Introduction
Tata motors is one of the leading company in India, it is the number one commercial
vehicle and number three passenger vehicle manufacture in India. Most of the customers
only know Tata motors until 2009, when it first released “Nano” with an unbelievable price
$2,250. However, besides Nano (passenger vehicles) and commercial vehicle, most of the
customers don’t know that Jaguar and Land Rover owned by Tata motors as well. Many
opportunities exist in both global and domestically, how to increase the company image;
market share for passenger vehicle (Nano,) commercial vehicle, and in luxury car market
globally are the critical issues that need to be carefully evaluated by managers.
External Environment- Five forces low-price passenger vehicle industry
Threat of the new entrants- High
It is easy to get into the low-price vehicle industry, all major motor manufactures have the
ability to get into this market, and all recognized the potential growth in low-price car
market. The brand loyalty in low-price car is week, customers may easy choose other
manufacture that provide lower price. Products will not be hard to produce but in order to
compete with others the low price strategy profit may be limited.
Rivalry- Low
There are plenty of successful brands capable to get into this market but haven’t seen any
other company has such extremely low price products like Tata. The rivalry will continue