Strategic Analysis of Tata

Motors

Market Oriented Strategic Planning

Final Project

Presented by – Group 7
 Business Group Corporate Entity

Vision- To be globally significant in each of our chosen
businesses by 2025
Mission - To be the most reliable global network for
customers and suppliers, that delivers value through
products and services. To be a responsible value creator
for all our stakeholders
Vision - By FY 2024, we will become the most aspirational Indian
auto brand, consistently winning, by Delivering superior financial
returns Driving sustainable mobility solutions exceeding customer
expectations, and Creating a highly engaged workforce
Mission - We innovate mobility solutions with a passion to enhance
the quality of life

Core Values:  Integrity, Responsibility, Excellence,

Tata Pioneering, Unity Tata
Core Values: Integrity, Teamwork, Accountability, Customer Focus,
Group Excellence, Speed Motors
Core Purpose:  Improve the quality of life of communities
they serve Core Purpose- Developing innovative and sustainable mobility
solutions that are in line with customers aspirations

BHAG : Driving business excellence through continuous

improvement, innovation, and teamwork across the
organization, ensuring that the processes it employs to BHAG -To be among Top 3 in global commercial vehicle markets and
profits are ethical, socially responsible, and domestic passenger vehicle markets. Also, achieve sustainable
environmentally sound performance and deliver exciting innovations

Vivid Description: Tata Group is a privately-owned

Vivid Description : Tata Motors is India’s largest automobile
conglomerate of nearly 100 companies covering several
manufacturing company with a diverse portfolio that includes
primary business sectors, which include chemicals,
passenger, commercial, and defense vehicles. It offers an extensive
consumer products, energy, engineering, information
range of integrated, smart, and e-mobility solutions
systems, materials, and services
 TATA Motors - Strategy
Differentiated Strategic
Positioning
 They focus on the 
customers of all
domains by providing
diversified offerings
 Globally recognized
brand equity for its best
practices  Premium
 Committed to safety
and sustainability
 Drives towards
continuous innovation
and new products
 Supply chain excellence
among suppliers due to
its heritage values
Hambrick’s Framework for Tata
Motors
Trade-offs Activity fit Arena: Tata Motors is focused on providing mobility solution in
1 commercial as well as passenger vehicle domain across the globe with its
primary focus on the Indian market
High-performance  Employing over 2000
passenger vehicles engineers and scientists
in terms of engine provides a leading edge
performance as for the company in R&D. Vehicle: Acquisition of foreign companies to expand reach and joint
well as high fuel This technological 2 ventures with companies to share expertise
efficiency capability has allowed
innovations, thereby
serving the unique
positioning of its needs and aspirations of
brand due to low- Differentiators: Heritage values, Constant innovation, Supply chain
the customers 
cost perception 3 excellence & Commitment to safety and sustainability
 Joint ventures with
technologically
advanced global firms to
leverage expertise
Staging: Strong foothold in Indian markets both in terms of passenger
 Acquisition of global 4 vehicle and commercial vehicles. Planned expansion through acquisitions
companies like UK’s
Jaguar-Land Rover and
South Korean Daewoo
Economic Logic: Economies of scale (Low cost – Large scale production)
5
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%
Defense Vehicles:
c) Largely in Invest and Grow region while a quarter of it falls in the Build Selectively region
d) Government has a higher say in this segment
e) Tata Motors can concentrate more on the global opportunities of defense vehicles
Utility Vehicles:
f) Largely falls in the Build Selectively region with some part in the Invest and Grow region
g) Market share and market growth rate are on the rise
h) Should look to strategically position itself and develop by making use of the rising potential
growth opportunities
Passenger Vehicles:
i) Lies in the Build Selectively region and borders the Harvest and Divest region
j) Stagnant market share, low market growth rate & very high number of competitors
k) 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
 SWOT Analysis – Tata Passenger
OPPORTUNITIES Vehicles

T1: Slowing domestic economy and muted demand

O1: Target CESS: Connected, Electric, Shared, Safe
T2: Regulatory transitions (Emissions, safety)

THREATS
O2: Explore strategic alliance
T3: Geo political conflicts
O3: Exploring new markets
T4: High competition from Indian as well as global players
O4: Strengthening distribution channel, retail network
T5: Increasing production cost

O1S1: Joined hands with Tata Power, Tata Chemicals, Tata AutoComp, Tata T4W1: Despite buying the Jaguar and Land Rover brands;
Motors Finance and Croma to form Tata UniEVerse, a functional e-mobility
ecosystem
Tata has not got a foothold in the luxury car segment

WEAKNESSES
STRENGTHS

O2S1: TML has a JV with Fiat Group Automobiles and Cummins Inc. USA
O3S1: Having the manufacturing plants and R&D centres in different
continents
O4S1: Part of multinational conglomerate: The Tata group, recognized
brand
T1S1: TMFL facilitates new vehicle financing. TMFSL undertakes the
dealer/vendor financing business and the used vehicle refinance/
repurchase business
T4W2: Its brand image is not as great as global names
such as Toyota, Volkswagen, General Motors, Nissan, and
Ford.
O3W1: No strong marketing policy to promote products
worldwide
T4W3: Brand perception favoured for commercial vehicles
 SWOT Analysis – Tata Commercial
Vehicles

O1: Electric and connected commercial Vehicles is on the rise. T1: Increasing competition from reputed players
OPPORTUNITIES

O2: Sharpen after sales service by consolidating the market ( Part T2: Regulatory transitions (Emissions, safety, axle load norms)
manufacturers, part distributors, workshops, intermediaries, end

THREATS
customers ) using digital initiatives T3: Geopolitical conflicts
O3: Explore B2C, B2G, M2M kind of models T4: Weak Market sentiments continue to constrain sales
O4: Access to vehicle generated data for response
recommendation, predictive maintenance, deeper customer
insights

O1S1: TP and TML join hands to develop electric mobility infrastructure

O2S1: TML launched Mega Safety Campaign, a nationwide free safety
check-up camp at over 650 workshops and campaign like Sampoorna Seva
T1W1: Operational efficiency not at par with some of the

WEAKNESSES
STRENGTHS

2.0
O3S1:TML bagged huge order of over 5000 buses from various State competitors
Transport Undertakings
O4S1: TML is also the first vehicle manufacturer in India, installing more
than 1,00,000 advanced telematics units in its CVs under the Tata Fleetman T1W2: One brand name unlike Mahindra which has
program Mahindra first choice, Mahindra customization, Mahindra
T2S1: TML successfully transitioned its entire product range to BSVI spares which may hinder after market visibility
emission norms
T4S1: Role of TMFL and TMFSL
 Porter’s Five Forces Analysis – Tata
Bus

Overall Assessment

• Multiple strong national and international competitors (Force Motors, Mahindra & Mahindra, VECV, SML Isuzu Ltd, Ashok
Leyland) fight for market share in Commercial Bus Segment – Leading to high rivalry among competitors

• high asset specialization, cost of exit and government restrictions makes it very difficult for an established player like Tata
Motors to leave the Bus Industry – Barriers to Exit is very high and a threat to the category

• Force and Ashok Leyland are two market leaders in the LCV and ICV Buses – Leading to considerable threat of substitutes
 Porter’s Five Forces Analysis – Tata
Truck

Overall Assessment

• The commercial vehicle market in India, is expected to grow at a CAGR of 2.97% from 2018 to 2030, with trucks
performing at 2.82%

• Increasing Threat of Substitutes and Rivalry among competitors have made Tata Truck to loss their market share

• Government has put strict norms (e.g. Motor Vehicle Amendment act) for the automobile companies to comply for
controlled pollution and a sustainable future – making this a threat for Tata Truck
Growth Opportunities

Development of Electric Commercial Vehicle Portfolio

• Indian commercial electric vehicle ecosystem market is anticipated to grow at a CAGR of 70% during the period from 2019

to 2025

• Government of India has aim of reducing air pollution and country’s dependence on crude oil imports to 50% by 2025

• State Transport Undertakings (STU) presents biggest opportunity in electric bus category due to Govt’s initiative of making

India 100% electric vehicle nation

Market Expansion outside India in Trucks

• The global truck market is expected to grow at a CAGR of 3.1% to 2024 with 7% growth rate in Eastern Europe

• Tata Motors market share in the truck segment has been declining

• Extensive focus on domestic market with 94% sales coming through India only
Recommended Strategies

Intensive Growth Strategy - Product Development For Commercial EVs

 Development of more commercial EV’s to cater to the growing market opportunities
 Introduction of superior technology and safety standards
 Leverage capabilities of other firms of Tata groups like Tata chemicals for development of electric vehicle
infrastructure

Diversification Growth Strategy - Concentric Diversification

 Tata motors should focus on diversification growth opportunities with focus on Triad countries with new
product offerings
 Joint Ventures with other international players already operating in EV segment
 Provide dealer incentives in the new markets to enable faster growth
 Customer engagement through loyalty programmes
Thank You

Aayush Upadhyay 190103003

Sheetal Kumari Prasad 190101136
Jithin M 190101052
Jayadeep Govindu 190101046
Anirban Paladhi 190101020
Aastha 190103001
Tanay Kandoi 190101125