Jaguar Land Rover - Integrated Assessment

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JAGUAR LAND ROVER
Integrated Assessment
Yordan Dimitrov

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ExecutiveSummary
The Integrated coursework assignment looks at Jaguar Land Rover in the perspective of the three modules we studied in semester two of second year. In
order to develop my answers, I spent a long number of hours looking into trustworthy resources, these ranged from academic papers, textbooks, lecture
slides, books, virtual and physical sources of information.
The three modules are:
- 252SAM - Decision Analysis Techniques | Module leader: Dr. Omid Omidvar
- 239SAM - Global Supply Chain Management | Module leader: Raymond Rogers
- 249SAM - Management of E-Commerce| Module leader: Sukhvir Manak
Please refer to contents for further details.

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Contents
Page
1 JAGUAR LAND ROVER
2 Executive Summary Overview | Modules & module leaders
3 Contents
4 Introduction Task | History
5 Decision Analysis Techniques Revenue | Decision Tree
6-7 Decision Analysis Techniques Choosing and Analysing attributes
8 Decision Analysis Techniques SMART Analysis| Cost-Benefit analysis
9 Decision Analysis Techniques Sensitivity analysis | Choice
10-11 Global Supply Chain Management Impact on economical stability PEST & 7 principles of Supply Chain Management
11 Global Supply Chain Management Environmental sustainability
12 Global Supply Chain Management Social sustainability | Cost analysis & Profits
13 Management of E-Commerce Definitions | Types of e-commerce | Uses and Applications | 8 Key elements of business
14 Management of E-Commerce Potential opportunities | E-commerce strategy | Three main threats
15 Management of E-Commerce Three main threats: Privacy | Security |Failure to innovate
16 Recommendations
17 Conclusions
18-27 Bibliography Decision Analysis Techniques | Global Supply Chain Management | Management of E-Commerce | Other
28-29 Appendixes Appendix 1 (Revenue Models) | Appendix 2 (Snapchat campaigns)

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Introduction
The Jaguar Land Rover assignment focuses on the three main processes involved in setting up a new plant. First of all, I am going to look at the decision
making process in order to evaluate the opportunity costs in setting up into each of the three countries (Brazil, Russia and China), once the country is chosen,
I am going to justify my choice and evaluate all potential aspects involved in terms of supply chain. In particular, I will look into the economic, environmental
and social sustainabilities. Last but not least, I will look into the E-commerce side of JLR and identify their possible applications, potential opportunities,
strategies and threats.
Before going into further details, it is worth mentioning that Jaguar Land Rover was found in 2002 (Haymarket, 2015) by the ‘Indian multinational automotive
company’ (Bennett, 2016) TATA Motors. The current headquarters are based in Whitley, Coventry, UK (Jaguar land Rover corporate Website, no date) and for just over a decade
and a half, the company has managed to build its reputation as a ‘global luxury and off-road car manufacturer’ (Excell, 2013).

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MAIN REPORT
Decision AnalysisTechniques
Between 2011-2015, JLR’s Revenue has gone up by 221% (Statista, 2016) and
perhaps that’s the reason why they are looking into expanding to foreign
countries.
In order for Jaguar Land Rover to successfully expand, we need to use decision
making techniques and theory to evaluate which of the three countries (Brazil,
Russia and Canada) would best suit the automobile giant needs.
Few of the main reasons for going to new markets are:
 Saturation of domestic markets – UK
 Ability to compete globally
 Opportunity costs e.g. cheaper labour
First of all, it is important to state the fact that two of the countries fall into
the BRIC (Brazil, Russia, India, China) category, these are the so called
emerging markets that have the ‘potential to rank among the world’s largest
and most influential economies in the 21st century’ (BRIC countries -background, facts, news and original articles, no date). Canada is the only one who does not fall in the above
mention category.
Decision tree - evaluating whether JLR should expand to a new country
A decision tree diagram, shows an estimate of the potential short and
long term outcomes. It could help the senior management evaluate the
end result. Figure 2 (Lecture Slides,2016) shows the decision process involved in
deciding between expanding and choosing not to expand into a new
country. Before proceeding with the investment, they should evaluate
all options. If they chose to go down the root of expanding, irrelevant of
which country, Jaguar Land Rover chooses to set up their new plant,
they would have to go through the process of estimating the potential
profit and loss of this action.
As estimates are difficult to make, I chose not to include numerical data
on my decision tree.
(Lecture Slides,2016)

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Choosing and analysing the attributes:
Population
Brazil - 209,567,000 ✓
Russia - 144,218,000
Canada - 36, 254,000
A bigger population means opportunities for larger target audience, having the option to target particular segments would allow JLR to effectively use their
budget on promotion as well as development of dealerships. Brazil’s population is 17 million bigger than Canada’s. i.e. Raw weight (NW) would be 200
Gross Domestic Product
Brazil - 3,114,198.1 m
Russia - 3,573,579.4 m✓
Canada - 1,663,452.0 m
GDP is a good indicator of the wealth of a country in monetary terms. I purposely, choose to look into overall GDP as opposed to GDP per capita, as this gives
a wider overview of the country as a whole. Russia has the highest Gross Domestic Product and is 400 million richer than Brazil. i.e. RW = 300
Political stability
Brazil - (-0.01)
Russia - (0.84)
Canada - 1.18 ✓
Having a political stability is an important factor when deciding on whether to set up a plant abroad. Despite the fact that Brazil is holding the Summer
Paralympic Games in 2016 (Rio 2016 Olympics & Paralympics -Summer Games in brazil, 2016), there have been a number of issues raised in the media including water pollution.
(Balch, 2016). Government officials being investigated for corruption (BBC, 2015) and also George Hilton stepping down from a Sports Minister (BBC, 2016). The World
Bank evaluates the political stability in the three countries to range from 1.18 down to -0.84. This seems rather concerning statistic. RW = 200
Corporate TAX
Brazil - 34%
Russia - 20% ✓
Canada - 26%
The lowest corporation tax is in Russia (20%) and the highest is in Brazil (34%). Low corporate tax would mean that JLR could make the most of opportunity
costs, for example further increase in revenue or have additional resources to spend research and development. e.g. development of new model vehicles
such as the new Range Rover Evoque Convertible that ‘launched in April 2016’ (Fowler, 2016). RW = 450

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Industry related features
Brazil - 15.9 trillion USD
Russia - 75 trillion USD ✓
Canada - 33.2 trillion USD
JLR needs to have a good availability of the ‘TOP 5 Materials used in auto manufacturing: Steel, Plastic, Aluminum, Rubber and Glass’ (How StuffWorks, no date) in
order to reduce transportation costs involved in movement of tangible resources. RW = 400
Market Size
Brazil - 2.2 million units sold
Russia - 2.3 million units✓
Canada - 1.9 million units
The market size of each country is based on PWC’s statistics forcar sales in million units. The data showed that Russia has over 2.3 million units sold, which is
very promising considering Brazil has higher population. This is perhaps because GDP per capita is 151% higher in Russia than Brazil (IMF, 2014). RW = 350
Cost of Developing a car plant
Brazil - 392 million USD
Russia - 335 million USD✓
Canada - 700 million USD
The cheaper the cost of developing a car plant, the better for Jaguar Land Rover. Assuming their budget is 500m USD, they could set up the new plant for
335m and have additional 165m to spend on improving the business within the country or globally. RW = 260
I purposely put more value on the macro level attributes (Industry-related features, market size and cost of developing a car plant) as these are directly down
to the firm and are likely to remain insensitive of changes, whilst macro level attributes such as (Population, GDP, Political Stability and Corporate TAX) may
differ within the next decade.
Aggregate benefits total = 2160

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Specific Measurable Achievable Realistic & Time scaled Analysis
To identify which of the three foreign markets would be most appropriate for JLR, I decided to look at data and convert it into information. With the use of
techniques like SMART we can identify where the company is likely to succeed based on the macro and micro attributes.
Attributes Normalised weight Brazil Russia Canada
MACRO level
Population (Euromonitor) 9% 209,567,000 100% 144,218,000 66% 36,254,000 0%
GDP (Int. million $, Euromonitor) 15% 3,114,198.1 75% 3,573,579.4 100% 1,663,452.0 0%
Political stability
(points, WorldBank)
9% -0.01 41% -0.84 0% 1.18 100%
Corporate TAX
(VAT for corporations, CFE)
20% 34% 0% 20% 100% 26% 57%
MICRO level
Industry-related features
(Value of Natural resources,Perfect
Insider)
18% $15.9 trillion 0% $75 trillion 100% $33.2 trillion 29%
Market size
(Car sales in million units,PWC)
16% 2.2 75% 2.3 100% 1.9 0%
Cost of developing a car
plant
(million $,Financial Тimes)
13% 392 (Actual cost ofJLRplant) 84% 335 (Based on GM’s Investmentin
Togliatti)
100% 700 (Based on Ford’s Investment in
Oakville Assembly)
0%
Aggregate benefits (points) 100% Averages 53% 80% 26%
Based on my research and SMART analysys, I came to the conclusion that setting up a plant in Russia would perhaps be JLR’s best choice. The average of all
attributes accounted for 80 per cent. Whereas Brazil held 53% and Canada was a bit below half of that (26 per cent). The tactical advantage of setting up a
plant in Russia also comes from the fact that there is an existing plant in Changshu, China therefore the additional plant in Russia would be able to increase
the supply and meet the growing demand in the Asia continent (Russia, China, Japan, India etc.)
Cost-Benefit Analysis
The simple cost analysis diagram identifies the rough position of each benefit. We can see that D, E, F & G are
below the efficient frontier, meaning that they would not be beneficial as attributes. Along the efficient frontier,
we see A and C. B seems slightly off, implying this would be the intermediate option.

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Sensitivity analysis
When making a sensitivity analysis, I looked at the figures and realised the data is
arguably insensitive to external changes. This stable figures would come beneficial
to the automotive giant in the new venture. This is as a result of devaluation of all
current assets. However, the average of all aggregate benefits between Brazil and
Russia differentiate by 17 per cent. This gap would allow for additional profits to
the JLR company.
Choice
In terms of location for the new plant, the Ural region (Kurgan, Sverdlovsk, Tyumen,
Khanty-Mansi Autonomous Okrug, Chelyabinsk, Yamalo-Nenets Autonomous) in Russia
has the highest GDP Per Capita (Over 40 000 USD) (World Bank, 2015) and is fairly close to the
capital, Moscow, 1000 miles, which would allow JLR to not only maximise production
efficiency, but also allow for them to have quick access to major car dealerships. The
Tyumen Oblast would allow for such plant to be created. Having the highest population
and area of the region would allow for JLR to find a suitable place to build their plant or
alternatively refurbish an existing one. The fact that so many companies find it profitable
to produce products in China for UK markets shows that shipping costs do not lead to loss
of profit margin.
In addition, the existing plant in Changshu, China would be able to support the new plant
in the logistics processes and ensure that the supply is sufficient enough to meet the ever
growing demand.
(World Bank,2015)

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MAIN REPORT
Global Supply Chain Management
If Jaguar Land Rover choose to follow my suggestion and expand into the Ural region of Russia, (for more information, see pages 5-9), the potential move of
production would fit the sustainability strategy of JLR in a number of ways;
In terms of the impact on the economical stability of JLR, the company would be looking into taking the following situation:
PEST Analysis
Political  Strategy of open foreign relations
 Holding official relationship with 191 countries and 144 embassies (Russia InGlobal Affairs, 2014)
 Biggest store of nuclear weapons, including navy, ground and air force. (FAS no date)
Economical  Oil and gas account for up to 98% of Russian Corporate Profits (Moscow Times,2015)
 10th Nominal GDP (IMF,2016)
 4th largest agriculture in the world (US Dep. ofAgriculture -Foreign Agriculture,2014)
 Located between Europe & Asia
Social  On average, Russia has 317 cars for every 1000 people (Autonews.ru, 2015)
 Demand for informant, driven by wealth of population and technology
 Known to be intolerant against some communities e.g. LGBT (“Russia 'may ban gay emojis'under 'propaganda'law”BBC, 2015)
Technological  B2B accounts for roughly 40% of total telecom spend in Russia (SlideShare: ShrutiMulay, 2015)
 Roads account for up to 982000 km or 610187 miles (Trading Economics, 2009)
 4G mobile broadband available since 2012 (Yota, 2016)
Following the 7 principles of Supply Chain Management JLR’s potential response
1. Segment customers based on service needs & profitability  Targeting middle class with earnings above 15,000 USD, who are willing to pay the price
of a JLR vehicle.
 Presenting a menu-driven portfolio of services such as after sales services, tech support
and fast delivery of the vehicle to the dealership. (Interactive, 2016)
 JIT approach in order to achieve segment profitability (Mowen, Hansen, andHeitger, 2015)
2. Customise logistics network to market requirements  Logistics could be done through: Ground, Rail and Air
 Strategic inventory, flexible 3rd party alliances as well as multi-level systems
3. Synchronise  Ensuring that the potential plant in Tyumen, Russia cooperates with the existing plant in
Changshu, China (Advisor, 2015) in order to satisfy the rise ‘80 % rise’ (Telegraph,2014) in foreign
demand.
 Preferably collaborative and coordinated planning, capacity utilisation and vendor

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managed inventory. (Vendor managed inventory what’s true collaboration,2011)
4. Shorten lead times  Ensure JIT (Just In Time) runs across all aspects of the business and is done by the
business as well as its third party suppliers.
 Mass customisation would allow JLR to make additional profits on providing the extra
car equipment e.g. iPhone charger (INNOVATION THOUGHTLEADERSHIP SERIES: MASS CUSTOMIZATION, no date)
 Fast changeover
5. Purchase strategically  Ensure opportunity cost is considered and attempt risk management and potential
profit evaluation
6. Leverage technology for supply chain visibility  Through the use of SaaS model (Software as a Service) to enable cost reduction
improvement of services, gain of complete visibility into the entire transportation
process and abide with regulations in different countries (Inboundlogistics.com,2011)
 ‘Open books’ (Service, 2015) mind-set
 Using online communication to its full potential in order to communicate with
stakeholders
7. Adopt aligned ‘channel-spanning’ metrics  Consistently applied measurement, customer-focused report cards, 6 sigma, perfect
orders and both service and financial metrics (“7 Principles of Supply Chain Management”, Anderson, Britt,
and Favre,1997)
Based on the “7 Principles ofSupply Chain Management” by Anderson, Britt, and Favre, Supply Chain Management. Review, Sept. 1997
The 7 Principles of Supply Chain Management come useful when thinking ahead and considering the economical stability of the foreign market. Through
assessing all 7 principles and analysing the potential response from JLR, we can force the threats and eliminate them where possible.
The environmental sustainability of Jaguar Land Rover is equally important, if not more than the
economical, as sustainability and CSR play huge role in the development of both the product and the
brand reputation. The environment must be protected as it is a long term liability. In order for JLR to
reduce the potential damages that could be caused on environment, e.g. air pollution, they should
prioritise the opportunity to set up their plant in a purpose built existing building as opposed to greenfield
site. Benefits such as higher ROI (Return of Investment) (InstituteBe, 2010) to which are that existing
infrastructure could be used and the building could be fully connected to all major motorways as well as
water, electricity and gas suppliers.
Arguably, setting up a plant on a greenfield site allows opportunities for long term expansions, major car
manufacturers like Volkswagen “Slash the investment needed to build a new plant 40 percent by
switching to "simple and slim" lines” (hgreimel and Greimel, 2015) by doing so, they stay away from having too big
plants as this is likely to reduce the efficiency and requires additional more sophisticated management
structure. Setting up a new plant also requires planning permissions and ‘twice as many resources than
regenerating an existing building’ (Hatherell, 2012)
(JLR, 2015)

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The impact on the social sustainability
There are many ways in which JLR’s impact on Russia could be positive. For example, creating new jobs for locals
and thereby reducing unemployment through enforcing ‘social justice’ (Allais, 2008). i.e. ‘everyone deserves equal
economic, political and social rights and opportunities’ (Social justice, 2016). In addition, JLR’s presence in the region is
likely to have a progressive impact on investment from other companies e.g. fast food restaurants setting up near by.
However, the impact would not always be positive as transportation increases emission levels and to a certain level
pollutes the area.
Aside, noise pollution and likelihood of traffic jams fall into the
negative side of large car factory in an area. Public opinion plays a
huge role in the development of a company, the knock on effect is a double edged sword, it could help build the
company’s name but it could also lead to huge damages
e.g. Back in 2010, TOYOTA ‘recalled 5.2 million cars on
January 28th 2010’ (St, 2011). The ‘77 reported cases of
breaking problems’ (Allen and Sturcke, 2016) were later revealed
to be as a result of ‘driver error and not manufacturing
defects’ (The Atlantic, 2011). This had a negative on both the
company’s finances ‘$2bn (£1.26bn) in extra costs’
(McCurry, 2016) and damaged reputation. The diagram on the
left shows the Consumer’s Brand Distortion Towards
TOYOTA. Despite being a pioneer in the industry with its invention of the ‘Toyota Production System’
(Ohno, 1982) they faced faced negative distortions after the both the first and the second recall.
In terms of costs & profits. The cost analysis I did, allowed to make an estimate based on the cost of setting up a plant in Brazil. Roughly, the new plant in Ural
will cost JLR – 335 (Based on GM’s investment in Russianplant,2015) and 392 (Actual cost ofJLR plant,2015) million pounds; despite the fact that JLR is currently in the progress stage.
Having ‘more than doubled sales since 2009’ (JAGUAR LAND ROVER REPORTS STRONG FULL YEAR GLOBAL SALES FOR 2015, 2016). Gradually sales are likely to become more constant,
without the much anticipated increases. Similar to fridges, vacuum cleaners and washing machines, Russian consumers only purchase a vehicle once every
’15 years’ (Blanchard and Sheen, 2013). Meaning that the profit maximization model can not outgrow its potential. The UK based company must ensure that they
retain their market share ‘4%’ (Statista, 2016) and where possible grow into the particular segments or models of cars. E.g. SUVs
If JLR focuses on sustainable economic development, they could not only help their company remain in business, but also strengthen the Russian economy
and in particular, the region where they would hypothetically set up their new plant – Ural.
Overall, JLR must remain focused on sustainable development. If we weight up the for and against arguments in terms of supply chain, the figures indicate
that the decision to move into a foreign country (Russia) would be beneficial for the company and if done with sustainability precautions, it will have a
positive effect on Russia’s economy, environment and society.
(CNN,2010)
(JLR,2015)

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MAIN REPORT
Management of E-Commerce
E-commerce: ‘Describes the process of buying, selling or exchange products, services, and information via computer networks, including the internet.’ (Turban &
King, 2003)
Before analysing the possible uses and applications, we should
analyse the types of e-commerce Jaguar Land Rover would be
involved in. As a Global firm, we can claim they have been
involved in one way or another with all relations, from B2B to
B2G. But mainly they deal with B2C, B2B and B2G.
The company is currently likely to dive from a mainly
traditional ‘Brick and Mortar’ into the ‘Click and Mortar’
(Bernstein, Song, and Zheng, 2006) business model to ensure there is
availability for customers both physically and virtually.
E-Business: ‘the digital enabling of transaction and processes
within a firm, involving information systems under the control
of the firm.’ (Lauden and Traver, 2012)
There are a number of possible uses and applications of e-
commerce that may be open to JLR as they begin a new venture, from social media to online security, the company must ensure their intranet and internet
are up to date with the 2016 environment. In order to fully integrate into their new market, Russia and in particular the Ural region, they must ensure that
they plan and enforce an e-commerce strategy, the chosen approach must comply with the eight key elements of business:
1. Value proposition
2. Revenue model (appendix 1)
3. Market opportunity
4. Competitive environment
5. Competitive advantage
6. Market strategy
7. Organisational development
8. Management Team
(Chattopadhyay, 2013)
In particular, the revenue model is where JLR must focus on when it comes to setting up a plant in the Ural region, Russia.
Starting off with ensuring the JLR website is translated into the local language, Russian, but not only stopping there. They should be able to have after sales
services that allow for further brand reinforcement as well as loyalty. In order to be able to do that, JLR may look into employing new staff and ensuring they
are fluent in both English and Russian. This is so that they can allow communication amongst both stakeholders and customers.

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In terms of potential opportunities, the company should look into developing a multi channelling digital campaign in order to get the message across the
various social media platforms as well as email newsletters, digital display and websites. There has been an on-going trend in use of mobile only social media
applications such as Snapchat. Through sharing the ‘small moments’ (Bayer et al., 2015) JLR can reach out to new customers by targeting their location, the Ural
area of Russia and additionally allowing users to add a filter with the brand’s logo. For more about similar campaigns, refer to appendix 2
In order to allow the users to engage online, the company may look into improving their
virtual store by offering 360-degree Virtual Reality. The concept of VR in the automotive
industry has been discussed in an academic journal by ‘Future directions for the
development of virtual reality within an automotive manufacturer’ (Lawson, Salanitri, andWaterfield,
2016) , where the potential forward thinking ideas about this new dimension are justified. In
this way a customer can get a close and personal look at their vehicles and gain first
person experience without even leaving
their house. The photo on the left,
shows how JLR’s competitors – Ford
Motor Company Australia have
launched a VR Centre. VR would not
only benefit the customers but also the
business itself. “Virtual users from
multiple Ford headquarters around the
world are also able to teleconference in
the same virtual environment to discuss design changes.” (Zheng, 2012)
In terms of e-commerce strategy, JLR is currently focused on Sales. (Brown, 2016) One in 3 articles on their ‘News’
section is related to improving sales and indicating success. The official JLR social media account on twitter
also focuses on pointing out the company’s success in terms of sales. Claiming that one ‘vehicle was sold
every minute during the last 12 months’ (twitter, 2016) This positive message should be brought forward to the
Russian market by being translated and put into perspective. E.g. “JLR, the sold 1,400 cars per day around
the World. Purchase yours today from your closest dealers in Russia” or “JLR, проданный 1400
автомобилей в сутки по всему миру. Покупка ваш сегодня из ваших ближайших дилеров в России”
(Google Translate)
A brand re-enforcement strategy and Virtual Reality are likely to have an even
bigger, more positive impact on the company’s profits and long term gains such as
increased market share. Companies like Coca-Cola are know to combine technology
and promotion of their popular products and to spend over ‘4.4 billion’ (McQuilken, 2014)
on promotional campaigns like ‘Share a coke’ (Miller, 2015).
(FORD,2016)
(Miller,2015)
(twitter,2016)

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There are three main threats
 Privacy
In terms of Privacy “Informational self-determination” (Westin, 1967), JLR holds valuable information of both customers and employees. As a 21st century
business, Jaguar Land Rover’s electronic systems are in constant threat from hackers and it is vital to ensure their internet and intranet are as secure as
possible. Using second-step verification and encrypting all data (Hackworth, 1995) is just a small step the automotive giant could take to prevent data breach. In Q4
of 2015, TalkTalk’s data breached affected over ‘157,000 customers’ (Farrell, 2015) and lead to further ‘7% share fall’ (Fletcher, 2015) and loss in consumer confidence.
Garter claims that ‘Through 2020, 95% of cloud security failures will be the customer’s fault’ (Garter, 2015) meaning systems will considerably improve and reduce
the technical faults within the next 4 years. Especially when entering the foreign market, Russia, they would be faced with a potential treat from local hackers
who could take advantage of the fact that the coding is done in English and abuse it. Similar to the recent case where ‘Chinese nationals hacked in to the
Pentagon’ (Thielman, 2015).
 Security ‘the backbone of doing business over the internet’ (Turban et al, 2011) wise, aside of all potential Information System Problems related to undeliberate
e.g. human error or deliberate acts e.g. Trojan Horse (Boyle, 2001), I am thinking five to ten ahead, as JLR is likely to follow its competitors Google (Google self-
driving car project, 2016) and BMW (BMWBLOG, 2015) in launching a fully ‘autonomous’ (Pettersson and Karlsson, 2015) vehicle that does not require human control. JLR is
currently known to have invested ‘$7.9 million program to test self-driving cars’ (Jaynes, 2016). This innovation is as much fascinating as dangerous and a key
priority for it would be to ensure that the artificial intelligence that is responsible for driving the vehicle could not be compromised. Online, there are a
number of articles claiming there are individuals who can ‘can hack your car, even without an internet connection’ (Custer, 2016) Such weak security spot
would not only damage the company’s name and finances, but also threaten the health and safety of the JLR drivers and passengers.
 Failure to innovate: Poor R&D efforts, if the company does not force changes in the automotive industry and impose changes to meet the customer
demands, they may easily loose market share. Cars are price elastic and like mobile phones they
are considered ‘necessity according to 86% of Americans’ (Williams-Derry, 2016). Therefore, arguably a
failure to innovate would have the same impact on cars as mobile phones. Similar to Nokia
‘Nokia have retreated from €35 billion in sales in 2008 to €15.7 billion in 2012’ (Yanofsky, 2013) and
Blackberry (Gustin, 2013) (interesting enough, both companies refused to install Android), JLR could
lose a huge market share in just over five years. Even basic vehicles extras like charging your
phone in your car could be a vital USP (Unique Selling Point) (W., 1991) that would drive customers
away from the UK based car giant. Perhaps, finding the USP for Russia would be a good way to
approach the target audience. By meeting and if possible exceeding expectations, JLR could
achieve what TOYOTA has been doing for years, a brand loyalty. Forbs claims ‘Toyota
Motor Corp. enjoys the most-faithful buyers in the auto industry’ (Gorzelany, 2012)
The key determinant of success would be research, without sufficient background information, JLR may lose market share and thereby, financial losses.
e.g. Marks and Spencer’s failure to enter the Chinese market, leading to 30% less sales than previously anticipated (Rupert Steiner for the Daily Mail and Steiner, 2015).

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Recommendations
Overall, if the Jaguar Land Rover senior management team decide to follow my recommendation to set up their new plant in the region of Ural, Russia, they
would benefit from having a large customer base, sufficient and educated labour force and many opportunities for efficient logistics. Aside of that, the
neighbouring plant in China would allow the company to distribute its products and supplies across the Asian continent. Choosing to set up the plant in an
existing building as opposed to a greenfield would reduce waste and allow for a more sustainable development. In addition, the company must remain
focused on considering the long term effect on the environmental and social sustainability. In terms of E-business, the company must avoid falling into the
trap of entering the market without the necessary research to identify the wants its consumers desire. In addition, they must remain focused on ensuring
R&D resources are optimised in order to sustain their current market share.

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Conclusions
My research led me to the conclusion that in order for Jaguar Land Rover to be able to not only enter the Russian market and set up their plant, they must
ensure that they are well prepared. A lot of money has to be spent on understanding the strengths and weaknesses of the Ural location. In addition,
understanding the new market and the competition is key. In order for JLR to efficiently use its resources and to increase the chances of successfully entering
the Russian market, they must ensure that their footprint leaves a sustainable impact on the country.

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Student ID: 5446890
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Student ID: 5446890
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Appendixes
Appendix 1
As you can see, there are over five revenue models. The
issue with advertising comes from the fact that sometimes
marketers pollute their website with promotional materials.
In order to avoid this, JLR may try to use in content
advertising and make the most of ‘Cookies’ in order to
collect the accurate data about what the website visitor is
interested at. In this way they would not be offering a 2
person sports car to a family of four looking for a new mini
van.
Target advertising has proven to increase interaction by
nearly ‘40.6 per cent’ in 2009 (Abramovich, G., 2009). This implies
that there is an optimal use of the advertising budget,
therefore JLR’s E-Business could have a higher number of
orders placed on their website or alternatively lead to
further brand awareness.

Student ID: 5446890
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Appendix 2
The Excelacom diagram shows the trendiest online tools and in particular their usage for 60 seconds. We can notice that Facebook has over 700,000 logins,
UBER makes 1,389 rides and the popular application among younger consumers, Snapchat
shares 572,750 photos. Snapchat has proven out to be a very successful company and
perhaps their decision to refuse offer the ‘3 billion USD’ (Mashable, 2014) offer from Facebook back
in 2014 was the right thing to do. Recently there have been a number of campaigns on
Snapchat, from movies (BarmanVSuperman, 2016) to political elections, the media is in love with the
smartphone app. As I mentioned, JLR could
take full potential of this social media
platform and promote its vehicles to both
youngsters and adults. Thinking long term,
those teenagers will be soon old enough to
drive and having the JLR brand in the back of
their mind might be a good advertising tool.
Similar to Coca-Cola, JLR must use brand
reinforcement to get its message across.
The platform is now valued at ‘16 billion USD’
which is over 4 times what Facebook was
prepared to pay 2 years ago. (Kosoff, M. ,2016)
(DC Comics, 2016)(twitter, 2016)

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