Tata Motors Essay example

845 Words Dec 6th, 2012 4 Pages
Tata Motors

Global Business Management
Case Study
October 24, 2012

1. There are many features of the Indian market that made it an attractive domestic market for Tata Motors. India had good economic conditions in the year 2004. They had a growth rate of 8%, their gross domestic product (GDP) grew 4.3% in fiscal year 2003, and the GDP was expected to grow 11% in fiscal year 2007. According to Goldman Sachs, India will have the highest growth rate in GDP in comparison with other emerging economies until 2045-2050. It was also expected that in 2009, 60% of India’s population will be 25 years of age and less. Transportation needs grew to 13.5% in the year 2000-2001, from 2.8% in 1970-1971. Actually, transportation became the second
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Porter’s five forces model is a popular technique that can help a multinational firm understand the major forces at work in the industry and its degree of attractiveness. Tata Motors needs to first consider the degree of competition in the industry. Second, they need to evaluate is the threat of new entrants. Tata needs to consider the degree to which they may face new competitors in their industry. Thirdly, Tata Motors needs to consider the degree to which buyers of the industry’s products can influence on most industries. Fourth, Tata must also look at the bargaining power of their suppliers. Finally, they need to pay attention to which competitors are confronted with alternatives to their products. Tata Motors is doing a good job at recognizing that there is a high degree of global competition among auto manufactures. It is this competition that has a significant influence on the profitability of the company. 4. The two most influential factors in automakers strategic product management are motorization and population increase. Since India is increasing in population and the demand for motorization is increasing as well, Tata Motors should invest in the following: services, supply chain, and new product launches. They need to keep in mind that automobile companies make more

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