This is evident by the increasing demand for automobiles, new technologies in the industry, emergence of news products, and ratification of novel regulations to govern the industry. Such challenges create both opportunities and threats to Tata Motors in terms unique market demands. The market trend for automobiles is thriving with young people proving to be the potential buyers for cars. Automobile firms target youngsters who like trendy cars and other vehicles. Despite these changing trends, most organizations have also defined their demands on the kind of vehicles they prefer. Such demands have forced Tata to adjust to the new technologies in making fresh and economical vehicles capable of competing favorably in the market. Companies reminiscent of BMW, Toyota, and Mitsubishi among others threaten Tata Motors. The company has to conform to the new market trends and environmental changes or flourish to extinction. Nevertheless, Tata Motors has thrived to enhance its market share globally thus announcing astounding intensification in its revenues in the recent financial years. This illustrates that the company understands its environment and competes favorably with other rivals despite the challenges. Evaluating opportunities together with threats “Opportunities and threats” form exterior aspects that analyze the market trends during the formulation of future strategies.2 The opportunities deeming for Tata Motors are numerous but depends on its approach to the dynamic automobile markets. One of the opportunities is that the company is able to develop its market presence in many countries globally to enhance its market reach. Additionally, despite the stringent competition in the industry, its rivals might flop. This gives it a chance to boost its market breadth. Another opportunity is that the new lifestyle trends are favoring the Tata cars particularly the ‘Nano-car’ model. Majority of the youngsters prefers to by the state of the art cars giving the company an opportunity to improve and emerge with new products. Additionally, the company targets global niche markets in the compact car models. This grants it an opportunity to storm virgin markets and take root before the flock of other brands. The company also gathers a global influence that grants its some publicity in the market. The market volumes, seasonal fashion influences, partnerships, and well-orchestrated distribution channels are other opportunities enjoyable by Tata Motors globally. The threats engulfing the industry incorporate political and legislative aspects that influence the global markets. Most countries have set rules that might disfavor the automobile industry in terms of importation and use of automobiles. The global uproar on the environmental conservation forms another threat to Tata Motors and other industry players. The threatened world economy, season, climatic concerns, credit pressures, enduring competition, technology developments, and changing market demands are other threats that face the automobile industry. Using “Porter’s 5-forces framework” in evaluating the industry The “porter’s 5-forces model” illuminates the nature of competition within an industry3. The automobile indu
Cite this document
(“External Scanning and Analysis (Tata Motors) Essay”, n.d.)
Retrieved from https://studentshare.net/management/46292-tata-motors-external-environment-analysis-using
(External Scanning and Analysis (Tata Motors) Essay)
“External Scanning and Analysis (Tata Motors) Essay”, n.d. https://studentshare.net/management/46292-tata-motors-external-environment-analysis-using.
Cited: 0 times
EXTERNAL SCANNING AND ANALYSIS (TATA MOTORS) Name: Instructor: Task: Date: Environmental analysis of the general industry and trends The automobile industry has experienced competition and massive growth in the recent past. This has forced major key players either to adjust to the market demands or formulate new strategies that would augment their market divide…
Tata Motors, formed in 1945 is one of the biggest Indian automobile corporations. It is the first Indian company to be indexed in the ‘New York Stock Exchange’, in the year 2004. Like a true global player, Tata Motors has presence in the UK, Spain, Thailand and Korea.
Tata Motors has been pretty desperate to make a strong presence in the global low-cost as well as ultra-low-cost car market for many years. In order to make its objective achieved the company, in 2008, launched one of its most ambitious product, Tata Nano.
The reason is that states and different regional alliances are systematically organizing their economics in which technology and innovation played a decisive role in the recent times. Today, China and India are on the top of world economics as both countries are advancing significantly in technology and engineering automation sections (Enderwick, 2012).
According to the report the story of Tata group started back in the year 1868 with the establishment of a Textile Mill at Nagpur by Jamsetji Tata. Starting from there, the company has emerged as one of the leading business group in India with more than 90 business operations in seven different business sectors.
As the company under study ‘Tata Motors’ is a subsidiary of Tata Sons, this site seems to be quite relevant to the entire topic. Tata Motors. 2011. Company Profile. [Online]. Available at: http://www.tatamotors.com/know-us/company-profile.php [Accessed on March 05, 2011]- The same is true about this link.
This report will exclusively attempt to address whether Tata Nano, a vehicle of Tata Motors had been successful in attracting potential customers and the strategies which were followed to achieve the intended desires. The marketing research is conducted by investigating the problem through exploratory research methods.
The company sales in 2010-2011 including exports of the passengers and commercial vehicles stood at 836,629 units which represented a growth of 25.2% since the previous year 2009. This growth was brought about by the revival of export and import trade, infrastructural development, increased construction and mining activities, financial activities and availability of healthy freights (Tata Motors, 2011, p.20).
The two companies have adopted various strategies that have been successfully towards problem solving within and outside the operations. In addition, these strategies have promoted market development within their region and the global market.
The Tata Group manufactured steam boilers and engines for the Indian railway form 1945-1954 when they diversified into car manufacturing as it was a lucrative business. They made an informed decision to enter into a fifteen year agreement with
3 pages (750 words)Essay
Got a tricky question? Receive an answer from students like you!Try us!
Let us find you another Essay on topic External Scanning and Analysis (Tata Motors) for FREE!