TATA GROUP

PESTEL Analysis of TATA Group

A framework of macro-environmental factors

Political Economic Social Technological Environmental Legal

Opposition from Fluctuation in Education, Set up R & D centre in More carbon dioxide Labour trouble ,
government demand and changes infrastructure, UK, shifted to delivery emission from Tata strikes and shut down
in economic condition students welfare, based model from nano
training programmes, staff accumulation
women one
empowerment.

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Porter’s Five Forces Threat of New Entrants
How TATA handles them ○ By innovating new products and services.

Bargaining Power of Buyers ○ By building economies of scale.

○ By building a large base of customers.
○ Building capacities and spending money on
○ research and development.
By rapidly innovating new products.

○ New products will also reduce the

defection of existing customers of Tata
Motors Limited to its competitors.
Bargaining Power of Suppliers
○ By building efficient supply chain with
multiple suppliers.

○ By experimenting with product designs.

Porter’s 5
Rivalry among the Existing Competitors Forces ○ Developing dedicated suppliers whose
business depends upon the firm.
○ By building a sustainable differentiation

○ By building scale so that it can compete better

Threats of Substitute Products or Services
○ Collaborating with competitors to increase the
○ By being service oriented rather than just product oriented.
market size rather than just competing for small
market.
○ By understanding the core need of the customer rather than what the
customer is buying.

○ By increasing the switching cost for the customers.

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BCG MATRIX OF TATA GROUP

STAR:
 Indian Hotels Company Limited,
 Tata Motors,
 Tata Steel

CASH COW:
 Tata Communications,
 Tata Teleservices

QUESTION MARK:
Tata Chemicals

DOG:
Tata Realty
GE MATRIX OF TATA GROUP

Grow:

HIGH
 Indian Hotels Company Limited,

Industry Attractiveness
 Tata Motors,
 Tata Steel

MEDIUM
Hold:
 Tata Communications,
 Tata Chemicals

LOW
Harvest:
 Tata Teleservices, LOW MEDIUM HIGH

 Tata Realty
Competitive Strength of Business Unit
Competitive Advantages of TATA Group
These puts Tata Group in a superior business position.

TATA Charity People 5 Core Values Product Variation

Management
Code of Conduct
The whole Tata group 2/3rds of Tata Sons’ Trust with: 1. Integrity • high-end products
has a united income received from for developed
corporate culture and the holdings in other • Customers, 2. Understanding countries
philosophy that was Tata group companies • Shareholders 3. Excellence
mainly shaped by goes to charity. • frugal products
Jamsetji and J.R.D. • Employees 4. Unity for the low-
Tata. income
• The whole 5. Responsibility consumers.
society.
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Sustainable Competitive Advantages of TATA Group
These provide TATA Group a superior or favorable long-term position over competitors.

Brand Image Geographic Innovation and Mergers & Effective HR Product

Location R&D Acquisitions Management Development

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Cost Leadership Differentiation
Leadership
Competitive
Strategy

Cost Focus Differentiation

Focus

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