Issues Faced by Tata in Entering Global Market

Running Head: ISSUES FACED BY TATA IN ENTERING GLOBAL MARKET
Issues Faced by Tata in Entering Global Market
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ISSUES FACED BY TATA IN ENTERING GLOBAL MARKET1
Introduction
Tata in their market operation is considered to be a major conglomerate under all aspects
which generally consist of many internationally based organizations under their performance
track. Every major organization of Tata operates on an independent basis without maintaining
any mode of close connection with other companies which is comes under their part. Each
organization which are related to Tata basically have their own Board of Directors where the
core aspect associated with each companies of Tata is that there is no any mode of risk sharing
strategies in the market where the challenges and strength are faced on an individual basis. The
report gives more emphasis under the part of identifying and evaluating the core issues faced by
Tata in the part of entering the international market operation.
Discussion
According to several marketing theories demonstrated by Barlett and Ghoshal, which is
completely based and is related to the process of developing an integration framework. This
respective part clearly defines and examines four mode strategies which are based on
multinational basis (Doole, Lowe and Kenyon 2016). This involves Global, international, multi-
domestic and Transnational strategy which is based on certain beneficial factors that are related
to the system of global int5egration and other needs that are associated with the factor of local
responsiveness.
Apart for these respective segments, it is considered to be an understandable part that the
core strategy adopted by Tata for the purpose of adopting international based market operation is
associated with the system of implementing transnational strategy in the market. The core part
was associated with the function where Tata identified their competencies and strength in their

ISSUES FACED BY TATA IN ENTERING GLOBAL MARKET2
domestic market operation and developed an effective strategy in order to adapt effective and
systematic operation in the global market.
Key issues Faced by Tata in Becoming a Global Company
The first and fore most challenge faced by the company Tata motors in part of establishing their
operation in the w market was related to the system of maintaining and strong and adaptive mode
of dealer network in the global market.
The key major problem faced by the company was associated with the part that when
entering the international market many big dealers were aligned with known names like Toyota,
Ford and Volkswagen.
In order to remain more stable and competent in their international market operation one
of the major parts of challenge was to adopt strong and innovative strategy in the part of
convincing the dealers in the market which was considered to be time consuming process
compared to a new entrant in the global market operations.
The other part of challenge faced by Tata motors is related to heavy import and custom
duty in the international market (Akgün, Keskin and Ayar2014). For example, it is
understandable that some countries generally have duties which are high as 250% (Such as
Nepal). This made the existing vehicle category of the brand more expensive as compared to the
prices in India.
For example, Safari storm of Tata motors comes under the piece range of INR16 Lakhs
compared to Indian market and in Nepal the price of the same vehicle is INR 40 lakhs.