Strategic analysis and directions for Google Essay

Strategic analysis and directions for Google - Essay Example Figure 1: Comparison between Tata and Toyota by volume manufactured). In some categories, such as heavy buses and heavy commercial vehicles, Tata Motors even produces more vehicles (see Appendix 1 for full data). Going by revenue, the automotive industry, which develops, designs, manufactures, markets and sells motor vehicles a significant economic sector of the world. The industry, though very capital intensive, yet is marked by fierce competition and demand elasticity being plagued by a host of recent political, economic and social macroeconomic developments such as: credit crisis, fuel crisis and technological changes necessitated due to global climatic change. Economic developments: The automotive industry suffered significantly during the previous ensuing years as part of global financial meltdown, which affected the American, European and Asian automobile manufacturers. Canada too felt the heat due to the Automotive Products Trade Agreement. Geopolitical developments: Substanti al increase in fuel prices triggered by geopolitical developments resulted weak car demand, which further weakened the automotive industry. Sports utility vehicles, pick-up trucks and other high gasoline consuming vehicles were under pressure due to fuel hike and their sales decreased substantially. Many American manufacturers such as Ford, GM and Chrysler were forced to roll out more fuel efficient vehicles. Technological changes required due to global climatic changes: Due to impact of global climatic changes and the resultant stringent emission norms increased investments in technology significantly. The tell-tale situation of the industry is marred by negative growth leading into the automotive industry crisis of 2008-2010. Table 2: Percentage change in global car manufacturing during 2007 to 2010. Year Production Change Source 22007 73,266,061 5.80% (OICA, 2007) 22008 70,520,493 -3.70% (OICA, 2008) 22009 60,986,985 -13.50% (OICA, 2010) Figure 2: Percentage change in global car production year 2007 - 2010 As a result of these macroeconomic developments, the industry is currently undergoing radical changes and is moving towards consolidation by means of mergers and acquisitions and strategic tie-ups and partnerships for joint production, and marketing and selling. Chances are that more weaker and unprofitable companies will further be taken over and acquired and in the end will leave only those strong enough to sustain the downturn. Under these circumstances, Tata Motors need to maintain economy of scale and need to invest more on R&D and innovation, and also need to explore new products and markets. All these have to be undertaken simultaneously under the constraints of the emerging geopolitical