The Family of Tata Corporate Strategy - Essay Example

Ideally, there is supposed to be a group brand allying all the parties to the corporate development of the company as a whole. The pros outweigh the cons since there is a likely fight for market domination and a stated, Tata does not need 42 brands to be able to compete with other established companies like Mitsubishi. It requires one strong brand that will be competitive in the market. One of the advantages of re-uniting and corporately trying to achieve the brand strategies is that there will a tendency to achieve the brand recognition and loyalty by the customers.

Formation of the many separate brands according to the owner taste is that there will be a tendency of the brands to confuse the customers. The customers who were even used to one brand in the market will now be divided toward which brand to follow. Another reason why there should be a high level of unity in the brand creation is that there is maintenance of the image of size and quality. The corporate brand will be founded on the basis of economies of scale and will be relevant in the creation of the general image of the company (Wu, Palepu, & Khanna, 2006, p. 2). It will be seen as a strong company based on an established business to the business.

Reliability is created when there is a loyalty shown by the customers based on the strength of the company. There are also adverse cons in the proposed corporate branding. There are different companies with different share values on the company. Therefore, here will still be misunderstanding given that the business laws are indicative of the fact that anyone owning more than 51% of the shares owns the company. Therefore, much as the brand will be the same, binding and corporate, there will be every level of disintegration leading to a slow progress if the company.

Building Of Equity Interlocks Among the Tata Companies Tata companies have investments in very many business interests. The equity interlocks it has generated over he many years of its existence are evident of the abilities it has generated. If the companies are closely held by contractual agreement, there will be a situation in which all the company management team will put the focus of their efforts on the development of the company strategies. There might also be situations when some agreements are based on mutual consensus.

Mutual consensus however is not part of the company operations given the case of Tata and the much strife. It is therefore not easier for a company faced with the situation as it is at Tata to build a group brand. If it is build, there will be a large business empire in operation and will require an absolute corporate operation for there to be success. The advantages of the interlocks are diverse. First, there will be a cost leadership, product differentiation and focus strategy as far as market positioning is concerned.

When this happens, there will be a creation of an economy of scale in the company in which case Tata will have low access to inputs as far as costs are concerned (Doole & Lowe, 2008, p. 278). These inputs are a reference to all factors of production in land, capital, labour and entrepreneurship. Therefore, he interlocking in the company improves the competitive position of the company. However, this interlocking takes away the autonomy of the individual companies in the interlock brands. Each brand usually carries its own advantages and the