PRESENTATION ON

TATA MOTORS
CASE 8

SUBMITTED TO:
SIR AHSAN DURRANI

SUBMITTED BY:
SYED NABEEL ALI - 1536
FAISAL CHIPPA - 1411
1 - IDENTIFY THE STRATEGY(IES) BEING
FOLLOWED BY TATA MOTORS

MARKETING
• Focus on customer retention in order to continue their good marketing strategy.
• Their strategy should be in merging and acquisition.
• They need collaboration to withstand against global players and to stabilize their
organization during economic recession.

FINANCIAL
• Frame a financial strategy that can avoid them from failures in future business.
• They framed an approach which involves cost reduction methods by efficient
manufacturing, being a strong domestic player to strengthen their market share and
expansion with acquisition to form global network in order to face the competition
1 - IDENTIFY THE STRATEGY(IES) BEING
FOLLOWED BY TATA MOTORS

RESEARCH & DEVELOPMENT

• First class R&D support enables TATA Motors in producing high quality products.
• It has 3000 employees and research scientist who work for R&D department with
centers almost all over India along with Spain, UK and South Korea internationally.
• They introduced very recently in 2008 the people's car Tata Nano which created huge
market domestically and attracted the world's attention.
2 - HOW EFFECTIVE IS THE STRATEGY

• Tata Motors Group had a successful fiscal year 2012 with net revenues increasing by
36% and profit after tax increasing by 46%.
• Market share now captured 62.2%
• 19% domestic sales increased with commercial vehicles and dominating increase of
market share in light vehicles up to 60% well.
• Domestic passenger car grew about 4 % according to industry growth rate.
• Domestic passenger car prices increased about 3.3%.
• Acquired of Jaguar/Land Rover increased growth in this segment about 29%.
3 – THREE YEARS FINANCIAL ANALYSIS OF THE
TATA MOTORS.
4 – STRENGHTS & WEAKNESS OF THE COMPANY

STRENGTHS:
• Breakthrough car design in low cost car at the right time.
• The ownership of Jaguar and Land Rover in premium brands. So nobody under
estimate in Tata’s brand.
• 1st largest manufacturer in India.
• 3rd largest bus manufacture by volume.
• 3rd largest passenger vehicle manufacturer in India.
• 4th largest in manufacturing trucks by volume in the world.

WEAKNESS:
• Very limited in debt and financing agreements.
• Tata Nano cannot go global without costly additions and re-design (questionable safety
standards make this poor performing car a major weakness).
• Large variety of cars they design can increase complications in their supply chain
management.
5 – OPPURTUNITIES & THREATS OF THE COMPANY

OPPURTUNITIES:

• New JLR models to boost sales and will impact customer’s perception in to Nano’s

brand.

• Infrastructure growth in India could boost Tata's sales on the home market.

• Penetrate the rural market in India before the competitor.

• New acquisitions and increasing exportation in nations such as China, England, and

South East Asia where sales are increasing for Tata.

5 – OPPURTUNITIES & THREATS OF THE COMPANY

THREATS:

• Poor economic conditions in the foreign and domestic markets.

• A lowering growth rate, Poor availability of credit, Lower disposable income, High

fuel prices and Inflation issues that are only predicted to be worse in the future.

• Increased competition from foreign market (in the cheap, affordable car market with

GM, Ford, and Renault to selling affordable cars international with well-equipped

than the Nano).

• Increased domestic competition (domestic competitor Indian companies such as

Maruti ).
 6 – IFE & EFE MATRICES

INTERNAL FACTOR EVALUATION (IFE) MATRIX

         

STRENGTHS        
KEY INTERNAL FACTORS        

    WEIGHT RATING WEIGHED SCORE

GLOBAL PRESSENCE   0.06 3 0.18
NEW VISION & STRATEGY   0.07 3 0.21
LARGEST MANUFACTURER IN INDIAN MKT   0.08 4 0.32
STRONG BRAND MANAGEMENT   0.07 4 0.28
RESEARCH AND DEVELOPMENT   0.08 4 0.32

LARGE SCALE OF EMPLOYEES & QUALIFIED ENGINEERS 0.07 3 0.21

WIDE RANGE OF AUTOMOBILES   0.07 3 0.21
FLEXIBLE PRICE RANGE AS PER VEHICLE TRAITS   0.06 3 0.18
         

WEAKNESSES        
KEY INTERNAL FACTORS        

    WEIGHT RATING WEIGHED SCORE

SENSITIVENESS TO FUEL PRICES   0.07 3 0.21
CUSTOMERS PREFERENCE CHANGE   0.07 3 0.21
COUNTRY POLITICAL SITUATION   0.06 4 0.24
GREEN CAR DEMANDS AND DEVELOPMENT   0.07 4 0.28
TECHNICAL PROBLEMS   0.09 4 0.36
RAW MATERIAL PRICE INCREASE & INFLATION   0.08 4 0.32
         
    1.00   3.53
 6 – IFE & EFE MATRICES

EXTERNAL FACTOR EVALUATION (IFE) MATRIX

         

OPPORTUNITIES        
KEY EXTERNAL FACTORS        

    WEIGHT RATING WEIGHED SCORE

LOW PRICE BUT PROFITABLE   0.07 3 0.21
LARGEST MARKET SHARE   0.08 4 0.32
DIVERSIFICATION IN VEHICLES   0.08 3 0.24
COULD PENETRATE IN RURAL MARKET   0.07 3 0.21

NEW ACQUISATION CAN BOOST IN UK, CHINA AND OTHER COUNTRIES SALES 0.09 4 0.36
VERTICAL INTEGRATED INTEGRATION FOR BETTER CONTROL 0.08 3 0.24
         
         
         

THREATS        
KEY EXTERNAL FACTORS        

    WEIGHT RATING WEIGHED SCORE

GLOBAL RECESSION AND POOR ECONOMIC CONDITION 0.08 4 0.32
LONG TERM FINANCING PROBLEM   0.07 3 0.21
HIGH FUEL PRICES   0.08 4 0.32
NEW ENTRANTS WITH BETTER TECHNOLOGY   0.07 4 0.28
POLITICAL PRESSURE   0.08 4 0.32
GOVERNMENT POLICIES   0.08 3 0.24
FAILURE OF NEW TECHNOLOGY   0.07 3 0.21
    1.00   3.48
7 – TOWS MATRIX
9 – THREE ALTERNATIVE STRATEGIES THAT THE COMPANY COULD FOLLOW WITH
PROS AND CONS

• Cost cutting strategy would be the first and foremost option Tata motors should posses

in order to compete with global leaders.

• They already have Goodwill over their products and it will be an added advantage if

they could reduce the manufacturing and raw material costs through efficient

commodity chain development.

• The next important factor to be considered would be the sustainability riskseach and

every product developed by Tata motors must be multifunctional, so that customers

may have their options to utilize and explore their product much more than normal.
10 – SPACE MATRIX
10 – SPACE MATRIX
10 – SPACE MATRIX
11 – RECEMMENDATION OF FINAL STRATEGY

• A proper customer relationship management is a must too for Tata motors.

• Production, manufacturing and product delivery should be done professional ways to

attract global customers.

• Tata motors should aim at developing a fuel efficient vehicle with the help of

breakthrough technologies like Biogas and Biodiesel methods.

• If it is done in short period of time (say within 5 years) then it will be an important

revolution in automobile industry which is oscillating due improper oil prices every

day.
THANK YOU