Tata motors wanted to compete in the Indian automotive industry by creating a form of transport that could carry up to 5 passengers. One of the requirements of the car was to provide an alternative to a traditionally used overloaded motorcycle which was unsafe. The main feature of the car was definitely its low sticker price, making it affordable for the growing middle class family in India. So, Tata Motors priced the ultra low-cost car at 2500$.
But, how could Tata set the price of its product without even having done a study on production costs?
They took the barrier of 2500 dollars as a challenge, so working closely with its suppliers should succeed in producing the car and also get some small margins for providers.
Now I am going to develop a SWOT analysis of Tata Motors and name a few key strategies:
International strategy based on the competitive advantage: a new product, Tata Nano; the cheapest car in the world. They took a smart approach in responding to the market demand.
Tata Motors is part of the Indian conglomerate Tata Group which comprises 98 companies in seven business sectors. That is a really positive point for future needs of Tata Motors, as it might have to do business or look for any necessities to develop the business inside the Tata Group instead of going outside the global market (other companies) to find out what it could be looking for. Therefore, Tata motors have extensive backward and forward linkages and it is strongly interwoven with machine tools and metals sectors from other parts of the Tata Group.
But it must be said that Tata Motors is not self-sufficient in all products and raw materials it needs to develop the Nano.
Tata motors is gearing up for the global market as one of India’s largest automobile makers, however has a lower than 20 % share of the Indian passenger car market and
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