Tata Motors Case Study

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1.) The challenges that Tata Motors faced during moving from producing commercial vehicles line to producing passenger cars:
First of all Tata Motors was into the business of integrated commercial vehicles, but as after post-independence govt. of India reserved the production of Locomotives exclusively for state owned enterprises. Than Tata motors decided to diversify itself in heavy commercial vehicles in 1954.
Market competition which is a part of industry environment that directly plays a role in strategy formulation. When Tata motors launched their car Indica at that time three more international brand also launched their models. Tata competitors had good customer base, vendor base, more efficient cars in terms of fuel which also led to
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One biggest challenge for Tata motors was that it does not have efficient tools for manufacturing small passenger cars, and also lacking behind in network for vendors, the network which Tata motors had was not sufficient for providing support to manufacturing of small cars.
Tata motors does not planned any research programme for marketing business of small cars, they have not focused on collecting the data from the market about the customers preferences , their taste what kind of small cars customers prefers.
Tata motors does not focused on opening its own outlets or showrooms indifferent from commercial vehicle showrooms to sell especially small cars. They failed in providing customers an extra privilege by opening exclusive showrooms, apart from these challenges they do not focused on dealership strategies that how to deal with passenger car customers rather than they faced challenges in attracting customers from applying dealership strategies of selling truck
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Ratan Tata himself was the most important part of this project he headed the project right from the scratch to rollout. Focused on coordinating activities as per the value chain. They setups their on engineering research centres in Pune. Tata motors preferred to manufacture its most of activities in-house. They installed their on manufacturing facilities to manufacture gearboxes, engines, transmission mechanisms, sub- assemblies and body panels. They built their own machine tools division first in the country with too that of four robots and developed a computerized numerically controlled machines for different manufacturing

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