Tata Motors: Acquisition Of Jaguar And Land Rover Case Study

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Tata Motors: Acquisition of Jaguar and Land Rover Case Study

Tata Motors: Acquisition of Jaguar and Land Rover Case Study

Question 1

Tata Motors Limited stood to have both strategic and economic gains from the acquisition of both Jaguar and Land Rover. First and foremost, the deal would assist the company in acquiring a global footprint as well as entering the prestigious segment of the worldwide automobile market. After this deal, Tata Motors owned the cheapest car in the world (The Nano) going at around 2,500 as well as some of the most expensive and luxurious vehicles such as Land Rover and the Jaguar. Though the deal solicited some skepticism based on the fact that Tata was an Indian company that was about to display the luxury brands, ownership should not be a major issue in terms of the marketing. It is also worth noting that the acquisition of Jaguar and Land Rover both of which have global presence as well as a good repertoire in terms of established brands, Tatar Motors will be promoted to become a major player in this industry.

The deal would also assist Tata Motors in reducing the dependence of the company to the Indian market which was at 90% of the company's sales before the acquisition. It is in this view that the company stands to gain a lot from the deal as its market would be spread out to other geographical regions across the globe. The opportunities in terms of the diverse customer segments would also be increased.

Tata Motors Limited prospected that the acquisition of the two Brands would enable it to have an all-inclusive line up of products ranging from cheapest to the most expensive automobiles in the market. The company has marked its presence in the local market (India) in the low as well as the mid-class market segments and after the acquisition, the company is likely to experience some of the segmentation of the markets that it has never plunged into. Jaguar cars are prestigious and luxurious and as a result the cars have an established market for most of the celebrities especially in the music world (Singh and Metry, 2001).

Question 2

Through Tata Motor's acquisition of two of the most respected and iconic British brands that is Land Rover and Jaguar from the Ford Motors based in the United States, Tata motors stands to enjoy some gain on several grounds from that deal. This acquisition came in handy for Tata since it helped the company in acquiring a global foundation hence ushering them into a more extended premier segment in regard to the global market of auto mobile products. Through this acquisition Tata would slide into possession of the cheapest car in the world thus the Nano at $2,500 in addition to recognized and well respected luxurious brands like the Land Rover and the Jaguar.

Tata motors acquisition of these two top brands was that the acquisition of JRL would help it reduce its over dependence on India as it formed its capital marker ...
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