Tata Motors

In: Business and Management

Submitted By dubbaU
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Tata Motors

Global Business Management
Case Study
October 24, 2012

1. There are many features of the Indian market that made it an attractive domestic market for Tata Motors. India had good economic conditions in the year 2004. They had a growth rate of 8%, their gross domestic product (GDP) grew 4.3% in fiscal year 2003, and the GDP was expected to grow 11% in fiscal year 2007. According to Goldman Sachs, India will have the highest growth rate in GDP in comparison with other emerging economies until 2045-2050. It was also expected that in 2009, 60% of India’s population will be 25 years of age and less. Transportation needs grew to 13.5% in the year 2000-2001, from 2.8% in 1970-1971. Actually, transportation became the second largest spend category in 2002. The reasoning is because the increasing per-capita disposable income is leading to a subsequent decline in the proportion of spending on basic necessities and an increasing proportion on transportation. India is expected to be the seventh-largest automotive market by 2016.

2. SWOT ANALYSIS FOR TATA MOTORS

STRENGTHS * Tata Motors is the only automobile company in the world offering products from the smallest car, to the most luxury cars * Has operations in 35 countries around the world * One of the largest industrial companies in India with a revenue of $13.4 billion US | WEAKNESSES * Still no hold on the luxury car segment in India. * Factors affecting the global strategy of automobile giants are consumer preferences, competitive dynamics, and the cyclical nature of product design, environmental factors, and regionalism | OPPORTUNITIES * Opportunity to participate in two fast growing auto segments (premium and small cars) * Opportunity to move into a premium segment with access to world-class iconic brands * Opportunity to increase business diversity across markets and…...

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