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Tata Motors and Fiat Auto: Collaboration

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- Explain the business opportunity in India.
- Based on your understanding of the case, explain if Fiat can benefit from a partner and provide your rationale.
- Discuss whether Fiat and Tata can make good partners and provide at least two examples supporting your position.
- Discuss possible challenges that could affect the partnership long term. .Evaluate the business case for a joint venture strategy and support your rationale.
- Make recommendations for the alliance to be successful.

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Solution Preview

The business opportunity in India arises from the fast growing small car are market. There is a sizeable market for diesel cars in the Indian market. The increase in demand is likely to persist at the disposable income of Indian is increasing. Liberalization and opening up of the Indian economy is responsible for the growing demand for automobiles in India.
Based on my understanding of the case, Fiat can benefit from a partner. Fiat had to withdraw from the American and Australian markets and Fiat has to make sure that that its presence in the Indian market was strong and growth was assured. The dealership network of Tata Motors ensured that Fiat would have excellent distribution facilities in the Indian market. Further, Fiat also had manufacturing facilities in India that would be better utilized if there was a partner such as Tata Motors. At the same time Tata Motors ...

Solution Summary

The response provides you a structured explanation of business opportunities and challenges in India . It also gives you the relevant references.