It makes sense for Tata to buy Jaguar/Land Rover. The reason is that Tata has synergies in things like steel production and distribution, but does not have too many viable cars. The Nano was not a success. The company has unique access to the Indian market, and can also use this merger to expand on the global stage.
There are increasing trends towards globalization, and these trends will provide opportunity for Tata to build a global automobile business, not just the small one they have built in India. The company already has a global truck business. Adding a pair of premium brands will help Tata to gain some market share, and provide complementary lines for any Tata-branded cars that it might want to produce. Furthermore, with its own brands, Tata's move into cars can be made more concrete. The idea is that the company needs to have a bigger presence in the domestic market, which is growing rapidly, in order to help neutralize foreign competitors, as automakers from all over the world want to get into the Indian market. To enhance its existing competitive advantage, new brands that have prestige will help Tata significantly.
As a conglomerate, there is little added value to this company. But as an automobile manufacturer, there is a lot of appeal to Jaguar/Land Rover because of what it means for global prestige in this industry, having manufacturing capacity in Europe, and in terms of global market share. So on that level, this acquisition can really be a springboard for better things around...
The major market for Tata is India, but it has also been able to expand internationally with its steel, trucks and other products. Tata is actually a fairly large seller of tea, both in India and on the international markets. This company, Tata Tea, has many brands including Tata, Tata Coffee, Good Earth Teas, Tetley Tea and Eight O'Clock. It also operates Starbucks in India in a joint venture with the American head office.
Tata Tea has conducted significant globalization, and in that respect it has entered many foreign countries. Tetley in particular has a large footprint, as it was originally an English company and remains prominent in the UK and many former colonies. Tata Tea is the world's #2 tea company at this point. What is interesting about its globalization effort is that it often does not use the Tata brand. For a conglomerate, it operates a number of different businesses. Usually the value of this is that the brand has a lot of brand power, and therefore can translate into market attractiveness no matter what the business is. So Virgin would be a good example of that. Tata has this sort of market power in India,…
Business -- Intercultural Communication -- Tata Motors Tata Motors sought to win a 2004 bidding war for acquisition of Daewoo Commercial Vehicle Co Ltd. in South Korea. Though not initially favored to win the bidding war, Tata Motors won over the decision-makers through shrewd adjustments to South Korea, education the decision-makers about Tata Motors, display of Tata Motors' strengths and listening to Daewoo employees. Tata Motors succeeded where the other nine
The process of reframing is well illustrated in the case of Tata Nano car concept. The reframers question themselves in an attempt to answer the question "why not." Tata for instant broke a century old paradigm for car manufacture by distributing the component kits for the manufacture of the Tata nano to a number of entrapreneural smaller firms could assemble closer to their customer base. This was as opposed
Tata Motors Tata "Nano" Tata Motors: Case study Case summary Tata Motors is a low-cost Indian car manufacturing firm, which has made cars affordable for average Indian consumers Its so-called 'People's Car' is inexpensive, safe, and fuel-efficient Tata has enabled members of the Indian middle class to become drivers, which would have been impossible without its focus on keeping prices low. Tata has expanded internationally, outside of India, and is seeking to expand to the U.S. Its cars
Ensure that your explanations are specific to Tata Group and the environment (India and international) in which they operate, rather than providing a general discussion. Tata Group relies on a very methodical, focused approach to defining its expansion strategy. First, specific industries are targeted where Tata has a significant strength from an intellectual property (IP) standpoint, in addition to an established business. Potential firms to partner with through a joint
Running head: Tata Group and the External Business Environment Tata Group and the external business environment 4Tata Group and the External Business EnvironmentAfter China and Brazil, India is the world's third-largest developing market. Investment in India has increased due to the liberalization of the policy regime and greater access to the financial markets. Tata is India's biggest corporation, with operations in seven industrial sectors vehicles, chemicals, information technology, consumer items,
People's Car Tata Nano Financial, political and marketing/business commentators alike seem to agree that the Tata Nano, the planet's cheapest car, was a perfect match between an idea and a need when it was introduced -- or at least as a manufacturing idea. Making the smallest of small cars could happen because the timing was right for pairing just such an idea with the quickly emerging appreciation of frugal engineering innovations,