Wednesday, October 30, 2019

Tata Motors Acquisition of Dawoo Commercial Vehicles Essay

Tata Motors Acquisition of Dawoo Commercial Vehicles - Essay Example The company is still chasing the opportunities to expand its business further to other location across the globe. Daewoo Motors Similar to Tata group, this group also started off in 1967 with a textile business by Kim Woo Choong (Koontz & Weihrich, 2006, p.206). In the 70’d and 80’s, the group has experienced a considerable growth with its diversification into several business. Later on in the early period of 1990s, the Group has expanded overseas and emerged as the largest conglomerate across the globe with around 24 companies under its shield. Back in the year 1978, the group has entered into the automobile industry by the acquisition of 50 % stake in the Sachan motor company while the rest was owned by another automobile giant, General Motors. The venture was later renamed as Daewoo Motor Company. In 1992, the Daewoo group acquired remaining 50 % of the stake with the withdrawal of partnership by GM. Later on after the bankruptcy of Daewoo, GM and some other companie s have shown their interest to acquire its assets. Daewoo Commercial Vehicle, previously a vertical of Daewoo, did not come under the bid and established itself as a separate company in the year 2002. Strategic and Economic Aspects behind the Acquisition Tata Motors had been one of the oldest players in the automobile industry of India. After expanding its dominance all over the economy, the company aimed at expanding its business all over the globe which made it adopt tie-up strategies with automobile companies in some of the major emerging markets of the world. The automobile industry is generally characterised by a large number of units and the commercial vehicles vertical in it occupies a small fragment of the entire industry. Globally, the commercial vehicles arena is dominated by... As the paper stresses Tata Motors is the leading automobile manufacturer in India and is among the leading commercial vehicle companies across the globe with revenue of $20 million in the last financial year. The company has also emerged as the one among the top four truck manufacturers as well as top two bus manufacturer across the globe. Established back in the year 1945, the company now employs more than 24000 employees with a vision to be the best in its operation and to be in compliance to its value systems and ethics. Tata Motors has also got the pride to be the first in the Indian engineering sector to be listed on the New York Stock Exchange; that happened back in September, 2004. This essay declares that Tata Motors had been one of the oldest players in the automobile industry of India. After expanding its dominance all over the economy, the company aimed at expanding its business all over the globe which made it adopt tie-up strategies with automobile companies in some of the major emerging markets of the world. The automobile industry is generally characterised by a large number of units and the commercial vehicles vertical in it occupies a small fragment of the entire industry. Globally, the commercial vehicles arena is dominated by players like Volvo, Scania, DaimlerChrysler and a few other giants who occupy nearly 60 percent of the total market share. In order to distinguish its might amidst them, the Tata Group needs to have considerable strategic as well as economic edge.

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