Tata Distribution Strategy

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Tata Motors is lacking in terms of management capability since it has undergone constant losses since the recession in 2008. It has released a lesser number of new and innovative products than its competitors. Its global footprint is much smaller than Toyota or Honda or Maruti. The distribution strategies that it adopts may be good, but it also spends least on Marketing amongst the OEMs. From all these factors, it can be stated that Tata Motors has not been successful in creating any competitive advantage for itself amongst the OEMs.
With evolving times, the conduct example of the clients and the necessities for the OEMs are additionally evolving. The new plans of action are rising with new and inventive substitutes for the conventional fuel-based
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The move helped them to build a strong portfolio of brands and international reputation. JLR in its bag could help it to form a clear picture in the minds of customers abroad. JLR’s acquisition also allowed Tata Motors the access to high technology, strong R&D and modern design capabilities of the former. It helped it pave the way to the European car market. JLR’s supply chain and distribution network has helped it improve its own capabilities and reduce cost of logistics. JLR’s design and technological expertise has also helped it build next generation SUV, which is still in the design…show more content…
Each company holds some portion of the other or Tata Sons, the group’s umbrella firm, has the majority holding in all of them. So, Tata motors have the resources of other group companies such as Tata Steel, Tata AutoComps, Tata Engineers, Tata Power etc. at its disposal. All the plants have their power supply from Tata Power, The components come from Tata AutoComps, The design expertise can be borrowed from Tata Engineers ltd, Tata Steel supplies the majority of the metals needed for body and chassis and also to the component manufacturers. In most of the cases, some group company acts as a supplier to the component supplier of Tata motors. So, this cross holding, incentivizes the company to supply parts at considerably lower rate to Other component suppliers and Tata Motors as it would eventually lead to firm’s profitability in specific and Tata Sons superior performance in

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