A potential alliance between Tata and VW will likely contribute to VW/s core competencies and improve its competitive position in emerging markets. In this case, each of the two companies has everything to bring to the table, and the chances are high that if the partnership is well leveraged and a few technicalities well defined such as the business model that will be beneficial on both players, the core competencies will be enhanced on either side. The alliance between Tata and VW is likely to contribute to VW's core competencies and improve its competitive position in emerging markets.