International Business Strategy of Indian Automobile Manufacturers

Abstract

Purpose: The purpose of this study is to evaluate different aspects of International business strategies and how that influences the decision making within an organisation. It examines the importance of acquisition and merging for Indian automobile manufacturers to penetrate in European market. It also aims to examine the importance of having a sustainable growth in domestic market while growing globally. Design/methodology/approach: A case study approach was taken to collect research data. A qualitative analysis has been done on the basis of the secondary data collected on Tata Motors, one of the major automobile manufacturers in India, from various available sources. Findings: Through acquisition and merging Indian automobile manufacturer can acquire the core competence of the foreign organisations. The acquisition helped Tata motors to acquire the market share in European market thus helping to penetrate into the market. The continuous growth in domestic market proved to be an important factor as it helped the organisation to stay buoyant during the economic downturn. Research limitations/implications: This study could further extend to the technical aspects of cars which may change due to the improvisation of technology which may heavily influence the automobile sector across the world. This study can also extend to throw lights upon the foreign automobile manufacturers and their opportunities in Indian market. Managing the human resources; sorting out the cross-cultural issues. Practical implications: Indian automotive sector as a whole can consider the case of Tata Motors as a benchmark and formulate the strategy for growth in European market.