Competitive Analysis: E-Bay and Tata Motors Business Strategies Report

This report provides a comprehensive competitive analysis of E-Bay and Tata Motors, examining their respective strategies and business models. The analysis begins with an overview of E-Bay, detailing its online auction and retail platform, its innovative approach to the e-commerce market, and its strategy of offering low-cost products and secure transactions. The report then delves into E-Bay's business model, highlighting its auction features, transaction fees, website layout, and focus on customer satisfaction. Following this, the report explores the CAGE framework to understand the company's global presence. The report then shifts its focus to Tata Motors, analyzing its automotive industry operations, strategy of manufacturing low-priced and fuel-efficient vehicles, and its competitive advantages in terms of pricing and technology. The report examines Tata's business model, including its investments in technology, supplier relationships, and market expansion, and how it has adapted to the Indian and global markets. The CAGE framework is also applied to assess Tata's international market strategies. Finally, the report references key academic papers that support the analysis of both companies.

Running head: COMPETITION EVALUATION 0
Competitive Strategy

COMPETITION EVALUATION 1
Table of Contents
E-Bay Incorporation...................................................................................................................2
Strategy..................................................................................................................................2
Business Model......................................................................................................................2
CAGE.....................................................................................................................................3
Tata Motors................................................................................................................................4
Strategy..................................................................................................................................4
Business model.......................................................................................................................4
CAGE.....................................................................................................................................5
References..................................................................................................................................6

COMPETITION EVALUATION 2
E-Bay Incorporation
E-Bay is an American online retailer which operates in e-commerce retailing. It was founded
in 1995 by Pierre Omidyar. E-Bay features an online auction and large variety of products on
their online platform. In 2016 fiscal year, it generated an income of US$8.97 billion. The
reason for choosing eBay is that enterprise takes an innovative step and changes the online
retailing market. The company gained a competitive advantage due to their unique business
approach.
Strategy
E-Bay operates in the online auction and retailing market. Their strategy focuses on
delivering great quality facilities to its users while maintaining their satisfaction. The
company features low-cost products on their websites, as compared to its competitors. The
online auction feature helps users to auction their stuff on eBay’s website. Customers can bid
their price on a particular product and highest bidder gets the product.
According to the research of Amit and Zott (2012), this approach increases the value of a
particular product which increases the satisfaction of both parties. This unique strategy help
eBay gained a competitive advantage because the company did not suffer any inventory
storage cost. E-Bay maintains transparency and security in each transaction, which helps to
establish customers trust in the company. The company uses its technical resources to expand
their market overseas. The innovative strategy of the company ensures its sustainable growth
in the future.
Business Model
According to Hagiu and Wright (2013), eBay’s business model helps them to enhance their
business worldwide and gaining success in the online retailing market. Following are an
essential part of their business strategy:
 Originally eBay is focused on their online auction features which help customers
selling their products based on auction prices. E-Bay provides first 20 transactions
free to its customers and then charges a fee. The layout of their website is simple to
understand by its users.
 The company did not have any inventory storage expenses, like its competitor
Amazon. The company provides secure transaction between customers and

COMPETITION EVALUATION 3
businesses. The transparency of transactions has gained company their customer’s
trust and enhanced their reputation (Chen, Liu and Yu 2012).
 The unique strategy of business gained them an exceptional place in the online retail
industry. The company maintains a high rate of consumer satisfaction and this help
them to sustain their future development.
CAGE
E-Bay’s innovative technology increases their business at a global stage. The business model
of the company ensures their success in global markets. The study of different culture,
administration, geographical and economic aspects gained company their unique spot
worldwide. The company spends their income on innovative technology instead of in storing
inventory in warehouses. The reputation and unique approach of company help in their
success in the online retailing market (Cabral and Hortacsu 2010).

COMPETITION EVALUATION 4
Tata Motors
Tata motors are a part of Tata groups and it was established in 1945. The company operates
their businesses in the automotive industry and it is India’s largest automotive manufacturer.
Headquarter of the organisation is situated in Mumbai, India. The company owns luxury
automotive brands Jaguar Land Rover by an acquisition from Ford Motors. It has an income
of US$42 billion in the fiscal year of 2016. The motive of choosing Tata is that it is the
largest automotive brand in India and it has increased its global dominance by Jaguar Land
Rover acquisition. The company is known for their US$3000 car “Tata Nano” which was a
huge success in Indian automotive market.
Strategy
The strategy of Tata motors focused on manufacturing low priced and fuel efficient vehicles
for Indian middle-class families. The company manufacture other vehicles as well, such as
trucks, vans, and buses. The company’s advantage is their competitive prices and modern
technology. The organisation has a reputation of manufacturing low cost, high efficiency,
comfortable and durable vehicle.
According to the paper of Prahalad and Mashelkar (2010), the corporation’s acquisition and
joint venture deals enhanced their global footprint in automotive markets. Tata’s gain their
advantage from excellent supply chain network that ensure high quality of vehicle with lower
expenses. Tata invests in modern technology to gain market understanding and maintain a
high level of customer satisfaction. The technological advancements and foreign investments
ensure sustained future growth of Tata Motors in the global automotive market.
Business model
According to Wells (2010), the business model of Tata is focused on increasing their global
reputation and enhancing the quality of their Indian vehicles. Following are the key aspects of
their business model:
 The company invest in modern technology to decrease the prices and increase the fuel
efficiency of their vehicles. The demand for a luxury vehicle in Indian automotive
market is low. Therefore, Tata’s focus is on low-cost and fuel-efficient vehicles.
 Tata plan with their suppliers to reduce their vehicle prices. In order to manufacture
“Tata Nano”, the company made deals with their suppliers to provide low cost and

COMPETITION EVALUATION 5
durable parts for the vehicle. The manufacturing of “Tata Nano” significantly
enhanced the market share of Tata Motors in the Indian market.
 Along with Indian automotive market, the company increases their business in global
automotive markets as well. The high reputation of Jaguar Land Rover generated
revenue of £24.3 billion in 2017. The income of Jaguar Land Rover amounted to more
than 50 percent of Tata motors whole revenue (Becker-Ritterspach and Bruche 2012).
 The company manufactures and update their products according to the market
requirements. The benefit of adopting their approach is the high level of customer
satisfaction. The innovative approach of the organisation and modern technology
ensure their success in global automotive markets.
CAGE
According to Mitra (2011), while investing in international markets, Tata research various
cultural, administrative, geographic and economic policies of the countries. It assists the
company to know the requirement and demand of customers from various countries.
Therefore, the company focus on low cost and fuel efficient vehicles in India and while
entering in international markets they invest in luxury car brand Jaguar Land Rover. This
helps in sustaining their development in future projects.

COMPETITION EVALUATION 6
References
Amit, R. and Zott, C., 2012. Creating value through business model innovation. MIT Sloan
Management Review, 53(3), p.41.
Becker-Ritterspach, F. and Bruche, G., 2012. Capability creation and internationalization
with business group embeddedness–the case of Tata Motors in passenger cars. European
Management Journal, 30(3), pp.232-247.
Cabral, L. and Hortacsu, A., 2010. The dynamics of seller reputation: Evidence from
eBay. The Journal of Industrial Economics, 58(1), pp.54-78.
Chen, K.P., Liu, Y.S. and Yu, Y.T., 2012. The Seller's listing strategy in online auctions:
evidence from eBay.
Hagiu, A. and Wright, J., 2013. Do you really want to be an eBay?.
Mitra, R., 2011. Framing the corporate responsibility-reputation linkage: The case of Tata
Motors in India. Public Relations Review, 37(4), pp.392-398.
Prahalad, C.K. and Mashelkar, R.A., 2010. Innovation’s holy grail. Harvard Business
Review, 88(7/8), pp.132-141.
Wells, P., 2010. The Tata Nano, the global ‘value’segment and the implications for the
traditional automotive industry regions. Cambridge Journal of Regions, Economy and
Society, 3(3), pp.443-457.