GE-McKinsey Matrix Analysis

 Commercial Vehicles: This segment falls in the Invest and Grow region. As indicated by the
analysis, Tata Motors is the market leader in this particular segment, but there is a decreasing trend
in the market share due to arrival of new players. So, Tata should aim to consolidate their market
leadership by investing and growing considering the high growth rate of 20%.
 Defence Vehicles: This segment falls majorly in the Invest and Grow region, while a quarter of it
falls in the Build Selectively region. The government has a higher say in this segment and this is
the reason for selectively investing and growing in this particular business unit. Tata Motors can
concentrate more on the global opportunities of defence vehicles considering higher scope for
growth in this segment.
 Utility Vehicles: This segment largely falls in the Build Selectively region with some part of it in
the Invest and Grow region. The market share of Tata motors in this segment has grown positively
and the market growth rate is also on the rise with 20%. Hence, Tata Motors should look to
strategically position itself to make use of the rising potential growth opportunities in this segment
and develop.
 Passenger Vehicles: This segment lies in the Build Selectively region and also borders the Harvest
and Divest region. It can be noted that the market share has been stagnant and the market growth
rate for the segment in general is also low. Moreover, the number of competitors is also pretty
high. Considering these, Tata Motors should essentially try to protect and invest selectively.

Resource Allocation
Ranking Strategic Business Unit Investment Amount (Rs. Crores)
1 Commercial Vehicles 800
2 Defence Vehicles 550
3 Utility Vehicles 450
GE-McKinsey Matrix Analysis
 Commercial Vehicles:
a) Falls in the Invest and Grow region
b) Should aim to consolidate their market leadership by investing and growing considering the
high growth rate of 20%
 Defence Vehicles:
a) Largely in Invest and Grow region while a quarter of it falls in the Build Selectively region.
b) Government has a higher say in this segment
c) Tata Motors can concentrate more on the global opportunities of defence vehicles
 Utility Vehicles:
a) Largely falls in the Build Selectively region with some part in the Invest and Grow region.
b) Market share and market growth rate are on the rise
c) Should look to strategically position itself and develop by making use of the rising potential
growth opportunities
 Passenger Vehicles:
a) Lies in the Build Selectively region and also borders the Harvest and Divest region
b) Stagnant market share, low market growth rate & very high number of competitors
c) Tata Motors should try to protect and invest selectively

Resource Allocation
Ranking Strategic Business Unit Investment Amount (Rs. Crores)
1 Commercial Vehicles 800
2 Defence Vehicles 550
3 Utility Vehicles 450