Tata Motors recommendations

Topics: Automobile, Tata Motors, Internal combustion engine Pages: 3 (550 words) Published: April 24, 2015
Commercial segment analysis slides

-When analyzing the commercial segment, we wanted to look at Tata’s strengths. This segment is one of Tata’s oldest segments started in 1954, and it is one of their core competencies of that company. As a result, their commercial vehicles segment in India grew at the fastest rate of all countries in 2011. -They operate in a manner that utilizes an overall low-cost provider approach strategy, so they wanted to offer a wide range of products that offered the lowest cost of ownership. -The commercial vehicle sector increased 22% overall from 2011 to 2012. -Tata motors are perfectly positioned to acquire more market share domestically. -Because Tata is a known and popular brand in India, and their benefit of being a domestic firm, they are easily able to maintain their consumer focused operation style. -Their plans to sell annual maintenance contracts, and providing parts and services to the defense department in Inida ensures that they will have a continued revenue stream source.

Nano analysis slides

Over the evaluated 7 year period, Tata saw that two wheeler vehicle sales had the fastest growing rate out of all categories. Tata determined that there was a potential to reach the potential 30 million customers if they created a car that was priced under $3000 Tata utilized a blue ocean strategy as a way to create new demand and new market space. They tried to create a demand for it but it did not reach expectations. It failed horribly.

As you can see, they only reached about 31% of their estimated targeted revenue goal over the first three years, and when using an compound annual growth rate, they were projected to further assume a loss

Commercial Recommendations:

Continuing to build their momentum both domestically, but also continue to expand globally. They entered the commercial vehicle business in 1954 and is one of their oldest and most experienced sectors. Their international success is...
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