tata jv group12 seca vf

7/26/2019 Tata Jv Group12 Seca Vf

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Joint Venture Analysis of TATA Gro

Submitted By

Group 12

Section A


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TATA-Motors JVIntroduction TATA-NTTDocomo TATA - Starbucks

About TATA group

Tata Group has over 100 operating companies witheach of them operating independently.

Perceived to be India's best-known global brandwithin and outside the country as per an ASSOCHAMsurvey.

The 2009, annual survey by the Reputation Instituteranked Tata Group as the 11th most reputable

company in the world.

About Joint Ventures

A long-term participation of two or more companies inan enterprise in which each party contributes withassets, has equity participation and shares risk

Reasons for Joint Ventures

Interest of foreign investors to minimize capital outlays

or risks of entry by using the local partnersassets

Lack of knowledge of the local institutional and legal

environment

In strategic sectors, the countrys laws may not allow

full ownership of operations by foreign nationals

Challenges faced in JVs

Partne

Satisfaorgani

Customin prodMarke

Financ

Returnemploy

Compa

Exportturnov

Multinationals which choose joint ventures as their entry vehicle into India think that a local part

the markets complexities and manage regulatory issues.


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Telecom Industry in 2008 Company Overvi

Prior to 2002, TTSL provided basictelephony services in major cities ofKarnataka, tamilnadu, delhi, andGujarat.

Predominant mobile phone operator in Japan In March 2008, NTT DoCoMo had more than 50%

market share in Japans cellular market.

Reasons for JV

TATA TELESERVICES LTD.

The company had a pan-India presencein the CDMA technology

However the technology was notpicking up with the customers

It needed a collaborator with such corecompetence

Prorev

ApincfeeSer

To Do

NTTs main contributions were its 3G technology andfinancing. TTSLs contributions were its distribution netwo3500 stores; it already possessed a pan-India license for GSM platform


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Details of the JV

Two way communication

Activation Platform CREATE

Unique Dive In stores

Pay per second Billing

BUDDY NET

Pay per site Initiative

Free Airtime Rollover

Impact Post JV

0

2000

4000

Total revenue(cr)

Total

revenue(cr)

0

2000

4000

2007

2008

2009

2010

2011

2012

Total expenses

Toatl

expenses

Impact Post JV

-1000

-5000

500

2007

2008

2009

2010

2011

2012

profit/(loss)

profit/(loss)

Ana

Tata DoC

Strength

Flexible plans ,Good advertisHigh brand visibility

Youth appeal, assistance/ JV frNTT Docomo (Japan), VAS

Ability to attract customers wvarious plans

Opportunities

Fast expanding cellular mar

Latest and low cost technolUntapped rural marketValue added services

Financial performance shows that Tata DoCoMo took advantage of technology from

NTTDoCoMo to expand its services across the country. They introduced various

services to attract customers but failed to convert into financial benefit of thecompany.


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Industry Overview

Company Overview

TATA MOTORS

India's largest automobile company The leader in commercial vehicles and

among the top three in passenger vehicles World's fourth largest truck manufacturer,

the world's second largest busmanufacturer

MARCOPOLO

Brazilian bus manufacturer Manufactures the bodies for a whole range

of coaches

It has four plants in Brazil and plants inArgentina, Australia, Colombia, India,Mexico, and South Africa

Reasons for JV

Tata does not make buses;they make just the chassis

Develop the market for fullybuilt buses in India

To make their presence feltoverseas and to strengthen itsheavy segment in India

Lacked connections in India Had limited market knowledge Extend its presence in the

high-potential markets of India Strategy of international

expansion

Deta

Marcopolo invest Tata has 51 perce

percent equity

The aim of JV wasgovernments in tand obsolete flee

Imp

Opportunity to leboth partner orga

Increased power principles guidin

Tata Motors gets which would alloproducts in India

This deal provideand credibility ac

Latin American m With the help of t

out Chinese compCentral American

Joint venture with Marcopolo led to product development and participation in mass transport o

domestic and international markets. Tata Motors could successfully address the growing demanrelevant markets abroad


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Company Overview- FIAT

Fiat came into existence on July 11, 1899 1stFiat car manufacturing facility was

opened in 1900 in Corso Dante, Italy.

By 1911 Fiat group diversified in theproduction and marketing.

By 1925, it had entered the steel, railways,power. Fiat groups auto division used mass

production

Reasons for JV

FIAT

Failed to move from small segment cars tolarger segment cars.

Italians Government decision to withdrawthe concessions and subsidies given to thecompany.

Give foreign auto companies free access tothe Italian market.

Demand for cars started falling in Italy andEuropean countries.

By 2002 Fiat had a loss of US$ 2.5 billionand market share was down to 28 % inItaly and 7% in Europe

TATA MOTORS

Had excess plant capacity which it wantedto utilize

Access to Fiats diesel engine technology

Details of the JV

The two companies formerly also had adistribution joint venture through whichFiat products were sold in India throughjoint Tata-Fiat dealerships

Tata Motors has taken its alliance with Fiatto produce a new one-ton pick-up truck, forLatin American markets from Fiat's facilityin Argentina

Access of global market to Tata Motors andsupplement of value chain to Fiat India.

Impact- Post JV

Around 190,000 cars and 337,000powertrains have been produced by the JVfrom 2007 to 2012

Both Fiat and Tata cars are produced at the

Ranjangaon plant both the Indian and export

market

Failu

Dealers tend to favFiat

Fiat has not been a

value for its brands Joint venture has r

during2007-2010

Our

From Ansoff Matrix we ileverage the technologymanufacturing and of Fimanufacturing to develo

In order to be successful in the large global footprint, TATA Motors will need to adopt a focused product offering, aggreaccommodate the local need, and will have to do it at the right price allowing to pursue the growth strategy in the domest


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Industry Overview Company Overview

More than 18,000 storesin 62 countries

Broad appeal on

experience, Purchases and roastscoffees that it sells, alongwith handcrafted coffee,tea and other beverages

To broaden itsgeographical positioning,Starbucks also movedinto the tea business

Unites the beverageinterests of Tata underone umbrella.

It signals their globalambition, in evolutionfrom a history inplantations to becominga brand focusedorganization with aportfolio of excitingconsumer brands

Reas

Maximum-maximum st

Minimum-Maximum st

Tata Glo

Gainvastamountofk Bottled Himalayan wa

Starbucks outlets acro Opportunity to innovat

new beverage experien

Starbucks will work wschool for children wiincrease its capacity acommunities in the coKarnataka

St

Knowledge and under Benefit from TATA glo A step ahead of compe

TATA group

India represents one of the most significant opportunities that we have in all of Starbucks. India shoul

markets in the world for Starbucks. I would say one of the top five over time," - Starbucks CEO H


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Starbucks plans to enter India in 2007 failed

On 31 January 2012, Starbucks announced its

objective to open 50 outlets in India by the end

of 2012 The two partners invested a total of $80million

initially

The stores were decided to be cobranded

StarbucksCoffee: A Tata Alliance.

Cafes operate under the quick service

restaurant (QSR) category

On 19 October 2012, Starbucks opened its first

store in India, Elphinstone Building, Horniman

Circle, Mumbai.

Starbucks has 36 stores across 5 cities in India

Details of the deal Impact- Post JV Our

The joint venture with Starbucks is in line with Tata Global Beverages' strategy of growing through inorgstrategic alliances in addition to organic growth.


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PRODUCT DEVELOPMENT

SECURITY

INCORPORATE GLOBALPRACTICES

INORGANIC GROWTH

TATAs local expertise and knowledge which the

company has acquired over its long haul in thecountry

TATA aims to learn andpractices in different

The TATA Group has followed an inorganic growthstrategy for increasing its global footprints. As

mentioned by many top TATA leadership members,this is in line with the mission decided by them.

In all the industries, the done for product develop

quality adages to it

TATAs local expertise and knowledge which the company has acquired over its long haul are factors th

reliable and lucrative partner to venture with a new market. Hence, it can be said the companies chose TApurpose of market development in India.


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tata jv group12 seca vf

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