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TATA MOTORS
SWOT ANALYSIS

Contribution By
Rohit Gupta
Rahul Goyal
Samarth Sharma
Vaibhav Singhal
Zishan Fahim
 Tata Motors Limited is India's largest automobile
Company Profile company, with consolidated revenues of
Rs.70,938.85 crores (USD 14 billion) in 2008-09.
Strengths It is the leader in commercial vehicles in each
segment, and among the top three in passenger
Weakness vehicles .
Opportunities
The company is the world's fourth largest truck
manufacturer, and the world's second largest
Threats bus manufacturer.
Tata Motors, the first company from India's
Take Away engineering sector to be listed in the New York
Stock Exchange (September 2004).
Company Profile
• Strong presence in the marketplace
Strengths • Innovative spirit
- LCV, Tata Indica, TataAce(SCV), Nano, OneCAT
Weakness
• Foreign acquisitions & Partnerships
Opportunities - Reduced exposure to domestic market
- Saved time & assured quality.
Threats
- Daewoo (250-400 HP of trucks)
- Fiat (diesel engine technology)
Take Away
- JV with Marcopolo
- Jaguar-LandRover
- Acquisition of Hispano Carrocera
Company Profile
• Low production costs
Strengths - labor costs amount to only 9% of the profit
- Machine tools & metal producing plants
Weakness • People strength
Opportunities
- world class standards of quality and cost
• Leadership
Threats - comprehensive quality improvement and cost cutting
initiative
Take Away - outsourcing of low end products
- acquisition of high end knowledge
- cleaning up of supply chain
- “people factor” – Example Tata Ace
 The company's passenger car products are based
upon 3rd and 4th generation platforms, which put
Tata Motors Limited at a disadvantage with
Company Profile
competing car manufacturers.
Strengths
Despite buying the Jaguar and Land Rover
Weakness
brands Tata has not got a foothold in the luxury
car segment in its domestic, Indian market. Is the
Opportunities brand associated with commercial vehicles and
low-cost passenger cars to the extent that it has
Threats isolated itself from lucrative segments in a more
aspiring India?
Take Away

One weakness which is often not recognised is

that in English the word 'tat' means rubbish.
Would the brand sensitive British consumer ever
buy into such a brand? Maybe not, but they
would buy into Fiat, Jaguar and Land Rover .
 • Huge unexploited market
Company Profile
- Prospective buyers from the two-wheeler
Strengths segment.
- Largest aspiring middle class.
Weakness
• Low Cost R & D Base
Opportunities • Collaboration Partnerships
- Technologies @ Component /System/
Threats
Vehicle Levels
Take Away - Joint Ventures
- Consultancy & Turnkey Projects
• Wide Distribution Network
• Environmentally friendly transport
alternatives
 RECESSION: IMPACT
Company Profile Heavy vehicle segment
• Demand and exports of medium and heavy
Strengths
commercial vehicle segment is low.
Weakness • CV Industry is cyclic and takes time to turn
green after going in the negative
Opportunities
• High lending rates for commercial vehicles is
Threats
prohibitive factor due to lack of available
finance.
Take Away Family & luxury car segment
• Acquisition of Jaguar and Land Rover got
company in heavy debt.
• Consumer demand have plummeted due
lack of consumer finance.
• Global lines of credit are frozen or scarce
 Market Competition
Company Profile
• Stiff Competition from Maruti Suzuki in the
Strengths family car segment.
• In the SUV MUV Tata now faces stiff
Weakness
competition from fellow compatriot
Opportunities
Mahindra as well as multinational brand like
Toyota and Chevrolet
Threats • Increasing presence of competitors like
ashok Leyland in neighbouring markets,
Take Away
where tata earlier had a monopoly, like Sri
Lanka, Nepal.
 • Tool for auditing an organization and its
Company Profile environment
Strengths
• First stage of strategic planning
• Powerful tool for matching the firm’s
Weakness resources and capabilities to the
competitive environment
Opportunities
• Key benefits
Threats – Flexibility
– Simplicity
Take Away – Speed
• Limitations
– Flexibility
– Oversimplification
Company Profile

Strengths

Weakness
Thank You
Opportunities

Threats

Take Away