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Tata Pest

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Submitted By prashanth1989
Words 3275
Pages 14
Submitted By: Group E1
Members: Aditya
Mainak
Pooja
Prashanth
Rahul
PORTERS FIVE FORCE MODEL

1. Industry Rivalry

. Tata Motors produces vehicles both in the Light Commercial Vehicles (LCV) and the Medium and Heavy Commercial Vehicles (M and HCV) segments.

a) Light Commercial Vehicles (LCV)
The market for light commercial vehicles is composed of pickups, vans and coaches weighting up to 3.5 tonnes. This segment has exhibited a consistent growth rate of over 20% in the past 5 years. This growth is expected to continue with the launch of Tata Ace by Tata Motors and similar plans by other players like Mahindra & Mahindra, Eicher, etc. Tata Motors' predominance in commercial vehicles will be challenged by the entry of international brands like Mercedes-Benz, Volvo and Navistar, which have all entered, or are in the process of entering India

It faces higher competition in the LCV segment, where its Tata ACE has been a huge success. Internationalization forms a key component of Tata Motor's strategy and it has successfully entered countries having a demand similar to India like South Africa, Thailand and Argentina, mainly through acquisitions and joint ventures. It needs to improve its product reliability, service network and channel reach in order to maintain and replicate this success in other markets. Some of the recommendations for Tata Motors are exploring mass customization options in the Small Commercial Vehicle (SCV) segment, improving brand reputation and technology appropriation to bring out a world class ultra-HCV segment.

b) Medium and Heavy Commercial Vehicles (M and HCV)
The medium and heavy include commercial vehicles, heavy buses and coaches weighing 3.51-16 tonnes. This segment has stabilized and is expected to grow at 10% over the next 5 years. The major players in this segment include Tata Motors and Ashok Leyland which

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