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Tata JV Group12 Seca VF
Tata JV Group12 Seca VF
Submitted By
Group 12
Section A
Multinationals which choose joint ventures as their entry vehicle into India think that a local partner can better navigate
the markets complexities and manage regulatory issues.
Introduction
TATA-NTTDocomo
TATA-Motors JV
TATA - Starbucks
Evaluation Metrics
Partner Interaction Parameters:
Satisfaction of partners, State of
organization
Customer & Product Dynamics: Increase
in product range, Customer satisfaction,
Market share
Financial Performance Measures:
Return on equity, Rate of return on capital
employed, P/E ratio
Company Turnover: Capacity expansion,
Exports as % of sales turnover, Sales
turnover
Overall Analysis
Introduction
TATA-NTTDocomo
TATA-Motors JV
TATA - Starbucks
Overall Analysis
Company Overview
Reasons for JV
TATA TELESERVICES LTD.
NTT DOCOMO.
NTTs main contributions were its 3G technology and financing. TTSLs contributions were its distribution network, its retail chain of over
3500 stores; it already possessed a pan-India license for GSM platform
TATA-NTTDocomo
TATA-Motors JV
Overall Analysis
Analysis of JV
Total expenses
4000
2012
2011
2010
2008
2000
2007
TATA - Starbucks
Impact Post JV
Details of the JV
2009
Introduction
Toatl
expenses
Impact Post JV
Tata DoCoMo
profit/(loss)
Total revenue(cr)
2012
2011
2010
-500
2009
Total
revenue(cr)
2008
2000
2007
500
4000
profit/(loss)
-1000
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 the
company.
Strength
Weakness
Opportunities
Fast expanding cellular market
Latest and low cost technology
Untapped rural market
Value added services
Threats
Competitors low price offering
Saturation point in Basic
telephony service
Mobile Number Portability
Introduction
TATA-NTTDocomo
Industry Overview
TATA-Motors JV
TATA - Starbucks
MARCOPOLO
Details of the JV
Reasons for JV
Tata does not make buses;
they make just the chassis
Develop the market for fully
built buses in India
To make their presence felt
overseas and to strengthen its
heavy 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
Company Overview
TATA MOTORS
Overall Analysis
Impact- Post JV
Joint venture with Marcopolo led to product development and participation in mass transport opportunities in both
domestic and international markets. Tata Motors could successfully address the growing demand in India, as well as
relevant markets abroad
Introduction
TATA-NTTDocomo
Reasons for JV
Details of the JV
FIAT
TATA - Starbucks
TATA MOTORS
TATA-Motors JV
Overall Analysis
Failure of the JV
Our Analysis
Impact- Post JV
In order to be successful in the large global footprint, TATA Motors will need to adopt a focused product offering, aggregates and technologies to
accommodate the local need, and will have to do it at the right price allowing to pursue the growth strategy in the domestic and international markets
Introduction
Industry Overview
TATA-NTTDocomo
TATA-Motors JV
Company Overview
More than 18,000 stores
in 62 countries
Broad appeal on
experience,
Purchases and roasts
coffees that it sells, along
with handcrafted coffee,
tea and other beverages
To broaden its
geographical positioning,
Starbucks also moved
into the tea business
TATA - Starbucks
Overall Analysis
Reasons for JV
Maximum-maximum strategy
Minimum-Maximum strategy
Starbucks
Knowledge and understanding of the Indian market
Benefit from TATA globals infrastructure
A step ahead of competitors due to alliance with
TATA group
India represents one of the most significant opportunities that we have in all of Starbucks. India should be one of the largest
markets in the world for Starbucks. I would say one of the top five over time," - Starbucks CEO Howard Schultz
Introduction
TATA-NTTDocomo
TATA-Motors JV
Impact- Post JV
TATA - Starbucks
Overall Analysis
Our Analysis
The joint venture with Starbucks is in line with Tata Global Beverages' strategy of growing through inorganic growth focusing on
strategic alliances in addition to organic growth.
Introduction
TATA-NTTDocomo
TATA-Motors JV
TATA - Starbucks
Overall Analysis
INCORPORATE GLOBAL
PRACTICES
PRODUCT DEVELOPMENT
INORGANIC GROWTH
The TATA Group has followed an inorganic growth
strategy for increasing its global footprints. As
mentioned by many top TATA leadership members,
this is in line with the mission decided by them.
TATAs local expertise and knowledge which the company has acquired over its long haul are factors that make TATA Group a
reliable and lucrative partner to venture with a new market. Hence, it can be said the companies chose TATA as a partner for the
purpose of market development in India.