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
Tata Motors Case Analysis Background Tata Motors Limited ( Tata Motors ),has emerged as the world cheapest car of the India. Ratan Tata, chairman of Tata Motors Limited ( Tata Motors ), saw the purchasing power of people is dynamically developing as economic of India continue to develop and global automotive industry. Tata can take advantage of its low cost pricing by entering to Western car market. Tata motors bid and negotiations to acquire Jaguar Land Rover (JLR) from Ford Motor Company (Ford).JLR provides Tata motors with opportunities to establish itself in luxury brand. Situation Analysis Strengths - Strong domestic player (India Market) - Wide distribution and service network - World cheapest car - Enough capital funding - Chairman
3 RESEARCH OBJECTIVES The Tata Nano is one of the most puzzling products that were introduced in the Indian market. Even though the cost of the car was low, it was still not a successful product in the market. This research tries to find out the cause of this paradox. One of the objectives of the research is to understand and find out the reasons for the failure of Tata Nano. The research will try to answer the question if Nano was a marketing strategy failure or a product design failure.
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
Next, for the threat, the most problem to overcome are technology risk. The rating is 1 and weight score is 0.15. A key challenge for the company is to ensure that its plant are equipped with updated technology in order to serve client and secure cost competitveness. Continous R&D effort ,with the support the Technology Group are aimed at advance position in technology for both product and processes. Next, the strategy that the Tata steel has been take for improving the business are Joint Venture and partnering, merger and acquisition, outsourcing, private equity acquisitions and being first mover advantage.
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
A key factor also lies in the fact that they have distribution centres at every manufacturing plants. • Opportunities CarParts desires and plans of moving into the subcontinent by entering the markets of China and India. A great incentive to make the market grow in India for them is by partnering with Tata Motors who are one of the leading dealers in India. • Weaknesses The systems and processes are fragmented. There isn’t an existing centralized and standardized process.
These principles are practiced across the Japan and all other countries of the world. Work force diversity The customers of Toyota motors are spread all over the world. Understanding this fact the company promotes the diversity in their workforce. By increasing diversity, the company is able to think from the perspective of the people of that particular region, which allows them to make good decisions. The company also locates highly talented minority candidates at attractive posts so as to present the image that they are minority
Toyota has been allowed by such strong market position to gain competitive advantage and also expansion in the international markets. A portfolio is held by Toyota for strong brands in the automotive industry. The strong market awards a competitive advantage and