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INTERNAL FACTORS

SWOT ANALYSIS
Strengths Weakness
• Strong Domestic Player • Limited Consumer Base
• Strong Global Brands • Brand Positioning
• Global Presence • Technology based on older
• M & A helps expanding in new platforms
markets • Falling Market share & ROI
• Research & Development • Design , Quality & Safety
Activities Standards
• Lower Cost Leadership • Manufacturing practices trail
• Brand Value competitors

Opportunities Threats
• Entering into third world • Increasing competition –
countries Passenger Vehicles
• Enter New Markets through JVs • Sustainability and
• Focus in developing LUXURY environmentalism- Extra Cost
CARS for this low cost producer
• Environment friendly transport • Overseas Competition in Luxury
alternatives. Brands.
• Focus on both Passenger & • Rising Global & Domestic Prices
Commercial Vehicles
• Legal Barriers
• Fuel Milo fuel efficient buses.

EXTERNAL FACTORS

Global Presence 2. Global presence environmentalism. Environment Concerns friendly transport alternatives. M & A for sustainability & 6. Management 4. Focus on fuel efficiency 4. segment. 3.Lower Cost-People’s Car SO Strategy WO Strategy Opportunities 1. Enter into luxury segment through 4. 2. Product quality & services 2.Research & Development Activities 3. Introduction of newer technology 1. Continue expansion of distribution 3. Introduction of fuel efficient to compete in the passenger 2. improvement to capitalise brand 1. Brand Value 3. Globalization for sustainability networks to prevent reduction of as low cost producer in market market share. As. . Improve quality standards & safety norms & raising safety standards. Greater R & D for environment 2. Competition Retailing at little more than a value. Increase R & D & keep innovating. quality by continuing Threats 2. 1. ST Strategy WT Strategy 1. Jaguar Land Rover 5. TOWS Analysis Internal Factors Strengths Weaknesses 1. Demand for smaller cars compact cars. Price rises 3. Strengthen product & service marker space. Perception motorbike. Limited Product Portfolio 3. Emerge as a low cost leader 4. 3. Huge Market 2. Make competition irrelevant. 4. Low cost cars -NANO 3.Vast Product Portfolio 1. Expansion strategy through M & 1. Cater to the growing demand. & create unconsolidated 2. Distribution network External factors 5. Safety concerns 4.

External Factor Evaluation (EFE) Matrix Key External Factors Weight Rating Weighted Score Opportunities Growing Middle Class Income 0.07 3 0.36 Domestic Market Potential 0.08 Totals 1.24 FDI in heavy commercial vehicle 0.00 3.07 4 0.15 Threats Domestic Competition 0.05 2 0.Environmental.02 2 0.07 3 0. TU activities etc.1 Monetary & Fiscal Policy Changes 0.24 Slowing Economy Gross Domestic Product (GDP) Trend 0.09 3 0.09 4 0.36 Focusing on building Luxury Cars 0.02 4 0.14 Govt.21 Growing innovations 0.06 3 0.05 3 0.18 Emerging markets 0.08 2 0.16 Expanding Product Portfolio 0. 0.07 2 0.07 2 0.05 3 0.04 .28 Inflation Trends 0.14 Intensive Global Competition 0.21 Environment Friendly Transport alternatives 0.04 Legal Barriers.15 Wage Inflation 0.06 4 0.09 4 0. Market Regulations makes business difficult 0.

27 Global Presence .06 3 0.71 .36 Strong Management .05 1 0.05 4 0.07 2 0.1 Market Access through M & A’s .07 2 0.18 Low Cost Leadership in Global Car Manufacturing .28 Established Brand Name .Internal Factor Evaluation (IFE) Matrix Key Internal Factors Weight Rating Weighted Score Strengths Tata Safari .09 4 0. Quality & Safety Standards 0.00 2.05 1 0.21 Research & Development .1 Mergers & Acquisitions .05 2 0.07 4 0.2 Tata Nano-Tata’s Ipod .14 Brand Positioning 0.21 Financial Leverage Allows Tata Motors to Make Investments .05 Totals 1.09 3 0.12 Falling Market Share 0.05 2 0.06 2 0.2 Weaknesses Limited Consumer Base 0.07 3 0.05 Manufacturing Practices trail competitors 0.05 4 0.07 3 0.05 2 0.1 Design.14 Technology based on Older platforms 0.

0 1.0 4.04 I III Tata Motors EFE Weight Score 3. and product development Growth through backward integration.0 GROW & BUILD II 3. forward integration. and horizontal integration should also be considered. .0 2. market development. Internal External Matrix IFE Weighted Score 3.0 IV &V VI HOLD MAINTAIN 2.71 2.0 TATA MOTORS should focus on market penetration.0 VII VIII IX HARVEST OR DIVEST 1.

36 Customer Service 0.47 .1 4 0. Competitive Profile Matrix (CPM) Tata Motors Maruti Suzuki Critical Success Factors Weight Rating Score Rating Score Market Share 0.12 1 0.28 3 0.00 2.12 3 0.16 3 0.08 2 0.16 4 0.10 1 0.24 Global Expansion 0.24 Financial Position 0.32 Product portfolio 0.4 Sales Distribution 0.48 3 0.32 3 0.08 4 0.12 4 0.48 Product Quality 0.05 4 0.07 4 0.48 Management 0.4 Promotion Strategies 0.36 4 0.1 4 0.08 4 0.10 1 0.21 Price Competitiveness 0.1 Total 1.32 3 0.60 3.24 Production Capacities 0.12 4 0.2 2 0.08 2 0.