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SWOT Analysis of Maruti Suzuki and Tata Motors
SWOT Analysis of Maruti Suzuki and Tata Motors
SWOT Analysis of Maruti Suzuki and Tata Motors
Albert Humphrey: Albert Humphrey is often credited with developing the SWOT analysis
framework. Although there is no single definitive quote from him, he introduced the concept
of SWOT analysis as a tool for organizational planning in the 1960s.
2. Kenneth Andrews: Kenneth Andrews, a prominent management scholar, defined SWOT
analysis as follows: "SWOT analysis is a structured planning method that evaluates the
strengths, weaknesses, opportunities, and threats involved in a project or in a business
venture. A SWOT analysis can be carried out for a product, place, industry, or person."
3. Michael Porter: Michael Porter, a renowned strategy expert, offered his perspective on SWOT
analysis in his book "Competitive Strategy": "The essential complement to internal analysis is
an understanding of a firm's competitive environment. This environment encompasses the
interaction of competitors, suppliers, customers, and potential entrants. The framework
most suited to an analysis of these interactions is the SWOT analysis."
4. Jay B. Barney: Jay B. Barney, a leading scholar in the field of strategic management, described
SWOT analysis in his book "Gaining and Sustaining Competitive Advantage" as follows:
"SWOT analysis is a tool for auditing an organization and its environment. It is the first stage
of planning and helps marketers to focus on key issues. SWOT stands for strengths,
weaknesses, opportunities, and threats. Strengths and weaknesses are internal factors.
Opportunities and threats are external factors."
5. Philip Kotler: Philip Kotler, a renowned marketing expert, defined SWOT analysis as follows:
"A SWOT analysis is a powerful tool for scanning the internal and external environments of
an organization. It is designed to help managers identify and evaluate the organization's
internal strengths and weaknesses, as well as external opportunities and threats."
6. Igor Ansoff: Igor Ansoff, a pioneer in strategic management, described SWOT analysis in his
book "Corporate Strategy" as: "A SWOT analysis is an examination of the internal strengths
and weaknesses of an organization, coupled with an analysis of the external opportunities
and threats. It provides a useful framework for understanding the competitive environment
and identifying the key factors that can impact an organization's success."
7. Peter F. Drucker: Peter F. Drucker, a highly influential management consultant, provided his
perspective on SWOT analysis in his book "Management: Tasks, Responsibilities, Practices":
"SWOT analysis is a systematic way of assessing the environment and a company's internal
capabilities to identify strategic opportunities and threats. It helps managers understand the
organization's strengths and weaknesses, as well as the external factors that can affect its
performance."
8. John A. Pearce II and Richard B. Robinson: In their book "Strategic Management:
Formulation, Implementation, and Control," John A. Pearce II and Richard B. Robinson
defined SWOT analysis as: "SWOT analysis is a technique for analyzing an organization's
internal strengths and weaknesses, as well as external opportunities and threats. It provides
a comprehensive overview of the factors that can influence an organization's strategic
decisions and helps identify areas where the organization can leverage its strengths and
address its weaknesses."
Tata Motors is a leading global automobile manufacturing company and is a $44 billion big
organisation. It has a diverse range of products which includes an extensive range of cars,
trucks, buses, sports utility vehicles and defence vehicles. It is one of India’s largest Original
Equipment Manufacturer offering a wide range of smart, integrated and e-mobility
solutions.
Founded in 1945 by the name of Tata Engineering and Locomotive Company ( TELCO ). The
company manufactured its first commercial vehicle in 1954 with Daimler – Benz Az, a
collaboration that ended in 1969.
The company entered the passenger vehicle market in 1988 by launching Tata Mobile
followed by Tata Sierra in the year 1991 and became the first Indian manufacturer achieving
the capability of developing a competitive indigenous automobile.
In 1998 Indica launched the first fully developed Indian passenger car. Then came the
world’s most affordable car, Tata Nano in 2008. In 1988 Tata Motors entered into
manufacturing passenger vehicles and it never looked back.
Products of Tata Motors
Automobile
Luxury Vehicles
Commercial Vehicles
Automotive parts
Pickup trucks
SUV’s
Maruti Suzuki is an Indian automobile manufacturer based in New Delhi which was
previously known as Maruti Udyog Limited and incorporated its journey in 1982, February
24. On 1982, October 2, Maruti signed a license agreement and a joint venture with The
Japanese Company Suzuki. The company started their operations in 1983 by launching the
Maruti 800 and entered into the foreign market by exporting 500 cars to Hungary.
Maruti Suzuki is regarded with ushering in the country’s vehicle revolution. In India, the
company engages in the passenger vehicle manufacture and sales business. Maruti Suzuki
has grown from a small beginning with the famous Maruti 800 automobile to a huge array
of 16 car models with over 150 variants.
Maruti Suzuki’s model line includes anything from little automobiles like hatchbacks to
sedans and crossovers. Facilitation of pre-owned automobile sales, fleet management, and
car financing are among the other activities. The company has production facilities in
Haryana’s Gurgaon and Manesar, as well as a cutting-edge R&D facility in Rohtak, Haryana.
Currently, Maruti Suzuki holds 56.2 percent of the company’s stock. The stock of the
company is traded on the National Stock Exchange (NSE) and the Bombay Stock Exchange
(BSE).
STRENGTHS
WEAKNESS
OPPORTUNITY
In summary, Maruti Suzuki has a strong foothold in the Indian market with a diverse product
portfolio, while Tata Motors boasts a broader international presence and a focus on innovation.
Both companies face intense competition and must adapt to changing customer preferences.
Maruti Suzuki has an opportunity to leverage the growing domestic demand and expand its
presence in the electric vehicle market, while Tata Motors can capitalize on the demand for
electric and hybrid vehicles and seek further international expansion. It's important to consider
that this comparison is a general assessment and may not capture all nuances and specific
factors influencing the companies' SWOT profiles.
Revenue (in
m)
Maruti
797,226 887,522 789,944 733,083 900,745
Suzuki
Revenue
Growth (%)
Maruti
11.3% -11.0% -7.2% 22.9%
Suzuki
Tata Motors vs Maruti Suzuki Sales Volume Growth (2017-2022)
2017- 2018- 2019- 2020- 2021-
2018 2019 2020 2021 2022
Tata Motors 12 13 10 8 11
Maruti Suzuki 18 19 16 15 17
Sales Volume
Growth (%)
Operating Profit
Margin (%)