TATA Motors: Becoming a Global Contender - Essay Example

The Group had access to capital, land, labor, government approval, raw materials and a ready market for their cars. The Tata Group had already established their corporate image and identity as manufacturers in the Indian Market. Their diversification into car manufacturing when coupled with their collaboration with an established car manufacturer only added to their competitive advantage in the car manufacturing industry. The company was also able to use the economies of scale to their advantage as they were sure of the ready markets of cars in the cheaper and premium sectors.

The Tata Nano is one of the cheapest cars in the world which targets the spectrum of the markets. The Jaguar and Land rover the Higher and middle markets respectively. The Tata Group took advantage of consumers herd tendency for cheaper substitutes while maintaining high manufacturing standards. They were able to accomplish this due to the availability of cheaper labor, land, and raw materials. It is for these reasons that they could manufacture the Land Rover, Mercedes Benz and Jaguar at cheaper costs while maintaining the quality.

The price performance of these vehicles on the market was better which made them more attractive to buyers boosting their sales. The Tata Group had the advantage of low customer bargaining power as the only alternative most of the Indian market had been imported vehicles. The Indian Market for vehicles was ripe for domestic manufacturers. This is because the Indian market was too dependent on expensive imports which made domestic buying more attractive as it was cheaper. India is a resource rich continent in terms of labor, raw materials and specialized services.

This was advantageous to Tata as they had access to cheaper labor as compared to other car manufacturers thereby lowering the cost of production. Cheaper raw materials of steel and other car manufacturing components which were locally