2.Main reasons for Tata Motors to enter the global ultra-low car market3 2.1.Future requirements in regard to global automobile industry3 2.2.Demand and production of ULCCs3
3.Competitive advantages that Tata Motors would enjoy with their Nano in emerging markets3 3.1.Core competencies of Tata Motors3
3.2.Cost-cutting: an effective marketing strategy3
3.3.Tata Motor’s competitive advantage3
4.Screening criteria suggested for Tata Nano’s IMS process3 4.1.Environmental issues3
4.2.Potential Market capture3
5.Suggested regions and specific countries outside India and China for Tata Nano business capture3 5.1.Scope and Potential3
5.2.Global Motorization requirements3
Tata Motors case study analysis
Tata Motors Limited was established under Tata Group in 1945 and since then, it has emerged as largest automobile company of the India. In fact it was first Indian automotive firm to list on NY Stock exchange. A company with this stature needs a powerful and effective IMS process that ensures the company’s economic development and its competitive advantage in the market (www.tatamotors.com). The purchasing power of people is dynamically developing as economies of several emerging nations continue to develop and an overall global car market is currently experiencing a revolution. In coming years, there will be more individuals than ever who will desire to own a mobile and procure financial resources to do so. Tata Motors became able to increase and maintain their competitive advantage and overall market share by effectively capitalizing on its core competencies. The company is considered as competitive, active, and dynamic in every aspect related with the automobile market which is evident of the fact that number of activities is responsible for the company’s overall competitive advantage. Ultra-low-cost cars (ULCCs) received substantial popularity all over the world since number of eminent manufacturers announced the production of these cars and deliver quality products in automobile industry
2.Main reasons for Tata Motors to enter the global ultra-low car market
Approximately 16 million cars will be purchased by individuals all over the world by 2020 equivalent to 44% annual growth rate- in the lower-end segment per year (A.T. Kearney, 2008). According to this analysis, India will be the key market for ultra low-cost cars (ULCCs) in this scenario along some other markets of the Southeast Asia. India will ultimately earn highest growth rates in the manufacturing of ultra-low-cost cars as soon as income levels in other populated areas of the world especially China and Russia increase. India and similar markets have also an obvious reason to grow in medium-size and compact segments of vehicle industry as economic and environmental issues are beyond control in those areas. 2.1.Future requirements in regard to global automobile industry
The vehicle industry in India could expect significant increase in development of potential car buyers in coming decades as there were only 208 million individuals were there in 2005 who could spend on a vehicle between $2,500 and $5,000. This figure will turn double, approximately 439 million individuals by 2020 and that would obviously double the market requirements for Tata Motors in India. As the competitive landscape has been changed permanently and drastically for global automobile industry, the global ultra-low-cost vehicle market is therefore expected to develop from 2 million vehicles (2008) to approximately 17.5 million vehicles by 2020 (Alfaro et al, 2009).
India is considered as a preferred vehicle sale and manufacturing location. The automobiles players working all over the India found significant interest in new ultra-low-cost cars and their segments since Tata Motors Nano was developed and launched...