Case 2 Tata Motors
1. Describe the economic characteristics of the global motor vehicle industry. The 2008 financial crisis began in the American subprime mortgage crisis, eventually evolved into a global financial crisis. Most countries because of the impact of the financial crisis, leading to a sharp slowdown in consumer’s vehicle demand. Also, because of the financial crisis, the global motor vehicle industry experienced a full-scale market competition. Some small car companies to be phased out, which do not has the competitive. Therefore, the automotive industry experienced a process of merger or reorganization, from scattered to centralize. Various international companies actively adjust marketing strategy and direction; more comply with the modernization of the economy and the demand for various kinds of small and super precise motor products. Automotive industry globalization has become a reality, because the car gradually spread in the world, and everyone have different requirements on the car’s performance and price, so the import and export trade of automotive products also had a high proportion in the vehicle market. 2. What are the key success factors for a successful firm in the global motor vehicle industry? The key success factors for a successful firm in the global motor vehicle industry include low cost, broad differentiation strategy, market analysis and innovation. First of all, a successful firm in global motor vehicle industry should securing a cost advantage, use lower-cost inputs and hold minimal assets, use low-cost distribution channels and improving supply chain efficiency. Such as Tata Motor Company, their independent research, development and production of new car “Nano”, which had low-price. Therefore, the company’s managers need to consider how to reduce materials handling and shipping costs to improve the revenues of low-priced Nano. Second, a successful firm should have a broad differentiation strategy. Tata Motor Company...
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