Tata Motor
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
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