Analysis of tata motors essay

Describe the economic characteristics of the global motor vehicle industry. The characteristics of the global motor vehicle industry are a boom in certain places and a bust in others all due to economic conditions in different nations. We will write a custom essay sample on Tata Motors or any similar topic specifically for you Do Not Waste HIRE WRITER The opposite is happening in Europe being in its sixth year slump now and with a weak economy, high petroleum prices and an aging population being weighing factors on mass market car makers. This has led to cost cutting and over capacity for European car makers.

Analysis of tata motors essay

These are Analysis of tata motors essay companies selling substitute products. Indirect competitors include major moped manufacturers such as Honda as well as slightly more upmarket firms such as BMW or Audi.

Of course the usual marketplace competitors exist: Tata Motors is the largest commercial vehicle manufacturer, and the third largest passenger vehicle manufacturer in India Tata Motors Annual Report, These separate spheres are relevant, but are beyond the scope of this report.

Tata has a diverse product portfolio including more than 30 models of vehicle, ranging from basic passenger cars to commercial, defence and homeland vehicles Tata Motors Annual Report, In taking these, then failing brands, Tata showed real long term marketing vision. Inthe company launched the Nano, a fuel-efficient and also extreme low cost automobile, billed as the cheapest production car in the world.

Moreover, Tata Motors has established a real and positive image in the local and global communities through developing and implementing environmentally friendly practices, and supporting community development initiatives in areas of employability, education, health, and environment Srivastava et al, These partnerships are vital to Tata maintaining a competitive advantage in the Indian car market by consolidating its gains, improving its stakeholder image and furthering its endless quest for innovative solutions to transport.

Analysis of tata motors essay

There has been a significant growth in annual net revenue, this can be attributed somewhat to the growth in the industry itself. In terms of demographics and disposable income more cars have been purchased in the country.

In spite of the growth in sales, Tata motors expected to sell more passenger cars. Total expenditure increased even more relative to Revenue, which caused a reduction in operating profit.

This might have been attributed to higher manufacturing costs.

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Although Tata maintains its market share they will look in the future to improve it. The growth of automobile industry is always mirrored by the current economic situation in the country.

Tata Motors Annual Report, Worryingly, Tata has convoluted and restrictive covenants and procedures in its debt instruments, requiring prior lenders consents before any decisions can be made, making Tata slightly clunky and slow to react to opportunities and threats.

But it is also possible that mandating that some debt ratios be maintained at certain levels is not an unwise strategy, given the unstable economic environment present. These foreign auto manufacturers have either formed joint ventures with local partners or have established independently owned operations in India, intending to expand their presence in the country Business Standard, July 4 A serious issue Tata faces is that it has been perhaps too focused on the commercial and small vehicle segments, while it has ignored the emerging luxury car market open from overseas companies such as Daimler Chrysler, Ford, Honda and Toyota.

On the home front, other Indian automobile manufacturers now have greater access to debt and equity financing in the international capital markets, as well as advanced automobile technologies through alliances.

As a matter of fact, ROI of Tata Motors share has been on a decline and pales in comparison to that of Mahindra Tanver, in recent years. It is usual for Indians to take care of their children until they are 24 to 25 in the more wealthy families. This results in a real coup de grace for Tata: Finally, an important cultural meme is that Indians are adverse to high maintenance costs whilst fairly bullish in consuming new products.

India is expected to be the most populous country by with the population touching 1. India has a steadily growing working-age population will emerge as one of the youngest nations by Urbanization is a definite trend in India: Social Trends With higher disposable incomes, Indians have been travelling and are exposed to lifestyles in more developed nations.

This has a strong influence on driving purchase of products that are common in those countries such as new automobiles. A real emerging social trend in India is that of the rise of the working woman.

Many are now financially independent and are growing into a substantial consumer base to market services and products, as well as influencing marketing strategies: In fact, people across the board are generally more aware of safety, meaning that Indians are moving away from mopeds towards cars exactly like the Tata Nano, or would be if it were not for the unfortunate safety issues associated with the Tata Nano.

Analysis Of Tata Motors | Essay Example

As a result, Tata is the first Indian automobile firm to have European emission standard norms with regard to pollution. Online, Tata has a strong presence in some areas and a weak one in others.SWOT ANALYSIS: TATA MOTORS Introduction: TATA Motors is a Multinational Corporation Headquartered in Mumbai, India.

TATA Motors is India’s largest automobile company, with consolidated revenues of USD 20 billion in Free Essay: PESTEL Analysis of Tata Motors Tata Motors Limited is the leading multinational automotive manufacturing company which was also a subsidiary of the Tata Group.

Analysis of tata motors essay

Tata Motors is a leader in passenger cars, coaches, trucks. Analysis Of Tata Motors Essay Sample. Tata Motors was established in with annual revenues in excess of USD 10 Billion, and they are known to launch the first $ car of the world (Tata Nano) which has been in world news very recently.

Essay on Strategy and Structure of Tata Motors. mission and goals of Tata Motors, secondly) use SWOT analysis and the Five Forces Model to evaluate how well Tata Motors in strategy formulating and thirdly) evaluate the process of implementing these strategies.

I would describe Tata Motors international strategy as a multidomestic strategy. This is due to the very definition of the multidomestic strategy that a company tries to achieve a maximum local responsiveness by customizing both their product offering and marketing strategy to match different national conditions.

The following is the SWOT analysis of Tata motors Strengths The internationalisation strategy so far has been to keep local managers in new acquisitions, and to only transplant a couple of senior managers from India into the new market.

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