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Five Force Analysis

In: Business and Management

Submitted By manishkkkk
Words 1990
Pages 8
Business Policy & Competitive Strategy

Vivek Khanna

TATA Motors

This project is a part of the internal assessment for the subject Business Policy & Competitive Strategy. I have developed a Porter’s Five Forces analysis for the organization. I identified strategic strengths and weaknesses and identified core competencies of the organization . The company that I have taken into account to analysis the Porter’s Five Forces is the Tata Motors. The Specific product that I will be taking into analysis is the NANO CAR. This segment has a great growth potential in developing countries , especially in a country like India.

1. Potential Entrants – Threat of new entrants 2. Buyers – Bargaining power of buyers 3. Substitutes – a. Threat of substitute products or services b. Rivalry among existing firms 4. Suppliers - Bargaining Power of Suppliers 5. Other Stakeholders – Relative Power of Union, Governments etc.

A brief Information about the product :
The Tata Nano is a rear-engine, four-passenger city car built by Tata Motors, aimed primarily at the Indian market. The car is very fuel efficient, achieving around 78mpg on the highway and around 92 in the city. It was first presented at the 9th annual Auto Expo on 10 January 2008, at Pragati Maidan in New Delhi, India. Nano had a commercial launch on March 23, 2009 and, a booking period from April 9 to April 25, generating more than 200,000 bookings for the car. The sales of the car will begin in July 2009, with a starting price of Rs 115,000 (rupees), which is approximately equal to UK£1,467 or US$2,421 as of June 2009. This is cheaper than the Maruti 800, its main competitor and next cheapest Indian car priced at 184,641 Rupees. Tata had sought to produce the least expensive production car in the world — aiming for a starting price of Rs.100,000 (approximately US$2,000 in June 2009)....

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