A corporate strategy article by Thunderbird students.
Tata has their sights on global expansion, but can they replicate their domestic success in advanced markets? Tata’s recent success with Jaguar Land Rover (JLR) certainly is a start. Acquiring JLR during the global economic recession was a big risk for Tata. The acquisition strained Tata’s cash supply and required Tata to raise billions in debt to finance the purchase. Through a series of cost cutting measures, Tata led JLR to recovery which now contributes handsomely to Tata’s healthy profits. JLR gave Tata direct access to the luxury car market in developed countries like Europe and the U.S.
In parallel to Tata’s effort in advanced markets, Tata has historically aggressively penetrated markets similar to India, where they are more comfortable and experienced. By focusing its international expansion on countries with markets similar to India, Tata has been able to leverage its market expertise in these emerging markets.