Tata Xenon Country Entry Startegy in Malaysia

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| | |[pic] | | | |TATA XENON | |COUNTRY ENTRY STARTEGY IN MALAYSIA | | | | | | | | | | | |GROUP 8 B | |[Shiv Methil, Sumedha Sharma, Siddharth Ravishankar, Vivek, Viswanath] |

TABLE OF CONTENTS

EXECUTIVE SUMMARY3

BACKGROUND4

MACROECONOMIC ANALYSIS5
PESTEL5
HOFSTEDE CULTURE6

BUSINESS ENVIORNMENT ANALYSIS7
GLOBAL MARKET OPPORTUNITY ANALYSIS:7
TATA MOTOR’S ORGANIZATIONAL READINESS8
TARGET MARKET – WHY MALAYSIA9
INDUSTRY MARKET POTENTIAL:10

COMPANY INTERNAL ANALYSIS:11
5C’s ANALYSIS11
VALUE CHAIN ANALYSIS:14
SWOT ANALYSIS15

COUNTRY ENTRY STRATEGY:16
4 Ps16
PARTNERSHIP STRATEGY:16

CONCLUSION17

EXECUTIVE SUMMARY

The South Asia Market is witnessing a strong growth in the automobile sector. Malaysia is one of the most stable economies in the South East Asia. Although until now Malaysia was following strict government regulation to promote national brands but it has now opened up its market under National Automotive Policy 2006 to promote Malaysia as a manufacturing hub for automobiles and also to increase the presence of foreign automobile players in the market. As per the Malaysian Automotive Association (MAA), sales of commercial vehicles is expected to grow 4.6% to 68,000 units in 2012 from 65,010 units a year earlier. Moreover, Tata Motors has set up its Pick Up truck manufacturing in Thailand and is looking at expanding in Malaysia. This report looks at the feasibility study and entry strategy for Tata Pick Up truck Xenon to enter in Malaysia.

BACKGROUND

Traditionally, the pick up vehicle market in Malaysia was dominated by Toyota Hilux and the Ford Courier. These were just utility vehicles for people to carry heavy tools and machinery. The first company to add comforts and good looks in the pickup segment was Ford Malaysia with the Ranger in nineties. Mitsubishi launched Storm in the market which became Ranger’s top competition. Almost a decade after the introduction of the Ranger, Nissan launched the Frontier. Toyota made few changes in the Hilux to suit city drivers, and Mitsubishi launched Triton. Also Isuzu launched D-Max in the pickup truck category. As of now there are around eleven major players in the Pick Up category in Malaysia. The breakup of the pickup segment is given in the graph below in which Toyota leads with almost 50% market share of the...
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