Introduction Of Tata Motors Marketing Essay

A manager was considering buying a fresh car. He previously driven Jaguars for some time. However, he thought it might be smart to review the options systematically. He obtained the brochures for a range of luxury car makes, identified the major factors which were important to him and considered all the performance signals for each of the autos against these. He even allocated a weighted credit score to the factors that recommended most to him. The research told him a BMW or a Mercedes might be a better choice a Jaguar.

This shocked him and he didn't much like the answer. He previously always motivated a Jaguar, he was used to it, sensed it had an especially English character and that it appropriate his personality. He was also getting excited about getting the new model. So his inclination was to buy another Jaguar.

Actually he ended up buying a convertible Mercedes sports activities. This was because his partner thought he had a need to liven up his image and liked the thought of traveling it on holidays. With some reluctance he bought the new Mercedes. This proved to be a good decision. They both liked the automobile and it depreciated in value much gradually than a Jaguar.

So what exactly are the lessons? The planning and analysis was there; and when it didn't conclude informing immediately, it does indirectly. His better half justified the purchase of the Mercedes in part on the basis of that analysis. He would have were left with another Jaguar; a continuity of what he was used to. He actually decided to go with what (to him) was a book, progressive option that, over time, significantly transformed his approach to car buying, Of course, if his better half hadn't intervened, his inclination to the Jaguar based on past experience may possibly have prevailed. This depended on him and his circumstances-the framework. Some ideas complete, some do not, depending how attractive the ideas were to him. Or it might have been that the power of analysis have been such concerning overcome this. All these had to do with the strategy formulation, planning, analysis and selection, and finally, the implementation. So it has been organizations.

Source: Modified from Johnson and Scholes (2004) Exploring Corporate Strategy. 6th model, pg. 25.


Select a business of your decision and present critical inner and external environmental analysis predicated on the following tasks:

Give a important explanation of the contexts of business strategy and discuss a company's exterior environment using Porter's 5-Power Analysis and Infestation analysis.

Discuss the business's inside environment using value string examination and SWOT analysis.

Review the existing strategy or strategies employed by the corporation and propose a much better strategy for the corporation based on available choices.

Table of Content





Task 1

5 - 13

Task 2

14 - 20

Task 3

21 - 24




26 - 27


Organizations are very much an integral part of our environment. Not only do they exist but operate, make it through and grow by getting together with us and attempting to manipulate their environment. The managers, staff and the divisional minds of a business try to achieve their objectives, sometimes by making use of the environment regardless of its external affects. It is the role of the manager in particular to handle change in manner that works with to the business enterprise purpose strategy, framework and worth of the organizations. The power of environmentally friendly influence and the management of the determine the success or the failing of the organization.

Business environment may specify as a couple of conditions which including public, legal, economical, politics and institutional that is uncontrollable in mother nature and affects the functioning of the organizations (The Gemini Geek, 2013). Business environment may divide into inside environment and exterior environment. Internal environment is the environment that a direct impact on the business. Here there are some internal factors which are generally controllable because the organization has control over these factors. Examples of internal environment include the value system, eye-sight, mission and targets, the management structure and the type of the organization.

On the other palm, external environment refers to the environment that has indirect effect on the business. The factors are uncontrollable by the business enterprise. You can find two types of external environment which can be micro environment and macro environment. Micro environmental pushes have a direct bearing on the procedures of the organization. Macro factors are usually more uncontrollable.

Task 1: Give a meaningful classification of the contexts of business strategy and discuss a company's exterior environment using Porter's 5-Force Analysis and Infestations analysis.

1. 0 Classification of Business Strategy

A business strategy is a couple of guiding concepts that, when communicated and used in the business, creates a desired style of decision making. A technique is therefore about how precisely people throughout the organization should make decisions and allocate resources in order accomplish key aims (HBR Blog Network, 2013). An organization's strategy shows what the business wants to achieve and how it'll achieve it. It offers the goal of the business, goals and objectives, plans and methods to achieve these goals and targets. Strategy will involve the dedication of basic permanent goals and goals of firm, the adaption of programs of action, the allocation of resources necessary to achieve the goals. There are many influences on strategy such as stakeholders, values of owners and professionals, external environment, market opportunities, the culture of the organization, commercial skills and resources. There are a few factors to consider when deciding the strategy including SWOT analysis, skills and resources, quest and objectives, risk engaged, expect return, stakeholders and preferences (tutor2u. net, 2013).

2. 0 Advantages of Tata Motors

Tata Motors Limited was founded in 1945 and it is the most successful vehicle processing company in India. With Tata Group as its parent company and Ratan Tata as its CEO, Tata Motors has sold almost 6 million vehicles nationally since their first introduction in 1954 (UK Essays. com, 2013). In growing their business internationally, Tata Motors has proven that they are licensed as another rival in car industry. Their products are commercial vehicles like buses and vehicles, and also passenger cars like Tata Sierra, Tata Property, Tata India, Tata Nano and Tata Xenon. In India, Tata has businesses in Jamshedpur, Pune, Lucknow, Patnagar, and Dharwad. Tata Motors was posted in New York STOCK MARKET in 2004, followed by open their functions in UK, South Korea, and Spain (UK Essays. com, 2013). In 2004, Tata Motors jv with Daewoo Commercial Vehicles Company from South Korea and produced Tata Daewoo. Continue one year later they bought Hispano Carrocera, a Spain company and also in 2008, they bought Jaguar and Land Rover from Ford, a UK founded automobile company

3. 0 Introduction of Porter's 5 Makes Analysis

This theory was found by Michael Porter. It is utilized to investigate competition between industries. It says that a company shouldn't be only competitor oriented but also has an obvious market eye-sight, Porter talks about that the actual opponents are those baby establishments, suppliers, customers and buyers, and alternative product providers. Therefore need to know 5 forces that determine the type of one industry which are the threat of new entrants, rivalry among existing competition, the threat of substitute products, the bargaining power of buyers, the bargaining vitality of suppliers (UK Essays. com, 2013).

4. 0 Porter's Five Forces Examination of Tata Motors

(i). Threat of New Entrant

This push is usually affected by obstacles to entry. For example: regulations and regulation, access to materials, tariff, and investment cost. If there will be more obstacles to entry, there will be more lower the risk of new entrants. Tata Motors should be aware for this threat if they want to come quickly to Indonesia. Indonesia's market for 'Tata Nano' seems good because most of the metropolitan areas in Indonesia are crowded and frequently jammed therefore the small and cheap car like Tata Nano will be on demand. The new entrants which can provide menace for Tata Motors such as: 'Intelligent Geely', a 1, 500 car by China Geely Automobile and also 'Maruti Ritz' by Maruti Suzuki. So, Tata Motors must keep up with the commitment of its customers by always providing the best services and always produce not only cheap but also good quality autos.

(ii). Rivalry among Existing Competitors

This push is the most frequent in business world. If the business enterprise has many competitors, it might give negatives to the business because they reveal the same amount of customers. Tata Motors will have many competitors in Indonesia, such as: Honda, Toyota, Mitsubishi, Daihatsu, and many more. Each brand has their own competitive benefit, so Tata Motors have to make certain they are strong enough to enter the marketplace by keep innovate their autos, keep the good deal, and promote more.

(iii). Dangers of Substitutes Products / Services

This theory investigates just how many substitutes that the merchandise has in the market. The presence of substitute product will block up the company independence for price setting up. The high prices of olive oil sometimes lower down the demand for car. People might swap it with bike, motorcycle, or hybrid car which is popular lately. The strategies that Tata Motors should do are produce good quality autos, progressive products, and keep upgrade with the latest technology.

(iv). Bargaining Power of Buyers

The more products that the business has provides a more alternatives to the buyers which can make their position become more robust. Potential buyers or customers are the main key for company, because they bring sales and earnings. The target customer for Tata Nano is average to low level because it is affordable. The cheap price will bring positive respond from Indonesia market.

(v). Bargaining Electricity of Suppliers

This clarifies how important a provider to a business. If suppose there are just a few suppliers on the market, the material can be rare and the bargaining ability for the suppliers will be higher. Tata Motors Indonesia will still depend on their suppliers in India, so they need to maintain close romantic relationship to the suppliers especially when the demand boosts.

5. 0 Intro of CPESTLE Analysis

The CPESTLE research looks at the external business environment and changes that occur or will appear on the national and international level that may influence the organization's performance. CPESTLE is an acronym for the next factors: Competitive, Politics, Economic, Social, Technological, Legal and Environmental (UK Essays. com, 2013). These factors are usually beyond the organization's control and could present themselves as risks, but can also create new opportunities for businesses. The CPESTLE examination is an excellent starting point for any organization when critiquing its strategy. For a few organizations the results may impact on their growth or even the alteration of the product offering.

6. 0 CPESTLE Examination of Tata Motors

(i). Competitive

Tata Motors face competition from various domestic and foreign automotive manufacturers in the Indian motor vehicle market. Bettering infrastructure and sturdy growth prospects in comparison to other mature markets is now bringing in a number of international companies to India who've either created joint-ventures with local associates or established independently owned functions in India. Global competitors bring with them decades of international experience, global size, advanced technology and significant money. Hence competition is likely to further intensify in the future. Tata Motors have designed their products to match the precise requirements of the Indian market based on specific customer needs such as security, driving comfort, gas efficiency and toughness. They think that their vehicles are suitable for the overall conditions of Indian roads, local climate plus they comply with suitable environmental regulations currently in effect. In addition they offer a wide range of optional configurations to meet the specific needs of these customers. They intend to improve their product portfolio in order to meet up with the increasing customer expectation of owning "top notch" products.

(ii). Political

Tata Motors was set up in India, so Tata Motors has to concern on regulations, rules, rules, and political balance in India. But since Tata Motors has many subsidiaries in many countries, Tata Motors must obey the sponsor country's laws and regulations also. In 2008, Tata Motors bought over Land Rover and Jaguar from Ford Motor unit. Since then, Tata also has to concern on the united kingdom laws and regulation. Moreover, as the first company to be posted in New York STOCK MARKET, Tata Motors also offers to concern on US politics. It really is famous that India is one of the countries that have an elaborate bureaucracy; this is one of the hurdles if building business there. Politics unstable such as wars or conflicts also cause inflation and could affect oil price in a single country. High inflation cause the government has to rise prices, and essential oil price is the common price to get increased. Which is automatically the higher price of engine oil will have an effect on the sales of automobiles.

(iii). Economic

Tata Motors must understand the style of economic expansion in every single country that they do business with. This factor explains to about the cost-effective factor that encompassing the business such as: market fluctuation, financial and fiscal coverage, federal spending, unemployment level, interest rate, exchange rate and Gross Home Product (GDP) per capita. In the local market, Tata Motors has to focus on the economic condition of India. India is a developing country with GDP per capita = $ 3, 200 and $ 3. 68 trillion countrywide purchasing ability (UK Essays. com, 2013). As been afflicted by the melancholy of global monetary, India's vehicle industry also has to bear the results. The increase of material price obligated Tata Motors to increase its vehicle price of 3. 5% which lead to diminish in demand (UK Essays. com, 2013). Within the international market, Tata Motors must concern in virtually any changing of countries currency, especially US Buck because Tata Motors also shown in New York Stock Exchange (UK Essays. com, 2013). Inflation is also one of the factors, because it affects the interest rate for doing investment in a country. The increase or loss of inflation, will lead to a lower or higher interest rate. Looking deep to the economical macro environment may help Tata Motors in price environment, demand, cost and decisional making in the company.

(iv). Friendly & Cultural

Tata Motors must realize the kind of customers in India as its domestic market. The frame of mind and life style of these customers have an impact on the demand for Tata Motors which also affect its decisional making. Indian people are careful using their spending. They do not want to buy thing which is not worthwhile. Besides that, in conducting business in 26 countries with 26 different civilizations in each country, Tata Motors has to understand and apply different strategy. For instance: Tata Motors cannot apply Indian culture to United Kingdom when they purchased Land Rover and Jaguar from Ford (a UK based mostly company), because each place has their particular demographic.

(v). Technological

As one of the large car company, Tata Motors has to adjust and develop their product to the technology. The version isn't only in the manufacturing plant machines but also in the automobile parts. Tata Motors allocate 2% with their Sales to Research & Development Team (UK Essays. com, 2013). Now, they are working to make environmental friendly buses such as hydrogen fuel cell buses and cross cars. Not merely in the 'real world', but Tata Motors also develop their services through internet. Tata Motors is wearing Online Reservation Services which allow customers who have problem with their car to book time frame to send their car with their workshop. Now, customer also can purchase Tata Nano through internet, Tata Motors extend their business to e-commerce marketing.

(vi). Legal

Since it has its company's presence in many countries it has a lot of law, regulations to check out. Tata in recent years have been sticking with the government's laws and taxations that the Indian government has given Tata Motors as the best car manufacturer. There have been serious frictions in the talk about of Bihar where it prepared to generate its new car Nano's manufacturing facility but the state government insisted the Tata motors to switch its base to some other talk about, which Tata motors performed by moving its plan to the state of Gujarat. They are a few of the legalities encountered by Tata Motors.

(vii). Environment

Tata motors have a good standard of manufacturing vehicles sticking with the euro and Indian criteria of emission and it also invested into creating greener vehicles by researching in alternative gas methods and low intake of fuel which creates a balance between your eco systems. All the vehicles come with low emission a filtration which convert and reduces the carbon monoxide content emitted by the vehicles.

(2008 words)

Task 2: Discuss the business's interior environment using value chain research and SWOT evaluation.

1. 0 Launch of Value String Analysis

Value String Analysis

http://www. provenmodels. com/files/2825c320f5910a4647fd289cdcf5a780/value_chain_analysis. gif

Sources: www. provenmodels. com

The value chain approach was developed by Michael Porter in the 1980s in his book "Competitive Benefit: Creating and Sustaining Superior Performance". All organizations contain activities that web page link together to build up the value of the business enterprise, and collectively these activities form the organization's value string. Such activities can include purchasing activities, processing the products, distribution and marketing of the company's products and activities. The worthiness chain construction has been used as a robust evaluation tool for the proper planning of an organization. The aim of the value string framework is to increase value creation while minimizing costs. The principal activities of the business are the inbound logistics, procedures, outbound logistics, marketing and sales, services. The support activities of any company are the procurement, human reference management, technology development and infrastructure.

2. 0 Value String Research of Tata Motors

2. 0. 1 Main Activities

(i). Inbound Activities

Tata Motors purchases recycleables and extra parts from many suppliers based on the specific standards which ensure that high quality products are being delivered to it. Tata Motors also having long term contract with service provider's which can be transporters and real estate agents.

(ii). Operations

Tata Motors has excellent creation base and techniques which add value and quality to its products. During procedures, there has a capital equipment manufacturing division which is the tooling development capabilities of global standard. Tata Motors also provide the apprentice trainee course to ensure that there surely is stable way to obtain skilled manpower.

(iii). Outbound Logistics

Tata Motors will try to bolster its dealership to secure its product by increasing amount of dealers as well as building service details to provide quality service after sales and therefore adds value to its products and services. Besides that, there has effective security system for reduction of any kind of pilferage.

(iv). Marketing & Sales

Tata Motors has its structured approach to understanding the requirements of specific customers. Besides that, they have clear id of product requirements will lead to development of innovative products. Tata Motors has followed different strategies such as, creating brand image, presentation, improvements, and quality control. Along with all these pricing strategy, host to dealership, maintenance and support, after sales services provided by Tata Motors takes on very crucial part in marketing and sales.

(v). Services

Tata Motors has create customer support help line, dealer helpline, and service programs for sellers. They also have set up spare parts warehouses to provide genuine free parts to the customer at economical prices. Tata Motors is useful in collection of data from field and communication to the respected plants.

2. 0. 2 Support Activities

(i). Procurement

E-procurement is effort now in Tata Motors. It offers global sourcing team such as China is an integral destination for sourcing essential items like tires and power steering models. Tata Motors has long-term relationships with steady and devoted pool of suppliers. You will find group resources for Tata Motors which are Tata Material and Tata International.

(ii). Human Resource Management

Tata Motors vast pool of officially competent engineers and managers. It give attention to development of technical capacities by provide training in Complex Training Centre and Alliance with specialized institutes. In addition, it focus on development of managerial capacities by provides the professional training programs at leading business schools.

(iii). Technology Development

Tata Motors is using the advanced and the most advanced technology for its company. It has the excellent engineering staff with the high level of engineering knowledge. Tata Motors also has the knowledge site to help employees keep abreast with the latest solutions.

(iv). Infrastructure

Tata Motors is India's greatest auto company. Manufacturing foundation of Tata Motors is distributed across the various cities in India along with joint projects in various countries. Their main durability is world class in-house research and development centers and laboratories. It has also the strong command in the company and best in course prototype building facilities.

3. 0 Benefits of SWOT Analysis

Internal environment factors can be classified as Power (S), Weaknesses (W), Opportunities (O) and Risks (T). SWOT examination is useful tool to auditing company and its own environment. It really is a business or proper planning approach used in summary the key components of the strategic environments. Strengths and weaknesses are company's inner environment factors and opportunities and dangers are company's external environment factors. SWOT evaluation pays to to gather information about company's resources and features, so we can certainly make strategy formation and selection.

4. 0 SWOT Examination of Company

(i). Advantages (S)

Tata Motors excels when it comes to development through extensive research and development. Their capacity to help make the least expensive car on the market which is the Nano, is way beyond what every other car dealership has generated. This innovation offers Tata Motors their main competitive advantage. Tata Motors makes everything from tractor-trailers to the world's most affordable car. The product diversity grants them a competitive edge over their competitors because they can satisfy more marketplaces and customer needs. Another strength that Tata Motors possesses is high corporate and business responsibility. They contribute a portion with their gains from stock increases towards a particular charity. This features Tata Motors overall desire for community improvement while also emphasizing Tata Motors' high morals and beliefs which is something money cannot buy.

(ii). Weaknesses (W)

One weakness that Tata Motors faces is its incapability to meet protection requirements. Although they have made the cheapest car out on the market, they have yet to go all the safeness standards that happen to be a legal factor. Some consumers and pessimists find out concerning how Tata Motors can make such a cheap car and withstanding a car accident or not just falling aside after hitting something once. Pessimistic people also want to believe car manufactures are already doing everything they can to keep costs low for the consumer, and if that is the case, then adding the least expensive car from the market automatically questions if it is safe to drive. Another weakness that Tata Motors faces is at its domestic market. Car sales in India are significantly less than 1 million each year. This draws a problem because Tata Motors might not find the sales that the company desires for and how do they sell cars to folks who are not buying autos?

(iii). Opportunities (O)

One of the major opportunities that Tata Motor unit faces is the fact that by right now 90 percent of China and India's adult population do not own cars, partly because vehicles are costly and require more bills after purchased. Therefore the market for a low-priced car is huge which benefits Tata Motors correctly since they produce the cheapest priced car on the marketplace. With Tata Motors in the market with the least expensive car, China's demand for autos will probably increase even more significantly that will in turn increase sales for Tata Motors. This demand for smaller automobiles is a great window of opportunity for Tata Motors because not only are their automobiles small, but they are cheap and environmentally friendly as well. Once people in other countries get Tata Engine automobiles then their auto sales will continue to rise.

(iv). Threats

The obvious threat to Tata Motors is intellectual property protection under the law. Tata invented the least expensive car on the marketplace and every automobile manufacturer wants to learn how Tata did it. Headhunters are soon going to find out this valuable information and make it open to their own company. This is a huge danger to Tata Motors because at first that they had low competition, but once other car produces find out how they developed such a low cost car, and then these companies too will jump on mother board and design their own type of low cost automobiles. Another obvious threat is that dealing with petrol prices. Petrol prices continue steadily to rise and for certain that the Nano requires petrol, but those who purchase the Nano probably do not have a lot of money therefore if petrol prices keep jumping up then that market of consumers will not be able to acquire the automobile. Another priority that Tata Motors encounters is that cheap autos in India will have a detrimental effect on air pollution and global warming because almost all of the population can afford the automobiles. With an increase of people driving automobiles there will be more injuries and fatalities, as well as higher fossil fuels leaked in to the environment creating even more pollution then there already is.

(1395 words)

Task 3: Review the existing strategy or strategies utilized by the corporation and propose an improved strategy for the corporation based on available choices.

1. 0 Introduction of Ansoff's Product-Market Matrix

Ansoff's Market-Product Matrix

http://www. tutor2u. net/business/images/Ansoff%20Matrix%20w500. gif

Sources: www. tutor2u. net

Ansoff Product-Market Matrix was founded by H. Igor Ansoff in 1957. This marketing tool is utilized to help company to find the best strategy that should they choose to attain the aims (UK Essays. com). End result from this Ansoff Matrix is a growing strategy which is suitable for each and every part of business. Igor Ansoff explained that there are 4 strategies in Ansoff Matrix, that happen to be Market Penetration, Product Development, Market Development, and Diversification.

2. 0 Ansoff's Product0Market Matrix of Tata Motors

(i). Market Penetration

Usually, companies utilize this strategy to appeal to their competition' customers. Tata Motors used this plan when they reached UK market by dominate Jaguar-Land Rover, Tata Motors performed not just concentrate on the services line they can produce from both companies above but instead, Tata Motors still producing Tata Indica on the market.

(ii). Product Development

The first product development of Tata Motors was 'Tata Sierra', their first passenger vehicle. Tata Sierra was sold in 1991. And this was the first rung on the ladder of Tata Motors to build up their product and future strategy. Tata Motors also performed product development when they started to produce 'Tata Nano' in 2008, Ratan Tata considered making the world cheapest car and produced it in the home market first, India (UK Essays. com, 2013). The strategy was to sell affordable car to the people in once, growing their market. Before that, Tata Motors developed the first mini-truck in India called Tata Ace. Tata Ace came to the marketplace in 2005 and in 24 months time, they may have sold 96, 000 systems of Tata Ace. By marketing the product, Tata Motors grow their market to mini-truck segment and become market innovator.

(iii). Market Development

Tata Motors has developed their market abroad; they reached South Korea market in 2004, Spain market in 2005, Thailand market in 2006, UK market in 2008 and many more. Tata Motors sells their existing products like buses, vehicles, and autos in those market segments. Tata Motors is likely to make their market even wider by starting new companies in producing countries such as Indonesia, Philippines, and Turkey.

(iv). Diversification

This is a technique whereby the company makes a new product and will be offering it to the new market. Diversification has higher risk than another strategies because the market and the merchandise is new, but in the other aspect it might bring more income to the company as it'll bring clients. Tata Motors diversified their products when they got into UK market and needed over Jaguar-Land Rover in 2008. It allowed Tata Motors to produced new products series, for example, Jaguar X-Type and Land Rover LRX.

3. 0 Purposed Strategy - Ansoff's Product-Market Matrix (Product Development)

Tata Motors had produced various kinds of vehicles. For a good example, the Tata Nano is the one of the cars made by Tata Motors in 2008. From the info of SWOT examination of Tata Motors, there can be seen that Nano is a cheapest car in Tata Motors but it is share with the consumers that unsafe opinion because of the probability to create such cheaper car. There can be seen that Nano is purchased by many people that do not have their own car. At the same time, you can find some competitive environment of Tata Nano due to some manufacturers of cars may quest for the techniques of making such cheaper car. Besides that, there will likewise have risk of petrol prices keep on increases which might impact the sales of Nano.

As everything above, I might propose the technique to Tata Motors for the product development parts. For me, Tata Motors may continue to produce the low price vehicles like Nano. This is because it may help the indegent consumers or the people that unable to buy the expensive car for his or her own as automobiles can be consider as one of the important travel for human being.

Tata Motors may produce the new model of low-price of automobiles. At the same time, it can show some persuade the consumers about the safeness of the vehicles which is often letting the consumers know that not essential that low-price automobiles are unsafe. This plan can provide the self-confidence to the consumers to purchase the low-price vehicles and also to show to them that the low-price vehicles can be such good deal too.

The new model of low-prices cars may produce with the characteristics of petrol-efficient. As the information written in the part of risks in the SWOT evaluation, it demonstrates the prices of petrol keep on rising which might lead to the unaffordable by the consumers who've purchased the autos. Therefore, Tata Motors may design and produce the cars with the characteristics of petrol-efficient which might decrease the burden of the consumers to the petrol. This characteristic may also reduce the pollution to the environment.

(816 words)


As a summary, there have many inside and exterior factors which may affect the business or organizations like the Porter's 5 Forces analysis, CPESTLE analysis and SWOT examination. These analyses may give large result to the organizations and the working or the business. Therefore, the organizations must be think careful and have the best strategic planning of the business enterprise.

Besides that, there also have some of strategies tools or theory may help on the business. For example are Ansoff's Product-Market Matrix and Boston Consulting Group (BCG) Matrix. The organizations could use each one or few of it to build up or grow its business easily and effectively.

It is important that the business must have the proper and effective proper planning in the performing of business or in the inner organization. It could help a great deal for the business.

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