Tata Motors & Fiat Auto Vrio Frame Work Analysis - Essay Example

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The paper compare two large companies Tata and Fiat. These companies are concentrating in the manufactures or automatic. TATA has waded through the storms from commercial car manufacturing company to be the largest vehicle manufacturing in India and other parts of the world…
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Tata Motors & Fiat Auto Vrio Frame Work Analysis
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"Tata Motors & Fiat Auto Vrio Frame Work Analysis"

This essay analyses the case of Tata and Fiat joining forces using the VRIO analysis frame work. The joining forces between Tata and Fiat have added value to the two companies because both companies have improved on the good will and this has really increased on the trade activities within their operational country and other neighboring countries that have developed loyalty towards their products. In addition, the joining of forces has also worked to improve on the client bases of individuals and organizations that are purchasing the products as it has worked towards improving network and customer service of all the stakeholders of the two companies. The joining forces have also made competition for the two companies favorably as it has served to build the image for the two companies. The two companies have also shared mutual relationships as they have combined their strategies and spare parts; therefore their products have tremendously improved on quality. Moreover, joining of forces created value in that the alliance made the company better financially by improving profits, increasing the total sales turnover and synergies benefits. Value created by the alliance to increase profits is through the shift of skills from one motor company to the other which aided in boosting weaknesses of each company, and strengthening their individual strengths. For example, since Tata is more widely recognized this alliance will help boost Fiat’s image and reputation. Furthermore, the alliance increases sales of motors hence getting more profits then uses the profits to expand the business which translates to a more strong financial value for both companies. This is also in line with the reduction of manufacturing costs due to large production and manufacturing rates and the strength in numbers which eliminates competition from rival companies. Rarity Many developed and developing companies have taken it their role to manufacture their own vehicles, therefore, improve on the revenue and increase their employment opportunities. Vehicle manufacturing is controlled by a large number of firms in India, therefore, the joining forces between Tata and Fiat faces stiff competition from other major firms manufacturing vehicles in India and markets their vehicles both locally and internationally. In addition, the joining forces also faces stiff competition from these firms as they have also joined forces between themselves to capture the market and compete favorably in the face of competitions posed by other firms (Tata Motors Case Study). Imitability The vehicles manufactured by the two joining forces are not imitable therefore; the joined companies have a major competitive advantage over other companies. There are different vehicle manufacturing companies in India and all have their brands for each particular vehicle they manufacture. Therefore, prospective or would be competitors of the joined forces of Fiat and Tata might make similar brands of vehicle, but will differ in terms of spare parts, engines and other parts from those manufactured by these joined forces. Therefore, both Tata and Fiat have a permanent advantage over their competitors as they autos can not be directly imitated. The competitive advantage that the company have over the other competitors have allowed the them to lay focus and emphasis in high-volume segment manufacturing and employ pricing strategies that guides in the high-volume segme Read More
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I never thought 750 words essay could be written in such a free manner. I loved the background of this essay. Will definitely use it for my own work!
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