Tata Motors Summary

Potential Entrants

Threats of entrants can be reduced by high fixed costs

Tata Motors dominance over the market of commercial vehicles will be challenged by other market forces such as Mercedes-Benz, Volvo, and Navistar etc. also the world's largest truck maker Daimler heavy duty trucks of Bharat Benz brand is biggest challenge to Tata Motors. In commercial segment a fuel efficient vehicle is being developed Tata Motors to meet the competition head-on, this kind of an approach is to eliminate any sort of threats from entrants by keeping the fixed costs of production high that cannot be achieved by new players.

Tata motors has taken some measures to mark its dominance in world automobile industry by introducing 50 new products and a huge investment

also the world's largest truck maker Daimler heavy duty trucks of Bharat Benz brand is biggest challenge to Tata Motors. In commercial segment a fuel efficient vehicle is being developed Tata Motors to meet the competition head-on, this kind of an approach is to maintain the shareholders trusts.

Market concentration

Tata Motors strategy would be to focus 14-15 countries having same market structure as of India. In these targeted countries the company is having excellent manufacturing facilities, market teams and sales teams. Incorporating above strategy the company evaluates best opportunities and skilled labor to cut down cost of production, hence maximizing profits.

Various operation in involved in these market concentration are as follows-

Korean Operation-Company has merged and leveraging the technology so acquired to for developing the trucks for Indian and world markets.

Thailand operation-It is the most competitive market and hence product such as pickup trucks have been introduced to be sold in domestic as well as international markets.

Restriction of access to distribution

Thus If the NANO fails Tata motors will not exit but be in a state to slow production and manufacturing facility can be used for spare parts modification of other new variants of passenger vehicles.

Amount of Fixed costs-Automobiles industry experiencing a rise in competition and hence product quality ,service centers etc. needs to be provide which is extra costs that incurs, to maintain low cost, companies consistently has to make manufacturing improvements to keep the business competitive. This requires extra funding which tends to decrease companies profit margins as the cost of production gradually increases. As Nano being the only car of such limited pricing in the passenger vehicle segment it does not have a competitor and hence play a monopoly in the