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