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

EXTERNAL FACTORS
 TOWS Analysis
Internal Factors Strengths Weaknesses
1.Vast Product Portfolio 1. Product quality & services
2.Global Presence 2. Limited Product Portfolio
3.Research & Development Activities 3. Safety concerns
4. Management 4. Distribution network
External factors 5.Lower Cost-People’s Car

SO Strategy WO Strategy
Opportunities
1. Cater to the growing demand. 1. Introduction of newer technology
1. Huge Market
2. Introduction of fuel efficient to compete in the passenger
2. Demand for smaller cars
compact cars. segment.
3. Brand Value
3. Greater R & D for environment 2. Enter into luxury segment through
4. Environment Concerns
friendly transport alternatives. Jaguar Land Rover
5. Focus on fuel efficiency
4. Low cost cars -NANO 3. M & A for sustainability &
6. Global presence
environmentalism.
ST Strategy WT Strategy
1. Expansion strategy through M & 1. Increase R & D & keep innovating.
As. & create unconsolidated 2. Strengthen product & service
marker space. quality by continuing
Threats
2. Make competition irrelevant- improvement to capitalise brand
1. Competition
Retailing at little more than a value.
2. Perception
motorbike. 3. Continue expansion of distribution
3. Price rises
3. Globalization for sustainability networks to prevent reduction of
as low cost producer in market market share.
4. Emerge as a low cost leader 4. Improve quality standards & safety
norms & raising safety standards.
External Factor Evaluation (EFE) Matrix
Key External Factors Weight Rating Weighted Score
Opportunities
Growing Middle Class Income 0.09 4 0.36
Domestic Market Potential 0.09 4 0.36
Focusing on building Luxury Cars 0.07 3 0.21
Environment Friendly Transport alternatives 0.07 3 0.21
Growing innovations 0.08 2 0.16
Expanding Product Portfolio 0.06 3 0.18
Emerging markets 0.06 4 0.24
FDI in heavy commercial vehicle 0.05 3 0.15
Threats
Domestic Competition 0.09 3 0.24
Slowing Economy Gross Domestic Product (GDP) Trend 0.07 4 0.28
Inflation Trends 0.07 2 0.14
Intensive Global Competition 0.07 2 0.14
Govt. Market Regulations makes business difficult 0.05 3 0.15
Wage Inflation 0.05 2 0.1
Monetary & Fiscal Policy Changes 0.02 2 0.04
Legal Barriers- Environmental, TU activities etc. 0.02 4 0.08
Totals 1.00 3.04
Internal Factor Evaluation (IFE) Matrix
Key Internal Factors Weight Rating Weighted Score
Strengths
Tata Safari .05 4 0.2
Tata Nano-Tata’s Ipod .07 4 0.28
Established Brand Name .09 4 0.36
Strong Management .09 3 0.27
Global Presence .05 2 0.1
Mergers & Acquisitions .06 3 0.18
Low Cost Leadership in Global Car Manufacturing .07 3 0.21
Research & Development .05 2 0.1
Market Access through M & A’s .07 3 0.21
Financial Leverage Allows Tata Motors to Make Investments .05 4 0.2
Weaknesses
Limited Consumer Base 0.07 2 0.14
Brand Positioning 0.07 2 0.14
Technology based on Older platforms 0.06 2 0.12
Falling Market Share 0.05 2 0.1
Design, Quality & Safety Standards 0.05 1 0.05
Manufacturing Practices trail competitors 0.05 1 0.05
Totals 1.00 2.71
 Internal External Matrix
IFE Weighted Score
3.0 2.71 2.0 1.0

4.0 GROW & BUILD

II
3.04 I III
Tata Motors
EFE Weight Score

3.0

IV &V VI
HOLD MAINTAIN
2.0

VII VIII IX
HARVEST OR DIVEST
1.0

TATA MOTORS should focus

on market penetration,
market development, and
product development
Growth through backward integration, forward
integration, and horizontal integration should
also be considered.
 Competitive Profile Matrix (CPM)
Tata Motors Maruti Suzuki
Critical Success Factors Weight
Rating Score Rating Score

Market Share 0.12 1 0.12 4 0.48

Product Quality 0.12 3 0.36 4 0.48

Management 0.08 4 0.32 3 0.24

Financial Position 0.08 4 0.32 3 0.24

Global Expansion 0.07 4 0.28 3 0.21

Price Competitiveness 0.12 4 0.48 3 0.36

Customer Service 0.08 2 0.16 4 0.32

Product portfolio 0.10 1 0.1 4 0.4

Promotion Strategies 0.10 1 0.1 4 0.4

Sales Distribution 0.08 2 0.16 3 0.24

Production Capacities 0.05 4 0.2 2 0.1

Total 1.00 2.60 3.47