Method and Rationale for Tata Motors' Expansion into the US

For Tata Motors, expansion into foreign markets is a critical success factor for the company’s future. Specifically, a strategy for the company’s entry into the US market follows. A series of decisions must be made about which products to discuss, where to source the products, and how to deliver them to their final destination before sale to the consumer. For purposes of simplicity, the following analysis deals strictly with the Tata Nano vehicle. The following model is designed to be easily adapted to handle other Tata vehicles in the future, though we limit our focus in this examination to just the Nano, as the method of entry into the US market is more important here than the specific products which enter. To begin, we introduce the financial rationale for key decisions regarding market entrance with a 3-year time frame in mind; following is the supply chain model that will accomplish the task of entering the US market.
Decision-Making Framework for Tata in the US
1) Build out a network of dealerships versus utilize existing distribution networks (Mercedes, Volvo, Land Rover, Jaguar, etc.).
2) Import all completed cars from India versus setting up an auto manufacturing plant in the US or Mexico.


Other posts on Tata Motors related to US expansion:

Executive Summary: Tata Motors' Expansion into the US and other Foreign Markets
Tata Motors Recent Financial Performance and Customers
Method and Rationale for Tata Motors' Expansion into the US
Demand Forecast for the Tata Nano in the US
Tata Motors Expansion into the US: Retail Pricing Forecast
Tata Motors Expansion into the US, Build Dealerships vs. Dealer Network
Tata Motors Expansion into the US, Import vs. Auto Mfg Plant
Works Cited for Tata Motors Expansion into US