Features of the Indian Market Paper Example

Question One. Features of the Indian market

The market of a country serves as an essential aspect that individuals and companies consider when they want to venture to business. The market is a critical aspect in business since it can significantly determine the success or failure of an enterprise. In our scenario, the Indian market portrays several characteristics which attract Tata Motors in the local market. The Indian market is characterized by an increasingly growing economy which indicates the possibility of a broader market for the products of Tata Motors and increased sales. For instance, it is stated that the Indian economy posted an 8 percent growth rate in 2004 (Cullen and Parboteeah 286).

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Nonetheless, the Indian economy has a rapidly growing Gross Domestic Product (GDP) which means that the per-capita disposable income among the Indian citizens is increasing hence the likelihood of more people purchasing vehicles. The case study indicates that compared to other emerging economies, India will get the highest growth rate in GDP up to 2045-2050 (Cullen and Parboteeah 286). The government intervention is another attractive feature for the Indian market. The government is investing heavily in the transportation sector and infrastructure at large which will facilitate the penetration of commercial vehicles in the country. For instance, the government has initiatives like NSEW Corridor, Connectivity of roads to the main ports, and the Golden Quadrilateral, among others. Also, the domestic market is experiencing an increase in the consumption rate of the transportation products and services. The increasing consumption rate shows availability of a market for the Tata Motors' commodities both currently and in future.

Question Two. Tata's SWOT analysis

SWOT analysis is a tool used by firms to establish where they are situated within the industry and market at large. SWOT is significant as it enables a company to evaluate both the internal and external business factors affecting or may influence its performance (198-200). Tata Motors enjoys various strengths. The firm produces a wide range of products to cater for the different social classes in the market. Also, the company has a reliable research and development department which ensures that the firm manufactures innovative products at low costs. Also, the firm is financially strong especially in the local market and thus can invest in high technological innovations that cannot be easily emulated by the rivals in the industry (288). Additionally, the company has good management that has ensured that the firm implements the best penetration strategies in the international markets.

However, Tata Motors has a weakness because it primarily focuses on the small commercial cars which tends to provide reduced profits when compared to the luxury vehicles, and therefore losing high profitability margins. The opportunities for Tata include but not limited to increased partnership alliances and acquisitions such as those with Jaguar Land Rover and Daewoo in Korea to establish and maintain new marketplaces for the firm's products. Another opportunity for Tata Motors is the middle-class population in India is at an increasing thus providing a vast market share for most of its commodities. The company is also facing threats such as increased costs for acquiring input materials, high fuel prices, and changes in the environmental policies and compliance with new emissions standards (289).

Question Three. The five forces model

The five forces model by Michael Porter is a common tool used by multinational corporations to establish the factors affecting their related industry in different countries and the extent to which the sector attracts them. The five forces revolve around competition, new entrants, substitutes, the power of buyers, and the power of suppliers (194). The degree of competition in the automobile industry is high since different firms are participating in the same market line such as TML. Consequently, the idea of Tata Motors acquiring other automotive firms is to mitigate competition. The threat of new entrants is minimal because the case study indicates that Tata Motors has been operating for more than 130 years yet it's one of the leading firms in the vehicle manufacturing. Also, this industry has a financial barrier in that the new firms must have a considerable capital for them to them to kick-start their normal operations.

The bargaining power of buyers in this industry is high because the customers can choose the best commodity from the present wide variety of transportation products to choose. Firms in the automotive sector must evaluate the consumers' tastes and preferences to ensure that they provide products which adequately addresses the wants and needs of the target market. The bargaining power of suppliers tends to be moderate because the suppliers for automobile accessories are few although they are starting to increase as time goes. The threat of substitutes is also high because consumers might prefer other means of transportation apart from the vehicles. For instance, consumers might shift to trains or air transport.

Question Four. Success factors for a global automobile

Key Success Factors (KSFs) refers to the distinguishing features of a firm or its products which will facilitate its success in the given industry (196). The KSFs may include technological innovations of products, quality products, human resources, financial strength, and pricing strategy among others. It is worth to note that competitors in the automobile industry must consider population growth rate and rate of motorization in the target markets before venturing into the market. There exist different KSFs for automobile firms. The firms in this industry must invest in the research and development departments to ensure that they cope up with the dynamic consumers' tastes and preferences. Also, the firms should provide a wide range of products which will cater to all the potential consumers in spite of their socio-economic status. Automobile companies must also set their quality standards and ensure the quality requirements are embraced along the entire supply chain (196).

Question Five. International goals for Tata

Based on the information from the case, it is evident that Tata Motors achieved its goals about global success strategies. The firm strengthened its position in the domestic market by expanding its output capacity for the commercial and utility vehicles, and the passenger cars. For instance, the capacity for passenger car had grown to a 50 percent by 2005. Also, new products such as small pick-ups and the inter-city buses were introduced into the market. Additionally, the company provided new areas for different products such as global trucks and compact cars (289). The company leverages it Research and Development unit to the extent that it provides new engine products for the passenger cars.

Moreover, it is through acquisitions and strategic collaborations that the Tata Motors was operating in 35 nations across the globe (285). For instance, TML acquired Daewoo in Korea in its mission to enter into foreign markets. The firm also purchased Jaguar Land Rover to be able to trade in the growing segment of both premium and small cars, and improve its reputation across the world by partnering with global iconic brands. Also, TML formed had a strategic alliance with Fiat to increase distribution of products, especially in the Indian market. Furthermore, Tata partnered with Marcopolo through a joint venture initiative to promote product development and provision of quality services both in the local and foreign markets (290).

Question Six. Ravi Kanth Statement

Although Ravi Kanth's opinion may be right, I tend to disagree. Instead of aiming at positioning and marketing, Tata Motors should primarily have an approach of focusing on the pricing and features of the product offerings. Focused product approach will ensure that the firm provides products with different prices and characteristics to address the varying tastes and preferences among consumers in the extended global market. Since TML is multinational firm, a multidimensional strategy must be implemented to cater for the market dynamics at the international level and earn a competitive advantage in the automobile industry (182). The firm may not succeed if it only relies on the generic strategy of focusing on market positioning.

Work Cited

Cullen, John B., and Parboteeah, K. Praveen. "Multinational Management: A Strategic Approach". 6th Edition, Cengage Learning. (2013).