TATA MOTORS
TATA MOTORS was founded in the year 1945 as a manufacturer of locomotives but entered the passenger vehicle market in 1988.
TATA MOTORS is the largest automobile manufacturer in India and a member of the TATA GROUP. The company is providing with various products such as passenger cars, trucks, vans, buses, coaches, sports cars, military vehicles etc.
The economic concepts that can be easily identified are: -
Utility- Fulfilling the needs of the consumer and providing satisfaction according to the class of the income level. For example- “Zest” is preferred by lower-middle-class level, whereas “Hexa” is preferred by upper-middle-class level. A different variant provides the customer with the ability to select & go for their own preferences.
Monopolistic Competitive Market- It is competing with various other firms such as Mahindra & Mahindra, Maruti, Hyundai, Honda etc. with fewer restriction barriers to the market.
Economies of Scale- This goes well with the mass production concept. As the production quantity increases, the average production cost decreases following the economies of scale.
Price Discrimination- The same product can be sold at various prices relative to the type of customers- like the defence wing has a special price for acquiring the vehicles and logistics for TATA MOTORS.
Trade off- People go for TATA vehicles as they have a wide variety of models suiting the desires and preferences of consumers. Hereby giving up the opportunity cost over Mahindra or Maruti. Similar goes with the TATA’s own product depth where a particularly middle-class society wanted NANO which suited their budget & income giving up on other models.
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