Tata Motors aims to capitalize on India's young population by hiring designers and engineers to create a new line of sleek, youth-focused products. It will survey young people for feedback on initial designs before production. To increase automobile demand in developing countries that lack roads, Tata's strategy is to form alliances with foreign governments to build more roads. Tata also aims to take advantage of resources from its parent company, the Tata Group, which could provide a strong competitive advantage through collaboration. There is opportunity for Tata's Nano car in other developing countries where consumers have low incomes.

1. TATA MOTORS
INDUSTRIAL ANALYSIS

2. STRATERGIES AND SOLUTIONS
STRATEGY PROBLEM
Capitalize on young population Hire a new team of designers and engineers to work
together and reduce a new line of products with a focus on
sleek design and attracting the younger demographic. After
the initial designs are complete, the team should survey a
sample of the young population to get their feedback on the
designs before following through to production.
Increase demand for automobiles in developing countries
but lack of roads which translates to less demand for
automobiles
strategy is by forming an alliance with foreign governments.
This alliance is strengthened by the two parties sharing the
same goal: building more roads. The tricky part will be
managing the agreements between the two parties and
establishing the terms of the agreement.
Take advantage of resources of Tata Group. Utilization of Tata Group’s resources could certainly translate
to a strong upper hand against many competitors and much
of the collaboration would be attractive for both parties
since they would both be benefitting from the cooperation.
Bringing the Nano to the global market. MIstakes of the Nano in India .
There is great opportunity for Tata’s Nano in other
developing countries where consumers do not have a high
level of discretionary income.

4. INTRODUCTION TO INDIAN FOUR-
WHEELER INDUSTRY
 The Indian Four-Wheeler Industry is one of the largest in the world.
Within the industry, the overall Passenger Vehicle (PV)
segment accounts to a mere 14% market share. The two-wheeler s
segment, with 80% market share, is the leader of the Indian Automobile
market. India has the fifth largest passenger vehicle and commercial
vehicle market in the world.
 The Indian automobile industry has emerged stronger from the recent
global downturn, and sales across all segments have seen record
breaking numbers in the recent past.

5. 80%
14%
3% 3%
DOMESTIC MARKET SHARE FOR 2015-16
Passenger
Two Wheelers
Commercial Vehicles
Three Wheelers

6. INDIAN AUTOMOBILE INDUSTRY TATA MOTORS
Setup in 1940s
few players
1945 TATA MOTORS Established
Major Player
Segmentation
Two Wheelers
Commercial Vehicles
Passenger vehicles
Three Wheeler
Segmentation
• Commercial Vehicles(
1. Cargos,
2. Heavy passenger vehicles
• Passenger Vehicles
1. Compact ,
2. Mid Size,
3. Premium etc.
Annual production of 23.96 million vehicles Tata Motors sales at 40,944 in December 2016;
growth of 2%.
GDP Growth contribution=7.1%
$42 Billion Company Turnover
9 Million Vehicles Sold
6,600Sales & Service Points
Following a growth of 2.57 per cent over the last year. Following a growth of 1.42% per cent over the last
year
ROE:17% Earning per share : RS 26.2
Return on Asset:4.3 Return on Equity : 15.1

7. TATA MOTORS INDUSTRY SALES VERSUS COMPANY
SALES.

8. BUYERS
• Switching Costs - In case of Tata car the switching
cost from bike to car is too high. Thus increasing the
demand of the car many fold.
•Number of customers/ Volume of sales -
If there are few buyers then they are able to dictate the
terms. They pull down the cost by Bargaining. They force
the manufactures to improve the quality. All this can be
clearly seen in the case of Tata car the price tag at which it
has been offered or the quality of the Tata car no
compromises has been done at any front.
•Brand Image -
The brand image of the TATA has been the most attractive
thing in the entire packages,
BARRIERS TO ENTRY
• Time and cost of entry – The launch of the NANO is
quite viable as the demand of the small car is on the rise
in the market. By the cost of the entry we mean the initial
capital required to set up a new firm is very high,
•Knowledge and Technology -
The TATA motors have great knowledge/ and has renowned
technological advantage because of the recent acquisition
and mergers.
•Product Differentiation and Cost Advantage –
The new product has to be different and attractive to be
accepted by the customers. price of the NANO car was one
thing that is attracting customers.
Government Policy and Expected Retaliation -
The government tried to promote the TATA Motors to start a
plant by providing land and tax rebates.
• Access to Distribution Channels –
The TATA motors had a advantage of well established
distribution channel across the world
COMPETITIVE RIVALRY
Number and Diversity of Competitor -
The small car market in India is very competitive with players like
Maruti Suzuki, Tata Motors, Hyundai etc. which was pretty much
dominated by Maruti. But with launch of Nano the 1lakh car the whole
momentum of the market has shifted. Price Competition -
Products with similar function limit the prices firms can charge. Price
competition often leaves the entire industry worse off. Tata is the only
player so it has the price freedom but as the Maruti and Honda are
also planning on this.
•Exit Barriers –
Even if the product fails in the market its not that easy for the
company to exit the market just like that because of the heavy
investment it has made in the initial stage.
Product Quality -
Increasing consumer warranties or service is very common these days.
To maintain low cost, companiesconsistently has to make
manufacturing improvements to keepthe business competitive.
SUBSTITUTES
Price band -
If the price of the Tata car will increase the main expected customers
i.e. the one switching from bike to car will not move to car and will
remain in the bike only. Thus the price is kept checked in this manner.
•Substitutes performance -
The performance of the substitute sector will also play a important
role in the success of the Tata car. Its just on the price but also the
features and the other services associated or it may be the status
symbol story. The success of the electric car segment can also effect
the demand of the Tata
•Buyers willingness –
Products with improving price/performance trade-offs relative to
present industry products. It will determine the willingness of the
buyer to but the Tata car. The willingness of the customers to go
forward try the new product in the market i.e. ‘NANO’. They might be
willing to go forth test products like Maruti 800 , Santro etc.
SUPPLIERS
Number and Size of Suppliers
Powerful suppliers can squeeze industry profitability to great
extend. Incise of Tata the supplier are limited and the size of
the suppliers are big enough to bring about the controlling
power in the price of the car.
The Unique Service / Product
- Suppliers’ products have few substitutes.. The some parts
of the Tata car are obtain from the supplier who them are
big enough and limited substitutes are available against
them. So the entire production line depends upon them only.
Ability to substitute
- Suppliers’ products have high switching costs. In many case
even when substitute are available its not that easy to opt for
substitute as the next product in the assembly line depends
upon it
STRATEGIC POSITION
Porter five competitive model

9. TATA MOTORS STAND IN
AFFORDABILITY AND CONSERVATIVE

10. THANK YOU..!