Tata Motors International Acquisition Strategy
2/28/2010
ACAD GROUP 27 - good effort, stock trend could be simpler and thus effective- 19.6
Bhawna Jain PGP-09-110
Chetan Mehta PGP-09-111
Ranjan Singh PGP-09-154
Shounak Parida PGP-09-163
Vimina Bt PGP-09-177
Visram R PGP-09-179
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Company Profile
TATA Motors is the flagship company of the TATA group & is India's largest automobile player with consolidated revenues of USD 14 billion in 2008-09. It is the leader in commercial vehicles in each segment, and among the top three in passenger vehicles with winning products in the compact, midsize car and utility vehicle segments. TATA Motors was listed on the New York Stock Exchange in 2004.
Established in 1945; over 4 million Tata vehicles ply on Indian roads, since the first rolled out in 1954. Prior to launch of Indica (1998), India's first fully indigenous passenger car, Tata Motor’s main product line was commercial truck followed by buses. CVs are an important source of transportation of both goods and passengers. According to NHAI estimates, 85% of the passenger traffic and 70% of freight traffic in India is carried by the roads with the balance being carried by the railways. So entering the passenger vehicle segment was a major diversification for the automobile maker.
Diversification strategy - F-E-R approach– Focus on core, Expand beyond core, Rediscover new core Post entry into passenger vehicle segment Tata’s continued their diversification into mainly related fields which basically provided three main benefits:
New markets (geographies) – primarily European and North American markets
New and better products- which help to serve existing markets as well as serve new markets better
Lower costs by means of complementing strengths and sharing assets
In order to further the expansion and diversification strategy, during the course of this text, we will consider
Acquisition of Daewoo (Truck division) S Korea and Hispano (Spain) for Commercial Vehicles ok
Tata
ACAD GROUP 27 - good effort, stock trend could be simpler and thus effective- 19.6
Bhawna Jain PGP-09-110
Chetan Mehta PGP-09-111
Ranjan Singh PGP-09-154
Shounak Parida PGP-09-163
Vimina Bt PGP-09-177
Visram R PGP-09-179
|
Company Profile
TATA Motors is the flagship company of the TATA group & is India's largest automobile player with consolidated revenues of USD 14 billion in 2008-09. It is the leader in commercial vehicles in each segment, and among the top three in passenger vehicles with winning products in the compact, midsize car and utility vehicle segments. TATA Motors was listed on the New York Stock Exchange in 2004.
Established in 1945; over 4 million Tata vehicles ply on Indian roads, since the first rolled out in 1954. Prior to launch of Indica (1998), India's first fully indigenous passenger car, Tata Motor’s main product line was commercial truck followed by buses. CVs are an important source of transportation of both goods and passengers. According to NHAI estimates, 85% of the passenger traffic and 70% of freight traffic in India is carried by the roads with the balance being carried by the railways. So entering the passenger vehicle segment was a major diversification for the automobile maker.
Diversification strategy - F-E-R approach– Focus on core, Expand beyond core, Rediscover new core Post entry into passenger vehicle segment Tata’s continued their diversification into mainly related fields which basically provided three main benefits:
New markets (geographies) – primarily European and North American markets
New and better products- which help to serve existing markets as well as serve new markets better
Lower costs by means of complementing strengths and sharing assets
In order to further the expansion and diversification strategy, during the course of this text, we will consider
Acquisition of Daewoo (Truck division) S Korea and Hispano (Spain) for Commercial Vehicles ok
Tata