marketing strategy of TATA motors - page 4
Keywords: marketing strategy
By finil on 15/05/2009
Level: Master's degree (MA, MBA, MSc, MEng, MRes, MPhil etc)
Page Number: 4 of 10 pages: 1 2 3 4 5 6 7 8 9 10
that it removes the negative effect of market maturity and oil prices in certain car segments. Thus, against all odds, SUVs and luxury cars experience healthy growth, whereas the sales in other car segments have fallen dramatically.
Technological factors
The development of information technologies - The current development of Internet opens new transactional capabilities. Currimbhoy (2004) suggests that continuous development of technological solutions, especially in the area of digital and communication technologies create new operating opportunities such as new marketing mix channels, new purchase environment (e-commerce) and new market research tools. According to Mintel (2006) the number of leading car distributors develop e-commerce to counter the problem of overcapacity.
The impact of new technologies on supply chain architecture – The development of e-exchange channels between supply chain agents becomes the source of strategic advantage (Currimbhoy, 2004) as it creates the ability of fast market response and better value chain quality control.
The review of micro factors affecting UK car business
Competitors’ bargaining power
The UK automotive market is highly consolidated. The major rivalry involves Ford, GM (Vauxhall), VW, Renault, Peugeot, Toyota, BMW, Citroen and Honda. The presence of powerful competitors with established brands create a threat of intense price wars and poses s strong requirement for product differentiation. According to Mintel (2006) the tough competitive pressure require increasing promotional costs, overcapacity introduces a significant price pressure. The present market conditions are so tough, that certain manufacturers had to close certain plants to cut the costs and survive on the market.
At the moment, the major competitive strategies are supply chain improvement, new product development and serving the needs of emerging market segments (Mintel, 2006). The emerging opportunities requires the extremely high level of operational responsiveness and leaves little space till market opportunity will be leveraged by competitors.
Buyers’ bargaining power
Due to high intensity of competition on the global scale and increasing overcapacity issue UK buyers experience very strong bargaining power. According to Mintel (2006) buyers have indicated a high level of bargain-seeking behaviour.
Suppliers’ bargaining power
Though vehicle manufactures have consolidated forming large entities it did not make a significant shift of bargaining power in OEM-suppliers relations. According to Veloso & Kumar (2002) the consolidation in the OEM sector has triggered the corresponding consolidation of different supplier groups. Demand chain partners, car dealers, especially the large ones do experience large bargaining power in the light of the overcapacity issue.
The threat of Substitutes
Apart
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