A STRATEGIC ANALYSIS OF

APO Group-5
Kumar Sambhav Jagnani 190103073
Charanjeet Singh Ahluwalia 190103045
Sheetal Kumari Prasad 190101136
Rituraj Sen 190103115
Dipayan Das 190101045

Abhishek Chhikara 190101010

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WHY TATA MOTORS?
Tata Motors is one of the leading automobile firm in India.
Throughout its history, it has thrown light to various concepts of
Strategic Management, such as:-

 Corporate Parenting
 Growth through Internalization
 Mergers and acquisition
 Product Innovation
 Vertical, Horizontal Integration

More so, strategies through it is currently sustaining and planning

for the future, in the dynamic industry of Automotive

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 TATA
Indian Consultanc TATA
Hotels y Services Capital
Titan –
Watches, TATA
Eyewear, Motors
Jewellery

TATA TATA
TATA
Advanced
Systems
GROUP Sky
TATA Global
TATA Steel
Beverages

TATA TATA
TATA Communications
Power Chemicals

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CORPORATE PARENTING OF TATA
TATA group exhibit strategic control- corporate parenting

 Financial Leverage- Tata Sons helped Tata Motors when they

were in need of liquidity and helped acquiring JLR

 Distinctive parenting value - Tata Motors helping Tata

Technologies, to go global through the acquisition of Incat; or
when Tata helping Tata Global Beverages partner PepsiCo in
emerging segment for healthy beverages

 Value-creation insights- Tata encouraged Tata Steel to unlock

value by selling its power-generation assets to Tata Power, a
mutual win-win situation was created

 Defining the heartland business - Structure, practices, group

philosophy and culture

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SWOT ANALYSIS

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PESTEL ANALYSIS

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BUSINESS LEVEL STRATEGY
 Focus on new product development
 Innovation is the key; Extensive focus on R&D
 Achieving economy of scale, by international
expansion
 Mitigate the impact of cyclicality in the
automobile industry- strengthen operations,
improving the supply chain efficiency
 Significant cost reduction Value Analysis Value
Engineering (VAVE) approach
 Technological upgrading (Samsung-Innovative in-
car connectivity, Microsoft India connected
vehicle AI & IOT)

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KEY JOINT VENTURES & PARTNERSHIPS
JT Special Vehicles Cummins
50:50 JV with Coimbatore-based 50:50 JV with Cummins for manufacture
Jayem Automotives for bringing back of diesel engines
the “joy of motoring”
Chery (JLR)
Marcopolo 50:50 JV with Chery Automobile to
51:49 JV with Marcopolo for manufacture Jaguar and Land Rover
manufacturing buses in India models incl. powertrains.

Fiat Waymo
Industrial JV with Fiat Group to Develop premium self-driving Electric
manufacture Passenger Cars, Vehicle (EV) for Waymo’s driverless
engines, transmissions transportation

BMW (JLR)
Develop Electric Drive Units to support the advancement of electrification technologies.

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JOINT VENTURES FOR PRODUCT INNOVATIONS
 Partnership with Daimler Benz AG, Germany for manufacturing
commercial vehicles in 1950s

 JV with Cummins for the manufacture of high power and emission

friendly diesel engines

 2006- Joint Venture with Marcopolo Brazil for manufacturing fully

built buses (Starbus)

 Acquiring of Daewoo, medium and light-cargo truck manufacturing

giant

 Acquiring of Trilix, Italy, engineering and design firm

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INTERNATIONALIZATION
Identifying new international markets based on the
 Demographics and socio-economics of specific regions
 Regulatory landscape
“…like to be in the top  Geopolitical landscape
three in any
 Competitive landscape
segment…that we
participate in, in each
 Acquisitions: Daewoo (Korea), Thailand (Thonburi),
country that we are in“
JLR
 Focus on specific markets: ASEAN, Sub-Saharan
nations having similar market structure, economy as
Rudrarup Maitra  India
Head- International Business,  Advantage from South Africa’s free trade agreement
Commercial Vehicles with the EU
 Culture Intact: JLR run by previous management (more
experience in the luxury auto)

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DIVE INTO PREMIUM via. JLR
 Relieving its dependence on Indian Market

 Diversifying its offerings into premium vehicle

 Valuation: Tata bought Jaguar and Land Rover in

all-cash transaction of $2.3 billion from Ford,
nearly half of what Ford paid to acquire both
brands.

Tata’s 3-point strategy for Jaguar & Land Rover –

 Improving liquidity
 Cost control
 New products (suiting changing consumer
preference from luxury cars to luxury SUVs)

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VERTICAL INTEGRATION
Backward Integration
 Tata Group subsidiaries: Tata Steel, Tata Power, Tata Johnson
Controls, Tata GS Yuasa batteries ,Tata Bearings
 Acquired 80% shares of the Italian E&D firm, Trilix, to enhance
the styling and design capabilities of its cars
 Joint venture with Jayem Automotives Pvt. Ltd. for the
development of special performance vehicles
 Acquiring of Marcopolo (bus manufacturing), Daewoo (cargo
truck manufacturer)
Forward Integration
 Tata distribution Company limited (TDCL) provides logistics
support for distribution
 Partnership with Australia Fusion Automotive, Indonesia TMDI,
Bolivia- distribution agreement with Salvatierra

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HORIZONTAL INTEGRATION
 Acquired businesses of Jaguar Land Rover from
Ford

 Agreement with Fiat Group for establishment of joint

venture to manufacture passenger cars engines

 For Tata Motors, It helped get engines such as

1300 cc common rail diesel engine from Fiat.

 For Fiat, using Tata Motors dealers to sell Fiat

cars, cost saving on marketing and sales

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DIVERSIFICATION

 TMF Holdings Limited- Financing arm

 TML Distribution Company Limited (TDCL)-

Distribution and logistics support for distribution
of our products

 Tata Technologies Limited- engineering services

outsourcing and product development IT services
to the global manufacturing industries

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FUTURE ROADMAP
 Regional stock office (RSO) model- lean inventory

 Future readiness in terms of Electric vehicle will be in full

display (Double sales)

 Launch of new products, conforming to BS-VI

 JLR to focus on shared and autonomous mobility by

partnership with Lyft & its subsidiary InMotion

 Turnaround 2.0: ‘Winning Decisively’ in the CV business,

‘Winning Sustainably’ in the PV business and embedding
turnaround into our way of life/culture

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Thanks!
Any questions?

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