TATA Jaguar Deal : Better for Automobile industry
The TATA brand is a well-established brand in India. As you would know, the TATA group has a diversified portfolio of brands whether it be in the steel industry ( Corus, for example) or other industries such as automobiles, hotels etc. So, they know how to manage brands. Plus, they are a highly efficient group and have always been since their inception. The only difference is that they are now going global (though frankly, the Indian market itself provides ample scope). I would be surprised if the American public subscribed to the view of this gentleman. Rather, i believe that people will appreciate the core values that the TATA's live by, especially their work ethic. As Jaguar deal is finalized, one would hope their efforts will maximise value for shareholders and help in growing the value and visibility of brand jaguar.
Further, i must add that the gentleman's remarks show that even businessmen wear blinkers. Indian business talent, managerial skills etc have developed over decades (pre and post market-liberalisation)and therefore one finds Indians at the top rung in global companies(Citibank, Pepsi etc)and as successful entrepreneurs/businessmen(of course with great inputs in higher education from American universities and India's IIM's/IIT's). So, clearly, talent and ability to manage a brand/business is not the deficiency here. The deficiency arises out of warped ideas and perceptions which are relics of a Cold-War era when there was little Indo-US cultural (and business) exchange and the only reports newspapers carried of India were one of poverty, starvation, snake-charmers and elephants!
Now, i wouldn't say it was all fake but i certainly feel that it was exaggerated. Actually,it was bound to be so, considering the complexity, variety and diversity of India and the fact that one can't generalize its people culturally or economically.
But on a longer term view, Tata could make a huge technological leap and save years of development costs by acquiring the brands.
"If they (Tata Motors) want to move into the league of the VWs and the Audis, they need to make these kinds of investments," he said. "They (the Tatas) -- in fact the Indian auto players -- don't have the technological capacity right now to match these global companies."
And if anyone can succeed, it is the Tata Group, which has forged a reputation as turnaround specialists with other distress buys.
Further, i must add that the gentleman's remarks show that even businessmen wear blinkers. Indian business talent, managerial skills etc have developed over decades (pre and post market-liberalisation)and therefore one finds Indians at the top rung in global companies(Citibank, Pepsi etc)and as successful entrepreneurs/businessmen(of course with great inputs in higher education from American universities and India's IIM's/IIT's). So, clearly, talent and ability to manage a brand/business is not the deficiency here. The deficiency arises out of warped ideas and perceptions which are relics of a Cold-War era when there was little Indo-US cultural (and business) exchange and the only reports newspapers carried of India were one of poverty, starvation, snake-charmers and elephants!
Now, i wouldn't say it was all fake but i certainly feel that it was exaggerated. Actually,it was bound to be so, considering the complexity, variety and diversity of India and the fact that one can't generalize its people culturally or economically.
But on a longer term view, Tata could make a huge technological leap and save years of development costs by acquiring the brands.
"If they (Tata Motors) want to move into the league of the VWs and the Audis, they need to make these kinds of investments," he said. "They (the Tatas) -- in fact the Indian auto players -- don't have the technological capacity right now to match these global companies."
And if anyone can succeed, it is the Tata Group, which has forged a reputation as turnaround specialists with other distress buys.
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