Tata Motors (Mini Case Study 1.1)
Q1. Identify the purpose of the international projects mentioned above.
The growth of the Indian middle class together with the growth of the economy over the past few years attracted many global car majors to the Indian market. India can provide trained manpower at a competitive cost that can make its market a favoured global manufacturer. The main purpose of this project started based on the New Delhi-based National Council of Applied Economic Research report 2006 that India has over than 65 Million person that earns over 4400 US$ annually and a car priced at half the annual income could be a good opportunity. Finally, i can say that this project is demand driven by the wide market and the income level opportunity.
Q2. What main stakeholders can you identify in the various projects?
Main stakeholders can be :
1- Government of west Bengal.
2- US automotive Supplier
3- Delphi Italian design
4- Italian auto manufacturer (Fiat)
Q3. Which risks can you identify ?
Many risks can be pointed to in these kind of projects, but one of the most identified risks in this case is the increased raw material prices that led to the car price increase from 2200 to 3000 before taxes especially in 2008. Also due to environmental concerns extra costs for TATA motors could cause a problem and will for sure impact its competitive advantage.
Being forced to relocate their first plant from Bengal to Gujarat due to violent peasant protests can cause new unpredicted threats. On the marketing side, I believe that TATA has focused on the commercial and small vehicle segments, and that left them open to competition from overseas companies especially for the Indian luxury segments.