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Report on Tata Motors and Internationalization Process

Number of Words : 5669

Number of References : 24


  An overview and Brief History of Tata Motors
  A critical overview of underpinning of International Process and MNE’s
  An analysis of Tata motor’s operation towards International Expansion
  Two suggested International markets for Tata Motors – UK & China
  Challenges for Tata Motors
  Discussion and Conclusion


Amidst the ubiquitous presence of Globalization, Internationalization has become all pervasive and promising strategies for growth in the existing economies. International expansion, hence, has become an innate component for MNEs for sustained survival. Recent Analysis by international organizations such as UNCTAD, OECD etc exhibits that international expansion of big companies from emerging economies (commonly referred to as EMNEs rather than MNEs) is a new and dynamic feature of global landscape. And, Goldstein (2008), states that the Indian corporate sector has been an active participant in this “game.”<br />Tata Motors is one such name that comes central as one talk on successful national growth and international expansion. Tata group plays a central role in the Indian economy and is at the fore in the internationalization of the Indian companies.<br />Where this fast expanding business of Indian Companies into advance market has been made possible due to advantageous amended economic and foreign trade policies, Goldstein (2008) indicates the second reason as competitive edge driven by cost advantage, production efficiency, managers’ willingness to take on risk, and exposure of domestic companies and their management to Western and Japanese competitors. Henceforth, internationalization becomes prominent backend by competitive edge combined with lacerating government role providing political support to Indian companies and managing the economy and the rupee in a way that is conducive to outward FDI.<br />Established in 1945, Tata Motors Limited is India’s largest automobile company in India with international presence and further vying to invest in the countries which has not been explored yet but have potential for big business such as US, UK, European Countries, Africa, China etc. Existing for more than half the century, Tata Motors has well planned and experienced management strategies and powerful resources that makes an MNE ready to step down in any economy.<br />In this report we examine the internationalization and technology strategies of the Tata Motors. We argue the strategies in the light of existing internationalization process approach. By studying process of International expansion for MNEs discreetly we hope to draw its implication to Tata group.<br />We start by noting in the following section the need for moving away from traditional frameworks for accepting the process of internationalization in recent times. For this, a reflection has been made on the growing significance of diversification for successful internationalization strategies. Process of Internationalization has been covered in detail with respect to forms of internationalization, entry mode type etc. Secondly, this report tends to cover the TATA Motors. A brief history, SWOT Analysis, International process of Tata has been unveiled in the report to know more closely about TATA Motors. Another section identifies the two Hypothetical Markets – UK and China, where TATA Motors can lead their international expansion plans. We conclude this section by pointing out the major advantages and challenges offered by internationalization process in these regions. The final section i.e. Conclusion has been made by culminating the key features of Tata internationalization strategies in the wider context of globalization.<br />

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