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Tata Motors
- Tata Motors is an Indian multinational manufacturing company founded in 1945 and headquartered in Mumbai, India. It operates in over 6 continents with automotive interests in commercial and passenger vehicles. - A SWOT analysis identifies Tata's strengths as its well-known brand reputation and large employee base, while weaknesses include limited international presence and occasional quality issues. Opportunities exist in emerging markets and acquisitions, while threats include rising costs and competition. - Tata pursues a polycentric approach by treating each foreign market individually through local subsidiaries. It targets markets where customer needs align with India, such as commercial vehicles in South Korea, buses in Spain, and luxury vehicles in Western countries through Jaguar
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Tata Motors
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- 2. Company Profile •Founded: 1945 • Founder: JRD Tata • Head Quarters: Mumbai, India • Key People: Ratan Tata, Chairman, Cyrus Pallonji Mistry, Chairman Chandrasekaran Ramakrishnan , President & Chief Financial Officer •Parent: Tata Group •Products: Automobiles and engines •Revenue: $32.23 billion (FY 2012-13) •Net Profit:334.52 crores •It has auto manufacturing and assembly plants in Jamshedpur, Pantnagar, Lucknow, Sanard India and as well as Argentina, United Kingdom, South Africa, Thailand
- 3. Bangladesh * Nepal,Sri Lanka Malaysia* Thailand Global Footprint Russia* U.K. Ukraine* Italy Kenya* OTHER COLLABORATIONS/M&A & JVs • Tata Daewoo Commercial Vehicle • Hispano in Spain & Marcopolo In Brazil • JV with Jardine Matheson for ConcordeMotors • Technology Tie Ups at Spain,Italy North Africa Senegal Afghanistan Uzbekistan Brazil South Africa* Egypt Saudi Arabia Iraq, Iran China South Korea* LATAM West Africa West Europe Central Asia East Asia South Asia South East Asia West Asia South Africa East Africa * Assembly Operations also 3
- 4. SWOT analysis •Strengths Well-known brand with good reputation Huge employee base. Dedicated engineering and R&D department •Opportunities Increasing per capita income and purchasing capability of potential customer base Mergers and acquisitions to acquire newer technology Augmenting the distribution and service network in various countries •Weakness Limited international presence Sometimes faces alleged quality and durability issues Not much customer engagement programs and activities •Threats Increasing fuel costs Competition from other big automobile giants Product innovations and frugal engineering by competitors Rising cost of manufacturing
- 5. Polycentric Approach •Tata Motors gives importance to every country’s domestic market, as there is a belief in uniqueness of every market and its need to be addressed in an individual way. • It operates either by wholly owned subsidiaries or through marketing subsidiaries, separately in each country. • It produces high quality products. It concentrates its attention on foreign markets which have similar consumer needs and conditions similar to domestic market.
- 6. Segmentation • Geographic • Demographic i. Age : Any Body above age 18 ii. Income : Available in all ranges iii.Occupation : All • Psychographic i. Personality : Available in different segment. • Behavioral I. Benefit : Quality & style II. Users : Potential Users & First Time Users III.Readiness Stage: Those who are aware, informed, interested and are intended to buy.
- 7. Targeting • AcquiredDaewoo (2004) – Commercial Vehicle Company, – South Korea’s second largest truck maker, for 102 million dollars. • Acquired Hispano Carrocera (2005) – Bus manufacturing Spain-based company, acquired 21 Percent of 12 million Euro. – Acquired full ownership in 2009 • Tata paid Ford Motor Company 2.3 billion for Jaguar and Land Rover companies – It allows Tata to enter into the luxury car market – To enter into the very competitive and highly desirable mature markets in Europe and in future hopes of securing market segments in the United States.
- 8. Continued.. • Bangladeshcar market- launched the Manza and Vista hatchback model. • China- Sold approximately 26,000 units making it 3rd largest market for Jaguar and Land Rover. • South Africa- Opened assembly plant for targeting the operations and presence of Tata group in South Africa. • Tata Electric Car- Planning for launch in North America • Tata and Samsung deal in for car infotainment systems targeting Indian customers. • Sri-Lanka & Malaysia for installing sales process system and face to face customer meets
- 9. Positioning • Passengercars. • Utility vehicles. • Commercial vehicles. • Passenger buses. • Land Rover and Jaguar for Elite Group. • TATA Nano for middle class people. • Chipset car developer in the world. • Highest Seller of Trucks in India. • TATA Hispano High facility Buses.
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- 11. Threats of NewEntrants Factors Tata Motors Advantages New Entrance Threats Entry Cost Yes Low Retaliation by TATA in case of Competition Yes, Because of large resources available with TATA Low Experience High Low Other Cost Advantage Yes Low
- 12. Buyer Bargaining Power Factors Tata Motors Advantages Buyer Bargaining Power Differentiation Price , Durability , Brand equity Low Concentration Large number of consumers Low Profitability Easy availability of loans Low Quality Best Low
- 13. Supplier Bargaining Power Factors Tata Motors Advantages Supplier Bargaining Power Concentration High Low Switching Costs High Low Number of Suppliers High Low Ability to substitute High Low
- 14. Threats of SubstituteProduct Factors TATA Motors Advantages Substitute Threats Availability Cars are available in all ranges High Performance High High Buyers willingness High High Quality of Substitute High Quality High
- 15. Competitive Rivalry FactorsTATA Motors Advantages Competitive Rivalry Brand Image High High Switching Cost Low High Differentiation High High Industry Concentration High High
Editor's Notes
- #3 It is 18th largest motor vehicle manufacturing company in world by volume. It was formerly known as TELCO(tata engg and locomotive company). Its products include passenger cars, trucks, vans and coaches.
- #8 Tata Motors acquired 100 percent of the Korean based Daewoo Commercial Vehicle Company, Korea’s second largest truck maker, for 102 million dollars. Rather than using de-culturation or assimilating Daewoo, Tata took an integrated approach, and continued building and marketing Daewoo’s current models as well as introducing a few new models globally just as it had been done under Korean management. In February 2005, they acquired 21 Percent of Hispano Carrocera, Spain-based company, for 12 million Euro. In April 2005, Tata Motors Limited merged with Tata Finance, and lastly in March 2008 Tata paid Ford Motor Company 2.3 billion for Jaguar and Land Rover companies (Tata.com). These acquisitions and mergers allow Tata Motors to break into foreign markets and develop a much larger share of the automotive industry. It also helps them attain the knowledge, technology, and programs that allow them to succeed in that particular sector of the automotive industry or in a particular region or culture. For instance, the purchase of Jaguar and Land Rover allows Tata to enter into the luxury car market without having to research the market, build the technology, among other important aspects of getting into a new market segment. It further helps them enter into the very competitive and highly desirable mature markets in Europe and in future hopes of securing market segments in the United States. Tata Motors is currently in a growth stage as stated on their website: “Tata Motors Ltd is in a mega expansion mode. The investments would be in product development, capital expenditure in capacity enhancement, domestic and international acquisitions and mergers” (Tata.com). It allows Tata to enter into the luxury car market without having to research the market, build the technology It further helps them enter into the very competitive and highly desirable mature markets in Europe and in future hopes of securing market segments in the United States.