Product Services Feasibility Analysis Marketing Essay

4.1 Product / services feasibility analysis

In terms of product or services feasibility analysis, Tata motors produced and sold 6.5
million vehicles in India and worldwide. A Tata motor produces passenger vehicles
and commercial passenger. Examples of passenger vehicles are Nano, Indica, Vista,
Tata cars, Jaguar and Land Rover. Commercial vehicles such as Tata motor trucks,
Prima, and Tata motor Buses. Most recently, Tata motor groups invented by having a
line five-passenger commercial vehicles. Throughout many inventions of cars, the
company as well cares about the safe movement of people. In recent reports, the
company introduces The Star Bus, which ensures that the public transports became
user-friendly. For instance, in 2006 Tata’s introduce “Small Car Projected” ‘Nano’,
which is aimed to provide safer transport at affordable prices, which is US $2500
(Tata.com).

In term services, Tata is providing a mobility solution that contributes the safe
movement of goods and people. Moreover, Tata’s help to reduce the unemployment
rate in their country manufacturing country. Additionally Tata is as well implement-
Going Green which to develop environmentally friendly and sustainable products as
their objective such as a hybrid electric car, hybrid bus, electric bus, and bio diesel
engines. Special features of Tata motor production are that to retain their passenger
safety, which include the Anti-Skid Braking System, Air Bag, Special Equipped and
design seating system with lumbar support and non-CFC based vehicle air
conditioner. (Appendix B) The concept of this production is to provide the sustainable
and convenience vehicles for the user. Besides of that most of the cars produced
according to the economy class of vehicle to help lower level of income people.
Additionally Tata motors as well using online shopping to establish their products.
For example “Nano Merchandise Online Store” on EBay, This online shopping will
ensure the Tata Nano take is its online marketing.

4.2 Industry / Market Feasibility Analysis

In terms of industry feasibility analysis, Tata’s describes the competitive rivalry is

higher whereby the new players from new countries like India and China in the
international market. It could be similar technology and the similar price as well as
their brands. When the time economic downturn caused huge losses for the major
carmakers. Companies are coming globalized, company up production cost of the raw
materials. For examples, Toyota cars, the price of the car is one of the factors that
influence the customer is buying power. Tata is continuing makes improvement or
innovations by keeping business with the competitor. Patents of Tata holdings are
such workable idea, features, and the trademarks that provide password for using it.
For examples software sector defines the number of patents is filed, which makes
difficult for new firms to imitate their product. Thus, Tata’s create high barriers to
enter into their field.

The power of suppliers, which mean that the company have to manufacture the
product according to the requirement for the raw material and labor for their
production level. This creates buyer-supplier ties with an industry. According to the
reports, 128 suppliers of Tata cars which providing essential raw material by setting a
high price to capture more profits. Suppliers’ product has few substitutes and cannot
easily forward integrate for steel material. Tata’s motors have more bargaining power
because of JIT inventory and the quality of requirements.

Bargaining power of buyer of Tata’s motor is directly related to the level of

competitive rivalry in the car industry, which means it will be high switching costs for
customers. Brand image increases the power of the manufacture too. Tata motors have
moderate of bargaining power of buyer because it has low in a Mini Truck and heavy
commercial vehicles such as heavy Truck in India cars markets. For example: the
invention of Tata Nano.

The threats of potential entrants of Tata motors are high because of huge upfront
investment required, the larger economic scale, technology, and the patent of the cars
as well. Examples of Tata’s motor face threat of new entrants in the low cost car
segment international player entering the Indian market in mid-size and Sedan
segments.

If we look into the threats of substitute products (vehicles), such as motorcycle and
public transport it refers to another vehicle in the other manufacturing industry. The
customer will switch to a substitute vehicle if there have been increases in the price
level of the product or vice versa. For example, the 2-wheeler market in India faces a
high competition between Tata Nano, which is providing a car on a less price. In
addition about the weak threat of substitution of Tata’s is oil. Although alternative
form has found like gasoline, but still gasoline cannot replace on a large scale.

4.3 Organizational Feasibility Analysis

Tata motors are located in the developing country of India. This strategic location will
ensure to an extraordinary success in India , where Tata’s can make use of it because
of the labor cost if compared to the labor cost in develop countries. (Tata Motors,
2012). Besides that, Tata motors are one of the largest producers of automobile
components, which give Tata’s motor direct access to these components. This is one
of the factors that Tata can make use of it to increase the demand due to the
improvement and the population in India. The current employees in total company are
59759 million in 2012

The management of Tata motor is excellent. Rattan Tata received the Rockefeller
Foundations Lifetime Achievement Award for his innovative idea and management of
the company. Produce a capable engine and skillful staff to the company. This is
concerned about the people-oriented management, which means Rattan Tata focused
on the staff as well as the company achieves. For example, Ratan Tata provides an
apartment with fully furnished for the staff and employees to enjoying the benefit of
it. This type of management will ensure the loading of the company, production level
and the reputation of the company as well. A Tata company owned manufacturing
factory in Mumbai. The patents, trademarks are well organized until now, and the
reputation of those in increases year by year because this company is holding Tata’s
generation until now. Each of the generations, they try to identify the new product and
will establish one of it for the customer consumption. The Tata Nano is one of the
example of it.

In terms of non financial resources, Tata motors improved on the product quality for
the passenger betterment, For example, well-equipped seating system to attract their
target customer. Besides that, increase customer goodwill by providing extraordinary
services to achieve total motor objective. Motivating the employee by providing
motivational courses to improve their skills and internship, work, part time work and
training in order to identify their capabilities. The workers in Tata motor are skillful
employees because each of them attends to the training section which can ensure their
operation volume. The management as well gives reward, award and provide benefits
for the staff to retain them by promoting them to next position level. The management
should also able to listen to their staff and consider about their needs. It ensures the
capability of the company and the generation as well.

4.4 Feasibility Analysis

Around 66% of the equity capital is raised after Rattan Tata took over the company
base. It was a great achievement and the domestic and global car business being well
established after these achievements. A financial statement is increasing year by year.
For example the gross profit in the year 2009 was 1.1609 million and it increased by
1510.1 million in the year of 2010. (Tata Annual Report 09)

8.2 Suggestion for Improvement

Besides all of this the recent problem is the share of the Tata motor is low because
Tata motor product are not considered as luxury. They just aimed for the economy
class rather than for luxury. Hence the company failed produce luxury cars. This
could be avoided if the Tata motors production is changing for the targeted market or
customer. For example the invention of the Nano. The low-cost car is clearly intended
for the masses but for only for low income of people. However, nowadays people are
more toward for the luxury because of the satisfaction and the uniqueness of the car
itself. Therefore, Tata motors must take look into the target market and current
lifestyle of the countries.

Standard of safety are not well maintained. This led to the diminishing of the public
image of Tata products. . Example Tata Nano caught fire. Because they just provided
manual steering and no air bag, plastic and adhesive replace welding and the
bodywork made of sheet-metal and plastics. This due to the case was reported
recently in newspaper (Friday, April 9, 2010, India times). Overcome this problem the
theta motor has to evaluate and restructure the production of Nano, which means they
should change the bodywork into metal and iron. They can also reduce using the
rubber on the car. If they tended to change, the demand of the Nano will reduce year
by year regarding the safety.

Reference
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