1. Overview 2. Value chain 3. Porter's 5 Forces 4. Market penetration 5. Market development 6. Product development 7. Backward integration 8. Forward integration 9. Merger and acquisition 10. Joint venture

1. The Grand Strategies
Submitted by Team 3 –
Hanishi Shah – 84
Eshita Thakkar – 103
Mayur Tripathi – 107
Sagar Vyas – 111
Submitted to -
Professor Samir Charnia
Faculty for the subject: Strategic Management
Aditya Institute of Management Studies and Research

2. Overview
Value Chain
Porter’s 5 Forces Grand Strategy 1
Grand Strategy 2
Grand Strategy 3

3. The Overview
Automobile industry is developing at a
very fast pace
Manufacturers cars, buses, trucks, defense
vehicles
Affordable prices
One of the biggest automakers globally
Challenge – Regain market share
Active R&D on sustainable transportation
Joint Venture with Fiat Group in 2005
Acquired Land Rover and Jaguar
Vision – To become most aspirational
Indian auto brand by driving sustainability
mobility solutions
Mission – To innovate with passion,
mobility solutions to enhance quality of life

4. Value Chain Analysis
Firm’s Infrastructure SAP, Multi-location facilities, Strong leadership.
Human Resource and
Management
Development of managerial skills- Managerial Training Centre and Tata
Management Training Centre, Career improvement schemes.
Technology
Development
2% of annual profits invested in R&D, Knowledge portal, Technology Day.
Procurement Global sourcing team, Group resources, E procurement
Inbound Logistics
1. The company
sources axles,
engines and gear
boxes from
strategic suppliers.
2. Daily Transport
Logistics supplies
for critical high
value items.
Operations
1. Total Productive
Maintenance team-
continuous drive to
improve efficiencies.
2. Distributed
Manufacturing.
3 . Maintenance.
Outbound Logistics
1. Stockyards, all
across the country.
2. Long term
contracts with
transporters.
Marketing & sales
1. Pan India presence
and global footprint.
2. Large network of
dealers.
3. Various teams for
addressing the
requirements of
Institutional
Customers.
Services
1.Tata Motors
Authorized Service
Centres
2. Large network of
workshops
3. Training facilities.

5. Porter’s 5 Forces
Threat of new entrant
(Low)
 Barriers to new entry are
very high
 The economies of scale is
fairly difficult to achieve
 Strict licensing and legal
requirements
Threat of substitutes
 The substitutes are two
wheelers.
 Most people prefer two
wheelers to cars due to the
need of mobility and
convenience.
 Two wheelers coupled
with the railway transport
Bargaining power of buyers
 Bargaining power of
buyers is very high
 Buyers are often a
demanding lot.
 Tata Motors has managed
to compete in the industry
and maintain its margins
Bargaining power of
suppliers
 The bargaining power
of supplier is a mix of
both high and low.
Competitive rivalry
(High)
 There is intense
competition in the
Automobile Industry.
 This has resulted
into a loss of market
shares and a decline
in its turnover.

6. The Expansion Strategy Through Concentration
Market Penetration:
• Continue being cost leader
• Advertising and promotion to extend the
reach
• Lowering the selling price to attract more
consumers and build loyalty
• Low price EVs to push into mainstream
market
Market Development:
• Important supporting strategy
• Already a cost leader and excellent brand image
• Wide distribution network
• Solid R&D
• Capture new customers in new region / country
through various promotional campaigns
Product Development:
• Intensive growth strategy
• Develop new products i.e. sustainable transportation
• Intense competition in passenger vehicle segment
• Convert existing petrol/cars into electric (ex. Alto 800).

7. Expansion Through Vertical Integration
Backward Integration Quasi Integration
• Indian markets to be filled with sustainable
transportation
• Batteries are costly and are imported
• Reduce the manufacturing cost by building
own battery manufacturing units
• Maintain the position of cost leader
• Collaboration of battery manufacturing units
with chemical manufacturing unit
• Advantage of being fast mover and cost
leader
• Ability to create the entry barriers for
potential competitors
• Improve efficiency of entire value chain

8. Expansion Through Co-operation
Merger and Acquisition Joint Venture
• Acquire medium scale batter manufacturer
ex. Amara Raja Batteries Ltd.
• Power and control over the market
• Alternative to backward integration –
mitigate huge financial risk
• Each firm specializes in different activities –
high level of efficiency
• Alternative to acquisition
• Join hands with the market leader ex. Excide
Batteries
• Less participation of fund
• Distinctive competence – high efficiency and
large market share

9. Thank you