Product Services Feasibility Analysis Marketing Essay

Feasibility Analysis is a process of stipulate whether the business idea is can be progress well. The main purpose of this analysis to evaluate the business idea is workable or not. This analysis contributes for analysis of a business idea that can depend on the product/ services analysis, industry /market feasibility analysis, organizational feasibility analysis and financial analysis which will proceed with the business plan.

4.1 Product / services feasibility analysis

In terms of product or services feasibility analysis, Tata motors produced and sold 6.5 million vehicles in India and worldwide. A Tata motor produces passenger vehicles and commercial passenger. Examples of passenger vehicles are Nano, Indica, Vista, Tata cars, Jaguar and Land Rover. Commercial vehicles such as Tata motor trucks, Prima, and Tata motor Buses. Most recently, Tata motor groups invented by having a line five-passenger commercial vehicles. Throughout many inventions of cars, the company as well cares about the safe movement of people. In recent reports, the company introduces The Star Bus, which ensures that the public transports became user-friendly. For instance, in 2006 Tata’s introduce “Small Car Projected” ‘Nano’, which is aimed to provide safer transport at affordable prices, which is US $2500 (Tata.com). (Appendix A) In term services, Tata is providing a mobility solution that contributes the safe movement of goods and people. Moreover, Tata’s help to reduce the unemployment rate in their country manufacturing country. Additionally Tata is as well implement-Going Green which to develop environmentally friendly and sustainable products as their objective such as a hybrid electric car, hybrid bus, electric bus, and bio diesel engines. Special features of Tata motor production are that to retain their passenger safety, which include the Anti-Skid Braking System, Air Bag, Special Equipped and design seating system with lumbar support and non-CFC based vehicle air conditioner. (Appendix B) The concept of this production is to provide the sustainable and convenience vehicles for the user. Besides of that most of the cars produced according to the economy class of vehicle to help lower level of income people. Additionally Tata motors as well using online shopping to establish their products. For examples the “Nano Merchandise Online Store” on EBay. This online shopping will ensure the Tata Nano take is its online marketing.

4.2 Industry / Market Feasibility Analysis

In terms of industry feasibility analysis, 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 caused huge losses for the major carmakers. Companies are coming globalized, company up production cost of the raw materials. For examples, Toyota cars, the price of the car is one of the factors that influence the customer is buying power. Tata is continuing makes improvement or innovations by keeping business with the competitor. Patents of Tata holdings are such workable idea, features, and the trademarks that provide password for using it. For examples software sector defines the number of patents is filed, which makes difficult for new firms to imitate their product. Thus, Tata’s create high barriers to enter into their field.

The power of suppliers, which means that the company have to manufacture the product according to the requirement for the raw material and labor for their production level. This creates buyer-supplier ties with an industry. According the reports, 128 suppliers of Tata cars which providing essential raw material by setting a high price to capture more profits. Suppliers product has few substitutes and cannot easily forward integrate for steel material. Tata’s motors have more bargaining power because of JIT inventory and the quality of requirements.

Bargaining power of buyer of Tata’s motor is directly related to the level of competitive rivalry in the car industry, which means it will be high switching costs for customers. Brand image increases the power of the manufacture too. Tata motors have moderate of bargaining power of buyer because it has low in a Mini Turck and heavy commercial vehicles such as heavy Turck in India cars markets. For example the invention of Tata Nano. (Appendix C)

The threats of potential entrants of Tata motors are high because of huge upfront investment required, the larger economic scale, technology, and the patent of the cars as well. Examples Tata’s motor face threat of new entrants in the low cost car segment international player entering the Indian market in mid-size and Sedan segments.

If we look into the threats of substitute products (vehicles), such as motorcycle and public transport it refers to another vehicle in the other manufacturing industry. The customer will switch to a substitute vehicle if there have been increases in the 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 on a less price. In addition about the weak threat of substitution of Tata’s is oil. Although alternative form has found like gasoline, but still gasoline cannot replace on a large scale.

4.3 Organizational Feasibility Analysis

Tata motors are located in the developing country of India. This strategic location will ensure to an extraordinary success in India , where Tata’s can make use of it because of the labor cost if compared to the labor cost in develop countries. (Tata Motors 2012). Besides that, Tata motors are one of the largest producers of automobile components, which give Tata’s motor direct access to these components. This one of the factors that Tata can make use of it to increase the demand due to the improvement and the population in India. The current employees in total company are 59759 million in 2012.

The management of Tata motor is excellent. Rattan Tata received the Rockefeller Foundations Lifetime Achievement Award for his innovative idea and management of the company. Produce a capable engine and skillful staff to the company. This is concerned about the people-oriented management, which means Rattan Tata focused on the staff as well as the company achieves. For example, Ratta Tata provides an apartment with fully furnished for the staff and employees to enjoying the benefit of it. This type of management will ensure the loading of the company, production level and the reputation of the company as well. A Tata company owned manufacturing factory in Mumbai. The patents, trademarks are well organized until now, and the reputation of those in increases year by year because this company is holding Tata’s generation until now. Each of the generations, they try to identify the new product and will establish one of it for the customer consumption. The Tata Nano is one of the example of it.

In terms of non financial resources, Tata motors improved on the product quality for the passenger betterment. For example, well-equipped seating system to attract their target customer. Besides that, increase customer goodwill by providing extraordinary services to achieve total motor objective. Motivating the employee by providing motivational courses to improve their skills and providing intership work, part time work and training to identify their capabilities. The workers in Tata motor are skillful employees because each of them attend to the training section which can ensure their operation volume. The management as well give reward, award and provide benefits for the staff to retain them by promoting them to next position level. The management also able to listen to their staff and consider about their needs. It ensures the capability of the company and the generation as well.

4.4 Feasibility Analysis

Around 66% of the equity capital is raised after Rattan Tata took over the company base. It was a great achievement and the domestic and global car business being well established after these achievements. A financial statement is increasing year by year. For example the gross profit in the year 2009 was 1.1609 million and it increased by 1510.1 million in the year of 2010. (Tata Annual Report 09)

8.2 Suggestion for Improvement

Besides all of this the recent problem is the share of the Tata motor is low because Tata motor product are not considered as luxury. They just aimed for the economy class rather than for luxury. Hence the company failed produce luxury cars. This could be avoided if the Tata motors production is changing for the targeted market or customer. For example the invention of the Nano. The low-cost car is clearly intended for the masses but for only for low income of people. However, nowadays people are more toward for the luxury because of the satisfaction and the uniqueness of the car itself. Therefore, Tata motors must take look into the target market and current lifestyle of the countries.

Standard of safety are not well maintained. This led to the diminishing of the public image of Tata products. . Example Tata Nano caught fire. Because they just provided manual steering and no air bag, plastic and adhesive replace welding and the bodywork made of sheet-metal and plastics. This due to the case was reported recently in newspaper (Friday, April 9, 2010, India times). Overcome this problem the theta motor has to evaluate and restructure the production of Nano, which means they should change the bodywork into metal and iron. They can also reduce using the rubber on the car. If they tended to change, the demand of the Nano will reduce year by year regarding the safety. (Appendix D)

Tata motors just take place in India, Sri Lanka, and Nepal. Tata has grown the share consumer in Italy, Spain and south Africa. Comparatively seller rating of market share in passenger vehicle in India. The solution for this problem is, Tata motor has to be established all over the world to increase their market share and profit as well. They should come out with more innovative programs, likely to promote their products. It will help Tata’s motor to increase the market shares.

One weakness which is often not recognize by the Tata motor is that in English word of ‘tat’ means rubbish. Would the brand sensitive to British consumer? The company reputation is totally out among British consumer. This is one of the factor that which is reducing the demand of Tata’s car. To solve this problem, Tata’s motor company have to conduct a research into the new brand name which can all over the customer could satisfy with it. Besides that, a brand name can influence consumer buying the product, which means total have two alternative ways to attract the British Consumer.