Tata Motors and the Fiat Auto: Joining Forces

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Introduction The motor industry is one of the most competitive arenas in the business world. Fiat and Tata have been on the forefront in providing diverse car model in the Indian market. This case study considers the dynamics involved in the merger between Fiat and Tata Motors. Business Opportunity in India India is a diverse community having rich and poor individuals living in a dynamic community setting. Indian population has been on the rise and the need for more cars to satisfy their needs has been on the rise. India provides the motor industry with a unique taste of cars. According to Dhawan, Swaroop, and Zainulbhai (2012), India is a leading market that offers motor companies to acquire competitive advantage through diversification of its operations. India has a growing motor industry (Dhawan, Swaroop & Zainulbhai, 2012). The ability to invest in India’s motor industry makes it possible for companies to acquire a unique position. The demand for new car models is increasing. However, this increase in demand for new car models needs to be complemented with models that are fuel-efficient. Dhawan, Swaroop, and Zainulbhai (2012) notes that India posses the ability for close collaboration within individual industries. The regulatory framework encourages collaboration making it easier for companies to form mergers or partnerships for better market positioning. This is made possible by the ever-increasing competition in the market. Companies that need to increase their market presence in India need to form strategic partnership for better market coverage through production and promotion of unique car brands. Current statistics indicate growth inclined towards inorganic route, which is an inimitable opportunity in the Indian Marke... ... middle of paper ... ...reputation that complements one another. It is also recommended that these companies define their goals in this partnership for a symbiotic relationship to exist. It is important that these companies enact a joint investment strategy with clear ethical guidelines that each needs to follow. Works Cited Dhawan, R., Swaroop, G., & Zainulbhai, A. (2012). How Tata Group is raising its game. Mckinsey Quarterly, (2), 110-111. Hutchison, M., Sengupta, R., & Singh, N. (2012). India's Trilemma: Financial Liberalization, Exchange Rates and Monetary Policy. World Economy, 35(1), 3-18. doi: 10.1111/j.1467-9701.2011.01381.x Lakshman, N. (2006). Fiat Makes a New Friend in India. Businessweek Online, 26. Sangeeta, R., & Pradeep Kanta, R. (2011). Product innovation for the people's car in an emerging economy. Technovation, 31(5), 216-227. doi: 10.1016/j.technovation.2011.01.004

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