Where it can be applied, however, the market growth rate says more about the brand

position than just its cash flow. It is a good indicator of that market's strength, of its
future potential (of its 'maturity' in terms of the market life-cycle), and also of its
attractiveness to future competitors. It can also be used in growth analysis.

Portfolio Analysis of the Tata Group

The BCG Growth Share matrix uses the dimensions of relative market share and the
market growth rate to establish a 2*2 matrix containing 4 main quadrants – Stars (high
market growth, high market share), Cash Cows (low market growth, high market share),
Question marks (high market growth, low market share) and Dogs (low market growth,
low market share). The ideal strategy is to hold on to the Stars and the Cash Cows,
divest the Dogs and take a call on the Question Marks (hold/divest).

We have conducted a detailed analysis (using the BCG Matrix) of the portfolio of
companies in the Tata Group. This involved analyzing the sectors in which the Tata
group operates as well as the companies in the Tata Group within each sector. We
studied the operational and financial performances of each company to understand their
growth stories. Special emphasis was laid on identifying the organic and inorganic
growth routes pursued by each of these companies under the Tata umbrella. The
conclusions drawn about these companies are based on analysis of the global strategy
of the Tata group and on detailed conversations with top executives in the Tata Group.

The analysis reveals that Tanishq, Tata Consultancy Services emerge as clear Stars
(high market growth, high market share). Hence, they should be retained and the
investment in these companies should be increased. TISCO and TITAN emerge as the
Cash Cows (low market growth, high market share) and should be held on to for the
time being. Whereas Tata Car Manufacturing Unit (Tata Motors/Nano) comes under
Dogs (Lower Market Share, Lower Market Growth). The Question Marks (high market
growth, low market share) is over Tata Hotel Group (Taj).

In addition, the question of operating so many companies under the Tata Group needs
to be looked into. Does it make sense to have so many companies in the first place?
Should there be a relook into the question marks like Taj ? These are hard questions
that need to be answered as the group keeps going forward. With close to 100
companies under one roof, the question arises whether all of them should be under the
Tata Group or should some be spun off.
 Conclusion
As the Tata Group continues to follow the inorganic route to growth, the challenges of
integration need to be carefully dealt with. It is necessary for the group to take a look at
some of their question marks like TAJ. If the market Share of it gets increased it can
become a Star. Finally, given the brand equity of the Tata name, it is in the interest of
newer companies to remain under the Tata Group.

In the course of time, the group is expected to make many more acquisitions across the
sectors it currently operates in, particularly in South East Asia, Europe and the United
States. Given the relatively brighter prospects about the Indian economy compared to
other developed economies, the future strategy also calls for a definite focus on the
Indian market in sectors like steel, automobiles and infrastructure.