Torres, Concepcion Vienice M.

Valtiendaz, Honeylet A.
I. GROWTH STRATEGY – Market Development

A growth strategy is a method or procedure used by a company to expand their business

involving more than simply envisioning long-term success. A growth strategy is one under

which management plans to advance further and achieve growth of the enterprise in fields

of manufacturing, marketing, financial resources etc. As growth entails risk, especially in

a dynamic economy, a growth strategy might be described as the safest policy of growth-

maximising gains and minimising risk and untoward consequences.

Market Development

Market development is a business strategy whereby a business attempts to find new

groups of buyers as potential customers for its existing products and services. In other

words, the goal of market development is to expand into untapped markets. These

potential customer groups may already be served by competitors or may not be currently

marketed to by anyone for the product.

Process of Market Development

Market development is a two-step process. It starts with market research. You need to

engage in segmentation analysis to determine which market segments are worth pursuing.

A segment is simply a small slice of an overall market. You can segment a market along

demographic, geographic, psychographic (based on values and lifestyles), and product-

benefit lines.
Once you have determined which market segments are worth pursuing, the second step

of market development involves creating a promotional strategy to penetrate the new

market. For example you may decide to engage in an aggressive television and direct

mail campaign. You'll also have to consider the pricing of your product. If there are

competitors in the market, then you may opt for penetration pricing, where you

aggressively price your product lower than the competition in order to quickly obtain a

large share of the market and customer loyalty.

II. COMPANY OVERVIEW - Tata Steel Ltd

Tata Steel Ltd formerly Tata Iron and Steel Company Ltd (TISCO) is an

Indian multinational steel-making company headquartered in Mumbai, Maharashtra,

India, and a subsidiary of the Indian multinational conglomerate holding company, the

Tata Group. It is one of the top steel producing companies globally, and the second

largest steel company in India.

It commenced its operations in 1907 and now turning out to be the world’s second most

diversified steel producer with operations in 26 countries and commercial presence in

over 50 countries. It is the 11th largest steel player globally, employing 77,000 people. In

India, it is one of the largest private sector integrated steel producers with a turnover of

₹38,000. Over the years, it has able to enrich the glorious legacy handed over by its

founder Jamsetji Tata, by placing equal emphasis on value creation and corporate

citizenship which is the company’s vision statement.

Underpinning this vision is a performance culture committed to aspirational targets, safety

and social responsibility, continuous improvement, openness and transparency. What

binds together every member of Tata’s global family today is a shared corporate culture,

shaped by value-based guiding principles and the lineage of one of the world’s most

pioneering and respected entities – the Tata Group itself.

III. APPLICATION OF THE GROWTH STRATEGY

In all sectors of the Indian industry, there avails a good scope of increasing steel

consumption and Tata Steel stands to benefit from this happening.

India has approximately 700,000 thousand villages and there is a tremendous untapped

potential in the rural areas for marketing steel products. Tata Steel used the opportunity

of enhancing steel application in these areas and promoted the consumption of steel and

steel products in the rural areas. Tata Steel Rural Development Society (TSRDS) was

established in 1979 to engage

in various social development program in the rural areas within which Tata

Steel operated its business.

Aside from continuing to pursue capacity expansion within India, Tata Steel strategized

long term objectives to eventually dominate the world market in terms of steel production,

distribution and sale by means of exportation and formation of different outlets around the

world.
Tata Steel Europe is the second largest steel producer in Europe with a crude steel

production capacity of over 12.1 MnTPA. It established its presence in the European

continent after acquiring Corus in 2007. The manufacturing facilities in Europe comprise

hubs (Strip Products Mainland Europe, Strip Products UK and Downstream Operations)

and integrated businesses (Plating and Cogent Power). Tata Steel has two integrated

(blast furnace-based) steel-making sites in Ijmuiden, the Netherlands and Port Talbot,

South Wales respectively. Other facilities across Europe produce a variety of special

steels, ultra-pure re-melted steels and various rolling and coating lines.

Tata Steel’s operations in South-East Asia on the other hand, began in 2004 with the

acquisition of NatSteel, Singapore. The operations are run by NatSteel Holdings Pte Ltd.,

a wholly-owned subsidiary of Tata Steel. In 2015, it acquired a majority stake in Thailand-

based steelmaker Millennium Steel, which strengthened its South-East Asian operations.

Tata Steel is concentrating its efforts in the region to grow its value-added products and

services portfolio, while strengthening its key steel operations in Singapore, Thailand and

China.

Today, Tata Steel operates in 26 countries and have a commercial presence in over 50

countries with employees across five continents. And the numbers are growing.

References:
http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.125.803&rep=rep1&type=pdf
https://www.scribd.com/doc/19536372/Company-Analysis-of-Tata-Steel-Bs-AssignmentCompany-Analysis-of-Tata-
Steel-Bs-Assignment
https://study.com/academy/lesson/market-development-examples-definition-process.html
https://study.com/academy/lesson/what-is-growth-strategy-definition-examples.html