Tata Group Case Study
1-A: Describe the various advantages that firms like Tata employ to become large industrial conglomerates.
The Tata Group has already established 90 separate firms in seven distinct business sectors. Because of their success, they have obtained vast financial resources and access to capital on favorable terms which has allowed them to expand their operations and become a large industrial conglomerate. Since the Tata Group uses its sister subsidiary companies to help supply its other companies (i.e. using Tata Steel to provide steel for Tata Motors’ Nano manufacturing) as well as having access to the low-cost Indian labor pool, they have been able to maintain a competitive cost structure which is a major advantage (Cabusgil, Knight, & Riesenberger, 2012, p. 277). Being India’s largest firm, the Tata Group has developed a strong corporate image which has resulted in long-standing relationships with national and state governments in India and connections with high-quality business partners. Tata has also developed superior market knowledge.
1-B: How can Tata use these same advantages to succeed in foreign markets?
Since they have access to vast financial resources and capital on favorable terms, the Tata Group could use their financial advantage to collect information which would allow them to better understand the needs of the foreign markets. The research they gather can help them tailor their products and strategies to optimize success (Cabusgil, Knight & Riesenberger, 2012, p. 270). With their previous experience and immense knowledge, Tata can also succeed in foreign markets by utilizing their various business sectors to provide high-quality products at a low cost. Since the Tata Group has developed connections with high-quality business partners, they could use such connections to partner with an existing family conglomerate in the emerging market which can help reduce the risks time and capital entry requirements; develop relationships with governments
The Tata Group has already established 90 separate firms in seven distinct business sectors. Because of their success, they have obtained vast financial resources and access to capital on favorable terms which has allowed them to expand their operations and become a large industrial conglomerate. Since the Tata Group uses its sister subsidiary companies to help supply its other companies (i.e. using Tata Steel to provide steel for Tata Motors’ Nano manufacturing) as well as having access to the low-cost Indian labor pool, they have been able to maintain a competitive cost structure which is a major advantage (Cabusgil, Knight, & Riesenberger, 2012, p. 277). Being India’s largest firm, the Tata Group has developed a strong corporate image which has resulted in long-standing relationships with national and state governments in India and connections with high-quality business partners. Tata has also developed superior market knowledge.
1-B: How can Tata use these same advantages to succeed in foreign markets?
Since they have access to vast financial resources and capital on favorable terms, the Tata Group could use their financial advantage to collect information which would allow them to better understand the needs of the foreign markets. The research they gather can help them tailor their products and strategies to optimize success (Cabusgil, Knight & Riesenberger, 2012, p. 270). With their previous experience and immense knowledge, Tata can also succeed in foreign markets by utilizing their various business sectors to provide high-quality products at a low cost. Since the Tata Group has developed connections with high-quality business partners, they could use such connections to partner with an existing family conglomerate in the emerging market which can help reduce the risks time and capital entry requirements; develop relationships with governments
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