Tata Motors Case Analysis

brand preferences, with brands making a distinct impact on automobile purchases due to them being generally high value (Kallstrom, 2015). Capital requirements for entering the industry are also high, as new entrants must deal with the high fixed costs associated with the industry, potentially high prices for resources and raw materials such as steel and aluminum, and the costs of design and R&D involved in developing their own automobiles. Government policies and laws on automobile emissions and fuel efficiency can also pose issues for new entrants, in addition to potential pressure to shut down unprofitable units. Finally, heavy sunk costs are a risk should the company find itself unsuccessful in certain markets and should shut down facilities or withdraw from certain regions. Competition from substitute products is medium, mainly due to the threat of two-wheel vehicles, such as

Tata Motors must emphasize on the future and what future markets desire. The trend is shifting towards environmentally friendly cars; thus, it would be smart if Tata Motors jumps into investing in electric or hybrid vehicles to be among the leaders in the future. The company should coordinate technology appropriation from its international partners to compete with superior market players.

To sum up, the main challenge for the Tata Motors to sustain its competitive position in the domestic market and global markets is to accommodate to the change with the environment and can serve the market with products that the current market wishes. The future holds ordeals and opportunities for Tata Motors on the domestic and international scope equally. Indeed, even there are numerous examiners like the future execution of Tata Nano on the US and European market, Tata Motors looks very much situated to benefit from these opportunities and take on the