Posted at 12.13.2018
Feasibility Research is an activity of stipulate if the business idea is can be progress well. The main purpose of this analysis to evaluate the business enterprise idea is workable or not. This evaluation contributes for analysis of the business idea that can rely upon the product/ services examination, industry /market feasibility evaluation, organizational feasibility research and financial evaluation which will move forward with the business enterprise plan.
In terms of product or services feasibility research, Tata motors produced and sold 6. 5 million vehicles in India and worldwide. A Tata motor unit produces traveler vehicles and commercial passenger. Examples of traveler vehicles are Nano, Indica, Vista, Tata automobiles, Jaguar and Land Rover. Commercial vehicles such as Tata motor pickup trucks, Prima, and Tata motor unit Buses. Lately, Tata motor communities invented insurance firms a collection five-passenger commercial vehicles. Throughout many innovations of cars, the company as well cares about the safe movements of people. In recent records, the company presents The Star Bus, which ensures that the public transports became user-friendly. For example, in 2006 Tata's introduce "Small Car Projected" 'Nano', which is aimed to provide safer carry at affordable prices, which is US $2500 (Tata. com). (Appendix A) In term services, Tata offers a mobility solution that contributes the safe motion of goods and people. Moreover, Tata's help decrease the unemployment rate in their country developing country. Also Tata is as well implement-Going Green which to build up environmentally friendly and lasting products as their target such as a hybrid electric car, hybrid bus, electric bus, and bio diesel machines. Special top features of Tata motor production are that to sustain their passenger safety, such as the Anti-Skid Braking System, Air Carrier, Special Equipped and design seating system with lumbar support and non-CFC established vehicle air conditioning equipment. (Appendix B) The concept of this development is to provide the ecological and convenience vehicles for the user. Besides of this most of the automobiles produced according to the economy class of vehicle to help lower degree of income people. Additionally Tata motors as well using online shopping to establish their products. For good examples the "Nano Products Online Store" on EBay. This online shopping will ensure the Tata Nano take is its online marketing.
In conditions of industry feasibility examination, 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 brought on huge deficits for the major carmakers. Companies are approaching globalized, company up creation cost of the recycleables. For instances, Toyota cars, the price tag on the car is one of the factors that effect the client is buying electric power. Tata is carrying on makes improvement or enhancements by keeping business with the competition. Patents of Tata holdings are such workable idea, features, and the trademarks offering password for utilizing it. For cases software sector defines the amount of patents is filed, which makes problematic for new companies to imitate their product. Thus, Tata's create high barriers to enter into their field.
The electric power of suppliers, meaning the company have to make the product according to the requirement of the raw material and labor for his or her creation level. This creates buyer-supplier ties with a business. According the studies, 128 suppliers of Tata cars which providing essential natural material by establishing a high price to capture more earnings. Suppliers product has few substitutes and cannot easily frontward integrate for material materials. Tata's motors have significantly more bargaining vitality because of JIT inventory and the quality of requirements.
Bargaining ability of buyer of Tata's electric motor is directly related to the level of competitive rivalry in the car industry, this means it'll be high switching costs for customers. Brand image increases the electricity of the make too. Tata motors have modest of bargaining electricity of buyer because it has low in a Little Turck and heavy commercial vehicles such as heavy Turck in India autos markets. For example the technology of Tata Nano. (Appendix C)
The hazards of potential entrants of Tata motors are high because of huge in advance investment required, the bigger economic range, technology, and the patent of the vehicles as well. Illustrations Tata's motor face threat of new entrants in the low cost car section international player coming into the Indian market in mid-size and Sedan segments.
If we look into the threats of alternative products (vehicles), such as street bike and public carry it identifies another vehicle in the other creation industry. The customer will swap to a substitute vehicle if there were increases in the purchase 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 over a less price. Furthermore about the weakened risk of substitution of Tata's is oil. Although alternate form has found like fuel, but still gas cannot replace on a large scale.
Tata motors are located in the growing country of India. This tactical location will ensure to an extraordinary success in India, where Tata's can make use of it due to labor cost if set alongside the labor cost in develop countries. (Tata Motors 2012). Besides that, Tata motors are one of the greatest producers of auto components, which give Tata's electric motor direct access to these components. This one of the factors that Tata can make use of it to boost the demand because of the improvement and the population in India. The current employees altogether company are 59759 million in 2012.
The management of Tata motor unit is great. Rattan Tata received the Rockefeller Foundations Life time Achievement Award for his progressive idea and management of the business. Produce a suitable engine and competent staff to the company. This is concerned about the people-oriented management, which means Rattan Tata focused on the personnel as well as the company achieves. For instance, Ratta Tata provides an apartment with totally furnished for the staff and employees to enjoying the benefit for it. This sort of management will ensure the launching of the company, development level and the reputation of the company as well. A Tata company held manufacturing factory in Mumbai. The patents, trademarks are well-organized until now, and the reputation of those in increases year by 12 months because the corporation is keeping Tata's generation until now. Each one of the generations, they make an effort to identify the new product and will establish one from it for the client intake. The Tata Nano is one of the exemplory case of it.
In conditions of non financial resources, Tata motors improved on the merchandise quality for the traveler betterment. For example, well-equipped seating system to attract their focus on customer. Besides that, increase customer goodwill by providing extraordinary services to attain total motor aim. Motivating the employee by giving motivational courses to improve their skills and providing intership work, in your free time work and training to recognize their capacities. The workers in Tata motor unit are competent employees because each of them attend to working out section which can ensure their operation size. The management as well give incentive, award and offer benefits for the staff to hold on to them by promoting these to next position level. The management also able to listen to their employees and consider about their needs. It ensures the capability of the business and the technology as well.
Around 66% of the equity capital is raised after Rattan Tata took over the company base. It was a great accomplishment and the domestic and global car business being well established after these successes. A financial statement is increasing calendar year by year. For example the gross revenue in the entire year 2009 was 1. 1609 million and it increased by 1510. 1 million in the year of 2010. (Tata Annual Report 09)
Besides all of this the recent problem is the talk about of the Tata electric motor is low because Tata engine product are not regarded as luxury. They just targeted for the market class rather than for luxury. Hence the company failed produce luxury autos. This may be prevented if the Tata motors production is changing for the targeted market or customer. Including the invention of the Nano. The low-cost car is clearly intended for the masses but also for limited to low income of people. However, nowadays people will be more toward for the blissful luxury due to satisfaction and the uniqueness of the car itself. Therefore, Tata motors must take look into the marketplace and current lifestyle of the countries.
Standard of safety aren't well retained. This led to the diminishing of the public image of Tata products. . Example Tata Nano trapped flames. Because they just provided manual steering no air bag, vinyl and adhesive replace welding and the bodywork manufactured from sheet-metal and plastics. This because of the circumstance was reported recently in papers (Friday, Apr 9, 2010, India times). Overcome this problem the theta engine has to examine and restructure the creation of Nano, this means they ought to change the bodywork into steel and iron. They can also reduce using the rubber on the automobile. If they tended to change, the demand of the Nano will reduce year by year regarding the security. (Appendix D)
Tata motors simply take place in India, Sri Lanka, and Nepal. Tata is continuing to grow the talk about consumer in Italy, Spain and south Africa. Comparatively vendor ranking of market show in traveler vehicle in India. The perfect solution is because of this problem is, Tata motor should be established across the world to increase their market share and revenue as well. They need to come out with increased innovative programs, more likely to promote their products. It will help Tata's engine to improve the market stocks.
One weakness which is often not acknowledge by the Tata motor is the fact that in English word of 'tat' means rubbish. Would the brand hypersensitive to English consumer? The business reputation is completely out among United kingdom consumer. This is one of the factor that which is minimizing the demand of Tata's car. To resolve this issue, Tata's motor unit company have to execute a research into the new brand which can all around the customer could gratify with it. Besides that, a brand name can effect consumer purchasing the product, this means total have two substitute ways to draw in the British Consumer.