In the following assignment we will discuss how TATA MOTORS in a developing economy like INDIA, is expanding its business in foreign market and at the same time facing threats due to Globalisation in domestic markets through SWOT ANALYSIS.
STRENGTH
The International strategy of TATA MOTORS has been so far to keep local Managers busy in new acquisitions, but they moved only a couple of senior Managers from INDIA to INTERNATIONAL market. The major benefit that TATA had with these acquisitions is to change expertise. Like after the acquisition of DAEWOO MOTORS the Indian company learned work discipline and perfection. Not only this about 2/3 of the export in the segment from korea is from Daewoo. TATA MOTORS not only focused on new products and expansion, but it also focusing on intensive management for creating new leadership for tomorrow. TATA MOTORS successfully bought JAGUAR and LAND ROVER in the international market and both these acquisition are contributing a good share of amount in the profits of TATA MOTORS. Furthur with the acquisition of stakes in Hispano & Marcopolo & manufacturing of Xenon in Thailand , it has been able to make deep inroads in the bus & truck segments in South east asia, like Malaysia, Thailand, Mayanmar, Brazil, Spain, Russia.
The company has had a successful alliance with Italian mass producer fiat since 2006. This has enhanced the product portfolio for TATA and FIAT in terms of production and knowledge exchange. For example, the Fiat Palio Style was launched by Tata in 2007, and the companies have an agreement to build a pick-up targeted at Central and South America.
In Domestic market its dealer in some location are now able to increase their viability as they are selling two brands both TATA and FIAT in one SET UP.
WEAKNESS
Despite buying JAGUAR and LAND ROVER, TATA has not got a foothold in the luxury car market in the domestic market of INDIA. Accordingly there is branding