TATA MOTORS

COMPETITIVE ADVANTAGE
• TATA Motors, the name does not need any introduction. The company has always focused on capitalizing
their core competencies or competitive advantages for enhancing their market share according to their
strategy.
 TATA, THE NAME SPEAKS

• Being the part of such a large TATA group is itself a competitive advantage. This affiliation provides the
company with the needed knowledge and technology resources for taking their business to various parts
of the world.
 GEOGRAPHIC LOCATION

• Being active and dynamic, TATA motors has competitive advantage for being located in India for the low-
cost labour base. The company fully understands not only the Indian market but many emerging markets
as well. The products are manufactured at lower costs and sold to the new markets earning huge profits.
India is known for least expensive automobile parts which gives TATA a direct access. Moreover, the policies
and regulations in India are very favourable for TATA for business expansion.
 INNOVATION AND R&D

• The excellent innovation and research and development at TATA motors have created examples for the
rivals. The company has come up with the least expensive car model NANO which is one of its own kind
and no other car manufacturer has ever created such. This automobile has astonished the industry for its
low cost and material and technology. The main competitive advantage came from their remarkable
innovation and development. TATA has various research canters throughout the India working on the
improvement of the engine efficiency, design, style and instrumentation of vehicles.
 MERGERS AND ACQUISITIONS:

• Continuous growth and expansion are the company goal. TATA has successfully acquired various
companies for breaking into the foreign markets. While the company has delivered amazing results in
domestic market, its subsidiary Jaguar land rover has broken all the records of competitors as a top luxury
automobile manufacturer. This mega expansion mode calls for major product development, capacity
capitalization and various national and international mergers.
 EFFECTIVE HR MANAGEMENT

• The people strategy is lean and strong since ever. TATA has a very strong workforce base however it has cut
off the surplus staff recently in June 2017 as a part of organization restructuring and gaining a competitive
advantage. The organization is refreshed by changing the functions and locations of various employees.
The staff is also provided necessary training and skill development courses. The company gives utmost
importance to dealer training as well to improve their productivity. Few outsourcing activities like logistics
and facilities management has also called up for downsizing of the workforce at TATA.
 PRODUCT DEVELOPMENT

• TATA aims to fulfil the emerging needs of the automobile industry by coming up with new range of
products. These products are manufactured with purpose of providing comfort, reliability, safety, capacity
and value to the end customers. In order to stay ahead of the competition, the company is going for huge
investments in the area of product development. TATA Ace is being introduced in commercial vehicle
market for snatching the market share of its rivals. Another sporty vehicle Nexon with both diesel and
petrol engine is also attracting customers already.
OUTCOMES