Tata Motors Acquisition Of Jaguar And Land Rover Case Study Pdf


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tata motors acquisition of jaguar and land rover case study pdf

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Jaguar and Land Rover; Tata Motors is the largest multi-holding automobile company in India and it is the fourth largest truck producer in the world. In addition, TataMotors. Since its establishment in , Tata Motors has grown significantly in the past 60years with the strategies of the joint venture. Acquisition and launched new products in different market segments i. A significant breakthrough for Tata was the development and commercialization of the truly Indian cars and they are Tata Indica and Tata Indigo

Tata Motors Acquisition of Jaguar and Land Rover for Case Study!

Acquisition of Jaguar and Land Rover provides the company with a strategic opportunity to acquire iconic brands with a great heritage and global presence, and increase the companys business diversity across markets and product segments. If they run the brands as a British company and invest properly in new product, it will be successful because they are still attractive brands. Market conditions are now extremely tough, especially in the key US market, and the Tatas will need to invest in a lot of brand building to make and keep JLR profitable.

Jaguar was involved in the manufacture of high-end luxury cars, while Land Rover manufactured high-end SUVs. Forming a part of the purchase consideration were JLRs manufacturing plants, two advanced design centers in the UK, national sales companies spanning across the world, and also licenses of all necessary intellectual property rights. Tata Motors had several major international acquisitions to its credit. Tata Motors long-term strategy included consolidating its position in the domestic Indian market and expanding its international footprint by leveraging on in-house capabilities and products and also through acquisitions and strategic collaborations Analysts were of the view that the acquisition of Jaguar and Land Rover, which had a global presence and a repertoire of well established brands, would help Tata Motors become one of the major players in the global automobile industry.

We have enormous respect for the two brands and will endeavor to preserve and build on their heritage and competitiveness, keeping their identities intact. We aim to support their growth, while holding true to our principles of allowing the management and employees to bring their experience and expertise to. However, over the years, the company found that it was failing to derive the desired benefits from these acquisitions. Ford Motors Company Ford is a leading automaker and the third largest multinational corporation in the automobile industry.

After Ford acquired Jaguar, adverse economic conditions worldwide in the s led to tough market conditions and a decrease in the demand for luxury cars. The sales of Jaguar in many markets declined, but in some markets like Japan, Germany, and Italy, it still recorded high sales. As part of the acquisition, Tata Motors did not inherit any of the debt liabilities of JLR the acquisition was totally debt free. The company was of the view that the acquisition would provide it with the opportunity to spread its business across different geographies and across different customer segments Morgan Stanley reported that JLRs acquisition appeared negative for Tata Motors, as it had increased the earnings volatility, given the difficult economic conditions in the key markets of JLR including the US and Europe.

Tata Motors had also incurred huge capital expenditure on the development and launch of the small car Nano and on a joint venture with Fiat to manufacture some of the companys vehicles in India and Thailand. This, coupled with the downturn in the global automobile industry, was expected to impact the profitability of the company in the near future The Road Ahead Tata Motors had formed an integration committee with senior executives from the JLR and Tata Motors, to set milestones and long-term goals for the acquired entities.

One of the major problems for Tata Motors could be the slowing down of the European and US automobile markets. It was expected that the company would address this issue by concentrating on countries like Russia, China, India, and the Middle East. Open navigation menu. Close suggestions Search Search.

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Case study of Tata Motor Acquisition of Jaguar and Land Rover According to industry analysts, some of the issues that could trouble Tata Motors were economic slowdown in European and American markets, funding risks, currency risks etc.

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Literatures, in the past, have discussed several mergers and acquisition cases from the automobile industry. What make the acquisition more interesting is the fact that Tata being an Indian low-cost car manufacturer attains success in handling a premiere brands like Jaguar Land Rover, while Ford in spite of its huge experience and size in the industry, failed to live up to the expectation. Since the acquisition has taken place, sales and profits of Jaguar Land Rover have seen a tremendous growth. As Tata is a low cost car manufacturer and Jaguar Land Rover is a premium car maker, literature suggest some major challenges for maintaining the brand image of luxury products after change of such ownerships. This research aims to identify the branding hurdles for Jaguar Land Rover after the change of ownership from Ford to Tata with the help of the following research question:. This paper uses qualitative study primarily based on ten interviews with top management portfolio holders from Ford, Jaguar Land Rover and Tata as well as industry experts to study the differences in post-acquisition strategies adopted by the two owners. The study reveals that Ford used organizational integration strategies, which limited the quality of decision making of Jaguar Land Rover management team.

Tata Motors’ acquisition of Jaguar Land Rover

Acquisition of Jaguar and Land Rover provides the company with a strategic opportunity to acquire iconic brands with a great heritage and global presence, and increase the companys business diversity across markets and product segments. If they run the brands as a British company and invest properly in new product, it will be successful because they are still attractive brands. Market conditions are now extremely tough, especially in the key US market, and the Tatas will need to invest in a lot of brand building to make and keep JLR profitable.

Tata Motors Limited is an Indian multinational automotive manufacturing company headquartered in Mumbai , Maharashtra , India. It is a part of Tata Group , an Indian conglomerate. Its products include passenger cars, trucks, vans, coaches, buses, sports cars, construction equipment and military vehicles. Tata Motors has a bus-manufacturing joint venture with Marcopolo S.

Case Study of Tata Motor Acquisition of Jaguar and Land Rover

Ratan N. Commenting on the occasion, Mr. Jaguar and Land Rover are two iconic British brands with worldwide growth prospects.

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