Strategy and International Management: Benefits of Foreign Entry for Tata Group in Mexico

Running head: Strategy and international management
Strategy and international management

Strategy and international management
The main aim of this task is to explain and analyze the benefits and advantages of foreign
entry. Tata group has been selected in the task which is leading organization in the world. The
firm was founded in 1868 in India and it operates business independently under the guidance and
supervision of its own board of directors. Furthermore, the group is obtaining various unique and
attractive strategies’ in the Mexico market to gain various benefits. The paper explains that how
Tata group uses differentiation, leadership and other strategies to enter in the Mexico market.
Tata group is the biggest private corporate group in India. Along with this, the paper outlines that
how the company attains benefits by initiating business in Mexico. The paper also explains the
various benefits for entering in the foreign market. More detail of the task has been discussed
below.
Tata group is an Indian multinational conglomerate holding company with its headquarter
is located in Mumbai, Maharashtra India. It is incorporated in 1868 By Jamshedji Tata. It is one
of the biggest conglomerates in India (Rothaermel, 2015). There are approx 695,699 employees
employed in the company. Airlines, consumer goods, chemicals and automotive are included in
the list of Tata group products and services. Along with this, the firm follows effective code of
conducts and values to expand and flourish the business operations and activities widely
(Verbeke, 2013). Tata group operates and manages its business activities in various countries
including Africa, Australia, Europe, North America and South America. It uses effective and
unique strategies and policies to overcome the competitors worldwide. Now the company has
decided to expand its business activities in Mexico to maximize the profitability globally (Tata,
2018).
Mexico is a country between the United States and Central America that is known for its
Pacific and gulf of Mexico beaches and its diverse landscape of mountains. Apart from this,
Mexico ranks among the different countries for doing business in Latin America (Grant, 2016). It
is the sixth easiest country to conduct business activities successfully and effectively. In this
way, if the Tata group starts its activities in Mexico, it can gain various competitive advantages
and increase outputs in the global market. Expanding globally is one of the biggest strategies of
Tata group which helps to generate more and more revenue in Mexico. Recently, the firm is
acquiring and acting other companies in various countries. Tata group shows its interest in the
automobile, telecom, information technology, steel and energy sectors. This is now a new and
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Strategy and international management
ongoing strategy of the firm. One of the significant strategies of Tata group is diversification
which helps to beat the competitors in the market. Under diversification strategy, the firm sells
new and innovative products and services to the customers. This is very risky strategy in the
organization. The firm manufacturers diversified products to attract and retain the consumer’s
worldwide (Chari, 2013). This strategy can be beneficial for the organization to explore the
business in Mexico because marketing research is done by the firm under this strategy.
Furthermore, Tata group also uses market penetration strategy to increase the number of
customers in Mexico. A market penetration strategy focuses and identifies the existing customers
to sale the new and innovative products and services in order to gain higher market share. In
Mexico, there is a little differentiation among the product and service therefore lower price may
help Tata group to maximize its share in the market. In this way, the company is able to stay in
the competitive market. It shall be stated that Tata group also focuses on the STP (segmentation,
targeting and positioning) strategies to analyze the tastes, preferences and desires of the target
market. Feedback is also collected by the top management and seniors to improve and enhance
the quality and features of the products. If the firm conducts business in Mexico, effective
workforce is needed to perform tasks and duties therefore, sustainable human resource
management is maintained to appoint skilled and potential candidates in international market.
Differentiation is one of the ongoing strategies of Tata group to flourish the business in
foreign market. This strategy helps in differentiating the products from the competitor’s products
and services that could lead more profitability and revenue in Mexico. By initiating this strategy,
the firm can make a good and financial position in the international market (Grant and Jordan,
2015). Along with this, leadership strategy is also used by the organization to direct and assist
the business smoothly. Leadership is one of the attractive and effective strategies to render more
and more profit globally. It shall be noted that no company can survive and grow its business
without effective leadership (Barbera, 2014). To maintain an effective control over the workers,
leadership strategies are being implemented within the organization. One of the significant
benefits of leadership strategies is to encourage and motivate the employees towards their goals
and objectives. Apart from this, it increases and maximizes the productivity and returns of Tata
group to initiate the new business in Mexico. Leadership strategy is essential to guide the
workers in foreign market. Motivating employees perform their tasks and duties successfully in
Mexico market. The firm can easily analyze and identify the plans, policies and strategies of the
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