Tata Motors Limited is the largest Car Manufacturer in India. Your task is to suggest a suitable country for Tata Motors to expand the business outside India. preapare a short report that includes the following: 

(a) Critically compare different market entry modes. Suggest and justify one entry mode that the company should undertake. Consider both risks and opportunities. 

(b) What form of adaptation strategies should the company consider to the marketing mix (4p's) due to its overseas expansion. 

 

Answer:

China would be the one of the suitable countries for Tata Motors to expand the business outside India. There are factors that China would consider like the demand for the product/business, the firm's resources and commitment to entering its market as well as the timeframe to enter.

Market entry via joint venture is one the best entries of China's market. And given that its going to be an overseas expansion, the adaptation strategies includes changing of price, promotion and product in order to fit the needs and preferences of a particular country.

Step-by-step explanation

A. One market entry mode of China is via joint venture because utilizing this strategy would gain the most benefit both Tata Motors Limited and China's party. It has opportunities like having a maximum flexibility in building assets, organization and management of the venture. Also, Tata Motors Limited being the investor can recover registered capital throughout the contract. Another one is that it can be established easily of short term businesses and then dissolved with minimal legal restrictions.

When it comes to risks, there have been no detailed implementing regulations released and if the State Administration of Industry and Commerce determines that the enterprise is under capitalized, a joint venture may not have legal person status or limited liability.

B. An adaptation strategy requires the marketing mix elements to meet the demands, actual or imagined of specific country markets. Specific activities are carried out differently in different foreign markets. These are the key components of marketing a product or service, and they interact heavily with one another. Taking into account all of these elements is one approach to developing a comprehensive marketing strategy.