TOPIC – SWOT ANALYSIS OF THE TATA

MOTORS IN THE AUTOMOBILES BUSINESS

SECTOR

PRESENTED BY- CHANDA RANI

ROLL NO-21
LEADERSHIP WITH TRUST
 INTRODUCTION
• Established by Jamsetji Tata in 1868.
• HeadquartersMumbai and Navi Mumbai, Maharastra, India
• Ratan N Tata is the chairman of Tata Sons, the Tata
promoter company.
• RevenueUS$- 62.5 billion(Feb 2008)
Employees350,000 (2008)
• Brand Finance, a UK-based consultancy
firm, recently valued the Tata brand at
$11.4 billion and ranked it 57th among the
world’s Top 100 brands. Businessweek magazine
ranked Tata sixth among the ‘World’s Most Innovative Companies’ and the
Reputation Institute, USA, recently rated it as the ‘World’s Sixth Most
Reputed Firm.’
 CORE VALUES
• Integrity
• Spirit
• Passion for
excellence
• Unity
• Mission: to be a competitive value provider in
international business for Group companies
and all our partners.
• Vision: Become a globally networked
enterprise seizing opportunities worldwide to
generate USD 25 million annual profits by
2008.
Strengths:
• resources and capabilities (People and Raw
Material)
• vast experience (steel and automobiles)
• The business model. (TBEM is a model
determining the quality movement in the
group).
• TATA motors employee productivity percentage is higher.
• TATA motors produce low price car with low fuel
consumption.
• TATA motors is the reputable brand in Indian Industry.
• Tata Motors Limited is India’s largest automobile
company, with revenues of Rs. 35651.48 crores (USD 8.8
billion) in 2007-08.
• Tata Motors has been aggressively acquiring foreign
brands to increase its global presence.
• The research and development department of TATA
motors is very strong.
• TATA motors posses High corporate responsibility.
• Great engineering and design in a rules-
breaking product that has generated global
awareness and admiration
• The brand is very well established in the
economy segment
• Tata’s buying power is enhanced and
leveraged through its size
Weaknesses:
• Distribution
• value chain innovation
• macro environment in order to serve the
global markets with high quality and low price.
• Return on Investment on TATA motors shares
in low.
• TATA motors is not able to meet safety
standards in their vehicles.
• Tata has not got a foothold in the luxury car
segment in its domestic market.
Opportunities
• new markets
• exports
• Acquisitions
• TATA motors can take the advantage of their low cost car
by entering into third world countries where people have
low purchasing power.
• TATA motors should focus in developing luxury cars.
• TATA motors can introduce more safety features in
vehicles to gain more customer satisfaction.
• Joint ventures in other countries allow TATA motors to
easily enter into new market.
Threats
• India’s recent mergers of global markets
• E.g Vodafone, Reliance
• Powerful competitors for the luxury market including
Honda, Toyota, Ford and Mercedes-Benz are beginning to
push into the Indian market
• Tata’s competitive price advantage will be under
pressure as environmental regulations are tightened
• Rising material costs will create pressure to increase
prices
• There is a trending rise in diesel fuel costs which will hurt
Tata’s line of products
• The major challenge for TATA motors is the
rising prices of steel, Aluminum and plastic
which is heavily used in vehicle
manufacturing.
• The low safety standards can impact the sales