Challenges and Strategies: Tata's Global Market Entry Analysis

This report examines the issues Tata Motors faces when expanding into the global market. It begins by discussing the company's organizational structure and its adoption of a transnational strategy for international operations. The report identifies key challenges, including difficulties in establishing dealer networks, high import duties, and currency fluctuations. It uses a PESTEL analysis to evaluate the political, economic, social, technological, environmental, and legal factors impacting Tata Motors, particularly within the UK market. The analysis highlights the impact of Brexit, economic conditions, changing consumer preferences, and technological advancements on the company's performance. The report concludes by emphasizing the need for Tata Motors to adapt to these challenges to succeed in the global market.

Running Head: ISSUES FACED BY TATA IN ENTERING GLOBAL MARKET
Issues Faced by Tata in Entering Global Market
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1ISSUES FACED BY TATA IN ENTERING GLOBAL MARKET
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

2ISSUES FACED BY TATA IN ENTERING GLOBAL MARKET
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.

3ISSUES FACED BY TATA IN ENTERING GLOBAL MARKET
The other part of challenge faced by the company is related to the inconsistent flow of
import duties where frequent and erratic fluctuation caused in the import duties has affected the
operation of the company in the international market every year on a regular basis. This may also
handicap the formulation of strategy for PV-18.
For example: Import duty related to Sri lanka has changed more than 7 times in 4 years.
The major challenge which is basically faced by the brand Tata motors on a regular basis
at the time of entering the global market is related to the continuous fluctuations which generally
exist in the international market. It is understandable that at the time of fluctuation caused, the
business case parameters may change on a significant basis this has affected the strategic
formulation and market operation of the company on a continuous basis.
PESTEL Analysis of TATA Motors in international market (UK market)
Political
 Some of the major political factors
that negatively impacted Tata motors
was related to their move made from
the side of UK in the part of leaving
EU lead to both political and
economic uncertainties.
 This led to fall of demand for cars and
price hike. This resulted in to decline
of sales associated with Tata Motors
in UK during 2017.
 Being a company based on

4ISSUES FACED BY TATA IN ENTERING GLOBAL MARKET
Economical
multinational basis operating in UK,
Tata motors were impacted negatively
due to slow economic growth in UK.
 This effected the sales of Tata Motors
for the vehicle category Jaguar Land
rover.
Social
 The life style change factor associated
with millennials can negatively impact
the company in the market of UK.
 The core factor can be that several
trend factors related to the buying
behavior of customers is generally
everchanging form ownership to
access which may and purchasing a
care has become a least interesting
part in millennial list (Cui, Walsh and
Zou 2014).
Technological
 For the upcoming times in the future
several development factors that are
associated with system of intelligence
associated cars has become an
international trend. In order to remain
more stable and consistent, it is

5ISSUES FACED BY TATA IN ENTERING GLOBAL MARKET
important for the brand to give more
emphasis on the respective factor to
adapt innovative global operation.
Environmental
 In order to remain more effective in
the market, compared to the
environment factors they have made
the strong implementation of SCR
(Silicon Control Rectifier) and EGR
(Exhaust Gas Reconciliation) in cars.
Legal
 The tax associated with service and
goods is considered to be a better
opportunity part for companies like
Tata Motors.
 This can create a positive effect on
buyers where taxation impact will pass
on to consumer in the form of cheaper
cars. This will boost the growth
associated with manufacturing.

6ISSUES FACED BY TATA IN ENTERING GLOBAL MARKET
References
Akgün, A.E., Keskin, H. and Ayar, H. 2014. ‘Standardisation and adaptation of international
marketing mix activities: A case study’, Procedia-Social and Behavioural Sciences, 150, 609–
618.
Cui, A.P., Walsh, M.F. and Zou, S. 2014. ‘The importance of strategic fit between host–home
country similarity and exploration exploitation strategies on small- and medium-sized
enterprises’ performance: A contingency perspective’, Journal of International Marketing, 22(4),
67–85.
Doole, I., Lowe, R. and Kenyon, A. 2016. International marketing strategy. 7th Edition. Cengage
Learning EMEA, p. 197.
Watson IV, G.F., Weaven, S., Perkins, H., Sardana, D. and Palmatier, R.W., 2018. International
market entry strategies: Relational, digital, and hybrid approaches. Journal of International
Marketing, 26(1), pp.30-60.