Discuss about the Business Level Strategy and Generic Strategies.
Limitations of the Recommendation
Although TATA Motors is an international automotive manufacturing company in the worldwide, the process of evaluation of strategic alternatives is complex and difficult and also covering an information scale from both internal and external condition of the firm. It can be done before making of decision. The firm may chose its business to tackle the market either domestically or internationally. The firm must be capable of facing challenges to develop and achieve the guideline of new products setting up by domestic or global government. TATA Motors faces difficulties as their range of automobiles running on diesel. A low cost leader strategy is the basic limitation of the company in Singapore and outside the country. There is low return on investment of share in the company. The products are not treated as luxury because it’s generally keep target on economy class. There is a lack of strong footprint in luxury products in the company of Singapore. The company is running into the worldwide apart from Singapore. Safety standard is not maintained by the company which is the basic limitation of the TATA Motors Company in Singapore. The company is limited according to consumer basis. There are three alternatives recommendation of the company namely leadership strategy, strategic alliances and Greenfield investment (Venkatesh Khanwalkar 2013).
Although the company has presented in many countries, it manages only the large consumer basis in the Indian sub continental. A small portion of the share of market is presented in India. The company has impact on macroeconomic factors within the country. The company has to analyze the proper recent development changes in the economics globe because of the lack of constant sub-prime and turn oil (Lawrence and Chen 2013)
According to Greenfield investment, the company considers a vital level of direct control over the investment enterprise in Singapore. The company must capable to have the full control of the products or services provided in the company of outside Singapore. One of the major limitations of the company is that there is huge cost of transaction and prices are very high in the company into the worldwide it also chooses a model of unique business with local partners in the company (Eren and Zhuang 2015).
Critiques on the Recommendation
TATA Motors is the 5th largest automotive manufacturing vehicle into the worldwide. The company gives more focus on creating the product in the worldwide market segmentation. The company is doing business both in domestic and foreign market. Now the company has chosen a unique business model adoption and working with some local brand to gain some specific knowledge about the market. The company also gets in touch with some big brand like Suzuki as foreign market competitors. The company produces hybrid cars at a lower cost to attract the consumer into the globe. The company has also some factors about the product like keeping down cost dimensions. Opt for hydro performing in place of tubular structure. These factors have started using over the TATA Nano. Labor pool is the major benefit of the company means that the company consists of prosperity of young faculty (Hansen and Nielsen 2014).
TATA Motors is a big international company which aims to give more focus on leadership strategy because it is a lower cost competitive strategy. The theory of leadership is the best cost strategy in the market which requires a destructive structure of facility of efficient scale. The effective process of leadership theory is more important because all factors of production are involved in organization structure. As a leadership theory in the company, there are some threats which create the new sales opportunity for the people who look for the change in their vehicle. As per leadership strategy, India is the most polluted country in the world because the emission of carbon dioxide is in more quantity (Thakur and Sharma 2012).
From the above discussion of TATA Motors in Singapore and outside country, it has been considered that the company has difficulties as their range of automobiles running on diesel. The company seeks to produce hybrid car like diesel and electric car in its first step. With producing such cars the company retained its existing knowledge of technology at the time of implementation of new technology in the business. The company posses a high level of direct control with the help of Greenfield investment which means the company has full control of the product to produce in foreign country.
As per given the three alternatives, it has been concluded that the company is spreading into the worldwide market an planning to produce more luxurious products in the Singapore market and also outside country. To create a hybrid car on TATA Nano, the growth potential will be exceptional because the cost of the car is low. TATA motors are expanding its current business to the Asian market with a strong economic growth of Asia among the global Market. From the above discussion it has been criticized that the company produces hybrid cars at a lower cost to attract the consumer into the globe.
Bhattacharya, J., 2016. 11: Less Remembered Spaces and Interactions in a Changing Singapore: Indian Business Communities in the Post-independence Period. In 50 Years of Indian Community in Singapore (pp. 83-98).
Eren, M. and Zhuang, H., 2015. Mergers and acquisitions versus greenfield investment, absorptive capacity, and economic growth: Evidence from 12 new member states of the European Union. Eastern European Economics,53(2), pp.99-123.
Hansen, A. and Nielsen, K.B., 2014. Cars of future past in Vietnam and India. Tvergastein, 4, pp.72-79.
Thakur, M. and Sharma, R., 2012. Tata Group: the benign hunter. In India: acquiring its way to a global footprint (pp. 113-128). Palgrave Macmillan UK.