Indian Multinational Automobile Manufacturer

RUNNING HEAD: INTERNATIONAL BUSINESS

1INTERNATIONAL BUSINESS
Established in 1945, Tata Motors Limited is an Indian multinational automobile manufacturer
that was established in India. It is one of the most essential parts of the 100 billion Tata Group
and is also one of the largest automobile companies in India. Apart from its spread in India, the
company also has its presence worldwide. It has its operations in the UK, South Korea, South
Africa, and Thailand (Palepu, Anand, & Tahilyani, 2011) The company makes use of the
SMART tool in the analysis of the potentials of the target locations. The Report focuses on the
analysis of the potential markets for the company by means of SMART tools. It will further
analyze the advantages and disadvantages of the macro environment in those target areas by
using a PEST C analysis.
Countries that are potential Market for Tata Motors:
1. US
2. CANADA
3. INDONESIA
4. TURKEY
5. MALAYSIA
Possible reasons for the success:
The choice of the target locations has been done based on some of the advantages that the
company can get from these countries if they aim at expanding their business in these places.
The US is a country that has high buying power and so is Canada. Moreover, though these areas
are highly dominated by the automobile giants, there are, however, few companies that cater to
the needs of the middle classes (Mulyana & Djajadiningrat, 2013).. Tata Motors will be able to
provide this opportunity in this market. Moreover, the trade policies and regulations in the US
are quite lenient that make any business a successful one. Canada is a place where the company

2INTERNATIONAL BUSINESS
is shifting slowly in the service-based model and is highly focused on consumer data and
customer experience. Tata Motors with its comfortable service and low price will be able to
target a large segment of customers.
Turkey is also a good choice for the company as it has been recently the seat of foreign
investments and thus is having an economic foothold. The company can also profit from the
liberal trade policies by the government.
Indonesia and Malaysia are the two countries in the southeast that has a large market
sector for the low range of cars. Thus, these two areas automatically fall under the suitable
locations for the cars. Moreover, the automotive industry in Indonesia plays a crucial role in the
economic growth of the nation, contributing to 10.16 of the GDP.
Qualitative and Quantitative analysis of five potential countries using SMART Model:
Defining the marketing goals refers indirectly to the defining of the company goals for
any organization. The SMART method uses both quantitative and qualitative data to analyze and
narrow down the available countries for international expansion decisions. In defining the
qualitative as well as the quantitative marketing goals, the economic key figures are generally
not taken into account. In analyzing the qualitative and quantitative data about the five countries,
the Tata Motors Company at first must take into accounts the key success factors of venturing in
the new markets. The main issues that need to be taken into consideration are;
1. Availability of potential target market
2. Availability of considerable help from the government of the host company and
3. The number of competitors.
4. Availability of the target market: