Case study tata motors acquisition of

Running SUVs in India:

Case study tata motors acquisition of

This acquisition gave the company access to premium cars, a chance to add two iconic luxury brands to its stable and a global footprint.

It gave struggling Ford a chance to rid itself of two loss-making vehicle units. The deal was transformational. It catapulted Tata Motors from a commercial vehicle and small-car manufacturer to a global player with marquee brands in its portfolio. The scale of the acquisition also was large relative to the size of Tata Motors.

The Tata Group, led by Mr.

Case study tata motors acquisition of

When the market turned, the premier car maker was well poised to Case study tata motors acquisition of the benefits and turned profitable during the quarter ended Dec. It was originally founded in by Sir William Lyon as Swallow Sidecar Company but following a merger with British Motor Corporation init was subsequently acquired by Ford in Land Rover is currently a luxury type 4-wheeled drive, all terrain vehicle manufacturer based out of Gayden, Warwickshire England.

After developments, this became a porch of a variety of four-wheel drive models such as Discovery, Defender, Range Rover and Freelander. In its history this company has had a number of ownership. One of the main reasons for this was the increasing competition it faced from luxury carmakers like BMW and Mercedes Benz which had wider product portfolios as compared to Jaguar.

This prevented it from achieving economies of scale and put it at a severe cost disadvantage as compared its competitors. The high manufacturing costs in the United Kingdom was also contributing to its losses.

In, Ford restructured Jaguar in which consisted of closing down a U. Land Rover was much better off compared to Jaguar and is renowned as one of the best four-wheel drive vehicles in the world. Its new products like Range Rover sport had also achieved considerable success.

In order to revive the Jaguar brand Ford needed to broaden its product portfolio which would have required it to pump in big money in new product development.

This as well as the requirement for cash by Land Rover caused Ford to sell off its two premier brands. This was due to the declining sales and profitability of its pickup trucks and sports utility vehicles which were the main source of revenues for the company.

Therefore in order to focus more on its core operations and concentrate its management resources on its core activities, Ford decided to do away with its Jaguar and Land Rover brands. It also stated that it would not return to profitability until Ford stated that weak economy is the primary reason to sell Jaguar and Land Rover.

The two brands were however suffering losses often resulting in closure of few manufacturing plants and heavy cut in workforce Tata Motors Limited stood to have both strategic and economic gains form the acquisition of both Jaguar and Land Rover.

First and foremost, the deal would assist the company in acquiring a global footprint as well as entering the prestigious segment of the worldwide automobile market. After this deal, Tata Motors owned the cheapest car in the world The Nano going at around 2, as well as some of the most expensive and luxurious vehicles such as Land Rover and the Jaguar.

Though the deal solicited some skepticism based on the fact that Tata was an Indian company that was about to display the luxury brands, ownership should not be a major issue in terms of the sales, service and marketing.

Tata Motors will be promoted to become a major player in this industry after the acquisition of Jaguar and Land Rover both of which have global presence as well as a good repertoire in terms of established brands.

It is in this view that the company stands to gain a lot from the deal as its market would be spread out to other geographical regions across the globe. The opportunities in terms of the diverse customer segments would also be increased.

There was the possibility of increased in terms of economies of scale which in turn promotes the cost efficiency. In real sense the deal will appear as an amalgamation of three different companies that have already gone into the market and as a result, the new firm that will be formed after the acquisition will have some increased operation scale.

This will mean that the output production will rise and as a result the cost per unit production will be greatly reduced. Tata Motors Limited prospected that the acquisition of the two Brands would enable it to have an all-inclusive line up of products ranging from cheapest to the most expensive automobiles in the market.

The company has marked its presence in the local market India in the low as well as the mid-class market segments and after the acquisition; the company is likely to experience some of the segmentation of the markets that it has never plunged into. Jaguar cars are prestigious and luxurious and as a result the cars have an established market for most of the celebrities especially in the music world.

On the other hand the Land Rover is a heavy duty vehicle and based on the fact that it is a four-wheel drive it is preferred by most of the governments to carry out different tasks in the rural areas where the road network is not developed, the vehicles are also famous among the affluent class of citizens and therefore the deal will enable Tata Motors to plunge into these market segmentations in which the company was not famous in.

It is also worth to note that the other than the product incorporation, the company was facing tight competition from some of the chief opulence vehicles producers. This segment of the market brought a lot of profits to the company it was highly competitive in terms of the global market.

It was the prestigious brands that dominated the market based on the fact that they had the support of the big automobile companies.

The German Porsche and the American Volkswagen companies backed some of the luxurious brands such as Audi and Porsche. After the deal, Tata Motors Limited would now be able to tackle these brands competitively.

This acquisition came in handy for Tata since it helped the company in acquiring a global foundation hence ushering them into a more extended premier segment in regard to the global market of auto mobile products.

Tata motors acquisition of these two top brands would help it reduce its over dependence on India as it formed its capital marker accounting for almost 90 percent of all of its sales.

The company was convinced that this acquisition would present the company with a lot of opportunities to venture its business across different segments that marked a lot of potential in customer acquisition.DETROIT (AP) — Sam Reinhart and Tage Thompson scored in a seven-round shootout to give the Buffalo Sabres their ninth consecutive victory, over.

On 29th of March, Tata Motors Limited, India, announced, today, that it had completed the acquisition of Daewoo Commercial Vehicle Company Limited (DWCV), Korea. The Chairman of Tata Motors, named Ratan Tata pointed out: “This is indeed a major step for Tata Motors and a milestone for the group in its quest for globalization.

3M Health Information Systems (HIS) is using AWS Service Catalog to reduce time to market, engineer and provision development pipelines in minutes, and meet corporate governance, security, and compliance requirements. 3M HIS is a worldwide provider of software for the healthcare industry. The Tata Nano was a compact city car manufactured and marketed by Indian automaker Tata Motors over a single generation, primarily in India, as an inexpensive rear-engined hatchback intended to appeal to current riders of motorcycles and scooters — with a launch price of one lakh rupees or US$ in the year Numerous factors led to the decline of sales volume, including delays during.

Please click on the manuscript name below to read the articles from the Journal of Case Research in Business and Economics. All articles are published in PDF format and require a PDF reader.

Ford Motor Company is an American automaker and the world's fifth largest automaker based on worldwide vehicle in Dearborn, Michigan, a suburb of Detroit, the automaker was founded by Henry Ford, on June 16, Ford Motor Company would go on to become one of the largest and most profitable companies in the world, as well as being one of the few to survive the Great Depression.

Case study tata motors acquisition of
The China Post | Taiwan in English