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Format: 35 What Functional Strategies Should The Firm Adopt To Match The Generic Strategy Proposed?

The document discusses strategic recommendations for Tata Motors' ACE vehicle platform. It suggests moving from a multi-purpose to a mass customization positioning by offering variants for specific applications. It also recommends carefully coordinating international technology partnerships, maintaining a robust supply chain network, treating services as a dedicated profit center, and replicating its national dealership and service station footprint at the intra-city level.

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Murthy Banagar
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89 views2 pages

Format: 35 What Functional Strategies Should The Firm Adopt To Match The Generic Strategy Proposed?

The document discusses strategic recommendations for Tata Motors' ACE vehicle platform. It suggests moving from a multi-purpose to a mass customization positioning by offering variants for specific applications. It also recommends carefully coordinating international technology partnerships, maintaining a robust supply chain network, treating services as a dedicated profit center, and replicating its national dealership and service station footprint at the intra-city level.

Uploaded by

Murthy Banagar
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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FORMAT: 35 What functional strategies should the firm adopt to match the generic strategy proposed?

Marketing strategy (product portfolio): Tata Motors has positioned ACE as a multipurpose vehicle (MPV). This is where Tata Motors can learn from the Maruti small car strategy that posits that 'there is no such thing as a small car buyer'. Hence Tata Motors should endeavour to move form a multi-purpose positioning to a mass customization positioning for ACE, wherein multiple variants are offered on the ACE platform, each uniquely suited for a specific application - such as tippers, long base trawlers, and milk carriers.

Research and development strategy (Technology Appropriation): Technology Appropriation is the key to Tata Motor's ambitions to offer products with engines larger than 210 HP. As the share of ultra-heavy commercial vehicles grows, the company will need to face up to technologically superior players like Volvo. Here, Tata will have to carefully spearhead its 'World Truck' program by carefully coordinating technology appropriation from its numerous international technology partners, notably Daewoo, Fiat and Hispano.

Logistics strategy (Robust Supply Chain): Tata Motors has made significant investments in IT systems to network its countrywide service network. This helps them maintain very high spares parts availability at their service stations and minimize downtime. In the years to come, it would need to include their SCV service station within this framework. This will however be a big challenge, since these service stations would largely be managed by illiterate and not-so-tech-savvy repairmen.

Human resources strategy (Unique Customer Experience): In commercial vehicles industry, the uniqueness of customer experience is largely driven by the efficacy of the 'Support' framework. If your car breaks down, you can take a taxi to office. But that's not so for a transport operator. For him, his vehicle is at the heart of his business and

hence responsive after-sales support is critical. Minimizing downtime calls for a service network that is highly responsive and easily accessible. Besides, Tata Motors should also 1. Consider introducing mobile service units for Tata ACE that can respond to customer calls anywhere within a given city. 2. Start treating "Services" as a dedicated profit center. Towards this end, the company should "productize" annual maintenance contracts. Operations strategy (National Footprint) Tata Motors has an unparalleled network of dealers and service stations across the country for Medium and Heavy Commercial Vehicles (M and HCV). However most of these service stations are along inter-city routes. It would need to replicate this network at intra-city level for its hugely successful SCV - the Tata ACE. For this Tata Motors can liaise with small garages, train them and certify them as 'Tata Authorized Service Station'.
http://tejas.iimb.ac.in/articles/31.php

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