Though the strategy might have paid off to a great extent, yet there are underlying weaknesses which cannot be ignored for the sake of ensuring that Tata’s success is not compromised. These weaknesses include the fact that the economic recession has hit worldwide economies hard including India and that could affect Tata affiliates to a great deal as well. Also, the fact that the future managers could perceive the solar projects etc as additional burden could add to Tata’s expansionary issues.
Also, the expansionary policy of Tata is met by certain hurdles such as Technology. Certain cuts such as the foregoing of equipment such as the antilock brakes, air bags, and support beams could make it extremely difficult for Tata to enter into the US market.
The bid to acquire Jaguar and Land Rover could become a challenge for Tata as that would mean trying to reestablish the damaged image of certain products offered previously by Ford and also products such as the Nano would result in higher costs for Tata. Tata would face danger from higher prices due to these higher costs which would become difficult for itself to establish itself in the international market.
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