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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TATA-Motors JVIntroduction TATA-NTTDocomo TATA - Starbucks
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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TATA-Motors JVIntroduction TATA-NTTDocomo TATA - Starbucks
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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TATA-Motors JVIntroduction TATA-NTTDocomo TATA - Starbucks
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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TATA-Motors JVIntroduction TATA-NTTDocomo TATA - Starbucks
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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TATA-Motors JVIntroduction TATA-NTTDocomo TATA - Starbucks
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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