ASSIGNMENT

ON

“STRATEGIC MANAGEMENT”
-: Submitted By: -
Enrollment No. Name
09 - (207500592009) TRIPATHI DHRUPAL
16 - (207500592016) PRACHI TAILOR
18 - (207500592018) HONEY PRAJAPATI
65 - (207500592065) KRUNAL GURAV
70 – (207500592070) ANISH SINGH

SUBJECT: - STRATEGIC MANAGEMENT

SEMESTER: 3
-: Submitted to: -
DR. ROSHNI SINGH (Assistant Professor)

S. R. Luthra Institute of Management, Surat

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 DECLARATION

We hereby declare that the assignment on “STRATEGIC MANAGEMENT” has done

under the guidance of Assistant Professor DR. ROSHNI SINGH (Assistant Professor) at
S.R. Luthra Institute of Management, Athwa, Surat, is a presentation of our original research
study carried out during current semester and the same is not submitted anywhere for
obtaining any degree purpose either. Wherever contributions of others are involved. Every
effort is made to indicate this clearly.

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 ACKNOWLEDGMENT

We take this opportunity to firstly thank our college for giving us this opportunity to do an
assignment. It has been a learning experience for us.

We feel great pleasure to express our feeling to our principal Dr. Jimmy Kapadia and also
thankful to my academic guide DR. ROSHNI SINGH (Assistant Professor) for giving us the
valuable guidance and suggestion for successful completion of the project.

We wish to express our heart full thanks to the project guide for the guidance and suggestion
throughout the project without which we would not have been able to complete this project
successfully.

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 INDEX

Sr no. Content Page number

1 Michael Porter’s five forces analysis of 5-7
Automobile industry in Indian context
2 Competitive strategies of tata motors & Maruti 8 - 18
Suzuki
3 Maruti’s competitive strategies 19 - 26
4 Leadership skill, characteristics, and strategic 27 - 29
decision made by Mukesh Ambani

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Michael Porter’s five forces analysis of Automobile industry in Indian
context

 A Porter's Five Forces Analysis explores five principal industry factors to determine the
attractive of a given industry in a given market.  In this P5 forces, we look at the
automobile industry in India.

In any P5F analysis, one must examine the following:

 The threat of new entrants

 The bargaining power of buyers/customers
 The threat of substitute products
 The bargaining power held by suppliers
 The level of rivalry among competitors

1. THE THREAT OF NEW ENTRANTS:

 In majority of markets, the expertise and capital required to setup parts or auto
manufacturing facilities would be a huge entry barrier. What this means is that new
entrants would have a hard time setting up. However, this is not the case in India given its
incredible forecasts on growth, infrastructure progress as well as ever increasing
financing options. an automobile manufacturer should have a strong dealer network
which will be difficult in case of the new entrant. The new entrants who want to penetrate
into the Indian automobile industry will have to develop a trust of customers, create brand
image which highlights in quality and reliability of the brand. All these aspects make the
industry attractive.
 This translates to:

 High capital requirement

 High sunk costs that limit competition
 Requirement of advanced technologies
 Patent limit for new competition
 Economies of scale
 Need to brand names that are strong

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2. THE BARGAINING POWER OF BUYERS
 The Bargaining power of the Buyers in the Automobile Industry is very high since
customer can easily opt for any vehicle among the available wide range of products. The
factors that affect the buying decision of the customer are quality, appearance, price and
the environmental effect. Based on these factors, customers can switch from one
Company to other, if they feel that the other product would cater to their preferences and
requirements. There are over twenty foreign manufacturers in the country and this
includes high end manufacturers like Lamborghini and Rolls-Royce. What is more, they
also have a large number of cheap options to choose from such as the well-known Tata
Nano. Because of this:
 The buyer price sensitivity is low
 There is a low distributors dependency
 The number of customers is large

3. THE THREAT OF SUBSTITUTE PRODUCTS

 Threat of Substitutes for Automobile Industry in Indian Scenario is not very high. Though
there are many other transportation mediums available such as buses, trains etc. None of
them provide the same convenience, independence, time saving and value that are
provided by the cars. Your own car will serve you round the clock but if you missed a
train or bus you have to wait for another. However, in case of the alternative modes you
do not need to worry for maintenance. Still, owning a car is both a matter of convenience
and prestige for most. So, the threat of substitutes is weakened. India is well known for 2-
wheelers (mopeds and bikes) and 3 wheelers which are real and obvious threats to
manufactures of automobiles. This means:

 There is a high threat in terms of making a switch to substitutes

 The substitutes are limited

4. THE BARGAINING POWER HELD BY SUPPLIERS

 The bargaining power of suppliers in the automotive industry is weak for most of them
are small players. Only few of them are significant in size. These suppliers have to play
according to the rules set by the car brands. The vehicle brands like BMW, Ford, Toyota
and Toyota hold immense clout because the raw material is always available in plenty and

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 switching from one supplier to another is not difficult for them. In this way, the
bargaining power of suppliers is considerably low. It is very likely that manufactures have
high bargaining power. This means they cannot be held at ransom by one manufacturer
because they can easily market their products in India. This translates to:

 High level of competition among suppliers

 Low suppliers’ concentration
 Critical inputs production
 Critical volume to suppliers

5. THE LEVEL OF RIVALRY AMONG COMPETITORS

 The level of competitive rivalry among leading brands is strong. With higher
competition, brands are trying to maximize customer satisfaction and competing to provide
the best customer experience. Overall, competition in the auto industry is a strong force or
rather very strong. Auto firms are investing aggressively in research and development,
digitalization as well as marketing and overall customer experience to grow sales and
customer base. The rivalry in India is high and yet, the industry has not yet reached its phase
of shake out and it is still making struggles to measure up to leaders in the automobile
industry. This is translated to:

 Product differentiation
 Low costs of storage
 Limitations by the government to curb competition
 Large size industry
 Fast growth rate in the industry
 Entry of few competitors

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 COMPETITIVE STRATEGIES OF TATA MOTORS & MARUTI
SUZUKI

FOUR TYPES OF COMPETITIVE STRATEGIES

 American academic and economist Michael Porter divided competitive strategies into
four types. Check them out below.

1. COST LEADERSHIP STRATEGY: -

 It suits large businesses that can produce a big volume of products at a low cost, and that
is why Walmart implemented this strategy. It means that companies using a cost
leadership strategy are the lowest price sellers on the market. Hence, the cost price of a
product should be low to make a profit. This is possible with the help of large-scale
production and high-capacity utilization along with a variety of distribution channels. The
competitive advantage within this strategy is the lowest price.

2. DIFFERENTIATION LEADERSHIP STRATEGY: -

 This is a killer strategy that allows brands to stand out among competitors. It requires
identifying a unique quality that makes a company different. With this strategy,
businesses become superior to their rivals on the market, which allows them to charge
more for their products. Starbucks and Apple belong to brands using this strategy.

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3. COST FOCUS STRATEGY

 This strategy is similar to the cost leadership strategy in terms of providing customers
with the lowest price. The only difference is that a cost focus strategy implies targeting a
specific market segment with its unique needs and wants. This way, it’s easier for
companies to establish brand awareness. Companies using this strategy often concentrate
their efforts on geographic markets with special needs.

4. Differentiation focus strategy. Companies using this strategy also focus on specific

market segments, but their driving force is the unique value. While cost focus strategy
means providing the lowest price in a small niche, differentiation focus strategy means
improving the product with the help of unique features that will make your company
stand out on the market. For example, there are a few hotels in Egypt or Turkey for adults
only. This way, people can relax and be sure that no child will bother them.

INTRODUCTION

 Headquartered in Mumbai Tata Motors (formerly known as TELCO acronym form

for TATA Engineering and Locomotive Company) are an Indian multinational

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 automotive manufacturing company and a member of Tata group. Products offered by the
company varies from cars, trucks, vans, coaches, military vehicles, sports cars, buses and
construction equipment. TATA Motors is ranked as 226th in the Fortune Global 500 list of
world’s biggest corporations as of 2016.

1. COST LEADERSHIP STRATEGIES OF TATA MOTORS

 Tata Motors' marketing strategy has a competitive edge –Based in India, the company
faces stiff competition since it provides a low-cost labour base with which it not only
targets the Indian market but also other rising countries with a wide selection of
affordable vehicles. The products are created at a lesser cost and marketed to new
markets, resulting in large profits for the corporation.
 Tata Motors offers products such as Tata ACE a mini truck mainly used for agriculture
transport purpose, Tata NANO for the middle class, Tata Indica and Indigo for
commercial purposes and Jaguar in the high-class segment thus creating the image that
there’s something for everyone in its huge line of offerings.
 Some of the primary circumstances that aid the brand's commercial expansion include the
country's policies and regulations for the vehicle sector, as well as the availability of the
least priced automobile parts.
 TATA Motors' remarkable invention and research and development have established a
precedent for its competitors. The brand is working on improving engine economy,
design, style, and instrumentation of automobiles through its numerous research centers
across the country.
 For gaining access to international markets TATA Motors has purchased a number of
international enterprises over the years. While the company has performed admirably in
the domestic market, its affiliate Jaguar Land Rover has shattered all previous records as
a leading luxury car manufacturer. Major product development, capacity capitalization,
and numerous national and international mergers are all required in this mega expansion
mode.
 Tata offers vehicles ranging from small pickup trucks to extra heavy commercial trucks.
Currently Tata motors are third in terms of market share (13%) in passenger vehicles
market in India and first in commercial vehicles segment with a market share of 60%.
63% of the total revenue (vehicle sale) is from the sale of commercial vehicles while 37%
is from the sale of passenger vehicles. Other sources of revenue are sale of spare parts,

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 servicing of sold vehicles, financing to customers and retailers. Military vehicle sale plays
a very small part in revenue generation due to government restrictions. How it will go
about achieving all this:
 Tata entered into Indian passenger car industry with the launch of Indica in the year 1998.
From then till now, Tata Motors’ strategy has been to be the low-cost leader in the market
 TATA latest innovations are India's first turbo-charged multi-point fuel injection (MPFI)
petrol engine, the Revotron1. 2T engine and the Diesel engine, the Revotorq, which
power the new generation cars - Tiago, Tigor, Zest and Bolt.

2. DIFFERENTIATION LEADERSHIP STRATEGY

 Differentiated targeting strategy is used by Tata Motors to target the customers and

satisfy their needs and wants. In the star segment, the indica, which is the most popular
commercial vehicle, is joined by the Safari Dicor, Manza, Winger, and Magic. Nano&
Zest is still in the question mark area, despite Safari, Sumo, and Indigo CS being their
cash cows.
 While most of us know the Tata Nano as the world's cheapest automobile, Tata Motors
also built a version of this small vehicle that was the world's most expensive car! The
world's first Gold Jewelry automobile. Gold, silver, and valuable gems. Were used to
create it.

 With 576 cars dealers across 424 cities in India, TATA Motors holds a robust dealer’s
network in the country through it sells more than 56,000 in the month of July 2018. Brand
registered a staggering growth of 64% in its domestic sales for the first quarter (April-
June 2018), FY19 at 164,579 units compared to 100,141 units over the previous year due
to its strong network of dealers.

 TATA intends to meet the evolving needs of the vehicle industry by launching a new
product line. These items are made with the goal of offering comfort, reliability, safety,
capacity, and value to the end user. To stay ahead of the competition, the corporation
plans to make significant investments in product development. TATA Nano is marketed
as the world's cheapest automobile, whereas TATA Ace is aimed at stealing market share
from its competitors in the commercial vehicle industry. Another sporty vehicle, the

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 Nexon, which comes with both a diesel and a gasoline engine, is already attracting
customers.

3. COST FOCUS STRATEGY:

 There are more than 20 car manufacturers currently present in Indian market. Prominent
factors which govern the selection of a passenger car are Affordability, Fuel Economy
and Luxury. In case of commercial vehicles, 0.89 million vehicles were sold in the year
2011-12. HHI for commercial vehicles is 4326 (Exhibit 2).

 Currently there are 4 major competitors in this segment. What business the company is in:
Tata Motors is India’s largest automobile company. It is the leader by far in commercial
vehicles in each segment, and has third highest market share in passenger vehicles
segment. The company is the world’s fourth largest truck and bus manufacture Hence,
India is the primary target market for Tata Motors. Being the low-cost leader, target
customers for Tata motors are middleclass households and youngsters which are the final
consumers of passenger vehicles. Customers of TATA Motors are the low, middle groups
who are looking to switch to 4-wheeler from 2-wheeler who are looking to purchase a car
for a family purpose at affordable prices. Customers of the brand also include youth and
high-class business professional who is looking for innovative, trending vehicles with
world-class safety features.
 For recently acquired luxury brand Jaguar Land Rover, target customers are affluent class
of the society. Target market for this brand is US and Europe. In commercial vehicle
segment, main customers are transport companies for heavy or medium duty trucks and
government transport authority for buses. What products or services it will offer: Tata
motors’ core products or services are Domestic Vehicle Sales (85.1% of total revenue),
Exports of Vehicles and spare parts (6%), Domestic Spare Part Sales (4.4%), and Vehicle
Financing (0.1%). Vehicle portfolio of Tata motors consists of passenger car vehicles,
medium and heavy commercial vehicles and military vehicles.
 After acquiring Land Rover and Jaguar, Tata has a portfolio of passenger cars from micro
cars to super luxury cars.

4. DIFFERENTIATION FOCUS STRATEGY:

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 Tata Motors Limited adopts the focus strategy both in terms of low cost and offering the
best value. The low-cost focus strategy is adopted by serving the needs of a niche market
segment at the lowest possible price. While, best value focus strategy is adopted by
emphasizing over the taste, size and design of the product that could best match the
customers’ needs and requirements.
 By focusing on product attributes, Tata Motors Limited revises its branding strategies and
brings continuous changes in the product designing and packaging to satisfy the
customers’ psychological expectations and maximize value for money.
 With the Indian automotive market being overcrowded with a lot of national and
international players following a red ocean strategy. Companies like Hyundai,
Fiat, Maruti Suzuki, Toyota & Honda are giving a stiff competition to the brand with
everyone eating each other’s market share.
 The research shows that Tata Motors has successfully implemented 'Low-Cost Strategy'
by providing unmatched value for its customer's money. With 50 years of experience, the
company has successfully served varied needs of its customers by providing an extensive
range of products.

COMPETITIVE STRATEGY OF MARUTI SUZUKI:

INTRODUCTION

Founded in 1983 as a joint venture between Government of India and Suzuki Motor

Corporation, Japan, with a motto of motorizing India, Maruti Suzuki India (MSI) is currently

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a leading manufacturer of four-wheelers in India. Initially, the company started with
Government of India holding major stakes of the company. As of present Government has
disinvested its stakes in the company completely handing it over to Suzuki Motor
Corporation. With its two manufacturing units located at Gurugram and Manesar, both south
of Delhi Maruti Suzuki employs more than 75,000 employees. With over 30 years of
presence in the country, there’s a brand trust among the customers. Also With two
manufacturing unit in the country, one in Gurugram and Manesar gives the brand edge over
its competitors. Factors which set apart Maruti Suzuki from its competitors include

 The Quality Advantage

 Brand Trust- A Buying Experience Like No other
 Quality Service Across 1036 Cities
 The Low cost of Maintenance Advantage
 Lowest Cost of Ownership
 Technological Advantage

 MSF continues its strong domination both in Indian market and in exports as well with
the company selling over 1.64 million vehicles to bring its  market share close to 50% in
the domestic market and exporting 4-wheelers to over 125 countries globally to become
the largest passenger cars exporter from India last year, dethroning Hyundai Motors India
Ltd. which now stands fourth after Volkswagen and General Motors.
 The company exported 57,300 units in the April-September period last year with a growth
of 6% from 54,008 unit a year ago. MSI has also not only managed to sustain its huge
sales numbers but has also increased its market share both in the urban and rural market.

1. COST LEADERSHIP

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 Its two manufacturing units having a combined production capacity of 14,50,000 vehicles
annually Maruti Suzuki has a strong dealer network as well to complement with. Maruti
Suzuki, in fact, has been one of the very first company in the country to realize the
importance of after-sales service in high involvement product like cars.
 The company has the largest distribution and after-sales service network comprising of
over 400 sales showrooms, 1900 Authorized Service Stations spanning across over 1190
cities, 30 Express Service Stations on 30 National Highways across 1,314 cities and over
600 dealer workshops which are unparalleled in the country.
 The company also has 280 Nexa showrooms exclusively for premium car segment. To
increase customer touch points in the rural parts of the country where setting up of the
complete dealership was very difficult company has opened extension counters which are
operated by some dealer in the city.
 Maruti Suzuki has managed to break into global Top 10 brand chart for the auto sector,
where it stands at 9th most valuable auto brand in the world just ahead of Volkswagen and
behind Tesla.
 In addition to this Maruti Suzuki India is ranked 99th and 71st on Forbes World’s Most
Innovative Companies list and Top Regarded Companies list of 2018. The brand also
features at 366 on Global 2000 companies of Forbes 2018.
 Capital investment is required for economies of scale
 Set up two well equipped plant for manufacturing facilities in India
 Gurgaon Facility (300 acres) housing the ‘K’ engine plant
 Manesar Facilities (600 acres)

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2. DIFFERENTIATION

 Quality fuel efficient car at affordable prices

 Excellent after sales services at various service centre across the India
 Maruti Suzuki has managed to break into global Top 10 brand chart for the auto sector,
where it stands at 9th most valuable auto brand in the world just ahead of Volkswagen and
behind Tesla.
 In addition to this Maruti Suzuki India is ranked 99th and 71st on Forbes World’s Most
Innovative Companies list and Top Regarded Companies list of 2018. The brand also
features at 366 on Global 2000 companies of Forbes 2018.
 With the Automotive market in India appears to be a red ocean market with the present
lot of National and International players companies like Hyundai, Fiat, Tata
Motors, Mahindra, Honda & Toyota are giving a stiff competition to the brand with
everyone biting upon each other’s market share.
 Maruti Suzuki over the years has very strongly been associated with small cars which
have helped its competitors take a massive edge in the premium car segment. People
buying entry-level cars are very different from the ones preferring premium vehicles as
Premium is not just price but also feel and features for the customers

3. FOCUS

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It is the moderator between cost leadership and differentiation
Cost Focus: tried to offer low price product to small and specialized    group. E.g. Maruti
800

 Maruti Suzuki achieved a market share of 50%in the passenger vehicles segment for
the first time ever in 2017-18 with its utility vehicle sales outpacing that of its rivals.
Company for the first time in its over three decades of history sold more than 1.5
million units with the figures reaching 1.65 million sales were 14% more than it was a
year before.
 With Hyundai Motors deciding to stop selling Santro and customers dwindling
preference for TATA Nano has also helped the company in small-car space. Maruti
Suzuki India hopes to retain the top spot in utility vehicles segment for the fiscal year
2019 with the company planning to launch its all-new Ertiga this year andBrezzawith
its popularity among consumers continues to drive sales in volumes.
 Customer profile for the brand includes middle to high-income groups ranging from
the ones who are looking to switch from 4-wheeler to 2- wheeler to those who are
planning to buy the second car or a luxury car for their family. Thus, it includes
customers in the age bracket of 22-60 year and also high business professionals who
are looking for low maintenance or innovative and trending world-class vehicles with
advanced safety features.

4. DIFFERENTIATION FOCUS:

 To maintain its market leadership, Maruti focused on continuous expansion of capacity

and upgrading of manufacturing facilities

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 The company set a target of improving productivity by 50 per cent and reducing cost per
vehicle by 30 per cent by the fiscal 2004-05
 By efficiently utilizing production capacities, Maruti was able to decrease production cost
per unit, and thereby increase profit.
 In 2008, Maruti increased its manufacturing capacity from 800,000 to one million units
annually in its Gurgaon and Manesar plants. Niche premium product at premium price
 Maruti Kizashi, Maruti Vitara  (has premium   prices for superior quality)

If it is one company that protects its market share for many years in automobile industry, that
would be undoubtedly Maruti Motors Ltd. In early eighties, Maruti Suzuki cars were
introduced for middle class Indian families. Though government gave enormous support in
the beginning, later this multi-national company thrived in the market because of its
commendable production, financial, operational and marketing strategies.

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 MARUTI’S COMPETITIVE STRATEGIES:

 When Maruti introduced its range of cars in the beginning, it rolled out small affordable
cars for Indian families. Initially, the cars were priced in the range of Rs. One lakh.
Notable Indian car manufacturers Tata Motors and Mahindra & Mahindra too
consolidated their car business because of government’s liberal policy. However, for the
last twenty years from 1990, Maruti is leading the pack with impeccable track record.
 Let us take the example of small cars. Maruti, initially introduced Maruti 800 and later
came out with Alto. When companies like Hyundai, Honda, Tata Motors and Renault
attacked Alto brand with Santro, Kwid, Tiago and Livo, Maruti did not lose its focus. In
small car category nobody could dispose Maruti in spite of several attempts. Why?
 Competitors always attack the leaders with many surprising strategies. In car industry,
introduction of new variants, offering price discounts, bring in new technologies,
aggressive after sales services are some key ingredients for success. Hyundai, when
promoted its Santro brand aggressively, Maruti brought many more variants such as
Wagon R and Alto to encourage its distributors to show more varieties. When Renault’s
Kwid created storm with its peppy advertisements and trendy positioning, Maruti brought
Celerio brand to counter Renault. Maruti Ltd., as a company has market share close to
54% per cent in India. It has range of cars in small, SUV and luxury segments. Due to its
large market share and rich cash flow, the company can offer deep discounts and
promotional offers to its buyers. Recently, Tata Motors brought a small new brand car
Tiago in small car segment after the failure of Tata Nano. But, to defeat Maruti’s
leadership position, one needs extraordinary Strategies. At the moment no competitors
seem to have that.
 Maruti is a household name in Indian Market for two major reasons – excellent mileage
and good after sales service. Indian customers being cost sensitive would always look for
better car with good after sales service. Maruti fits the bill.
 In India, small cars are mostly purchased by two-wheeler owners. There are more than
200 million two-wheeler owners in India. Only few companies like Maruti, Renault,
Hyundai Tata Motors and Honda are competing in small car segments because margins
are very thin. Moreover, these cars are mostly sold in Tier II and Tier III cities.
Automobile companies can make profit only on economics of scale by selling large
volume of cars. Therefore, to sell large volume of cars, manufacturers should come up

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 with prudent marketing strategies. So far, Maruti appears to be the winner in maintaining
its lead in small car segment.
 These are some interesting quotes by the car industry veterans that would give a
perspective of market situations for small cars in India.
 These are some interesting quotes by the car industry veterans that would give a
perspective of market situations for small cars in India.
 The challenge in the segment is not engineering capabilities it’s about “economics of
volumes” added Mukhtyar.
 “People are discounting steeply in the market and I cannot afford to do that. We do not
have deep pockets to buy market share”. Sumit Sawhney, MD and CEO, Renault India.
 “There is a high correlation between new model launches and spike in a segment. Trendy
looking new models at an attractive price will always lead to an uptick in sales”. Points
out Kavan Mukhtyar, partner and leader, automotive, at

Distinctive competencies form the useful level strategies that a corporation will pursue.

 Managers, through their decisions with relation to functional-level strategies will

build resources and capabilities that enhance a company’s distinctive competencies.
This ends up in a competitive advantage and superior profitableness and profit
growth.
 A Core-competency should:
 Make a significant contribution to the perceived customer benefits of the end product.
 Be difficult for competitor to imitate. And it will be difficult if it a complex
harmonization of individual technologies and production skills.
 Increase reach and global connect and capture a wide variety of markets and TATA
Motor has already done so with presence in over 50 countries and more

The ability of a company to attain superior efficiency, quality, innovation and customer
responsiveness will determine if its product offering is differentiated from that of its rivals
and if it has a low cost structure.

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TATA Motors struggled to do so from 2006 to 2016 as there were issues such as :

 Complacency: Tata Motors moved into the taxi market, making them irrelevant to
personal buyers. In the taxi space too, they were beaten by Maruti, Hyundai and even Honda,
as Uber and Ola came in,

 Quality levels were bad: The company had not kept up and reinvented themselves

 Inability to take quick actions: Delay in translating changes into a proper product

 Rising competition

 Faulty product portfolio: Tata Motors had one platform on which they developed three

other models, with half-decent engines.

 Cost issues: EBITDA was negative

 Missing products: In 2009, it showcased the Prima, a concept luxury sedan, which never

went into production; the same happened with the Pixel, a small car showcased in 2011

STRATEGIES

 Issue of stopping the bleeding in volume, market share, and the financial side were
addressed by making changes in their overall Strategies which helped create Products that
are leading in design and performance

1.CUSTOMER FOCUS

Ask your customer – In TATA Motors case it led to them introducing compact mini-trucks
that serve small businesses into the market. Customers’ needs should be considered as they
are one of the main drivers of a company’s success. They wanted to add a new line to their
current truck offering by introducing TATA ACE, which was a mini truck.

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The customers were asked for their views on whether they would prefer owning a four-wheel
cargo vehicle over the usual three-wheel cargo rickshaws in the country. The information
gathered from the respondents tipped towards them wanting a four-wheel cargo vehicle
because of reasons like prestige in owning and running a four-wheeler. Other respondents felt
a cheap vehicle that could take larger amount of produce or products from village to market
would greatly help them. This vehicle gained popularity quick as it was cheaper and better
compared to the three-wheel cargo rikshaws in the country. The new vehicle was a big hit
selling 100,000 in just 20 months

 Partnered with Croma

As an extension to the consumer’s digital lifestyle, Tata Motors has partnered with Croma to
provide a digital retail experience to its customers.

 FOCUS ON NEW PRODUCT DEVELOPMENT

 TATA Motors showcased its competency to design with the launch of Nano, the world’s
cheapest car, in 2009.The Nano came to be known as People’s car. Tata Motors
introduced to the Indian public its ultra-cheap car “Nano” that was expected to retail for
as little as the equivalent of $2,500, or about the price of the optional DVD player on the
Lexus LX 470 sport utility vehicle.

 ORGANISATION EFFICIENCY AND COST MANAGEMENT

 Between 2006 and 2016, Tata Motors’s domestic passenger vehicle business was
struggling. TATA Motors was under huge pressure because of lots of new launches by
rivals and pressure on the contribution margin. There was a change in the strategic
direction to make the business sustainable and viable.

 WIDER INTEGRATION WITH JLR:

 Today, even as JLR accounts for about 78 percent of Tata Motors’s revenue, the company
has increased its share in the domestic passenger vehicles market from 4.6 percent in
2016 to 6.8 percent in December 2018.Today, TATA motors have hundreds of suppliers
for tiers, engines, oils, logistics etc. and the existence of synchronized coordination

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 between them makes production of vehicles smooth. Emerged as the lowest bidder in to
supply electric buses to 6 of the 10 states namely Guwahati, Indore, Jammu, Jaipur,
Kolkata & Lucknow, for supplying 255 electric buses which makes to 62% of the total
buses order
 In certain models there were creation of 24 vehicle modular units that comprise
components such as engines and infotainments and it was decided that they needed to
reduce the cost by half across each, the amount of cost-saving they are doing now is more
than five times higher than what the company has ever done.

GLOBALISATION

Each Tata company was encouraged to develop its own global plan. GE and Tata Group
entered into strategic partnership to manufacture LEAP engine components in India to
manufacture CFM International LEAP engine components in India, for the global supply
chain.

PRODUCT DIFFERENTIATION

Electric Vehicles in June 2018, Tata Motors set up a separate electric mobility business
vertical. It is India’s largest and the only OEM offering extensive range of integrated, smart
and e-mobility solutions. Commercial Vehicles Has brought in constant innovation and is the
market leader in the Commercial Vehicle segment. Modular product designs were introduced
to address market sub-segments

PASSENGER VEHICLES

Tata Tiago became the second highest selling entry-level hatchback in the country, recorded
the highest-ever sales in August 2018 Tata Nexon to be the first and only car in India to bag
five stars adult safety rating from Global

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Acquisition

TATA Motors took over Britain’s Jaguar Land Rover (JLR) for $2.3 billion in 2008. Tata
Motors' subsidiary, Jaguar Land Rover is Britain’s largest automotive manufacturer which
designs, manufactures and sells some of the world’s best-known premium cars. The two
iconic brands of JLR include Jaguar, with a range of luxury sedans, sports cars and luxury
performance SUVs, and Land Rover, encompassing a portfolio of premium all-terrain
vehicles.
INFRASTRUCTURE STARTEGY

In order to accelerate the adoption of EVs in India, Tata Motors is closely working with other
Tata Group companies including Tata Power, Tata Chemicals, Tata Autocoup, Tata Motors
Finance and Croma, to create an e-mobility ecosystem, Tata universe.

RESEARCH AND DEVELOPMENT

Tata Motors has partnered with Tata Power to provide end-to-end charging solutions at home,
workplace and for captive and public charging.
To develop the component supplier ecosystem, Tata Motors is collaborating with Tata
Chemicals, which is working on manufacturing lithium-ion battery cells, exploring active
chemicals manufacturing and battery recycling. The auto major is also working with Tata
Autocamp for the localisation of battery pack assembly and motor assembly.

MARKETING STRATEGY

Tata Motors does not follow a single marketing approach or formula but it believes that all
members of the community should be served. Brand targets crowd from the rural part to the
metros with its offerings varying from NANO to Jaguar Land Rover Segment.

Differentiated targeting strategy is used by Tata Motors to target the customers and satisfy
their needs and wants. There’s something for everyone in its huge line of offerings. Tata
Motors has introduced products such as the following in the past:

 Tata ACE a mini truck mainly used for agriculture transport purpose
 Tata NANO for the middle class
 Tata Indica and Indigo for commercial purposes
 Jaguar in the high-class segment

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Introduction: -
 Mukesh Dhirubhai Ambani is an Indian billionaire, chairman, managing director, world
famous business magnate and largest shareholder of Reliance Industries Ltd. (RIL) which
was created in July 2006. Reliance Industries Ltd. Is in the Fortune Global 500 Company
and India's most valuable company by market value. He is a very successful and a world-
renowned entrepreneur who motivates and inspires youngsters all around the world.

Leadership Skills & Qualities: -

 Mukesh Ambani used to follow a unique leadership process. He doesn’t go for traditional
autocratic and transformational leadership. He always follows his own approach which
makes him a fascinating leader today. Mukesh Ambani is a visionary type human. He can
forecast the future easily. He knows which technique will be viable in future for the
betterment of business. He has the ability to predict for how long can a company sustain
and what could be a company’s potentiality. He also knows which technique will be
viable in future for the betterment of the business. He has a revolutionary mindset and
problem-solving skills which makes him a great entrepreneur.
 Among his other leadership qualities, Mukesh Ambani is a very impatient human being.
He always looks for solutions of any problem immediately. According to him, leaders

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 should lead followers and followers should follow leaders. To him, the best & smart
leaders are those who can develop smart followers. In real life when Mukesh Ambani
diversified Reliance and ventured into several new industries, he proved that a leader
working with an incompetent or incapable team can never be succeeded. Then he opted
for talented manpower and smart leaders who have expertise in the specific domain where
Reliance was venturing into. Since then, it was cleared how Mukesh Ambani works.
 Mukesh Ambani always used to say to aim higher than necessary and to learn more who
know more than you. Mr Mukesh Ambani always has big dreams. It was always a goal
for him to beat Taiwan and Korea at polyester business. They were the dominant player in
the business then. When he was 30 years old, he dreamt of becoming largest producer of
polyester fiber and yarn in the world and he did it. Today Reliance Industries Limited is
the biggest producer of polyester fiber and yarn in the world.
 His one of the qualities is he always prefer to do more rather than talk. He is not keen to
deliver opinions on important economic issues in different events like World Economic
Forum etc. He always likes to focus on his business and he gets appreciations for his for
the creation of world’s largest petroleum refinery at Jamnagar in Gujarat besides other
successful ventures. Though he does not attend in different events to talk still him is one
of the most talked about personalities in the country.
 Mukesh Ambani another quality is he always keeps his eye open. He keeps his eyes open
when he looks for haunting new ventures. During the announcement of Reliance Jio
initiative, Ambani had clearly said, “Today I see a billion people as a billion potential
consumers, an opportunity to generate value for them and to make a return for myself”.

OTHER LEADERSHIP QUALITIES OF MUKESH AMBANI.

 An ordinary individual who dreams big and welcomes challenges.

 Passionate about Business and Entrepreneurship from childhood.
 He uses Human Resources in efficient manner.
 He loves to interact with youngsters.
 He always favour’s his own country brands.

STRATEGIC DECISION TAKEN BY MUKESH AMBANI: -

 Mukesh Ambani had his oil business in the 90s and 2000s when oil was a goldmine. But
after the 2000s “Data” has become the new goldmine and Ambani had transformed his

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 mind to data-centred business. He changed his track in 2007 and launched his new
company Jio. However, back then he knew that data is the new oil. He started his work
on 4G LTE technology where data is everything. In his company, voice calls were
passing through data, not through conventional telephony technology. Today Mukesh
Ambani insists that he runs data business, not telecom business. Everything was possible
because he had the skills to adapt to dynamic changes and moved over to set up a new
business line. Successful leaders are good at problem-solving skills. This skill helps
Mukesh Ambani to make quick decisions, resolve obstacles, and generate fast results.

Now Reliance Jio number one telecom company in India with the market
share of 36.98%.

SOME OF HIS STRATEGIC MANAGEMENT POINTS ARE:

 He always thinks “out of the box”.

 Empowering ordinary people to extra to extra ordinary things.
 Investment in excellence is investment in the future.

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