Tata Motors and Toyota Motor Corporation are analyzed and compared. Both companies have strengths like large market share and reputation, but Tata Motors relies on older platforms and has lower returns than Toyota. Opportunities exist for expanding into new markets and developing electric vehicles. Threats include increased competition and rising costs. Overall, Toyota has a larger global presence and market share, while Tata Motors leads in India but lags in technology and luxury segments.

1. Jagran Lakecity
University
TO:- MRS. DEEPAL MEHROTRA BY:- AAKASH TIWARI
(2014BCHO033)
ISSHAN NIGAM
(2014BCHO005)

2. Strategic management
Assignment

3. SWOT Analysis of TATA MOTERS LTD. V/S
Toyota Motor Corporation

5. SWOT Analysis
SWOT an acronym that stands for Strengths, Weakness, Opportunities
and Threats.
SWOT analysis is a careful evaluation of an organization internal
strengths and weaknesses as well as it external opportunities and threats.

6. • Strength includes internal capabilities, resources and positive situational
factors that help the organization serve in the market and achieve its goals.
• Weakness for an organization includes internal limitations and negative
situational factors that may interfere the organization mission.
• Opportunities are favorable factors in the external environment that can help
the organization to generate high performance.
• Threats are unfavorable external factors that can create difficulty for
organization in their performance.

7. TATA MOTERS LTD.

8. • The company was established in 1935 as a locomotive manufacturing unit
and later expanded its operations to commercial vehicle sector in 1954 after
forming a joint venture with Daimler-Benz AG of Germany.
• Ratan N Tata is the chairman of Tata Sons, the Tata promoter company.
• Tata Motors Ltd is a multinational corporation headquartered in Mumbai,
India. Part of the Tata Group, it was formerly known as TELCO (TATA
Engineering and Locomotive Company). Tata Motors has consolidated
revenue of USD 16 billion after the acquisition of British automotive brands
Jaguar and Land Rover in 2008.

9. • Tata Motors Limited is India’s largest automobile company, with revenues of
35,651.48 crore (US$ 7.74 billion) in 2007-08.
• The company’s manufacturing base in India is spread across Jamshedpur
(Jharkhand), Pune (Maharashtra), Lucknow (Uttar Pradesh), Pantnagar
(Uttarakhand) and Dharwad (Karnataka).

11. Strength
 TATA motors are market leader in Automobile Industry with high market
share.
 TATA Motors Company have huge employee base.
 TATA motors employee productivity percentage is higher.
 TATA motors produce low price car with low fuel consumption.
 TATA motors are the reputable brand in Indian Industry.
 TATA Motors Limited is India’s largest automobile company, with
revenues of Rs. 92,519 crores (USD 20 billion) in 2009-10.

12.  The research and development department of TATA motors is very
strong.
 TATA’s management is strengthened by the collective experience of its
partners and acquired companies – this includes general management,
marketing, sales and operations.
 TATA Motors has been aggressively acquiring foreign brands to increase
its global presence.
 TATA motors possess High corporate responsibility.

13. Weaknesses
 One weakness which is often not recognized is that in English the word 'tat'
means rubbish. Would the brand sensitive British consumer ever buy into
such a brand? Maybe not, but they would buy into Fiat, Jaguar and Land
Rover.
 The company's passenger car products are based upon 3rd and 4th
generation platforms, which put Tata Motors Limited at a disadvantage with
competing car manufacturers.
 Return on Investment on TATA motors shares in low.

14.  Tata has not got a foothold in the luxury car segment in its domestic market.
 The Company’s manufacturing practices trail competitors.
 Most of the automobiles Tata manufactures are based on older platforms.

15. Opportunities
 TATA motors can take the advantage of their low cost car by entering into
third world countries where people have low purchasing power.
 Joint ventures in other countries allow TATA motors to easily enter into new
market.
 TATA motors should focus in developing luxury cars.
 Nano is the cheapest car in the World - retailing at little more than a
motorbike.
 The range of Super Milo fuel efficient buses are powered by super-efficient,
eco-friendly engines.
 Emerging industrial nations such as India, South Korea and China will have
a thirst for low-cost, environmentally friendly passenger and commercial
vehicles.

16.  The company has put in place a very proactive Corporate Social
Responsibility (CSR) committee to address potential strategies that will
make is operations more sustainable.
 Increase its product line in light & heavy vehicle. So that it can Ancash
on its Brand image.
 The Company can work on its big product range with environment friendly
Technology.
 The Company should focus on both Passenger & Commercial Vehicle for
improving its Design (interior & exterior) & Quality of Fiber.

17. Threats
 Competing car manufacturers have been in the passenger car business
for 40, 50 or more years. Therefore Tata Motors Limited has to catch up
in terms of quality and lean production.
 Since the company has focused upon the commercial and small vehicle
segments, it has left itself open to competition from overseas
companies for the emerging Indian luxury segments.
 Rising prices in the global economy could pose a threat to Tata Motors
Limited on a couple of fronts. The price of steel and aluminum is
increasing putting pressure on the costs of production.

18.  TATA motors have low cost advantage over its competitors, once the
competitors find out the low cost production methodology then there will no
competitive advantage.
 Pakistan’s Transmission Motor Company has built a basic four-wheeler for
only $2,100. This car is considerably cheap and the Pakistan Transmission
Motor company started exporting them to Sudan, Qatar, and Chile.
 The low safety standards can impact the sales.
 Powerful competitors for the luxury market including Honda, Toyota, Ford
and Mercedes-Benz are beginning to push into the Indian market .

19. Toyota Motor Corporation

20. • Toyota is Japanese multinational automobile makers headquarter in Toyota,
Aichi in Japan.
• It was founded in August 28, 1937 and the founder is Kiichiro Toyoda.
• It is the 2nd largest motor company in the world.

21. • Toyota was started in 1933 as a division of Toyoda Automatic Loom Works
devoted to the production of automobiles under the direction of the
founder's son, Kiichiro Toyoda Its first vehicles were the A1 passenger car
and the G1 in 1935.
• Vehicles were originally sold under the name "Toyoda" from the family name
of the company's founder, Kiichirō Toyoda
• Since "Toyoda" literally means "fertile rice paddies", The Toyota Motor Co.
was established as an independent company in 1937

23. Strength
 International Position in 170 countries worldwide.
 Second largest manufacturer automobile company in the world.
 It is best known for durability, reliability and value for money and convenient.
 Its brand image in market is based on Quality and environmental friendly
 Presently maintains 16% of US market share

24. Weakness
 It is criticized as foreign importer by Japanese cars producers.
 In May 2009 they reported a record yearly net loss of $ 4.2 billion.
 It was badly hit by 2008 financial crisis and declared its first annual loss
in 70 years history.
 In 2005 faced criticism because of large scale recall and quality issues.
 Production capacity that is it produces most of its cars in US and
JAPAN whereas with that competitors might take advantage of global
efficiency gains.
 Spending much money on Advertisements

25. Opportunities
 Toyota produces fuel efficient, higher quality and smaller automobile
that can attract consumers.
 With fuel price increasing every time they should produce hybrid gas
electric vehicles which are both fuel and environmental effective.
 Toyota keeps on producing the new models of vehicles so attract each
type segment of population.
 In 2009 state bank of India (SBI) decreased interest rate on automotive
loans which is also an opportunity for them.
 They continued global expansion especially in Emerging markets that
is China, India and Russia where population and demand is
accelerating.

26. Threats
 Increased competition, force full marketing campaigns and raising
competitive pressures.
 Increasing Maintenance cost of vehicles, rising fuel price and changing
customer preference are challenging threats.
 Adverse impact of fluctuations in foreign currency conversion rates.
 Appreciating of Japanese Yens against US dollar.
 People might be undermining the demand for large family.
 Economic slowdown.

27. Comparison of
TATA v/s TOYOTA:

28. • Tata Motors Limited is India’s largest automobile company having 7 plants
in India than Toyota who have only 2 plants in India in the name of Toyota
Kirloskar Motor Private Limited. So, we can say that Toyota is not get much
sucess to exapand its brand in India.
• Tata is Indian company and is more trustvorthy and reputed brand of india
so he know indian market more than Toyota who is an Japanies company.
• Toyota is a multinational brand mainaly distribute its products to US and
Japan by thi they cant take advantage of global efficiency gains and Tata is
aggressively acquiring foreign brands to increase its global presence.
• Return on Investment on TATA motors shares in low on other hand Toyota
have presently maintains 16% of US market share.

29. • Toyota is the 2nd largest motor company in the world and Tata is
multinational company but still fighting with its domestic brands.
• Toyota is spending much money on Advertisements therefore they have
many expenses than TATA who is not much concern about advertisement
expenses.
• Tata has not got a foothold in the luxury car segment in its domestic market,
while Toyota is well known for its luxury car and innovative technology.
• TATA’s passenger car products are based upon 3rd and 4th generation
platforms which is easily beat by the Toyota and other motor companies.

30. Conclusion
Both TATA & TOYOTA are reputed brand having skills, experience,
technology and capital. They have to utilize there resource to get maximum
output. They must have to transform there weakness to there strength and
there threats to there opportunities and also match there strength with there
opportunities.