This document provides a case study analysis of Tata Motors and its growth strategies in the global automotive industry. It discusses factors driving growth in the Indian automotive market such as rising incomes and an increasing middle class. An internal analysis of Tata Motors identifies its resources, processes, customer value proposition and profit formula. The automotive industry is analyzed using PEST, Porter's Five Forces and a strategic diamond. Tata Motors gains competitive advantages through international expansion, alliances like with Fiat, and management development programs.

1. CASE STUDY ON TATA MOTORS :
Crafting growth strategies in a
global industry
COLLEGE ADDRESS TEAM MEMERS
MACFAST ANN STELLA SEBASTIAN
TIRUVALLA GOPIKA S
KERALA, INDIA. GREESHMA BABU
JOSNY JOSE
RAIBY MATHEW

2. INTRODUCTION
• Indian automobile market is estimated to become the third
largest in the world by 2016
• India is expected to become the fourth largest automobile
producer globally by 2020 after China , U.S , and Japan
• Results are
1) Growth of global own equipment
2) Manufacturer sourcing from India
3) Increased indigenization of global OEMs
4) Turning the country into a preferred design &
manufacturing base

3. • Automotive sector have witnessed a considerable
growth in recent years
• This is due to
1) Liberalization policies
2) Economic growth
3) Shift in demand
4) Presence of foreign competitors

4. History of automotive industry in India
• Till 1940s : Cars are produced by foreign brands like General Motors
and Ford
• Till the mid 1950s : Particular isolated auto segment area was
introduced
• In 1980s : Witnessed the setting up & rise of Maruti Udyog Limited
• In 1991 : GOI started an ambitious structural adjustment program
which aimed at economic liberalization
• In 1993 : GOI new automated policy was announced
• In 2006-16 : GOI released automative mission plan

5. ABOUT TATA MOTORS
• Established in 1945
• Second biggest vehicles organization
• Its product portfolio includes traveler autos, trucks, vans, matadors,
transportation, development hardware & military vehicles
• Tata motors introduced India's first SUV in 1991
• Tata motors introduced Tata India in 1998
• Tata motors has operations in the U.K,South Korea,Thailand,South
Africa & Indonesia.

6. MISSION & VISION OF TATAMOTORS
MISSION
• To be passionate in
anticipating and providing
the best vehicles and
experiences hat excite our
customers globally
VISION
• Most admired by our customers ,
employees, business partners and
shareholders for the experience
and value they enjoy from being
with us

7. PEST ANALYSIS
POLITICAL
• The government is committed to provide a conductive environment to
support automobile manufacturing in the country
• The economic reforms liberalized the industry and regulations relaxed long
back
• India also has a 100 percent FDI in the automobile industry and this has
supported investment from foreign players
• Government has made sure that the vehicles manufactured in the country
are able to compete with those manufactured abroad
• Reduction in import duty on passenger vechicles and tariff imposed on
export of vechicles has supported automative trade amongst nations

8. ECONOMIC
• Rising disposable incomes has lead to an increase in the
discretionary expenditure of a person
• Growth in percapita disposable income has seen a CAGR of about
13%.
• Ease of rules and regulations has led to several joint ventures and
mergers with global players
• Financing schemes and availability of loans to purchase cars has
pushed sales

9. SOCIAL
• Rise of the corporate class has been a major driver of growth for
the auto sector
• Average age of working class people has decreased and a majority
of them are highly aspirational
• Demands and tastes change rapidly
• Indian cities have changed dramatically and are ever expanding
• People now have multiple vechicles in one home to meet their
travel needs.

10. TECHNOLOGICAL
• Technological advancements in terms of safety ,design and
performance are basic expectations of any car owner
• The emission norms laid down by GOI puts forward strict
regulatory standards for a car
• People now demand communication devices, safety devices, and
automative electronic controls to make their driving hassle free

11. EXTERNAL INDUSTRY ANALYSIS AND KEY
• For external industry analysis they have used the Competitive
Profile Matrix (CPM).
• The CPM is a powerful strategic analysis tool which is used to gauge the
preparedness of a company to face the competitive landscape in the industry.
• The companies in a CPM are generally measured against the Critical Success Factors.
• The CSFs of the industry change over time as the economics of the industry and the
behavior of the customer changes.

12. • Tata Motors faced stiff competition from other original
equipment manufacturers.
• The industry was a growing industry where the customers had
ample paying power and also there were several schemes.
• Tata Motors has adapted to these changes in a robust fashion
and also it was lagging behind its competition

13. KEY AND CRITICAL SUCCESS FACTORS
• Product Design
• Risk Management
• Globalization
• Global Presence
• Marketing Strategies
• New Business Models
• Supply chain

14. INTERNALANALYSIS OF TATA MOTORS
Key Resources
• People
• Technology
• Information
• Channels
• Partnerships and Alliances
• Brand

15. Key Processes
• Design and product Development
• Sourcing
• Manufacturing
• Marketing
• Hiring and training
• IT

16. CUSTOMER VALUE PROPOSITION
• Tata Motors provides value for money products to its customers.
• Most of the company’s advertisement reflect the best service in its
class at the lower possible cost.
• The company’s target customers are generally middle class price
conscious who want more features at the lowest possible rate.

17. PROFIT FORMULA
• Revenue Model: A major source of revenue comes from the sales of
passenger and commercial vehicles. Sales service is another source of
revenue for Tata Motors. Tata Motors Finance Limited provides vehicle
financing ,and other source is revenue of the company
• Cost structure: cost are allocated as employees cost, manufacturing and
other expenses are manufacturing expenses freight cost, fixed marketing
cost and other administrative cost.
• Margin: last 10yrs , the net profit margin for Tata Motors have covered
between -7.28% to +7.35%. The fluctuations in profit margin is attributed
to inflation ,change in the cost of raw materials, and new investments

18. COMPETITIVE ADVANTAGE
• Rivalry within the Industry :High
• Threat of New Entrants: Low
• Threat of substitutes: High
• Bargaining power of suppliers: Low
• Bargaining power of customers :Moderate

19. STRATEGIC DIAMOND
• A Strategy Diamond is a crisp way to analyse, visualize, summarize and can
share our strategy for a product.
• It is defined as the area where the firm will try to be active an the extent to
which it will make perfect.
• Tata Motors, in its passenger car category has started with the SUV
segment. But they realized that they need to create a small hatchback.
• After that they started exporting to other developing markets.
• Tata Motors has also created all purpose single point stores called
Concorde.
• Economic logic is the crux of the strategic diamond. It helps in deciding
how to lower cost .

20. 1) Enumerate the factors that give Tata motors its unique competitive
advantage?
• The internationalization strategy so far has been to keep local managers in
new acquisitions, and to only transplant a couple of senior managers from
India into the new market. The benefit is that Tata has been able to exchange
expertise. For example after the Daewoo acquisition the Indian company
leaned work discipline and how to get the final product ‘right first time.’
• The company has a strategy in place for the next stage of its expansion. Not
only is it focusing upon new products and acquisitions, but it also has a
programme of intensive management development in place in order to
establish its leaders for tomorrow.
• The company has had a successful alliance with Italian mass producer Fiat
since 2006. This has enhanced the product portfolio for Tata and Fiat in
terms of production and knowledge exchange. For example, the Fiat Palio
Style was launched by Tata in 2007, and the companies have an agreement
to build a pick-up targeted at Central and South America.

21. REFRENCE
• Case:"TATA Motors: Crafting Growth Strategies in Global
Industry" - Page 484 - "International Business" by Daniels,
Radebaugh, Sallivan, Salwan, 15th Edition, Pearson India -
Noida

22. THANK YOU