Ratan Tata
1.0 PROBLEMS DEFINITION
1.1 Types of Strategies used for Local and International Markets
Under the International Strategic Management approach, companies can choose to either venture their business towards the Global or Regional strategy.
The Global Integration strategy looks at production and distribution of products and services of a homogenous type and quality on a worldwide basis. National Responsiveness strategy requires understanding of individual consumer tastes imposed by autonomous governments and agencies. To further understand the Global and National strategies, we look into the two-dimension matrix below. (textbook, pg277) Quadrant 1 – Global Strategy, High requirement for integration and low awareness of differentiation. Based on price competition, entry strategy used it often mergers and acquisition.
Quadrant 2 – International Strategy. Low requirement for centralised quality check and strategic decision making eliminating the need to adapt to individual countries. Mixed strategy combining low demand for integration and responsiveness.
Quadrant 3 – Transnational Strategy. High requirement for integration and differentiation. Emphasizing both global integration and local responsiveness.
Quadrant 4 – Multi-domestic Strategy. High requirement for differentiation but low concern for integration. Emphasize on local adaption. 2.1 ANALYSIS
Adaption from the Case Studies and Research Cases
Tata Group uses two different strategies locally and internationally when dealing with its businesses.
Local businesses under Tata Group’ umbrella uses the Domestic Strategy which requires product differentiation base on the local adaption. Such example is the Tata Nano Car and the Tata Ace Truck (picture below), produced by Tata Motors at an affordable price for the people in India. Ratan Tata wanted to produce a car which is super cheap yet reliable. Aside from this example, Tata Group has also proven that the goods and services they produced
1.1 Types of Strategies used for Local and International Markets
Under the International Strategic Management approach, companies can choose to either venture their business towards the Global or Regional strategy.
The Global Integration strategy looks at production and distribution of products and services of a homogenous type and quality on a worldwide basis. National Responsiveness strategy requires understanding of individual consumer tastes imposed by autonomous governments and agencies. To further understand the Global and National strategies, we look into the two-dimension matrix below. (textbook, pg277) Quadrant 1 – Global Strategy, High requirement for integration and low awareness of differentiation. Based on price competition, entry strategy used it often mergers and acquisition.
Quadrant 2 – International Strategy. Low requirement for centralised quality check and strategic decision making eliminating the need to adapt to individual countries. Mixed strategy combining low demand for integration and responsiveness.
Quadrant 3 – Transnational Strategy. High requirement for integration and differentiation. Emphasizing both global integration and local responsiveness.
Quadrant 4 – Multi-domestic Strategy. High requirement for differentiation but low concern for integration. Emphasize on local adaption. 2.1 ANALYSIS
Adaption from the Case Studies and Research Cases
Tata Group uses two different strategies locally and internationally when dealing with its businesses.
Local businesses under Tata Group’ umbrella uses the Domestic Strategy which requires product differentiation base on the local adaption. Such example is the Tata Nano Car and the Tata Ace Truck (picture below), produced by Tata Motors at an affordable price for the people in India. Ratan Tata wanted to produce a car which is super cheap yet reliable. Aside from this example, Tata Group has also proven that the goods and services they produced