2010). In results, the huge
Their CEO has always been an engineer rather than a marketing executive, their centers around the world function independently (domestic strategy), their Research and Development centers focus on implementing the latest technology. Their cars however, are mostly tailored to the budget of developed countries and so, while their motorcycles may be found everywhere in the streets of Pakistan or India, their cars most certainly won’t. Nissan’s strategy mirrors that of Toyota as the climbing sales in the UK are due to the manufacture of several mid-range vehicles. Also, 25% of its marketing budget is being spent on digital channels. Nissan stands a close third to General