Group Presentation

Emerging Market & Voids-Tata Motors

( Strategies of Emerging Markets)
 TATA Motors-Introduction

● Tata Motors, which has firmly re-established itself in

the No.3 slot in India’s competitive passenger
vehicle market, will remain sharply focused in high
growth segments of the automobile market that have
helped the firm command a high market share even
with a relatively smaller portfolio of models.
TATA Motors-Vision and Mission
TATA Motor’s Mission & Vision & Strategy

● Tata Motors has devised a new organizational plan

that has been underpinned by changes in its mission,
vision, and strategy. The new plan is aimed at
realizing sustainable financial performance by
manufacturing and supplying nerve-racking
inventions. An inquiry into the company’s mission
and the vision reveals that it is focused on creating a
noble brand image that will attract more buyers. Tata
Motor’s new mission states, “We innovate mobility
solutions with a passion for enhancing the quality of
life.
TATA Motor’s-Market Scenario

●  Tata Motors has been able to command a higher

market share even with fewer models compared to
players that are below it with more products, he
added. “It’s a more efficient portfolio.
● Including Tiago, Tigor, Safari, Nexon and
Harrier, Tata Motors addresses 63 per cent of the
automobile market in India.
Business Strategy

● These are main pillar of

their strategy and success
and which increased the
market compititiveness.

● Mindset Winning
Sustainably in PV &
Proactively in EV space
 Phygital Strategy

● The strong operational performance of the PV business was

led by the so-called “Re-imagining projects” which among
other things included a strong emphasis on phygital
(combination of offline and online sales strategy) and retail-
focused approach.
● The phygital strategy encompassed everything from use of
the augmented reality to demonstrate a product and
features, adopting a micro market approach to creating a
hyperlocal marketing network. It was initiated in the
beginning of this year and now close to 893 dealers can be
traced through Google my business. As a result, the search
for Tata Motors went up to 132 last year to 693 this year in
FY21,
 TATA Motor’s PV Segment

● Tata Motors began manufacturing Passenger Vehicles

(PVs) in India in 1991. Just like its CV division, the
PVs segment made its foray into nations around the
world in the following years. Apart from India, the
company's new as well as legacy cars are also
available in many countries through exclusive
dealerships. Variants of Tata vehicles like the Indica,
Indigo, Vista, Manza, Aria, Bolt, Safari Storme, Tiago,
GenX Nano, Sumo, Tigor, Zest, Nexon and Hexa can
be purchased in various countries of Africa, APAC
and Latin America, while those of Jaguar and Land
Rover are available in Europe.
TATA Motors-CV Market Presence

● Having a presence in over 46 countries around the

globe, Tata Motors is without a doubt among the top
10 CV makers in the world today. The company
started creating ripples with the launch of Tata 407
Light Commercial Vehicle (LCV) in 1986. The truck
became popular not only in India but also in several
other countries around the world, thanks to its
reliability
TATA Motors-PV,LCV,M&HCV Market Share
 TATA Motors-Setback

● 1999 was a very difficult year for TML, At that time

many economies had a downturn including India.
● CV segment was a huge revenue generator component
for TML, the recession had a poor influence on the CV
segment and TML lost its Market share by 40%.
● TML could also not launch the heavy trucks which were
in demand at that time and thus with no launches it
wasted its opportunity while its competitor Ashok
Leyland launched a new product and got huge demands
at that time.
 Voids in Emerging Market-TML

● It is an established fact that every business venture is

faced with a multitude of challenges. When the said
business crosses the realms of domestic territory, it
encounters challenges of a different nature and
perplexity.
● Diverse culture: Every country has different ethics
and ethos. Synergy of the brand with local culture is
the key to enter the market.
 Voids in Emerging Market-TML

● Heavy custom and import duty: Some of the countries

have duties as high as 250% (For e.g. Nepal). This makes
our vehicles very expensive as compared to Indian prices.
● Inconstant import duties: Erratic and frequent
fluctuation of import duties poses newfound challenges
every few years. This also handicaps the strategy
formulation for PV-IB. 
● Political uncertainty: Stable governments are a rarity in
the world. Nepal has seen 38 Prime Ministers so far as
compared to 16 in India. With every change of government
there are changes in the Foreign Trade Policies and we have
to align with new policies frequently
 Voids in Emerging Market-TML

● Foreign laws and regulations: Legal compliances

and Tata Code of Conduct: Ensuring ethical conduct
and law abidance at all times during business
transactions.
● Variance in Payment Methods: International
Accounting and Payment Methods and the
complexity that comes with them.
● Language barriers:  Ethnic groups all over the
world have innumerable languages and connotations.
Tata Motors-Emerging Market JLR Acquisition

● Feather in Cap came for TML when it acquired the

Jaguar Land Rover (JLR).
● This acquisition helped TML to mark a premium global
presence into the elite group offerings.
● The long term benefits of this acquisition included:-
component sourcing, low cost engineering and design
services (3 production plants and 2 advance design
centers)
● Thus TML had first mover advantage in emerging
economies through which it developed proprietary and
technology leadership.
TATA Motors-Positioning In Emerging Market
TATA Motor’s Mission & Vision & Strategy
Tata Motors-Emerging Market Entry Pre-Strategy

● TML Strategic Goals-To obtain location specific

advantages in emerging global markets.
● TML Market Seeking-Emerging Markets as the
requirements were same and infrastructure was
similar same product range in india could expand in
emerging markets.
● TML Efficiency seeking-Thailand for production of
pickups, environment vehicle,Spain and Brazil for
Bus,South Korea For CV, and passenger segment PV
for UK.
Tata Motors-Competitive Advantage
Tata Motors-Grabbing Opportunity in Global Emerging Markets

● TML changed it strategy from International to Global in 2001.

● TML started exploring the customer needs according to the
emerging and developed markets..as in developed markets
customers required quality and consistency with brand name while
in emerging markets customers are looking for fuel efficient and
low cost product.
● With its new emerging markets tactics TML started giving tough
competition to European Car Manufacturers as they targeted not be
at the top but to capture the market by grouping different sets of
customer segments.
● TML targeted price strategy to make good presence in global
emerging markets as customers were price sensitive and
performance oriented on the other end.
 TATA Motors-Lessons Learned

● CV Segment has a cyclic demand

● In order to survive in the automobile market new product
launches should always be faster in pace.
● CV product portfolio should be based on both growth and
cash advantages in future and present.
● External environment is always dynamic company needs to
be proactive and adaptive.
● Cost Management and financial planning is inseparable in
Automobile Business.
● Technology upgradation and having economy of scale in
global emerging markets is must.
TATA Motors-Transformation and Making command over
global emerging markets

● TML even after incurring a setback and a huge loss made its mark
being an emerging market company to become top most domestic
automobile company and making its international presence
worthwhile.
● TML transformed and regain its state through strong industry
competition, evaluating bargaining power of buyers, bargaining
power of suppliers, overcoming threat of new entrants and threats
of substitutes.
● TML created a sustainable competitive advantage through
VREO(Valuable Rare Immitable and Organisation) framework.It
also adapted easily and played in a rapid pace on rules,
regulations, norms and adapting the culture differences of the
emerging economy.
Tata Motors-Key Steps For Regaining Growth In Emerging Markets

● Tata Motors took following key steps to grow up in emerging

markets inspite of all the voids it faced-
● At Turnaround stage, it worked on improving internal
efficiencies. a) Aggressive cost reduction b) Organizational
Transformation c) Reengineering and innovation of
processes d)Customer Centric Activities
● At Consolidation stage, it worked on leveraging strengths.
a)Revenue growth through consolidation in domestic
market b)ROIC improvements c)Significant presence
increased in international markets d)Developing technical
competencies through global alliances and acquisitions.
Tata Motors-Growth Strategy
Tata Motors-Response to Overcome Voids
 Tata Motors-Overcoming Voids

● Tata Motors took following steps to overcome

institutional voids in emerging markets.
● 1.Consolidation of their market position domestically
through economy of scale and scope.
● 2.Scenario Planning(Domestic and International)
● 3.Competitive Position Analysis
● 4.Developing capabilities and resource competencies
● 5.Leveraging Emerging market knowledge through
partnerships.
● 6.Positive and Proactive Leadership