External Scanning and Analysis (Tata Motors) Essay

External Scanning and Analysis (Tata Motors) - Essay Example This is evident by the increasing demand for automobiles, new technologies in the industry, emergence of news products, and ratification of novel regulations to govern the industry. Such challenges create both opportunities and threats to Tata Motors in terms unique market demands. The market trend for automobiles is thriving with young people proving to be the potential buyers for cars. Automobile firms target youngsters who like trendy cars and other vehicles. Despite these changing trends, most organizations have also defined their demands on the kind of vehicles they prefer. Such demands have forced Tata to adjust to the new technologies in making fresh and economical vehicles capable of competing favorably in the market. Companies reminiscent of BMW, Toyota, and Mitsubishi among others threaten Tata Motors. The company has to conform to the new market trends and environmental changes or flourish to extinction. Nevertheless, Tata Motors has thrived to enhance its market share glo bally thus announcing astounding intensification in its revenues in the recent financial years. This illustrates that the company understands its environment and competes favorably with other rivals despite the challenges. Evaluating opportunities together with threats â€Å"Opportunities and threats† form exterior aspects that analyze the market trends during the formulation of future strategies.2 The opportunities deeming for Tata Motors are numerous but depends on its approach to the dynamic automobile markets. One of the opportunities is that the company is able to develop its market presence in many countries globally to enhance its market reach. Additionally, despite the stringent competition in the industry, its rivals might flop. This gives it a chance to boost its market breadth. Another opportunity is that the new lifestyle trends are favoring the Tata cars particularly the ‘Nano-car’ model. Majority of the youngsters prefers to by the state of the art cars giving the company an opportunity to improve and emerge with new products. Additionally, the company targets global niche markets in the compact car models. This grants it an opportunity to storm virgin markets and take root before the flock of other brands. The company also gathers a global influence that grants its some publicity in the market. The market volumes, seasonal fashion influences, partnerships, and well-orchestrated distribution channels are other opportunities enjoyable by Tata Motors globally. The threats engulfing the industry incorporate political and legislative aspects that influence the global markets. Most countries have set rules that might disfavor the automobile industry in terms of importation and use of automobiles. The global uproar on the environmental conservation forms another threat to Tata Motors and other industry players. The threatened world economy, season, climatic concerns, credit pressures, enduring competition, technology developments, a nd changing market demands are other threats that face the automobile industry. Using â€Å"Porter’s 5-forces framework† in evaluating the industry The â€Å"porter’s 5-forces model† illuminates the nature of competition within an industry3. The automobile indu