Question

1. Research updates on the business environment. Pick a company you are familiar with and do a SWOT analysis for considering entering the Cuban market.

2. What entry strategy do you think would work best for this company?

Please don't copy other's answer and in your own words.

Answer 1

1. The Cuban car scene is famous in the whole world, its streets are a museum for classic cars. Cuban streets are filled with old American muscles which were imported there around 50 years ago after which the Cuban revolution happened and then-dictator Castro banned imports of all foreign cars and car parts. But now all this ban is lifted and cars can be imported here.

Tata Motors is an Indian multinational auto manufactured, it is known for its mid-ranged cars. Since factories can be set up there and card can be imported, it will be a good time for an automobile manufacturer to enter the market who is neither cheap not a luxury like BMW or Mercedes.

SWOT analysis

Strength

• Tata Motors has the resources to expand to a wholly new market and maybe set up a factory there
• The government will be welcoming to a company giving jobs to thousands.
• Tata Motors has already operated in the difficult market of India in the past hence they have experience of dealing with a socialist government.

Weakness

• Cubans are car enthusiastic people in general and therefore may not be acceptable to an average car company.
• Aesthetic vise, Tata motors do not make the most beautiful cars and their competition is basically classic Americal muscles.
• Tata is not a name Cubans recognize, they may know about BMW, Mercedes but Tata will be a new name.

Opportunities

• Cuba is very much an untapped market in terms of new cars and marking a presence there will not be a very difficult task.
• Cuba is also in North America and they aver want to, they can expand their operations in other North American countries.
• Tata already make cheap cars and for not so wealthy country like Cuba, it can be a good choice to consider

Threats

• Businesses are not a legal entity in Cuba so the liability falls on the shoulders of owners and employees.
• Cuba is considered an authoritarian regime which can be very bad for business.
• There is a good chance that Cubans will not even consider Tatas as their car.

2. Tata will have to be ready to deal with an authoritarian government which basically means keeping the top officials happy.

To penetrate the market Tata will first need to design completely new models, very few Tata cars are aesthetically good looking and in my opinion, Tata Harrier is the only car they should be proud of. They would need to produce Mid ranged Deisel powered cars because diesel is very cheap compared to petrol in Cuba.

They would then need to advertise heavily, to make it a household name and cars will have to be made somewhere else, of course, to see whether Cubans are accepting the brand or not.

If they are, a factory can be set up there to make the government further happy and reduce costs.