Essay about Case Study: Tata Motors Acquisition of Jlr

1603 Words Dec 22nd, 2010 7 Pages
CASE STUDY: Tata Motors Acquisition of Jaguar and Land Rover in 2008


India-based Tata Motors Ltd. successfully acquired two British automotive brands – Jaguar and Land Rover (JLR), in June 2008 from Ford Motors for $ 2.3B. As part of the deal, Tata Motors gained 100% stake in companies, 3 UK plants, 2 advanced design and engineering centers, 26 national sales companies, IP rights, $1.1B in capital allowances for taxes, and $600M in pension contributions.
In order to facilitate the deal, Tata Motors raised $3B through bridge loans through a number of banks, including JP Morgan, Citigroup and State Bank of
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OPPORTUNITIES | * Improving capabilities of existing products by leveraging JLR’s experienced design capability. * Maintaining the JLR’s current management team in order to facilitate the turn around as indicated by Ratan Tata. * Making JLR design and technology centers as Tata’s global design HQ. * Using existing JLR distribution channels to foster promoting of existing brands into the global market space. * Leveraging JLR’s brand image to gage acceptance of Tata as a global brand. * Reduce risk profile with diversification and entry into different markets. * Reduce production costs of JLR, by introducing/utilizing Indian facilities for production. |

Assess the merits of the approach Tata Motors planned to take with acquisition. What challenges might it have to overcome?
Enclosed below is the Threats section of the SWOT analysis, which is used to determine whether the goals are achievable. THREATS | * Presence of well established competitors, who have already capacitized this market with their global brands. * JLR’s receding sales and brand image, and volatility for new automotive entry products. * Economic downturn, resulting in decreased sales for the identified market segment. * Ability of successful introduction into other SE Asia markets. |

Considering the SWOT analysis,

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