Tata Motors Case

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Tata Motors Ltd., the largest automobile company in India, belongs to India Tata Group, which is India’s largest private business group. Tata Motors Ltd. was established in 1945, and it began manufacturing commercial vehicles in 1954 with a 15-year collaboration agreement with Daimler Benz of Germany. Its products include passenger cars, trucks, vans, coaches, buses and military vehicles. Now it is the world's eighteenth-largest motor vehicle manufacturing company, fourth-largest truck manufacturer and second-largest bus manufacturer by volume with plants in India, Argentina, South Africa, Thailand and the UK. Its brand lineup comprises its home brand Tata, as well as Jaguar and Land Rover and Daewoo Commercial Trucks. It also has cooperation with Fiat and builds the Tata Nano, marketed as the world’s cheapest passenger car at around $2,500 in its basic version in 2009. All emerging markets feature institutional voids. Tata Motors found that, in India, the market research providers are underdeveloped, and the dealer networks are underdeveloped too, so it is difficult for rural customers to travel to dealerships in urban centers. Also the consumer information providers are underdeveloped, vehicle service networks are underdeveloped, and there are limited sources of capital for target customers. Institutional voids mean there are great opportunities for entrepreneurs to build the future. So these voids were not only challenge but also opportunities for Tata Motors. Tata Motors has successfully adapted to those voids. They innovated a new truck Ace, for instance, which could take advantage of the poor downtown infrastructure, with cramped narrow streets that are hard to reach with large trucks. Because of the underdeveloped market research providers, they managed substantial market research by interviews with potential customers to identify their needs and

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