Mode Of Entry Mode of entry in Korea Tata Motors entered the advanced Korean Market by acquiring Daewoo, with

which it has tremendous synergies in terms of product strategy and R & D. The reasons behind the acquisition were: 1. Company's global plans to reduce domestic exposure. The domestic commercial vehicle market is highly cyclical in nature and prone to fluctuations in the domestic economy. Tata Motors has a high domestic exposure of 94% in the MHCV segment and 84% in the light commercial vehicle (LCV) segment. Since the domestic commercial vehicle sales of the company are at the mercy of the structural economic factors, it is increasingly looking at the international markets. The company plans to diversify into various markets across the world in both MHCV as well as LCV segments. 2. To expand the product portfolio Tata Motors recently introduced the 25MT GVW Tata Novus from Daewoos (South Korea) (TDCV) platform. Tata plans to leverage on the strong presence of TDCV in the heavy-tonnage range and introduce products in India at an appropriate time. This was mainly to cater to the international market and also to cater to the domestic market where a major improvement in the Road infrastructure was done through the National Highway Development Project. Tata Business Excellence Model is different from the Western model that usually focuses only on efficiency. Tata's model is not only about profit-seeking, but it considers the growth of both the company and the community. This is well echoed in Tata Daewoo's vision, which is 'To be the most admired commercial vehicle company of Korea.' It aims to achieve a parallel growth of customers, shareholders, suppliers, employees and the community based on ethical business principles. The second key success factor is the appointment of excellent management staff and 'strategic management.' President Chae Kwang-ok is behind the success of today's Tata Daewoo. He took office as a court-appointed manager to supervise the company, which was hard hit by the foreign exchange crisis in the late 1990s in Asia. The trade union, who wanted job security more than anything else, gave him full support to keep afloat through a divestiture plan. Today two-thirds of heavy commercial vehicle exports out of South Korea are from Tata Daewoo Mode of entry in UK After the acquisition of the British Jaguar Land Rover (JLR) business, which also includes the Daimler, Lanchester and Rover brands. Tata Motors became a major player in the international automobile market. On 27 March 2008, Tata Motors reached an agreement with Ford to purchase their Jaguar Land Rover operations for US$2.3 billion. The sale was completed on 2 June 2008.

In addition to the brands, Tata Motors has also gained access to two design centres and two plants in UK. The key acquisition would be of the intellectual property rights related to the technologies. Under Tata ownership, Jaguar Land Rover has produced the Range Rover Evoque, and other new vehicles, which has made JLR, and Tata Motors produce record profits, and it is likely these record profits will continue, and Tata Motors will most likely develop more models for JLR, due to the recent events Following factors were considered by Tata Motors before entering UK Political Factors The political relationships between countries of operations- India cooperates with the UK within the regime of favourability which implies the certain benefits as reduced tariff and non-tariff barriers. The foreign ownership regulations- UK is considered as one of the most pro-FDI country in EU. The large number of industries, including automotive one, are deregulated. It means that foreign regulation provides foreign companies with flexibility of choosing between all possible entry and expansion modes. Economic factors One of the major location choice determinants is the current and future demand conditions as they will affect the market growth potential, pricing strategy and operations margin and the potential of the return on investment. The target market size- The market value was contributed by the steady growth of average price level. The present market value is estimated to reach the level of 31 billion The maturity of the target market - The UK market is viewed as highly mature. The current maturity causes overcapacity issue and significant sales fall of particular car segments. The growth potential of the target market The overall UK market experiences negative growth due to the maturity issue. Nevertheless, certain the sales of certain car segments have significant growth potential due to the impact of socio-cultural and technological factors. PDI - The strong growth of GDP (10% between 1998-2005), personal disposable income (PDI) (19%) and consumer expenditures (18%) reflect the high level of consumer confidence. In terms of the purchase of new cars consumer confidence has significantly fallen. By the present moment UK consumers have been reluctant to take out new debt and instead are choosing to service their existing debt. Additionally the levels of mortgage equity withdrawal have declined, what indicates that UK consumers do not seek alternative funds to buy expensive items like cars. Labour costs - As the outlook of the automotive industry highlighted, the cost factor and the capability of direct and indirect costs becomes one of the key issues in maintaining competitive advantage. According to the opinion of the industry specialists one of the key issues that will influence the operations location decision will be labour-specific costs. Social factors Demographic factors Demographic factor is one of the key social factors. It affects lifestyle, consumer trends, the type of risk aversive behaviour, spending power and value per customer. The state of demographic trends allows building projections for the use of

particular type of products. The current UK demographics have undermined the sales of family cars Lifestyles- The change of lifestyles and habits have a direct impact on the consumer expenditures. The recent increase of preferences for second car ownership. The impact of lifestyle factors such as fashionability and luxury preferences are so strong 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. 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. 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 eexchange channels between supply chain agents becomes the source of strategic advantage as it creates the ability of fast market response and better value chain quality control Mode of entry in Europe Tata Hispano Motors Carrocera (former Hispano Carrocera SA), based in Zaragoza, Aragon, Spain, is one of the largest manufacturers of bus and coach cabins in Europe. It is a fully owned subsidiary of India's Tata Motors. Tata Motors acquired control of the company in 2005, after purchasing a 21% stake in the company. In 2009, it acquired the remaining 79% from Investalia SA. Apart from their main plant in Zaragoza, Hispano has a second one in Casablanca, Morocco; combined, they have a production capacity of 2,000 units in a year. Hispano bodied buses are built by TATA Motors in India at ACGL plant in Goa. The bus is called Tata Divo. The company will further strengthen the ongoing initiatives to improve operational efficiencies such as productivity improvement, cost reduction, and new product development, to improve market share of the company and enhance brand value. Tata Motors is confident that Hispano will now emerge as an even stronger force in the Spanish as well as Global bus and coach markets Mode of entry in South East Asia Tata Motors has increased its presence in South East Asia both in passenger and commercial vehicles. They have mainly focused on countries like Nepal, Sri Lanka where economic and demographic factors are somewhat similar to India. With huge number of products in its portfolio backed by Tata brand name which signifies quality and reliability they have been quite a success in these markets.