Tata Chemicals, which was established in Mithapur, India in 1939, is a business regarded super brand in Indian. It is the second largest soda ash producer in the world and it takes the first place in salt and iodized salt market in India (Tata Chemicals Limited, 2009). Tata Chemicals has launched a wide range of products from chemical goods, fertilizers, food additives to farming services, which aims to help farmers with agricultural information, resources and technical aids. In order to increase its soda ash production capacity and realize that missing of being global, Tata Chemicals seems to be actively involved in the process of acquisition. For example, in 2006 it acquired the UK-based Brunner Mond Group and completed the acquisition of US-based General Chemical Industrial Products (GCIP) in 2008, which gave it a competitive edge in global soda ash markets (ibid.).
Considering of the international environment, although Tata Chemicals enjoyed a great fame and popularity among global industries and consumers, it faced fierce competition in the chemicals area. Brunner Mond Group and GCIP, which have been mentioned above, are two strong players competing with Tata Chemicals. So as to compete more efficiently and effectively in the global markets, Tata Chemicals tried to focus its attention on developing and producing goods and services it has a competitive advantage in. For example, Tata Chemicals found that it has got a competitive edge in producing soda ash; therefore, it increased its investment in this area to increase its market share in the global soda ash market. It acquired Brunner Mond Group and GCIP as means to improve its influence globally and in turn become the world second largest soda ash producer (Tata China, 2009).
The regional environment seems to be in great favor of Tata Chemicals. Firstly, Tata Chemicals is strongly backed up with one of the oldest financial groups Tata Group, who has got 96 companies and more than 200 thousands employees with total income of more than 492 hundred millions of dollars (Wang, 2007). What's more, Tata spreads its businesses into a wide range of areas such as resources, mechanicals, energies, computers, telecommunications and financial services, which could give Tata Chemicals a strong backup to enable it compete more efficiently and effectively both regionally and internationally. It seems that there is less competition from regional or local competitors against Tata Chemicals in India.
Industrial environment Tata Chemicals operates seems to be favorable as well. It has achieved a wide range of industrial customers such as glass makers, paper makers and fertilizers producers (Tata China, 2009). It set up a network of Tata Kisan Sansars (farmer centers) to stock seeds, pesticides and fertilizers, lease out farm equipment and implements and provide services such as soil testing and mapping (Tata Chemicals Limited, 2009).
A global strategy can be defined as ones contain a high degree of concentration of resources and capabilities in the central office and centralization of authority in order to realize efficiency and learning economies (Bartlett et al., 2008). In this sense, Tata Chemicals seems to fall into this category. Most of its production sites are in its home country, for instance, its cement; salt, nitrogenous fertilizer and phosphate fertilizer production factories are all in India (Tata China, 2009). However, its goods and services are not limited to be consumed domestically; instead, Tata Chemicals' exports reach as far as Europe, Africa, Southeast Asia and Middle East (ibid.).
- Bartlett, C., S. Ghoshal & J. Birkinshaw (2008) Transnational Management: Text, Case, and Readings in Cross-Border Management, (5th Ed.) McGraw-Hill International Edition.
- Tata Chemicals Limited (2009) 'Touching lives across geographies', in Tata Chemicals Limited Website [online], 2009. Available at: < http://www.tatachemicals.com/our_company/businesses.htm> [2 Dec 2009].
- Tata China (2009) 'Industry of TCL', in Tata Sons (China) Website [online], 2009. Available at: <http://www.tatachina.com.cn/chanye/index.php?id=19> [30 Nov 2009].