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by: Layla Abernathy III

SemInternationalStudies IN410

Marketplace > Norwich University > International Studies > IN410 > SemInternationalStudies
Layla Abernathy III
GPA 3.74


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Class Notes
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This 2 page Class Notes was uploaded by Layla Abernathy III on Monday October 19, 2015. The Class Notes belongs to IN410 at Norwich University taught by C.Thalman in Fall. Since its upload, it has received 37 views. For similar materials see /class/224387/in410-norwich-university in International Studies at Norwich University.


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Date Created: 10/19/15
Competitive Advantages TA TA Tata Motors is located in the developing country of India This location has been and will continue to be vital to Tata s success In India Tata can take advantage of the fact that manufacturing labor cost is only eight to nine percent of sales compared to 30 to 35 percent of sales in developed countries In addition India is one of the world s largest producers of automotive components which gives Tata Motors direct access to many of these components Tata has higher bargaining power with suppliers because it is a local not foreign car manufacturer Tata Motors is able to leverage lndian automotive market because the current increase in demand due to the improvements in infrastructure and growth of population and disposable incomes in India The Society of Indian Automobile Manufacturers stated India where some 14 million new cars are sold each year is also a hugely attractive market for dozens of car companies and most ofthem can t risk ignoring what appears to now be a potent competitive advantage for Tata Motors India s car market is expected to touch 22 million units a year by 2010 Livemintcom Additionally the India government has made protectionist policies and regulations that are extremely favorable to Tata In December 1997 the Indian government put in place policies that require foreign carmakers to invest at least 50 million dollars in equity to set up manufacturing operations in India This means that Tata Motors is able to take advantage ofthe low cost of labor land assets and overall investment practices without having to implement this 50 million dollar investment Finally Tata Motors largest competitive advantage is that it has prospered and grown in only developing markets for over 70 years Tata Motors has implemented programs that allow it to prosper while maintaining low costs and high profits Lastly Tata Motors has a competitive advantage simply because they are part of the larger Tata Group Tata Group supplies Tata Motors with access to knowledge resources technology and companies operating in many different industries worldwide allowing innovation and easy availability to access other sources Krishnan Ravi quotTata Small Car Throws a Big Punchquot Livemintcom 11 Jan 2008 22 May 2008 lthttpwwwlivemintcom2008011 1001158Tatasmallcarthrowsa bigpuhtmlgt The Economist quotA usedcar bargainquot Economistcom 13 May 2008 lthttpwwweconomistcombusinessdisplaystomcfmstom id10910868gt


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