Strategic Options for Automobile OEMs of Indian Origin to have Sustained Competitive Advantage: A Case of Tata Motors
Shivakumar S. Malagihal ()
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Shivakumar S. Malagihal: IIT Bombay
International Journal of Global Business and Competitiveness, 2021, vol. 16, issue 2, No 6, 139-152
Abstract The competitive landscape of automobile original equipment manufacturers around the globe is continuously changing, with new business models impacting the performance of automobile firms. The study uses benchmarking technique to benchmark Tata Motors passenger vehicle segment performance with a relevant foreign passenger vehicle manufacturer to explore the differences in core capabilities and platform strategies. The gaps reveal that there is tough competition among the firms in the automobile industry in India. The study also uses the problem structuring method to structure the key problem of Tata Motors' inadequate leverage of product platforms and identify the high potential root causes. The findings reveal that strategic options such as proper management of employees at top leadership positions, technologies, and strategic cooperation with partner firms may help Tata Motors better leverage new modular platforms. The new strategic options may also provide possibilities to scale internationally in niche vehicle product segments to achieve sustained competitive advantage. Among several potential capabilities and resources analyzed, only a few seem to be transferable to leverage advanced modular platforms and related digital technologies for Tata Motors.
Keywords: Automobile OEMs; Passenger vehicle segment; Strategic options; Platform approach; Sustained competitive advantage (search for similar items in EconPapers)
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