Tata Motor Essay

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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 …show more content…
Excellent customer service
Tata Motor established a special customer information database, which includes basic information on customers and the purchase of vehicles using the information, in order to reduce customer complaints and improve relations with customers.
Product diversification
The main products include Tata small car (Nano), buses, medium and heavy trucks, commercial vehicle, coach, Land Rover and so on…
Strong innovation
Tata Motor not only have new product—Nano, but also try to improve the quality of cars, such as reduce fuel consumption, enhance the stability and improved safety.
Weaknesses:
Weak external market
Tata Motor’s main market focused on India, and now the company need try to expands to more countries, and attract more customers from developed and development countries. Such as China, U.S.A., European.
Wide variety of cars
Various types of vehicles, means that many of the production chain, also means that need to invest a lot of cost and a lot of human resources, it would be a huge expenditure.
Few fixed customer
Even though India’s population was second largest on earth, there were only 12 cars per thousand people.
Opportunities:
Cooperation with Ford’s company
Tata Motors had successfully purchased the Jaguar and Land Rover from Ford, it means that Tata Motor has more chance into luxury market and will attract part of the high consumer group.
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