Global Business Case Study: Tata Motors

3261 Words14 Pages
Register to read the introduction…However, the firm receives popular support wherever it goes due to its policies on employment. In all its acquisitions and joint ventures, the firm employs the integration technique. During the acquisition of JLR in 2008, the company won its bid due to this policy. The unions, which represented a big share of the workforce, placed pressure on the winning bidder to retain jobs. Tata Motors Limited however had no problem with the demands since wherever it goes the locals get employed. In acquiring Daewoo, the company assured the staff of their jobs in a bid to conform to their policy on integration. The company believes in connecting with the locals and value addition to the…show more content…
The political environment varies across Africa, Asia, America, Europe and the Middle East. Each country has its own rules and regulations which may vary depending on the ruling elite. Some countries have greater political influence than others. Such countries provide good grounds for running operations since their currencies are stable. Tata Motors acquired JLR having made an assessment of the laws governing trade in the United Kingdom. The company has to regulate its subsidiaries and dealers while taking into account local laws on labor and commerce. Also, the company has to keep a close watch on the political changes impacting on it. Some changes impact negatively and require immediate action. Some positive developments like the support of the Indian government in the production of Tata Nano adds value to the company. Overall Assessment of the Operating…show more content…
The challenges include consumer acceptability, consumer switching costs, capital required, channels of distribution and economies of scale. Tata Motors Ltd has been in existence for long and as a result it enjoys the benefits of economies of scale. New entrants will find it difficult to penetrate the markets that Tata Motors operate in since it has itself. The company has a global presence and offers competent prices to its consumers. Also, new companies will find it hard to penetrate the markets of Tata Motors since customers already trust the company’s brands. New players will take time before their brands gain recognition among consumers. Therefore it is difficult for new entrants to make an impact on the already established consumer base. The cost of switching brands in the automobile industry is high. This discourages consumers from rushing to purchase new products. This is disadvantageous to new entrants as it will take time for them to make reasonable sales. The capital required to start off a car manufacturing firm is high. Such a requirement becomes deters new entrants. The channels of distribution may also prove challenging for new entrants. Tata Motors ltd has a large distribution network and consequently reach a larger customer base. The company can provide services and products to its customers more efficiently than the

More about Global Business Case Study: Tata Motors

Open Document