Entry Into Africa

Topics: Tata Group, Petroleum, Natural gas Pages: 2 (471 words) Published: January 27, 2013
TATA group is one of the largest business Group with businesses operating in nearly 80 countries and has more than 4500000 employees. It has business across seven major sectors which is growing in many sectors 7 Step Framework Model

We have used 7 step framework to formulate the strategy to enter into African market. The frame work helps in understanding the following things. Market Opportunities: Understanding our target market, Value proposition: What expertise we have to offer, Market entry strategy: How do we enter the market with minimal risk, Sourcing our projects: locally or import?, Manufacturing: How do we implement our projects?, Synergize: How do we synergize the operations?, Sustain: How do we sustain?. This framework gives a structure to the proposition that we put forward. Analysis of existing Business in Africa

To identify the right business that is currently operating in Africa, we used a 2 step process. In step 1, we analysed current businesses of TATA in Africa based on Profitability and Growth. We identified TATA steel and TATA power to be profitable and growing sectors. We further analysed these business with the help of ‘PORTER’S DIAMOND FRAMEWORK’ which includes 4 Factors to determine the productivity of a nation. We chose TATA power over TATA Steel as the conditions in Africa is much favourable for the same. Once we finalized TATA power as existing business, we began to look for more synergizing options. Tata Projects seemed to be the obvious choice. We did Porter's Diamond Framework analysis to double-check our proposition and proved to be right. Synergizing Business Opportunities

Tata Power and TPL should jointly venture into Mozambique market in Natural Gas and Hydro Power segment. The natural gas potential in the country is huge and availability of the same is not a question. Tata Power would go for decentralized plants utilizing natural gas, built at power starved districts. This also reduces transmission losses...
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