Case Study Tata Motors
Q1. What were the key challenges facing Tata Motors in the process of moving to produce passenger cars from successfully producing commercial vehicles?
The major challenge for the company was the market competition which is a part of Industry Environment that plays a important role in strategy formulation. At the beginning Tata motors had mostly focused on the domestic market mostly demand driven and there was a lack of competency. But when Indica was launched there were three dominant players who have launched their models at the same time. The competitors had a existing structure with a very wide vendor base and customer base. With more fuel efficient and new generation cars in the entry levels coming up in the market led to a situation where customers were more price sensitive. The intensity price …show more content…
Involvement of the top management in shaping up the vision into mission was another turning factor. The commitment and dedication of Ratan Tata in the Indica project was commendable which helped the project to rise and shine. Personal involvement at every step of the project helped in achieving joint ventures and focus.
Efforts were given on integration of different activities on the value chain with one another.
First an ambitious task which was very clear and precise was set followed by a sequence of actions through which the specific task can be performed was set.
Then he tried to translate these operating practices into capabilities i.e the capability of building small cars. Assessing of capabilities was done to bring value to the customers by looking at the benchmarks or best practices.
The resources were linked with the capabilities so that if any resource gap if existing doesn’t act as a discouraging
The major challenge for the company was the market competition which is a part of Industry Environment that plays a important role in strategy formulation. At the beginning Tata motors had mostly focused on the domestic market mostly demand driven and there was a lack of competency. But when Indica was launched there were three dominant players who have launched their models at the same time. The competitors had a existing structure with a very wide vendor base and customer base. With more fuel efficient and new generation cars in the entry levels coming up in the market led to a situation where customers were more price sensitive. The intensity price …show more content…
Involvement of the top management in shaping up the vision into mission was another turning factor. The commitment and dedication of Ratan Tata in the Indica project was commendable which helped the project to rise and shine. Personal involvement at every step of the project helped in achieving joint ventures and focus.
Efforts were given on integration of different activities on the value chain with one another.
First an ambitious task which was very clear and precise was set followed by a sequence of actions through which the specific task can be performed was set.
Then he tried to translate these operating practices into capabilities i.e the capability of building small cars. Assessing of capabilities was done to bring value to the customers by looking at the benchmarks or best practices.
The resources were linked with the capabilities so that if any resource gap if existing doesn’t act as a discouraging