This assignment is about the BCG matrix of various companies of Tata Group.

1. Page 1 of 11
Topic— BCG Matrix
Subject— Elements of Strategic Management
Submitted to— Sandipan Sir
Submitted By- Rajat Gandhi
Roll No.-22
TY BBA

2. Page 2 of 11
BCG Matrix
The BCG growth-share matrix is portfolio model developed by Bruce Henderson of Boston
consulting Group in 1970. It is based on the observation that a company’s business units can
be classified into categories relative to market share and the growth of the company. The
matrix framework categorizes products within a company's portfolio according to each
product's growth rate, market share, and positive or negative cash flow.
Each dimension is divided into two degrees-High and Low. In this matrix, the location of
each business unit indicates the market growth rate and relative market share. Relative
market share is measured on the horizontal axis, refers to the SBU’s market share relative to
that of its largest competitors.
Stars Question
Marks
DogsCash Cows
High Low
Low
High
Relative Market Share
MarketGrowthRate

3. Page 3 of 11
BCG Matrix of Tata group of companies.
The Tata Group is a multinational conglomerate company headquartered
in Mumbai, India. In terms of market capitalization and revenues, Tata Group is the largest
private corporate group in India and has been recognized as one of the most respected
companies in the world. It has interests in steel, automobiles, information technology,
communication, power, tea and hospitality. The Tata Group has operations in more than
85 countries across six continents and its companies export products and services to 80
nations.
The Tata Group comprises 114 companies and subsidiaries in seven business sectors.
Companies which form a major part of the group include Tata Steel, Corus Steel, Tata
Motors, Tata Consultancy Services, Tata Technologies, Tata Tea, Titan Industries,
Tata Power, Tata Communications, Tata Teleservices and the Indian (Taj) Hotels. The
chairman of the Tata group is Ratan Tata, who took over from J. R. D. Tata in 1991 And
Cyrus Mistry came as a new chairman of tata sons in 2012 who have the 18.5% partnership
in Tata Group.

4. Page 4 of 11
Tata Steel-
Established in 1907, Tata Steel is among the top ten global steel
companies with an annual crude steel capacity of over 27.37 million tonnes per annum. It is
now one of the world's most geographically-diversified steel producers, with operations in 26
countries and a commercial presence in over 50 countries. The total turnover of Tata Steel
of FY 2013-14 was 148,614₹ (In crore). The Tata Group of Companies has always believed
strongly in the concept of collaborative growth, and this vision has seen it emerge as one of
India's and the world's most respected and successful business conglomerates.
BCG Matrix-
In the Indian market production of finished steel is increased by 4% to 85 MT in FY14. While
Tata steel is the market leader of Indian finished Steel Inc. with 8.9% market share as per
FY14.Tata Steel’s business in India improved with the company’s net profit growing 67% to
₹2,267 crore.
Here Tata steel is on the Star position in the BCG matrix because steel inc. market growth
is high with Tata steel’s highest market share. The main reason behind the market
leadership of Tata steel is mainly its standard quality of steel & the low manufacturing cost of
steel.

5. Page 5 of 11
Reason behind the growth of the steel industry
 Growing demand of steel in construction industry.
 Automotive goods demand increases.
 Policy factors-
i) 100% FDI in the Steel sector.
ii) Encouragement for R&D by government by providing financial assistance from Steel
Development Fund (SDF).
iii) Reduced custom duty.
Reasons behind the Growth of Tata Steel
 Lowest production cost of Steel in the world.
 Always prefer new technology.
 Huge expense for R&D.

6. Page 6 of 11
Tata Motors-
Tata Motors was established in 1945, It starts exporting in 1961. It
has the the market of Passenger and Commercial vehicles in Europe, Africa, Middle
East, South Asia, South America, Russia. The one of the biggest milestone of Tata
motors is launch India’s first fully indigenous passenger car in 1998 and create
the new segment of vehicle by launching Tata Ace in 2005. It acquires Daewoo
Commercial Vehicle maker of South Korea in 2004. It is also a leading company in
making Machine tools, Heavy vehicles & Defense Vehicles.
BCG Matrix-
As per FY 2014, the growth of automobile industry is so diverse in India. As per the report of
IBEF (India Brand Equity Foundation)
 Passenger Vehicle- 6.05% of fall
 Commercial vehicle- 20.2% fall (17.6% in LCV & 25.3% in HCV)
Tata Motors is on the 3rd
position in the Passenger vehicle segment with 10% of Market
share while Maruti Suzuki is leader with 45% of market share.
Tata Motors is the leader in the HCV & LCV (Commercial vehicle) segment with 63% & 59%
of market share respectively.-
So we can say that Tata Motors is on the Dog position in the Passenger vehicle segment
because the market growth is falling and Tata Motors have only 10% of market share
against the competitors.
While in the Commercial Vehicle segment it Tata Motors is on the Cash cows position, due
to great market leadership with low market growth rate. The main competitor of Tata motors
in commercial vehicle segment is Mahindra only with 30% of market share.

7. Page 7 of 11
Reason behind the fall of Passenger Vehicle segment.
 Continues rise in the price of fuel.
 Increasing the traffic on the road, people are normally like to use public transport services
like Train or Bus.
 People are now turning towards the two wheeler more than a car.
Reason behind the growth of HCV of Tata Motors.
 Increasing the demand of the commercial projects.
 Unavailability of number of competitors who provide greater quality product and service
then Tata Motors.

8. Page 8 of 11
Tata teleservices-
It was firstly incorporated in 1996, It is the first company to start CDMA
1x technology in India. It launches its services under the name Tata Indicom by 2005 and
wireless mobile broadband service under Tata Photon by 2008 and signed the joint venture
with Docomo co. in 2009 for GSM/2G and CDMA/3G services. It is due to the prestige of the
Tata Group in the market that it got the licenses to rolled out GSM service in all 18 circles.
The most important 2 milestone of TTL are A) It integrate all its exercise under the brand
name TATA DOCOMO in 2011. B) It is the first private player company in India to launch 3G
service.
BCG Matrix-
India is currently the second-largest telecommunication market and has the third highest
number of internet users in the world. India’s telephone subscriber base reached 933 million
in March 2014. So from this statistics provided by IBEF we can say that India is one of the
most growing telecommunication market in the world.
In the Wireless communication segment Bharti Airtel is the market leader with 22.7% of
market share while, while TTS is on 7th
position in the market with only 7% of market share.
The market size of wireless communication is of 933 million subscriptions as per March
2014. Here Tata Telecommunication Service is comes under the Question mark position
due to low market share instead of high growth of industry.
Reasons behind the growth of the market-
 Increasing the usage of Internet.
 Decreasing the prices of phones and call rates.
 Easy availability of Smart phone in market.
Reasons behind the low market share-
 Late entry in the wireless communication market.
 Huge failure of Tata Indicom teleservice.
 Entry with the joint venture of Japanese company “DOCOMO”
 Poor advertising strategy.
 Poor network coverage.

9. Page 9 of 11
Tata Consultancy Services-
Established in 1968, Tata Consultancy Services (TCS) is an Information
Technology (IT) services, consulting and business solution company. The company provides
end-to-end technology and technology-related services to global enterprises. TCS provides
the solutions like Cloud Service, IT infrastructure etc. It provides services in the areas of
Banking, Energy, Government; Healthcare. The company’s business is spread across the
Americas, Europe, Asia-Pacific, and Middle East and Africa (MEA).
BCG Matrix-
IT-BPM industry is reaching around 118 billion with the growth of 13% in FY14. IT industry is
one of the major driver industries for GDP of India. And the most important thing is that
Indian IT Inc is growing with 55% share in global sourcing market.
TCS is the market leader, with 10.1% of market share In IT-BPM sector. The main
advantage of Tata Consultancy Service is that it has the highest market cap of ₹ 495,930.34
Cr. company in Indian market irrespective of sector or industry. Here Tata consultancy
Services is comes on Star position due to the leadership of IT Inc. and growth rate of IT Inc.
is also very high that it affects the nation’s GDP.
Reasons behind the growth of market-
 Cloud computing, social media and data analytics, are offering new avenues of growth for
IT companies.
 With increasing the business opportunities and expansions of business in the different
sectors requirement of IT increases.
 Social, Mobility, Analytics and Cloud (SMAC) technology is leading to digitisation of the
entire business model.
Reasons behind the growth of TCS-
 Highest Market cap in the Market.
 Give more importance to after sale service.
 Huge worldwide data transmission network.
 Having some of big projects worldwide like controlling the communication & broadcasting
of F1 race worldwide.

10. Page 10 of 11
Indian Hotels Company-
The Indian Hotels Company (IHCL) and its subsidiaries, collectively
known as Taj Group. It is one of Asia's largest and finest group of hotels. Incorporated by
Jamsetji Tata, the company opened its first property, the Taj Mahal Palace, in Bombay
(Mumbai) in 1903. Today Taj group of companies is like the symbol of Indian Hospitality.
BCG Matrix-
The Hotel industry market is related with the Tourism and hospitality Inc. So the growth of
the hotel industry is directly affected by the Tourism sector. After 2000 the tourism sector of
India is grew continually. From 2006-14 Tourism sector contribute to GDP CAGR of 10%.
And due to the campaigns held by the government of India hotel sector is gradually
increases. So due to the Leadership of IHCPL in the Hotel Inc of India and the Hotel industry
is continually grew, so it comes on the position of Star in BCG matrix.
Reasons behind the Growth of Hotel Industry-
 The ministry set up a Hospitality Development and Promotion Board, which will monitor
and facilitate hotel project clearances/approvals.
 Easy process for startups.
 Government Campaigns to boost tourism sector push the Hotel Inc.
 With increasing trend of Online booking agencies the booking of Hotels are faster and
bulky.
Reason behind the Growth of IHCL-
 The best 5 star quality of service in India.
 Tie ups with Big firms, Organizations (ICC, BCCI, Film Inc.), Government etc.
 It give feels of Indian culture with luxurious quality of services to attract foreign customers.
 Its first Hotel Asset, TAJ (Mumbai) is the brand icon itself for India Hotels Company.

11. Page 11 of 11
Referrence-
www.ibef.org
www.crisil.com
www.wps.in
www.nasscom.in
www.moneycontrol.com
www.ndtv-profit.com