Implication of Business Strategy in Indian Automobile Industry: A Case of Tata Motors

Abstract

Purpose: Strategic Analysis is a process of business organization which involves studying the business environment and its operations. For the effective decision making and smooth functioning of business organization, the strategic planning is an essential tool. An Indian multinational automobile manufacturing firm founded in 1945 by the Tata group under the name TELCO (Tata Engineering and Locomotive Company). Indian automaker Tata Motors is the biggest in the world. Since Tata Motors was founded, the company has been engaged in many charitable endeavours, including philanthropy. Strategic planning took a major role in the growth and profitability perspectives of this company. Tata Motors' acquisition of Jaguar and Land Rover is a unique example of a corporation making a strategic decision based on its internal strengths and external opportunities in order to succeed in a competitive market. Tata Motors sought to broaden the scope of its offering and the geographic scope of its market. A steady rise in the number of mergers in the Indian business has been observed over the past decade. Recently completed mergers and acquisitions are a good indicator of an industry's level of competitiveness, potentials, and capabilities. This research is undertaken to examine the firm's potential and capabilities by comparing its performance before and after mergers and acquisition.

Design/Methodology/Approach: When a company expanding its operations in the global level, some factors such as Economic, technological, customer-segment and international competitions will take a major role. The author of this paper has studied the growth of TATA Motors, both domestically and globally, in this study. For the purpose of the study secondary data is collected through various sources such as journals, research articles, newspaper articles and websites of Tata Motors and other ventures.

Findings/Result: The study highlights the critics of Tata Motors' acquisition desire factor out that the timing of the deal is affecting the worldwide economy. The call for business and passenger motors declined because of a slowdown with inside the home and international economy. The newly introduced Tata Nexon could be a game changer for the electric car market in the country due to India's large population and rising standard of living. Due to lack of innovation and major competitors in the market Tata Motors needs to be more innovative in its approach.

Originality/Value: This paper studies the effectiveness of mergers and acquisitions in terms of change in company’s potentiality and capabilities.

Paper Type: Research Case study based on Company Strategic Analysis.