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Tata group

BCG MATRIX ANALYIS AND SWOT ANALYSIS OF TATA GROUP.

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Tata group

  1. 1. BCG MARIX AND SWOT ANALYSIS OF TATA GROUP PRESENTED BY: ROHIT School of management, NIT Warangal
  2. 2. TATA Group Profile • Founded by Jamshedji Tata in 1868. • Total revenue of TATA companies taken together is 67.4 billion dollar. • 28 publicly listed enterprises having combined market capitalization of 101.96 billion dollar. • It comprises over 90 operating companies in 7 business sectors: --communication and information technology --engineering --materials --services --energy --consumer products --chemicals
  3. 3. IT SERVICES- TCS • Founded in year 1979 • 76th most trusted brand according to brand trust report • Revenue- $8.2bn- 29.1% year on year rise • Net income- $1.9bn- 31.1% year on year rise • Market capitalization- $52bn MATERIALS- TATA STEEL • Formerly known as TISCO • Worlds 7th largest steel company • Total revenue- $22.741 bn • Profit- $423.5 million SEGMENTS OF TATA GROUP
  4. 4. TATA Teleservices and Communications • It serves 85million customers in 450,000 villages and towns • DoCoMo, Tata sky • First private player to launch 3G service in India • Revenue- 111.94bn rs.- 9.67% year on year rise • Net income- 33.83bn rs.- 15.60% year on year fall SERVICES- Indian Hotels (TAJ) • Started in 1903 as TajMahal palace in Mumbai • Company also operates in diversified areas such as TAJ Air, TAJ safaris etc. • Revenue- 1724.92 cr rs.- 13.45% year on year rise • Profit- 141.25 cr rs.- 7.74% year on year fall
  5. 5. ENGINEERING- TATA MOTORS • Worlds 4th largest Truck manufacturer and 2th largest bus manufacturer • 70% share in light and heavy commercial vehicle segment and 13% in passenger vehicle segment • Revenue- 52136cr rs.- 35.9% year on year fall TATA AIG (housing and insurance) • Established in 2001 with 74% stake of Tata sons and 26% stake of American international holding (AIG) • Ranked no. 1 in customer satisfaction and Ranked no.2 in claims settlement satisfaction • Income- 469cr rs. - year on year rise by 34% • Annual turnover- 11.5cr rs. –loss of 7.2cr rs. From the previous year
  6. 6. ENERGY- TATA Power • Tata power started generation of electricity in year 1915 with India’s first largest hydro-electric project • It has entered into a 51:49 joint venture with Power grid corporation of India for the 1200km TATA India’s 1st Transmission project • Revenue- 19450.76cr rs • Net income- 970cr rs • Market capitalization- 30123cr rs OTHER SEGMENTS - TATA CONSUMER PRODUCTS- salt, tea - TATA CHEMICALS - REAL ESTATE AND HOUSING - VOLTAS
  7. 7. What is BCG matrix • It is a chart created by Bruce D. Henderson in 1970 to help corporations to analyze their business units and portfolio analysis. • It was created for the Boston consulting group that’s why it is called BCG matrix. • The whole BCG matrix is based on relative market share and market growth rate. • On the basis of market share and growth rate the main four element of matrix is determined i.e. cash cow, dogs, star, question mark. -STAR- high growth and high relative market share -QUESTION MARK- high growth but relatively low market share -CASH COW- low growth and a high market share -DOG- low growth and low relative market share
  8. 8. BCG ANALYSIS OF TATA GROUP STAR • TATA steel are on star position in the matrix because they are having having high market growth with high market share. • Tata steel is the market leader in Indian steel market with 8.9% market share • The reason is mainly its standard quality and low manufacturing cost. • In the field of IT, TCS is the market leader with 10.1% market share in IT sector. Growth rate is 13% • It has the highest market capitalization of rs 495930.34cr • TATA consultancy services comes on the star position because of its leadership and high growth rate and high market share • Tata hotel industry market is related with tourism and hospitality with the revenue of 1724.92 cr rs. - 13.45% year on year rise
  9. 9. CASH COW • commercial vehicle and heavy vehicle segments of Tata motors are cash cows of TATA group due to low market growth rate which is 20.1% fall yearly but they are having high market share • Reason of being market leader is unavailability of number of competitors and also greater quality product and services • consumer products like Tata tea and Tata salt are also in the cash cow position because they are having a strong market • Tata power is having market capitalization of 30123cr rs with the revenue of 19450.73cr rs so it also comes in the cash cow position QUESTION MARK • TATA teleservices and TATA communications comes under question marks as they are having high market growth and low market share • Tata DoCoMo, Tata sky are the some products of this segments • Tata Telecommunication and wireless communication segment is on the 7th position in the market with 7% market share
  10. 10. DOG • Passenger vehicle and light vehicle segment of Tata motors are in the position of dogs in BCG matrix. • They are having only 10% market share in comparison to Maruti Suzuki which is the leader of this segment in market with 45% market share • The yearly fall in this segment is 6.05% • Due to low market growth and low market share it comes in the dog position • Tata real estate and housing segment and AIG is also having low market growth and low market share so they also comes in the dog position in the BCG matrix
  11. 11. STARS (High market growth and high market share) --INDIAN HOTELS --TCS --TATA steel ??? (High market growth and low market share) --TATA COMMUNICATIONS --TATA TELESERVICES CASH COW (low market growth and high market share) --TATA POWER --TATA motors heavy vehicle and commercial vehicle segment -- CONSUMER PRODUCTS LIKE TEA, SALT DOG (low market growth and low market share) --TATA motors passenger vehicle segment and light vehicle segment --TATA AIG --REAL ESTATE --HOUSING HIGH LOW HIGH LOW
  12. 12. What is SWOT analysis • SWOT analysis is a structured planning method used to evaluate the strengths, weakness, opportunities and threats involved in a project or business venture • A SWOT analysis can be carried out for a product, place, industry or person • It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieve the objective • STRENGTH: characteristics of the business or project that give it an advantage over other • WEAKNESS: characteristics that place the business or project at a disadvantage relative to others • OPPORTUNITIES: elements that the project or business could exploit to its advantage • THREATS: elements in the environment that could cause trouble for the business or project
  13. 13. Analysis of TATA Group STRENGHT • Global network delivery model In the field of information technology • Largest addition to workforce of 69685 professional in 2010-11 • Tata teleservices ltd has diversified into many sectors like mobile services, wireless desktop phones, public telephony services, wire line services, Tata sky etc. • Tata motors focus on small car market-fuel efficient and low cost • Tata motor trying to tap markets in us and Europe • Turned around JLR(JAGUAR LANDROVER) into a profit making • Tata steel having target to achieve 100 million ton by 2015 • Overseas acquisition have added capacity of 21.4 million tones
  14. 14. • Recently started a joint venture in airlines as AIR ASIA • With the increase In tourism and travel in India company needs to gear up with innovative ideas to keep up with competition • Tata hotels -The best 5 star quality service in India • Association with companies like GVK hotels and oriental hotels are also in process for setting up new properties • Continues to pursue contracts in India as well as south east Asia • Tata power is planning to generate 8000MW in next 3-5years • Tata power has announced its partnership with sun energy an Australian firm to build India's first floating solar plant • Tata AIG is planning to launch products in four different categories- rural, well assurance, SMEs and high net worth individuals
  15. 15. WEAKNESS • Unable to hold the market strongly in light vehicle and passenger vehicle segment • Maruti Suzuki is the leader in the Indian market with 45% market share and Tata motors is not able to compete it in this segment • Mahindra and Mahindra gives Tata motors a strong competition in heavy vehicle and commercial vehicle segment • With the rise of other insurance and housing companies TATA AIG is not able to attract customers • Not able to expand its real estate business, housing and insurance sector • In Telecommunication segment bharti Airtel and Vodafone gives a strong competition • Failure of Tata DoCoMo • Late entry in wireless communication market • Poor advertising strategy • Poor network coverage
  16. 16. OPPORTUNITY • Travel and tourism in India • Make in India projects • Merger and collaboration with the other big companies in different sectors • New market, exports and acquisitions • Focus on Consumer products • Expand in the countries US UK Australia middle east • Construction • Oil and gas sector THREATS • Startups in hotel industry like OYO ROOMS • Strong market capitalization of other automotive industries • Infosys Accenture IBM in IT field • Free Indian market • Other Public sector units
  17. 17. • STRENGTH --Experience --Micro environment --Business Model --Resources and capabilities --Culture • WEAKNESS --Value chain --Distribution --Macro environment • OPPORTUNITIES --Exports --New Products --New Markets --Acquisition & Mergers • THREAT --Free Market --Low Barriers --Globalization Of Economy
  18. 18. CONCLUSION • In the whole TATA group is acquiring different strategy in different market such as in home country Tata’s strategies are same as to cost leadership and differentiations. • No frill strategy- combines a low price and low value added, low perceived product/services benefits and a focus sensitive market • A hybrid strategy- to achieve differentiation and a price lower than competitors • It is India’s largest private sector employer, biggest taxpayer and greatest foreign-exchange earner • 134 years old TATA group is having a brand name and the most trusted brand in India so it should also focus on other emerging business segments and technology, it can enter in any segment freely
  19. 19. THANK YOU

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