1. Describe economic characteristics of the global motor vehicle industry-
The motor vehicle industry has leaned more towards fuel efficiency since the rise in gas prices, so companies need to switch their focus on how consumers perceive their product to be. Although, some manufacturers did not change with the times and still offer larger less fuel efficient cars, such as US auto makers who specialize in pickup trucks, mini vans and SUVs. With everyone focusing on saving money especially with the financial crisis in 2008 some companies have prospered more than others. Companies such as Tata Motors have come up with a car called the Tata Nano which is the worlds most affordable car in every sense of the way.
2. Would you describe Tata Motors’ international strategy as global, or multi-domestic strategy? Explain your answer. Does this appear to be the optimal strategy? Tata Motors's strategy would be considered a global strategy. In 2012, the corporation had operations in over 80 countries and had gross revenues of $83.5 billion in 2011 (Gamble, 361). Tata Motors' focuses on a broad product line striving for maximum quality and fuel efficiency. They implement this strategy all across the globe for all of their manufactures. They also wanted to focus on middle to lower class income families, offering an affordable product, such as the Nano. Tata Motors' looks to sell their products in a global market and will continue to do so. I feel a multi domestic strategy may be more suited for them considering the extreme competition in the global market. It would be a better strategy to meet customer needs based on geographical location rather than having the same product no matter the location. It can be very hard to compete with the likes of Toyota, Ford and Nissan, so finding different ways to compete is essential to make profits.
3. What are the driving forces in the