Business Model

Key Partners
The long term strategy dictates the need for long lasting partnerships with significant business
forces. The looming threat of other car manufacturers starting operations in Bangladesh also
means that TATA must move fast to acquire some key partners. The most important partner
TATA has in the country is the Nitol Niloy Group which will be the entry point for the business.
The already existing assembly partnership and marketing structure will help TATA to use
existing plants and channels for production and distribution. The entry strategy should be a
partnership or a joint venture. Although TATA has significantly more resources than its
competitors, the distribution channels and manufacturing facilities dictate that TATA go for a
partnership with Nitol Niloy rather than a ground up effort in the country. Next, TATA should
partner with cart parts businesses like tyre manufacturer Runner and lubricant businesses.
TATA should also look to build good rapport with independent automobile distributors to
further aid segmented penetration.

Value Proposition
TATAs value proposition will be to provide the best quality for the cheapest price. The
untapped middle and upper-middle class customer segment is the segment that is the potential
entry and growth buffer.

Distribution Strategy
Utilize existing channels to penetrate parts that the competitors are unable to penetrate. Here,
the partnerships can be a major help. Production efforts should be built with a long term goal
of decentralizing to different parts of the market. Exclusive selling rights must be obtained to
avoid cannibalization from sales of TATA cars from the third party seller market and the
refurbished market.

Pricing Strategy
TATA has to use the brand knowledge and the consumer perception to price its vehicles
accordingly. The value for money pricing must be maintained. This reflects to the core strategic
approach of the business. So, it is the most important part of the model. Pricing must reflect
the buying power and the comfort zone of perceived value to cost.

Company Vision
TATA aims to achieve leadership in market share for all vehicles sold in the Bangladeshi
market by providing superior value for money.

Company Mission
Provide superior value at an affordable price to the Middle and Upper-middle income market
segment of Bangladesh.
Strategy

 Use the existing affordability brand image to increase market share

 Assure quality through existing brand perception

Strategy execution
Indulge in aggressive R&D to ensure innovations that can add value to the product at minimum
cost. This will include designing sophisticated eye-catching models.
Adopt sustainable practices and maintain healthy relations with all the members of the value
chain and constantly upgrade their knowledge by encouraging a learning environment.

Conduct surveys to keep the company updated with the current demands of the buyers and
meet them much before the rivals.

Automobile companies have a complex supply chain. The automobile supply chains can
be broadly classified into - Direct Material Suppliers (auto components fitted on
vehicle) and Indirect Material Suppliers (consumables such as paint, pre -treatment
chemicals gases, etc. used in the manufacturing process as well as other materials
required for supporting processes).

The other key component of the automobile value chain includes sales & marketing and
after sales service to ensure a superior customer experience through dealers and service
touch points.

We engage with our channel partners as well as suppliers very closely. We believe
partnering with our suppliers and dealers for sharing knowledge and developing
capacity, will add to our cost efficiency and ensure an enhanced customer experience.