2. Group Members
Dr. A. M. Saad
3. Competitive Advantage
Competitive advantage is anything that
gives a business any kind of advantage
over its business rivals.
Types of competitive advantages:
4. A Model of Competitive Advantage
5. Strategy Competitive
6.  To analyze the
competitive forces in an industry, Michael
Porter suggested four "generic" business
strategies that could be adopted in order to
gain competitive advantage.
 The four strategies relate to the extent to
which the scope of a business activities are
narrow versus broad and the extent to which
a business seeks to differentiate its products.
7. MICHAEL PORTER COMPETITIVE
8. Strategy - Differentiation
This strategy involves selecting one or more
criteria used by buyers in a market - and
then positioning the business uniquely to
meet those criteria.
Differentiation is about charging a premium
price that more than covers the additional
Giving customers clear reasons to prefer the
product over other, less differentiated
Examples: Mercedes cars - Benz
9. Strategy - Cost
The objective is to become the lowest-cost
producer in the industry
If the achieved selling price can at least
equal the average for the market, then the
lowest-cost producer will enjoy the best
Low-cost leader will also discount its product
to maximize sales, if it has a significant cost
advantage over the competition and thus can
increase its market share.
Examples: Nissan; Tesco; Dell Computers
10. Strategy - Differentiation
A business aims to differentiate within just
one or a small number of target market
There are opportunities to provide products
that are clearly different from competitors
who may be targeting a broader group of
The important issue for any business
adopting this strategy is to ensure that
customers really demands it.
e.g. The Perfume Shop; or specialist holiday
11. Strategy - Cost Focus
The product will be basic - perhaps a
similar product to the higher-priced and
featured market leader, but acceptable
to sufficient consumers.
Such products are often called "metoo's".
Many smaller retailers featuring ownlabel or discounted label products.
12. TATA GROUP
Tata Group is a multinational
conglomerate founded by Jamsedji
Tata in 1868.
The Tata Group has operations in
more than 85 countries across six
Its companies export products and
13. It Comprises 98 companies in seven business
sectors, 27 of which are publicly listed.
65.8% of the ownership of Tata Group is held
by the charitable trust of Tata.
Companies which form a major part of the
group include Tata Steel, Corus Steel, Tata
Motors, Tata Consultancy Services, Tata Tea,
Titan Industries, Tata Power, Tata
Communications and the Taj Hotels.
14. TATA MOTORS
Tata Motors Limited formerly known as
TELCO (TATA Engineering and Locomotive
Company) was established in 1945.
It is India's largest passenger automobile and
commercial vehicle manufacturing company.
It is also the world's 5th largest commercial
15. Tata Motors was first listed on the New York
Stock Exchange in 2004.
Tata Motors had created the wealth Rs. 320
billion during 2001-2006 and stood among
top 10 wealth creators in India.
Tata Motors is India's only fully integrated
automobile manufacturer with a portfolio
that covers trucks, buses, utility vehicles and
To be best in the manner in which we operate,
best in the products we deliver, and best in
our value system and ethics.
Revenue: USD 8.8 Billion (2007-2008)
TATA Engineering &Locomotive CO LTD was
Collaboration with Dainler Benz Ag,Germany
Research centre was set up at Pune
Introduction of DI engines
First commercial vehicle was rolled out from
First hydraulic excavator collaboration with
First light commercial vehicle was launched
Joint venture agreement signed with Mercedes
Joint venture agreement Cummins engines for
Tata Sumo, Tata Sierra Turbo ,Tata Safari ,
Indica V2 , CNG Indica launched
Tata Engineering signed a product agreement
with MG Rover of the UK
• Tata Engineering becomes Tata Motors
completes acquisition of Daewoo Commercial
Construction of Small Car plant at Singur, West
Tata Motors unveils its People's Car, Nano, at
the ninth Auto Expo
Tata Motors completes acquisition of Jaguar &
22. SWOT ANALYSIS
Strong Market Position.
Distribution & Customer Care Networks.
Human Resource & Advanced Technology
Research & Development.
Strong Auto Finance Operation &
Overdependence on Indian Market.
Market Expansion Strategies like Joint
Ventures, Mergers & Acquisitions
Reduction in Excise Duty & Income Tax
Diesel Fuel Issues & Increase
in prices of raw material.
27. TATA MOTORS
28. (Jaguar Land Rover)
29. TATA MOTORS
30. TATA MOTORS AND CUMMINS
Post liberalization, in order to expand
rapidly, the company adopted the route
to joint ventures.
In 1993, it signed with Cummins
Engine Co., Inc., for the manufacture of
high horsepower and emission friendly
31. TATA MOTORS AND
Tata Motors launched its first truck in
collaboration with Mercedes-Benz
commercial vehicle sector in 1954 after
forming a joint venture with DaimlerBenz AG of Germany.
32. TATA MOTORS AND
Tata Motors has also formed a 51:49
joint venture with Marcopolo S.A., a
Brazil-based global leader in bus body
The joint venture will absorb
technology and expertise in chassis
and aggregates from Tata Motors.
Marcopolo will provide know-how in
processes and systems for
bodybuilding and bus body design.
33. TATA HOLSET LTD.
Furthering the trail of JVs it signed a
joint venture agreement with Tata
Holset Ltd., UK, for manufacturing
turbochargers to be used on Cummins
34. TATA MOTORS AND
TCE is a joint venture between Tata
Motors and Hitachi, which focuses on
excavators and other construction
35. TATA MOTORS AND
Tata Motors and Motor Development
International of Luxembourg have
jointly developed the world's first
commercially-viable prototype of a
compressed air car, named OneCAT.
36. TATA MOTORS AND HISPANO
In 2005, sensing the huge opportunity
in the fully built bus segment, Tata
Motors acquired 21% stake in Hispano
Carrocera SA, Aragonese bus
manufacturing company and
introduced its high-end inter-city buses
in the country.
37. TATA MOTORS AND DAEWOO
Tata Motors bought Daewoo's truck
manufacturing unit, now known as Tata
Daewoo Commercial Vehicle, in South
38. TATA MOTORS AND FORD.
On March 26, 2008 Tata Motors
agreed to purchase Jaguar Cars and
Land Rover from Ford Motor in a deal
worth $2.3bn (£1.15bn).
Tata Motors has also acquired from
Ford the rights to three other brand
names: Daimler, Lanchester and
39. TATA MOTORS AND
The company has formed a joint
venture with Thailand’s Thonburi
Company, an independent auto
assembler, in which Tata Motors will
hold a 70% stake.
40. TATA MOTORS AND STAR
On its journey to make an international
foot print, it continued its expansion
through the introduction of new
products into the market range of
buses (Starbus & Globus).
The innovations made by TATA group are:-
 Tata Nano
 Popularly known as People’s car going to be launched
 Its safety performance exceeds regulatory
requirements in India.
 It has a lower pollution level than two-wheelers being
manufactured in India today.
 Fears created across the environmentalist is that
Mass motorization in India would result adverse
effects on pollution and global warming.
 Tata OneCAT
 Tata Motors and Motor Development International of
Luxembourg have jointly developed the world's first
commercially-viable prototype of a compressed air car.
 There are no gasoline costs and no fossil fuel emissions
from the vehicle.
 It is actually a dual fuel car but it is more efficient than
any present Hybrid cars.
43. Case Study on
Competitive Advantage of Tata Motors’
Rs. One - Lakh Car Project:
Opportunities & Challenges
44. The Cheerleaders
“The car is good to look at. There is a space
in the market between two-wheelers and
the 800cc(Maruti’s small car). It will be a
success if they deliver what they promised.
And I see no reason why they can’t.”
Former M D Maruti
“With The release of the world’s cheapest
car, India’s Tata Motors has entered a
space no other automobile manufacturer
45. The Indian Automobile industry
Maruti : Probably the worst affected. But it doesn’t agree that Nano
might affect its sales. Strangely, neither is it launching any ultra
cheap model nor is it bringing down 800’s cost. It recently
showcased two compact concept cars SPLASH & A-STAR .
Bajaj : Highlighted its concept car LITE , which will be available in
two forms- Passenger and commercial. The concept is a brainchild
of Bajaj Auto and will be spearheading this project. But then it may
partner with Renault and Nissan, if required. It can transform into
four wheeler maker.
46. The Indian Automobile industry
Honda : plans to launch a compact car, and
showcased the Jazz. But launch date is yet to be
finalised. It will soon be seen competing with current
heavyweights in B+ segment, it will take on Swift, Getz,
Skoda et al.
Skoda : It launched the Fabia, a premium
compact hatchback and now it is mulling over plans to
launch Roomster(multi purpose vehicle)
and Yeti(sports utility vehicle)
47. The Indian Automobile industry
Hyundai : it has launched i10. the model,
with its sibling Santro, can take its annual
sales past the 200000 mark. It unveiled its
SUV- santa fe. The SUV will use 2.2LCRDi
GM : It has plans for major product launches
in India. Apart from the regular Chevrolet
range of small and mid-segment cars like
Aveo and U-VA, it unveiled Captiva SUV.
48. Possibilities for a Rs. One lakh
car in India
Ratan Tata has graduated in different
league altogether where it is not money
that’s driving him(the Nano might not
make any worthwhile money for him in
What's driving him is a concept called as
The fact that for him promise is a
-it is possible(Ratan Tata)
As many as 12.8 million households can
be the buyers of Tata’s small car,
“Indians are savers, they are frugal, they
are cost conscious” – Mckinsey report.
If Indica(diesel) changed the way an
indian consumer thought, the Nano will
force him/her to act(and now buy). And
if the Nano becomes a big hit, it will
make Tata a global super hero.
50. 1-Challenges for Tata Nano
& Opportunities for Tata Nano
51. Material Cost
Has risen from 13% to 23% in last one
52. Mass Motorization
Environmentalists are opposing the project
Extraordinary Low Cost – Mass Motorization
54. Singur Car Factory Land Dispute
Mamta Banerjee was expecting 400 acres land
for farmers from Nano plant area
Bajaj is going to launch a car in $2500
Fuel Efficiency > 30 kmpl
56. Technical Specification
Number of Doors
All-Aluminum, Rear Mounted,
Only in Deluxe Model
Petrol (Diesel Version will be
Top speed will be 90 Km/hour.
0-70 km/h : 14 Sec
Red, Yellow and Silver
In 2007 top end price for bikes
Were Rs 70,000-80,000
Car priced Rs 1 lakh will be safer
And perfect alternative
Unsaturated car Market
As of 2006,
Annual size of Global Car
Market was 50 mill units
Asian Car Market (Except Korea & Japan)
was around 3 mill units
59. FUTURE PLANS
Plastic Car Production- Tata plans on
producing a car that is made of nearly 100%
The years to come will see the introduction
of several other innovative vehicles, all
rooted in emerging customer needs. Besides
product development, R&D is also focusing
on environment-friendly technologies in
emissions and alternative fuels.
TATA Motors is trying to expand its
market by using following strategies of
1. Cost Advantage
2. Differentiation Advantage
61. Tata Nano:
 Cost Advantage
 It is the least expensive
production car in the
 Compressed air car