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Land Rover
Land Rover
Land Rover is a luxury car brand that specialises in four-wheel-drive vehicles, owned by
British multinational car manufacturer Jaguar Land Rover, which has been owned by India's Tata
Motors since 2008.[4] The Land Rover is regarded as a British icon, and was granted a Royal
Warrant by King George VI in 1951.[5][6]
The Land Rover name was originally used by the Rover Company for the Land Rover Series,
launched in 1948. It developed into a brand encompassing a range of four-wheel-drive models,
including the Defender, Discovery, Freelander, Range Rover, Range Rover Sport, and Range
Rover Evoque.
Land Rovers are currently assembled in England, India, China, and other markets.
History
Series I
Series II 88in
The design for the original vehicle was started in 1947 by Maurice Wilks. It was simply called
Land Rover (the terms "Series" and "Defender" are retroactive and only introduced in the 1990s).
Wilks, chief designer at the Rover Company, on his farm in Newborough, Anglesey, working in
conjunction with his brother Spencer who was the managing director of Rover.[7] The design may
have been influenced by the Jeep[8] and the prototype, later nicknamed Centre Steer, was built
on a Jeep chassis and axles.[9] The early choice of colour was dictated by military
surplus supplies of aircraft cockpit paint, so early vehicles only came in various shades of light
green; all models until recently feature sturdy box section ladder-frame chassis. Early vehicles
like the Series I were field-tested at Long Bennington and designed to be field-serviced.
Land Rover as a company has existed since 1978. Prior to this, it was a product line of the Rover
Company which was subsequently absorbed into the Rover-Triumph division of the British
Leyland Motor Corporation (BL) following Leyland Motor Corporation’s takeover of Rover in
1967. The ongoing commercial success of the original Land Rover series models, and latterly the
Range Rover in the 1970s in the midst of BL's well-documented business troubles prompted the
establishment of a separate Land Rover company but still under the BL umbrella, remaining part
of the subsequent Rover Group in 1988, under the ownership of British Aerospace after the
remains of British Leyland were broken up and privatised.
In 1994 Rover Group plc, including Land Rover, was acquired by BMW. In 2000, Rover Group
was broken up by BMW and Land Rover was sold to Ford Motor Company, becoming part of
its Premier Automotive Group.
Ford era
In 2006 Ford also purchased the Rover brand from BMW for around £6 million. BMW had
retained ownership of the brand to protect the integrity of the Land Rover brand, with which
'Rover' might be confused in the US 4x4 market and allowed it to be used under licence by MG
Rover until it collapsed in 2005, at which point it was offered to the Ford Motor Company, who by
then owned Land Rover. On 11 June 2007, Ford announced that it planned to sell Land Rover
along with Jaguar Cars. Private equity firms such as Alchemy Partners of the UK, TPG
Capital, Ripplewood Holdings, Cerberus Capital Management and One Equity Partners of the
US, Tata Motors of India and a consortium comprising Mahindra & Mahindra of India and Apollo
Management all initially expressed interest in purchasing the marques from the Ford Motor
Company.[10][11] On 1 January 2008, Ford formally declared that Tata was the preferred
bidder.[12] In 2008, On 26 March 2008, Ford announced that it had agreed to sell its Jaguar and
Land Rover operations to Tata Motors, and that it expected to complete the sale by the end of
the second quarter of 2008.[13]
Manufacturing
Land Rovers were manufactured primarily at the Solihull plant, near Birmingham, but production
of the Freelander was moved to the Halewood Body & Assembly plant near Liverpool, a former
Ford car plant. The Freelander is also assembled in Knock-down kit (CKD) form at Land Rover's
facility in Pune, India.[30] As of 2015, the company continued to expand by building locally in India
as well as increasing the number of models made at JLR’s Chikhali facility near Pune to include
the Discovery Sport and Evoque.[31]
Defender models are assembled under licence in several locations worldwide, including Spain
(Santana Motors), Iran (Pazhan Morattab), Brazil (Karmann), and Turkey (Otokar).[32]
In May 2010, Tata Motors announced that it plans to build Land Rover and Jaguar models
in Mainland China (PRC) as the company seeks to cut costs and expand sales.[33]
Global sales
Units sold 144,371 181,395 223,602 303,926 348,338 381,108 403,079 434,582
Brand extensions
Bicycles
In 1995, Land Rover endorsed the production of a hand-made bicycle using its logo. The bicycle,
called the Land Rover APB and manufactured by Pashley Cycles of Stratford-upon-Avon,[58] was
the collapsible version of Pashley Cycles' Moulton APB (All Purpose Bicycle) model, with leading
link front suspension and adjustable damping and stroke. Two more models immediately
followed: the Land Rover XCB V-20, aimed primarily at younger riders (children); and the Land
Rover XCB D-26, also available as the M26 with hydraulic rim brakes, front suspension and
suspension seat pillar.
In June 2004, Land Rover released a comprehensive 25 model range of bicycles. The three main
ranges are the "Defender", the "Discovery", and the "Freelander", each with different attributes.
The "Discovery" is an all-rounder bicycle suited to a variety of terrains, "Defender" is most suited
to rugged terrain and off-road pursuits, whereas the "Freelander" is designed for an urban
lifestyle. All bikes are made from lightweight aluminium.
In 2010 the range was relaunched in conjunction with British manufacturer 2x2.[59]
Coffee
Land Rover has had its name associated with coffee since 2005, when the Land Rover Coffee
company was established.[60]
Pushchairs
Land Rover gave UK pram company Pegasus a licence to produce a three-wheeler range of
Land Rover ATP pushchairs. The design reflected the heritage of the marque, with a light metal
frame with canvas seating, held together with push-studs and tough simple parts like brakes and
hinges. They could be collapsed completely flat, with wheels removed in seconds. The basic
frame could be adapted with modules to allow a baby to lie flat or a bubble windscreen to
completely enclose the child. The frame also came in long or short-handled versions, and could
be repaired with home tools. The design was simple, light, and rugged and able to travel in all
terrains (hence the ATP for all-terrain pushchair.) It came in three military looking colours: a light
blue, a sand colour and olive drab. Production was discontinued in 2002.[61]
Military
Models developed for the UK Ministry of Defence (MoD) include:
101 Forward Control – also known as the "Land Rover One Tonne FC"
1/2 ton Lightweight – airportable military short-wheelbase from the Series 2a
Land Rover Wolf – an uprated Military Defender
Snatch Land Rover – Land Rover with composite armoured body in UK Armed Forces
Service
109 Series IIa and III ambulance (body by Marshalls of Cambridge)
Range Rover '6x6' Fire Appliance (conversion by Carmichael and Sons of Worcester) for
RAF airfield use
130 Defender ambulance
'Llama' prototypes for 101 replacement.
Models developed for the Australian Army
1947: Rover's chief designer Maurice Wilks and his associates create a prototype using Jeep
chassis and components[20]
1948: The first Land Rover was officially launched 30 April 1948, at the Amsterdam Motor
Show
1958: Series II launched
1961: Series IIA began production
1967: Rover becomes part of Leyland Motors, later British Leyland (BL) as Rover Triumph
1970: Introduction of the Range Rover
1971: Series III launched
1974: Land Rover abandons US market[21] facing competitive pressure from Japanese 4x4
brands
1975: BL collapses and is nationalised, publication of the Ryder Report recommends that
Land Rover be split from Rover and be treated as a separate company within BL and
becomes part of the new commercial vehicle division called the Land Rover Leyland Group
1976: One-millionth Land Rover leaves the production line
1978: Land Rover Limited formed as a separate subsidiary of British Leyland[22]
1980: Rover car production ends at Solihull with the transfer of SD1 production to Cowley,
Oxford; Solihull is now exclusively for Land Rover manufacture. 5-door Range Rover
introduced
1983: Land Rover 90 (Ninety)/110 (One-Ten)/127 (renamed Defender in 1990) introduced
1986: BL plc becomes Rover Group plc; Project Llama started
1987: Range Rover is finally introduced to the US market, following many years of demand
being filled by grey market sales[23][24]
1988: Rover Group is privatised and becomes part of British Aerospace, and is now known
simply as Rover
1989: Introduction of Discovery
1990: The Ninety and One-Ten range of models are given the generic name of Defender
1994: Rover Group is taken over by BMW. Introduction of second-generation Range Rover.
(The original Range Rover was continued under the name 'Range Rover Classic' until 1995)
1997: Land Rover introduces the Special Edition Discovery XD with AA yellow paint,
subdued wheels, SD type roof racks, and a few other off-road upgrades directly from the
factory. Produced only for the North American market, the Special Vehicles Division of Land
Rover created only 250 of these bright yellow SUVs.
1997: Introduction of Freelander
1998: Introduction of second generation of Discovery
2000: BMW breaks up the Rover Group and sells Land Rover to Ford for £1.8 billion[25]
2002: Introduction of third-generation Range Rover
2004: Introduction of third-generation Discovery/LR3
2005: Introduction of Range Rover Sport
2005: Adoption of Jaguar AJ-V8 engine to replace the BMW M62 V8 in the Range Rover
2006: Announcement of a new 2.4-litre diesel engine, 6-speed gearbox, dash and forward-
facing rear seats for Defender. Introduction of second generation of Freelander (Freelander
2). Ford acquires the Rover trademark from BMW, who previously licensed its use to MG
Rover Group
8 May 2007: 4,000,000th Land Rover rolls off the production line, a Discovery 3 (LR3),
donated to The Born Free Foundation
12 June 2007: Announcement from the Ford Motor Company that it plans to sell Land Rover
and also Jaguar Cars
August 2007: Tata Motors and Mahindra & Mahindra as well as financial sponsors Cerberus
Capital Management, TPG Capital and Apollo Global Management expressed their interest
in purchasing Jaguar Cars and Land Rover from the Ford Motor Company.[26]
26 March 2008: Ford agreed to sell the Jaguar and Land Rover operations to Tata Motors.[13]
2 June 2008: Tata Motors finalised their purchase of Jaguar and Land Rover from Ford and
put them into their new subsidiary, Jaguar Land Rover[14]
2010: Introduction of fourth-generation Discovery/LR4
2011: The Range Rover Evoque introduced
2012: Fourth-generation Range Rover was exhibited at the 2012 Paris Motor Show
1 January 2013 : Land Rover and Jaguar Cars merged to form a single company, Jaguar
Land Rover Limited, producing vehicles under both marques
2014: The New Discovery Range was unveiled at the 2014 New York Motor Show[27]
1 March 2017: The Range Rover Velar was unveiled in London[28]
Land Rover Defender (L663) (future vehicle)
June 2018: representatives of the company Land Rover announced the launch of a new
project called "Cortex", for the implementation of which will be spent about $ 5 million. The
goal of this project is "to create self-propelled cars-robots that are able to independently
navigate off-road in all weather conditions".[29]
Jaguar Land Rover thriving under Tata
-- so far
By late 2013, Wolfgang Ziebart had a sensible plan for supplying the
electric motors that would drive the I-Pace, a sleek battery-powered
crossover Jaguar was developing to challenge Tesla's Model X.
It was a no-brainer to outsource the motors, thought Ziebart, then
Jaguar's engineering director. What else was there to do? Electric
motors were outside the design and manufacturing expertise of
almost every automaker in the world.
But one team member on the project, a boyish electrical engineer
named Alex Michaelides, had a nervy idea. He asked to meet with
Ziebart, an eminent German engineer who had been BMW's global
product-development czar. Michaelides told Ziebart he wanted a
chance to design the crossover's twin motors himself.
Ziebart listened to Michaelides' proposal for a compact, lightweight
motor that would deliver sizzling performance. The driveshafts
running through the motor were different from anything available from
suppliers.
Wolfgang Ziebart greenlit the proposal that led to JLR's i n-house el ectric motor.
Though JLR's first 10 years under Tata were successful beyond most
people's expectations, at least one analyst and some former JLR
executives worry about the next 10.
"It's not making enough money given the current fabulous model mix," Max
Warburton, senior research analyst at Bernstein Research, told Automotive
News. "Range Rover is one of the most profitable vehicle franchises in the
world and prints money. So, clearly, there's an issue with most of the rest of
the range — and structural costs. If and when Range Rover slides, they've
got a problem."
A rough start
Few thought the Ford-Tata deal for JLR was a good idea. The sale price
was many billions less than Ford had invested. Tata, best known for a
$1,500 microcar called the Nano, had no experience running a global
luxury automaker. Worse, Tata had no technology that could be leveraged
to offset JLR's product development costs.
And there were fears in Britain that the country's battered auto industry —
fresh off the 2005 collapse of MG Rover — would take another hit if Tata
moved Jaguar and Land Rover production to India.
JLR's first 18 months under Tata were difficult. Ford had a nearly complete
business plan in place for Jaguar and Land Rover when the brands were
sold. Several key new products, such as the Jaguar XJ, were funded and
near launch. But the recession had not only choked off car sales, but also
JLR's access to credit.
Under Tata, JLR was for the first time responsible for its own money — and
the new company needed plenty of it. JLR's prospects looked bleak when it
couldn't negotiate a suitable deal for access to credit.
JLR posted a loss of about $540 million in its 2008-09 fiscal year, forcing
Tata to inject $1.2 billion more into JLR to keep the company on course to
fulfilling Chairman Ratan Tata's promise to continue implementing the
business plan Ford had developed.
"It was really a tough time, the most difficult recession in human memory," JLR CEO
Ralf Speth told Automotive News in March. "When we started to develop our
[product] strategy, Ratan Tata said, 'Keep on this path,' and he gave us the
resources to do it."
Ford, which bought publicly held Jaguar in 1989 and Land Rover from BMW in 2000,
had started integrating the two brands well before the Tata sale, but that messy job
was not yet finished in early June 2008.
Al Kammerer, JLR's product development chief under Ford, recalls the situation with
suppliers. Legacy issues — dating to Rover Group and its tie-up with Honda — and
a dearth of shared parts between Jaguar's luxury cars and Land Rover's off-road
vehicles made JLR's purchasing inefficient.
"The sourcing for the Land Rover Freelander was originally done under Honda,"
Kammerer said. "The big Range Rover was done under BMW. The Defender has
been around forever. The Discovery got Ford's supply base. Jaguar was using Ford
suppliers. There was a major initiative across all car lines to get to a significantly
common supply base."
Out of Ford's shadow
Under the terms of the sale, Ford continued to supply engines and body
stampings to JLR. But it came time for the company to develop its own
product plan based on its own architectures — without a corporate
benefactor's parts bin to save money and product development time.
That Tata had no technology suitable for Jaguar or Land Rover was fine
with Bob Joyce, who headed product development from 2008 through
2016. Joyce, who spent five years at BMW before joining JLR, had plenty
of faith in the small core of engineers who remained with Jaguar and Land
Rover after the sale to Tata. Joyce set up JLR's engineering system to
mimic that of BMW, which separates its functions based on areas of
competency. He knew that, to be competitive with German luxury brands,
JLR would have to create its own vehicles, not adapt platforms or use
major parts created for other brands.
Enter the Range Rover Evoque, which ushered in a new era for Land Rover styling
under design boss Gerry McGovern, and Jaguar F-Type — Jaguar's first true sports
car since the XKE of the early 1970s. Ian Callum, Jaguar's head of design, considers
the F-Type to be the soul of the brand and says it informs every vehicle in the Jaguar
lineup, including the crossovers.
"I don't think Ford would have spent the money to do the F-Type and the subsequent
SUVs," Kammerer said. "And that's basically what the issue was. Ford only had so
much capital investment and too many mouths to feed. Tata was a believer, and they
put the money in to generate the products to fill up the cycle plan."
In late 2009, business took an upward turn. The company reported a $72 million
pretax profit for the fiscal year ending in March 2010. Since then, there has not been
a year when operating profits have been less than about $1.4 billion.
The Land Rover is one of the leading firms in its industry. Land Rover
maintains its dominant position in market by carefully analyzing and reviewing
the SWOT analysis. SWOT analysis a highly interactive process and requires
effective coordination among various departments within the company such as
– marketing, finance, operations, management information systems and
strategic planning.
As one of the leading organizations in its industry, Land Rover has numerous
strengths that help it to thrive in the market place. These strengths not only
help it to protect the market share in existing markets but also help in
penetrating new markets. Based on Fern Fort University extensive research –
some of the strengths of Land Rover are –
Strong Brand Portfolio – Over the years Land Rover has invested in building a
strong brand portfolio. The SWOT analysis of Land Rover just underlines this
fact. This brand portfolio can be extremely useful if the organization wants to
expand into new product categories.
Successful track record of integrating complimentary firms through mergers &
acquisition. It has successfully integrated number of technology companies in
the past few years to streamline its operations and to build a reliable supply
chain.
Automation of activities brought consistency of quality to Land Rover products
and has enabled the company to scale up and scale down based on the
demand conditions in the market.
Reliable suppliers – It has a strong base of reliable supplier of raw material
thus enabling the company to overcome any supply chain bottlenecks.
High level of customer satisfaction – the company with its dedicated customer
relationship management department has able to achieve a high level of
customer satisfaction among present customers and good brand equity
among the potential customers.
Strong distribution network – Over the years Land Rover has built a reliable
distribution network that can reach majority of its potential market.
Highly successful at Go To Market strategies for its products.
Strong Free Cash Flow – Land Rover has strong free cash flows that provide
resources in the hand of the company to expand into new projects.
Weakness of Land Rover – Internal Strategic Factors
Weakness are the areas where Land Rover can improve upon. Strategy is
about making choices and weakness are the areas where a company can
improve using SWOT analysis and build on its competitive advantage and
strategic positioning.
New environmental policies – The new opportunities will create a level playing
field for all the players in the industry. It represent a great opportunity for Land
Rover to drive home its advantage in new technology and gain market share
in the new product category.
Stable free cash flow provides opportunities to invest in adjacent product
segments. With more cash in bank the company can invest in new
technologies as well as in new products segments. This should open a
window of opportunity for Land Rover in other product categories.
Decreasing cost of transportation because of lower shipping prices can also
bring down the cost of Land Rover’s products thus providing an opportunity to
the company - either to boost its profitability or pass on the benefits to the
customers to gain market share.
The new taxation policy can significantly impact the way of doing business
and can open new opportunity for established players such as Land Rover to
increase its profitability.
New trends in the consumer behavior can open up new market for the Land
Rover . It provides a great opportunity for the organization to build new
revenue streams and diversify into new product categories too.
Government green drive also opens an opportunity for procurement of Land
Rover products by the state as well as federal government contractors.
Organization’s core competencies can be a success in similar other products
field. A comparative example could be - GE healthcare research helped it in
developing better Oil drilling machines.
Lower inflation rate – The low inflation rate bring more stability in the market,
enable credit at lower interest rate to the customers of Land Rover.
Threats Land Rover Facing - External Strategic Factors
Although the SWOT analysis is widely used as a strategic planning tool, the
analysis does have its share of limitations.
This approach also suffers from one major drawback - it focus on individual
importance of factor rather than how they are collectively important and impact
the business holistically.