Traditional Automotive Industry Regions †MyAssignmenthelp.com

Question: Discuss about the Traditional Automotive Industry Regions. Answer: E-Bay Incorporation E-Bay is an American online retailer which operates in e-commerce retailing. It was founded in 1995 by Pierre Omidyar. E-Bay features an online auction and large variety of products on their online platform. In 2016 fiscal year, it generated an income of US$8.97 billion. The reason for choosing eBay is that enterprise takes an innovative step and changes the online retailing market. The company gained a competitive advantage due to their unique business approach. E-Bay operates in the online auction and retailing market. Their strategy focuses on delivering great quality facilities to its users while maintaining their satisfaction. The company features low-cost products on their websites, as compared to its competitors. The online auction feature helps users to auction their stuff on eBays website. Customers can bid their price on a particular product and highest bidder gets the product management. According to the research of Amit and Zott (2012), this approach increases the value of a particular product which increases the satisfaction of both parties. This unique strategy help eBay gained a competitive advantage because the company did not suffer any inventory storage cost. E-Bay maintains transparency and security in each transaction, which helps to establish customers trust in the company. The company uses its technical resources to expand their market overseas. The innovative strategy of the company ensures its sustainable growth in the future. Business Model According to Hagiu and Wright (2013), eBays business model helps them to enhance their business worldwide and gaining success in the online retailing market. Following are an essential part of their business strategy: Originally eBay is focused on their online auction features which help customers selling their products based on auction prices. E-Bay provides first 20 transactions free to its customers and then charges a fee. The layout of their website is simple to understand by its users. The company did not have any inventory storage expenses, like its competitor Amazon. The company provides secure transaction between customers and businesses. The transparency of transactions has gained company their customers trust and enhanced their reputation (Chen, Liu and Yu 2012). The unique strategy of business gained them an exceptional place in the online retail industry. The company maintains a high rate of consumer satisfaction and this help them to sustain their future development. E-Bays innovative technology increases their business at a global stage. The business model of the company ensures their success in global markets. The study of different culture, administration, geographical and economic aspects gained company their unique spot worldwide. The company spends their income on innovative technology instead of in storing inventory in warehouses. The reputation and unique approach of company help in their success in the online retailing market (Cabral and Hortacsu 2010). Tata motors are a part of Tata groups and it was established in 1945. The company operates their businesses in the automotive industry and it is Indias largest automotive manufacturer. Headquarter of the organisation is situated in Mumbai, India. The company owns luxury automotive brands Jaguar Land Rover by an acquisition from Ford Motors. It has an income of US$42 billion in the fiscal year of 2016. The motive of choosing Tata is that it is the largest automotive brand in India and it has increased its global dominance by Jaguar Land Rover acquisition. The company is known for their US$3000 car Tata Nano which was a huge success in Indian automotive market. The strategy of Tata motors focused on manufacturing low priced and fuel efficient vehicles for Indian middle-class families. The company manufacture other vehicles as well, such as trucks, vans, and buses. The companys advantage is their competitive prices and modern technology. The organisation has a reputation of manufacturing low cost, high efficiency, comfortable and durable vehicle. According to the paper of Prahalad and Mashelkar (2010), the corporations acquisition and joint venture deals enhanced their global footprint in automotive markets. Tatas gain their advantage from excellent supply chain network that ensure high quality of vehicle with lower expenses. Tata invests in modern technology to gain market understanding and maintain a high level of customer satisfaction. The technological advancements and foreign investments ensure sustained future growth of Tata Motors in the global automotive market. Business model According to Wells (2010), the business model of Tata is focused on increasing their global reputation and enhancing the quality of their Indian vehicles. Following are the key aspects of their business model: The company invest in modern technology to decrease the prices and increase the fuel efficiency of their vehicles. The demand for a luxury vehicle in Indian automotive market is low. Therefore, Tatas focus is on low-cost and fuel-efficient Tata plan with their suppliers to reduce their vehicle prices. In order to manufacture Tata Nano, the company made deals with their suppliers to provide low cost and durable parts for the vehicle. The manufacturing of Tata Nano significantly enhanced the market share of Tata Motors in the Indian Along with Indian automotive market, the company increases their business in global automotive markets as well. The high reputation of Jaguar Land Rover generated revenue of 24.3 billion in 2017. The income of Jaguar Land Rover amounted to more than 50 percent of Tata motors whole revenue (Becker-Ritterspach and Bruche 2012). The company manufactures and update their products according to the market requirements. The benefit of adopting their approach is the high level of customer satisfaction. The innovative approach of the organisation and modern technology ensure their success in global automotive markets. According to Mitra (2011), while investing in international markets, Tata research various cultural, administrative, geographic and economic policies of the countries. It assists the company to know the requirement and demand of customers from various countries. Therefore, the company focus on low cost and fuel efficient vehicles in India and while entering in international markets they invest in luxury car brand Jaguar Land Rover. This helps in sustaining their development in future projects. References Amit, R. and Zott, C., 2012. Creating value through business model innovation.MIT Sloan Management Review,53(3), p.41. Becker-Ritterspach, F. and Bruche, G., 2012. Capability creation and internationalization with business group embeddednessthe case of Tata Motors in passenger cars.European Management Journal,30(3), pp.232-247. Cabral, L. and Hortacsu, A., 2010. The dynamics of seller reputation: Evidence from eBay.The Journal of Industrial Economics,58(1), pp.54-78. Chen, K.P., Liu, Y.S. and Yu, Y.T., 2012. The Seller's listing strategy in online auctions: evidence from eBay. Hagiu, A. and Wright, J., 2013. Do you really want to be an eBay?. Mitra, R., 2011. Framing the corporate responsibility-reputation linkage: The case of Tata Motors in India.Public Relations Review,37(4), pp.392-398. Prahalad, C.K. and Mashelkar, R.A., 2010. Innovations holy grail.Harvard Business Review,88(7/8), pp.132-141. Wells, P., 2010. The Tata Nano, the global valuesegment and the implications for the traditional automotive industry regions.Cambridge Journal of Regions, Economy and Society,3(3), pp.443-457.