Thursday, July 18, 2019

Tata’s Takeover of Jaguar and Land Rover: Bumpy Road or Smooth Ride?

Tatas Takeover of jaguar and prop scouter Bumpy Road or Smooth Ride? In June 2008, India-based Tata Motors Ltd. announce that it had completed the acquisition of the two iconic British brands Jaguar and Land Rover (JLR) from the US-based Ford Motors for US$ 2. 3 billion. Tata Motors stood to actualize on several fronts from the troop. One, the acquisition would help the attach to acquire a orbiculate footprint and enter the high-end premier ingredient of the global automobile market.After the acquisition, Tata Motors would own the worlds cheapest gondola car the US$ 2,500 Nano, and luxury pavilions like the Jaguar and Land Rover. Though there was initial scepticism over an Indian company owning the luxury brands, ownership was not considered a major issue at all. The putsch has been greeted with jubilation, especially in India, because of the prestige of these marquee brands. On the other hand, sceptics have too been wondering how this acquisition fits in with the Tata Groups boilersuit strategy. What can the Tatas do otherwise than Ford to ensure that the acquisition pays pip?What major challenges will Tata Motors face in integration and marketing? I personally find it a genuinely fascinate deal. Its clearly not a deal that is trying to build economies of scale in on the dot one business and just reach into new markets. Its quite a differently motivated deal. For Tata its not the archetypical time that theyve reached for a brand with or so prestige value as department of expanding their global visibility. So I intend viewed as an acquisition that they intend to memorize a great deal from, it could very well make sense.

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