2. Company Profile
• Founded: 1945
• Founder: JRD Tata
• Head Quarters: Mumbai, India
• Key People: Ratan Tata, Chairman,
Cyrus Pallonji Mistry, Chairman
Chandrasekaran Ramakrishnan , President &
Chief Financial Officer
•Parent: Tata Group
•Products: Automobiles and engines
•Revenue: $32.23 billion (FY 2012-13)
•Net Profit:334.52 crores
•It has auto manufacturing and assembly plants in Jamshedpur, Pantnagar,
Lucknow, Sanard India and as well as Argentina, United Kingdom, South
Africa, Thailand
3. Bangladesh *
Nepal, Sri Lanka
Malaysia*
Thailand
Global Footprint
Russia*
U.K. Ukraine*
Italy
Kenya*
OTHER COLLABORATIONS/M&A & JVs
• Tata Daewoo Commercial Vehicle
• Hispano in Spain & Marcopolo In Brazil
• JV with Jardine Matheson for
ConcordeMotors
• Technology Tie Ups at Spain,Italy
North Africa
Senegal
Afghanistan
Uzbekistan
Brazil
South Africa*
Egypt
Saudi Arabia
Iraq, Iran
China
South Korea*
LATAM
West Africa
West Europe
Central Asia
East Asia
South Asia
South East Asia
West Asia
South Africa East Africa
* Assembly Operations also
3
4. SWOT analysis
• Strengths
Well-known brand with
good reputation
Huge employee base.
Dedicated engineering
and R&D department
•Opportunities
Increasing per capita income and
purchasing capability of potential
customer base
Mergers and acquisitions to acquire
newer technology
Augmenting the distribution and
service network in various countries
•Weakness
Limited international
presence
Sometimes faces alleged
quality and durability issues
Not much customer
engagement programs and
activities
•Threats
Increasing fuel costs
Competition from other big
automobile giants
Product innovations and frugal
engineering by competitors
Rising cost of manufacturing
5. Polycentric Approach
• Tata Motors gives importance to every country’s
domestic market, as there is a belief in uniqueness of
every market and its need to be addressed in an individual
way.
• It operates either by wholly owned subsidiaries or
through marketing subsidiaries, separately in each
country.
• It produces high quality products. It concentrates its
attention on foreign markets which have similar consumer
needs and conditions similar to domestic market.
6. Segmentation
• Geographic
• Demographic
i. Age : Any Body above age 18
ii. Income : Available in all ranges
iii.Occupation : All
• Psychographic
i. Personality : Available in different segment.
• Behavioral
I. Benefit : Quality & style
II. Users : Potential Users & First Time Users
III.Readiness Stage: Those who are aware, informed, interested and are
intended to buy.
7. Targeting
• Acquired Daewoo (2004)
– Commercial Vehicle Company,
– South Korea’s second largest truck maker, for 102 million
dollars.
• Acquired Hispano Carrocera (2005)
– Bus manufacturing Spain-based company, acquired 21 Percent
of 12 million Euro.
– Acquired full ownership in 2009
• Tata paid Ford Motor Company 2.3 billion for Jaguar and
Land Rover companies
– It allows Tata to enter into the luxury car market
– To enter into the very competitive and highly desirable mature
markets in Europe and in future hopes of securing market
segments in the United States.
8. Continued..
• Bangladesh car market- launched the Manza and Vista hatchback
model.
• China- Sold approximately 26,000 units making it 3rd largest market
for Jaguar and Land Rover.
• South Africa- Opened assembly plant for targeting the operations
and presence of Tata group in South Africa.
• Tata Electric Car- Planning for launch in North America
• Tata and Samsung deal in for car infotainment systems targeting
Indian customers.
• Sri-Lanka & Malaysia for installing sales process system and face to
face customer meets
9. Positioning
• Passenger cars.
• Utility vehicles.
• Commercial vehicles.
• Passenger buses.
• Land Rover and Jaguar for Elite Group.
• TATA Nano for middle class people.
• Chipset car developer in the world.
• Highest Seller of Trucks in India.
• TATA Hispano High facility Buses.
11. Threats of New Entrants
Factors Tata Motors Advantages New Entrance Threats
Entry Cost Yes Low
Retaliation by TATA in case
of Competition
Yes, Because of large
resources available with
TATA
Low
Experience High Low
Other Cost Advantage Yes Low
12. Buyer Bargaining Power
Factors Tata Motors Advantages Buyer Bargaining Power
Differentiation Price , Durability , Brand equity Low
Concentration Large number of consumers Low
Profitability Easy availability of loans Low
Quality Best Low
13. Supplier Bargaining Power
Factors Tata Motors Advantages Supplier Bargaining
Power
Concentration High Low
Switching Costs High Low
Number of Suppliers High Low
Ability to substitute High Low
14. Threats of Substitute Product
Factors TATA Motors Advantages Substitute Threats
Availability Cars are available in all ranges High
Performance High High
Buyers willingness High High
Quality of Substitute High Quality High
15. Competitive Rivalry
Factors TATA Motors Advantages Competitive Rivalry
Brand Image High High
Switching Cost Low High
Differentiation High High
Industry Concentration High High
Hinweis der Redaktion
It is 18th largest motor vehicle manufacturing company in world by volume.
It was formerly known as TELCO(tata engg and locomotive company). Its products include passenger cars, trucks, vans and coaches.
Tata Motors acquired 100 percent of the Korean based Daewoo Commercial Vehicle Company, Korea’s second largest truck maker, for 102 million dollars. Rather than using de-culturation or assimilating Daewoo, Tata took an integrated approach, and continued building and marketing Daewoo’s current models as well as introducing a few new models globally just as it had been done under Korean management.
In February 2005, they acquired 21 Percent of Hispano Carrocera, Spain-based company, for 12 million Euro. In April 2005, Tata Motors Limited merged with Tata Finance, and lastly in March 2008 Tata paid Ford Motor Company 2.3 billion for Jaguar and Land Rover companies (Tata.com). These acquisitions and mergers allow Tata Motors to break into foreign markets and develop a much larger share of the automotive industry.
It also helps them attain the knowledge, technology, and programs that allow them to succeed in that particular sector of the automotive industry or in a particular region or culture. For instance, the purchase of Jaguar and Land Rover allows Tata to enter into the luxury car market without having to research the market, build the technology, among other important aspects of getting into a new market segment. It further helps them enter into the very competitive and highly desirable mature markets in Europe and in future hopes of securing market segments in the United States. Tata Motors is currently in a growth stage as stated on their website: “Tata Motors Ltd is in a mega expansion mode. The investments would be in product development, capital expenditure in capacity enhancement, domestic and international acquisitions and mergers” (Tata.com).
It allows Tata to enter into the luxury car market without having to research the market, build the technology
It further helps them enter into the very competitive and highly desirable mature markets in Europe and in future hopes of securing market segments in the United States.