This is a Business Analysis\' presentation of Tata vs Toyota vs Geely, as a part of an educational program

1. TATA vs TOYOTA vs GEELY
TY
RI
IO
PR
AL
TU
EC
LL
TE
IN

2. Contents
TY
RI
IO
Company Background
PR
Market Landscape
AL
Strategies
TU Current Situation
EC
LL
Perspectives
TE
IN

3. TY
•Formerly known as Tata Engineering and Locomotive
RI
Company,
Company
Background
IO
• Began manufacturing commercial vehicles in 1954 in
PR
Market
collaboration with Daimler Benz of Germany.
Landscape
AL
•Areas of Business
Strategies •Passenger Cars
TU
•Utility Vehicle
EC
•Commercial Vehicles
Current •Passenger Buses
LL
situation
TE
Perspectives
IN

4. Milestones
TY
RI
Company
Background  1945 – TELCO Established
IO
 1954 – Collaboration with Daimler Benz AG
PR
 1986 – First LCV TATA 407 rolled out
Market  1991 – First indigenous car TATA Sierra launched
Landscape  1994 - Joint venture agreement signed with Mercedes – Benz
AL
 1998 - Indica, India's first fully indigenous passenger car launched.
 2002 – 200,000th Indica Rolled out.
Strategies 

TU
2004 - Tata Motors completes acquisition of Daewoo Commercial Vehicle Company
2005 - Branded buses and coaches - Starbus and Globus – launched, Tata Motors acquires
21% stake in Hispano Carrocera SA, Spanish bus manufacturing Company
EC
 2006 - Tata Motors vehicle sales in India cross four million mark, Tata Motors and
Current Marcopolo, Brazil, announce joint venture to manufacture fully built buses & coaches for
LL
India & markets abroad
situation
 2008 - Tata Motors unveils its People's Car, Nano, at the ninth Auto Expo, Tata Motors
TE
completes acquisition of Jaguar Land Rover.
Perspectives  2009 - Tata Motors launches Nano - The People's Car, Launch of premium luxury vehicles
- Jaguar
IN

5. TATA Motors : Vision
TY
RI
Company
Background •Best in the manner in which we operate,
IO
• Best in the products we deliver,
PR
Market •Best in our values and ethics.
Landscape
Engineering, construction and
AL
automotive solutions
Strategies
TU
R&D focus on environment friendly
technologies
EC
Cost Competitiveness through
Current
LL
continuous improvements.
situation
Best in class human Capital.
TE
Perspectives
IN

6. TY
RI
Company
Background
IO
PR
Market
Landscape
AL
Strategies
TU
EC
Current
LL
situation
TE
Perspectives
Total Sales: 6.2 Billion $
IN

7. The strategy maker: TATA Sons
TY
Communications and • TATA Consultancy Services Ltd.
RI
Company Information Technology • TATA Teleservices
Background
IO
Engineering
• TATA Motors
• Voltas
PR
Market
Landscape • TATA Steel
Materials
• TATA Metaliks
AL
Strategies • Indian Hotels
Services
TU • TATA Capital
• TATA Power
EC
Energy
• TATA BP Solar
Current
LL
situation • Titan Industries
Consumer Products
• TATA Tea
TE
Perspectives
• TATA Chemicals
Chemicals
• Rallis India
IN

8. TY
Corporate Strategies
RI
Company
Background
IO
 Strong Corporate Governance based on rich legacy of fair,
ethical and transparent governance practices.
PR
Market
Landscape
AL
 To buy premium vehicle brands such as Land Rover and
Strategies Jaguar to increase its global reach and scale. $15.5 billion
TU
spent in acquisitions.
EC
Current
 The TATA name is a unique asset representing leadership
LL
situation
with trust. Leveraging this asset to enhance group synergy
TE
and become globally competitive.
Perspectives
IN

9. TY
What drives the TATA Motors Strategy
RI
Company
Background  Instantly push TATA Motors onto global center stage.
IO
PR
Market  Acquisitions and joint ventures to enhance product portfolio and
Landscape knowledge exchange.
AL
Strategies  Innovation is simply the process by which companies increase
TU
their profitability in the marketplace.
EC
Current  Bring new range of value to their market by bringing media and
LL
situation technology, so that they could carve out an unshakable space in
the minds of their customers.
TE
Perspectives
IN

10. TY
RI
Company
Background
IO
PR
Market
Landscape
AL
Strategies
TU
EC
Current
LL
situation
TE
Perspectives
IN

11. TY
Comparison with Alexander the Great
RI
Company
Background
IO
Alexander the
PR
TATA Motors
Market
Great
Landscape
AL
• Smart, use of • Innovate to lead
Strategies
innovative
techniques
TU • Acquisitions and joint
ventures to instantly
• Assimilation of push TATA Motors
EC
conquered lands, onto Global Center
Current
multiculturism. Stage and enhance
LL
situation product portfolio and
Knowledge
TE
Perspectives
Exchange.
IN

12. TY
Problems
RI
Company  Liquidity Problem, delays in payment to the vendors.
Background
IO
 260 million $ of unpaid dues.
PR
Market
Landscape
 Contrasting Brand Images of Jaguar/Land Rover and TATA Motors.
AL
Strategies
TU
 Find Synergies in the capabilities and facilities between the two
companies.
EC
Current
LL
situation
TE
Perspectives
IN

13. TY
RI
Company
•Road development in India
Background •Increase in income levels
IO
•Increasing car penetration
Opportunities •International Business
PR
Market
Landscape
AL
Strategies •Credit Unavailability
TU •Hardening of interest rates
•Fuel Prices
Threats •Input costs
EC
•Government Regulation
Current •Global Competition
LL
situation
&
TE
Perspectives
IN

14. TY
 Public Company; Part of the large Conglomerate Toyota Group.
522 Subsidiaries.
RI

Company
Background
IO
 Founded by Kiichiro Toyota in 1937 as a spinoff from his father’s company to
create automobiles.
PR
Market
 Toyota AA in 1936.
Landscape
AL
 Owns and operates Lexus and Scion.
Strategies
 TU
Shareholders in Yamaha Motors, Isuzu motors, Mitsubishi Aircraft Corporation.
EC
 Largest automaker in the first half of 2008 with sales of more than 4.8 million cars
Current and trucks.
LL
situation
TE
Perspectives
IN

15. TY
Culture & values
RI
Company
Background “A culture of quality people working together with
IO
shared Toyota values to continues improve”
PR
Market
Landscape
AL
Strategies
TU
EC
Current
LL
situation
TE
Perspectives
IN

16. TY
Production System
RI
Company
Background • Sales (2009): 205 billion $
IO
PR
Market • 53 overseas manufacturing
Landscape
companies,in 27 countries
AL
Strategies
TU • Has 168 distributor companies
in more than 170 countries
EC
Current
LL
• Number of employees 316,121
situation
TE
Perspectives • More than 8,900 millions units
IN
sold

17. TY
RI
Company
Background
IO
PR
Market
Landscape
AL
Strategies
TU
EC
Current
LL
situation
TE
Perspectives
IN

18. TY
RI
Company
Background
IO
PR
Market
Landscape
AL
Strategies
TU
EC
Current
LL
situation
TE
Perspectives
IN

19. TY
Toyota Leadership…always improving
RI
Company
Background
IO
PR
Market
Landscape
AL
Strategies
TU
EC
Current
LL
situation
TE
Perspectives
IN

20. TY
 Aggressive Marketing: fuel efficient, environmentally friendly,
RI
Company small size, better build.
Background
IO
 Green Company
PR
Market
 Product Diversity
Landscape
AL
Strategies  Overseas production to reduce labor cost
TU
 Huge Dealer Network
EC
Current
 Best System: TPS
LL
situation
TE
 Farsighted – Toyota Scion
Perspectives
IN

21. TY
Comparison with Sun Tzu
RI
Company
Background
IO
PR
Sun Tzu Toyota
Market
Landscape
AL
Strategies • Do it right • Focus on Quality
TU
• Do it Better • Continuous
EC
Improvement
Current • Innovate
• Keep them Guessing
LL
situation
• Pull Together • Team Work
TE
Perspectives
IN

22. TY
RI
Company
Background
IO
PR
Market
Landscape
AL
Strategies
TU
EC
Current
LL
situation
TE
Perspectives
IN

23. TY
Toyota Recall
RI
Company
Background
IO
 In January 2010, Toyota recalled up to 9 million cars
across Europe, following an accelerator problem.
PR
Market
Landscape
AL
 2.4 billion dollars loss and 15% fall in share value.
Strategies
TU
 Was struggling to emerge from the recession and had
EC
Current already suffered from a resultant decrease in sales.
LL
situation
TE
Perspectives
IN

24. TY
RI
Company
Background
IO
PR
Market
Landscape
AL
Strategies
TU
EC
Current
LL
situation
TE
Perspectives
IN

25. Others
Automotives
Activities
TY
90%
10%
RI
Company
Background
IO
PR
Market
Landscape
AL
Strategies

TU
Operates via two key legal entities :
EC
 Zhejiang Geely Holding Group" ("Geely Holding Group") and
 Geely Automobile Holdings (“Geely Automobile Holdings”)
Current
LL
situation  Geely Holding group – ultimate parent company : registered in PRC as an
independent privately owned firm
TE
Perspectives
 Geely Automobiles holdings : listed on the Hong Kong stock exchange
IN

26. Company History
TY
2006: R&D on a self developed
RI
Company Automatic transmission + EPS
2007: Geely formed a joint venture with
Background 2008-2009
IO
Manganese Bronze Holdings,
makers of the London Taxi
Announced an international strategy
PR
1986 – 1998
Market
Landscape
AL
2006~2007 2008: Participate the North
USA Auto Show. Win a price
Strategies `1986: Geely is For its safety system BMBS
created
`1998 :The Geely
Haoqing SRV
TU
2001 - 2005
2009:Acquisition of Australian
Drivetrain System
EC
rolled off the Launch a new product from
production line Its Ningbo production
Current
Facilities.
LL
situation 2001: A Geely’s car was certified
By the governement. 1st private company
Authorized to produce in China
TE
2003: Geely exported its 1st car
Perspectives
2004:Geely created a formal operation and management
Under the leadership of Li Shufu
IN
2005: Geely Automotive Holding listed in HK stock market

27. 1. Team Work:
Values of Geely
TY
Communication +
Coordination+ Cooperation
= stimulate & guide people
RI
Company mind.
Learning Innovation 2. Learning: Courage to
Background Team Work
IO
learn, Persistent spirit and
Keeping practice all time
PR
3. Innovation: Soul of
Market Geely: Full realization,
Management innovation
Landscape 4. Struggling: “Who are
AL
Struggling Truth Ever we if we can not reach the
Seeking Improving Great Wall?”
Strategies 5. Truth Seeking: Showing
TU respect to the objective
facts and study (key
EC
connotation of the spirit).
6. Ever Improving: The
Current fundamental requirements
LL
of sustainable
situation
development for Geely,
Click to and high quality, low cost
TE
Perspectives add Text and outer-supporting
systems' construction
IN

28. TY
RI
Company
Background
IO
PR
Market
Landscape
AL
Strategies In the first half of 2009:
TU
•the Group continued to deliver a strong set of results with both
its sales volume and profitability reaching record highs during the
period,
EC
Current Despite challenging market conditions, especially in
major export markets. The strategic transformation
LL
situation implemented since mid-2007 has significantly enhanced
the Group’s capabilities to deliver sustainable growth
TE
under difficult economic and market conditions.
Perspectives
IN

29. Motorcycles Booming in the 1990’s
(Develop patents)
TY
Export Motorcycles to 22 countries as USA, Germany, Italy
RI
Company
Background
IO
Develop multi-structed enterprise (hotels, decoration materials…)
PR
Market Create High education, to education student in main sector such as Business, Management, Engineering,
Technical, Mecanic design, vehicule and motorcycle repairs
Landscape
AL
Geely set up joint venture
Strategies
TU Geely become a private passager carmaker
EC
Current
Strategy based on low price and new method of mass production
LL
situation
TE
Develop new rang of product
Perspectives
IN
Reach the overseas market by 2015

30. TY
RI
Company
Background
IO
PR
Market
Landscape
AL
Strategies
TU
EC
Current
LL
situation
TE
Perspectives
IN

31. TY
 Acquisition of Volvo from Ford company
RI
Company  Acquisition of key operating assets of Drivetrain Systems
Background
IO
International PTY Ltd., one of the two independent automatic
transmissions manufacturers globally
PR
Market
 Currently manufactures and develops
Landscape
AL
 engine platforms that include engine capacities from 1 to 1.8 L
Strategies  self-developed engines
 TU
automatic and manual transmissions including six speed drive by wire automatic
transmissions
EC
 Euro 5 compliant engines
Current
LL
situation
 Has been granted over 1200 patents, 30 internationally
TE
 Created world’s first Blow Out Monitoring and Braking System (BMSS)
Perspectives
 Operates a self developed Energy Efficient Building System (EEBS)
IN

32. TY
Challenges
RI
Company
Background
IO
 Volvo
PR
Market  Selling “Made in China” Volvos worldwide
Landscape  Matching the customer service level of Volvo
AL
 Turning around a loss making Volvo
Strategies
 Geely TU
 Creating a worldwide brand name
EC
Current
 Entering North American and European
markets
LL
situation
TE
Perspectives
IN

33. Opportunities
TY
RI
Company
Background
IO
 Group’s net cash flow increased from RMB 670 million
(Dec 2008) to RMB 1.5 billion (June 2009)
PR
 More international acquisitions and joint ventures
Market
 More R&D investment
Landscape  IP protection
AL
 Vertical integration
Strategies
TU
 Huge car market in China
 Manufactures cars with Euro 5 compliant engines
EC
 Enter the European markets
Current
LL
situation  Innovation and R&D culture
 Develop own new and ecological technologies
TE
Perspectives  Chinese IP protection policy
 Patents for their technologies
IN

34. Comparative Analysis
TY
 Competitive Rivalry
RI
 New players from new countries like India and China in
IO
the international market
PR
 Similar technology and similar price bands
AL
 Economic downturn caused huge losses for the major
carmakers
TU
 Companies becoming globalized, ramping up production,
EC
optimizing processes to keep low costs with increase in
LL
cost of raw materials
TE
TATA Motors : High
IN
Toyota : High
Geely : High

35. Comparative Analysis…contd
TY
Bargaining Power of Supplier
RI
 TATA Motors: High
IO
• More than 128 suppliers, not very powerful
• Supplier’s products have few substitutes
PR
• High supplier switching costs
• Backward integrated – steel
AL
 Toyota: Moderate
• Suppliers spread all over the world, cannot easily forward
•
TU
integrate
More bargaining power because of JIT inventory and quality
EC
requirements
• Builds local, long-term relationships with suppliers
LL
• Keiretsu – Internetwork of Toyota and it’s tier I and tier II
suppliers
 Geely: Low
TE
• Vertically integrated for most parts – engines, transmissions
IN
• Very low dependence on suppliers for few parts – too many
local suppliers

36. Comparative Analysis…contd
TY
Bargaining Power of Buyers
RI
 Directly related to the level of competitive rivalry in the
industry or the specific market
IO
 High switching costs for customers
 More options available to customers
PR
 Brand image increases the power of the manufacturer
AL
 TATA Motors: Moderate
• Low in LCV and M & HCV segments in Indian markets
• TU
Low for Nano and JLR
• High for cars in Indian market
EC
 Toyota: Low
LL
• Highly Respected Brand Worldwide
 Geely: High
TE
• New Markets
• New Players: Local and International
IN
• Huge number of options available to the customers at nearly the
same price.

37. Comparative Analysis…contd
TY
Substitutes
RI
 Used Car Industry
 Hybrid Vehicles
IO
 Other ecological transport options eg. Cycling and walking
PR
 Public Transport services
 TATA Motors: High
AL
• Not into hybrid vehicles yet
 Toyota: Moderate
•
TU
Already into hybrid vehicles
 Geely: High
EC
• Growing Chinese Car Market
LL
• Already into hybrid vehicles
TE
IN

38. Comparative Analysis…contd
TY
Threat of Potential Entrant
RI
 Huge upfront investment required
 Larger and older companies have economies of scale, technology,
IO
patents and R&D investments
 Government Regulation and standards of different countries
PR
 All the distribution channels are filled with existing companies
 TATA Motors: High
AL
• Faces threat of new entrants in low cost car segment
• International players entering Indian market in mid-size and
TU
sedan segment
 Toyota: Low
EC
• Established in major markets
• Highly recognized brand
LL
• Many technologies and patents
 Geely: High
TE
• Growing Chinese Car Market
IN
• Government Backed Companies
• International players entering the Chinese car market

39. Conclusion
TY
 TATA Motors
RI
• Revenue Growth through significant presence in international
IO
market
• New Generation Products
PR
• Capitalize on product development skills and costs globally
 Toyota
• Regain Customer Trust
AL
• Be Proactive
 Geely
TU
• Build a Strong Brand
EC
• Focus on Quality and keep exploiting its cost advantages
LL
TE
IN

40. IN
TE
LL
EC
TU
AL
PR
IO
RI
TY
Thank You