Swot Analsis On Tata

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The document discusses a SWOT analysis performed on Tata Motors, identifying their strengths, weaknesses, opportunities, and threats.

A SWOT analysis is a tool used to evaluate the strengths, weaknesses, opportunities, and threats involved in a project or in a business venture.

Some strengths identified include a large market share in India and acquisition of luxury brands like Jaguar and Land Rover. Opportunities include entering new markets in emerging economies and developing more fuel efficient vehicles.

DAYANAND SAGAR BUSINESSS

SCHOOL

SOWT ANALSIS
OF
TATA MOTORS

SUBMITTED TO:- SUBMITTED


BY:-
PROF. SAI GANESH ROHIT
SAHARAN
Contents:-
1. Concept of SWOT analysis

2. Company background

3. SWOT analysis

4. conclusion
Concept of SWOT analysis:-
SWOT analysis (Strengths, Weaknesses, Opportunities, and
Threats) is a method of assessing a business, its resources,
and its environment. Doing an analysis of this type is a good
way to better understand a business and its markets, and
can also show potential investors that all options open to,
or affecting a business at a given time have been thought
about thoroughly.
The essence of the SWOT analysis is to discover what you
do well; how you could improve, whether you are making
the most of the opportunities around you,and whether
there are any changes in your market—such as
technological developments, mergers of businesses, or
unreliability of suppliers—that may require corresponding
changes in your business. This actionlist will introduce you
to the ideas behind the SWOT analysis, and give suggestions
as to how you might carry out one of your own.

What is the SWOT process?


The SWOT process focuses on the internal strengths and
weaknesses of you, your staff, your products, and your
business. At the same time, it looks at the external
opportunities and threats that may have an impact on your
business, such as market and consumer trends, changes in
technology, legislation, and financial issues.

Strengths
Advantages of proposition? weaknesses
Capabilities?
Disadvantages of proposition?
Competitive advantages?
Gaps in capabilities?
USP's (unique selling points)?
Lack of competitive strength?
Resources, Assets, People?
Reputation, presence and reach?
Experience, knowledge, data?
Financials?
Financial reserves, likely
Own known vulnerabilities?
returns?
Timescales, deadlines and
Marketing - reach, distribution,
pressures?
awareness?
Cashflow, start-up cash-drain?
Innovative aspects?
Continuity, supply chain
Location and geographical?
robustness?
Price, value, quality?
Effects on core activities,
Accreditations, qualifications, distraction?
certifications?
Reliability of data, plan
Processes, systems, IT, predictability?
communications?
Morale, commitment,
Cultural, attitudinal, leadership?
behavioural?
Accreditations, etc?
Management cover, Processes and systems, etc?
succession? Management cover, succession?

threats
Opportunities Political effects?

Market developments? Legislative effects?

Competitors' vulnerabilities? Environmental effects?

Industry or lifestyle trends? IT developments?

Technology development and Competitor intentions -


innovation? various?

Global influences? Market demand?

New markets, vertical, New technologies, services,


horizontal? ideas?

Niche target markets? Vital contracts and partners?

Geographical, export, import? Sustaining internal capabilities?

New USP's? Obstacles faced?

Tactics - surprise, major Insurmountable weaknesses?


contracts, etc? Loss of key staff?
Business and product Sustainable financial backing?
development?
Economy - home, abroad?
Information and research?
Seasonality, weather effects?
Partnerships, agencies,
distribution?

Volumes, production,
economies?

Seasonal, weather, fashion


influences?

Tata Motors Ltd.


“Leading the Future"
Tata Motors was established in 1945 as Tata
Engineering and Locomotive Co. Ltd. to
manufacture locomotives and other engineering
products. It is India's largest automobile company,
with standalone revenues of Rs. 25,660.79 crores (USD 5.5
billion) in 2008-09. It is the leader in commercial vehicles in
each segment, and among the top three in passenger vehicles
with winning products in the compact, midsize car and utility
vehicle segments. The company is the world's fourth largest
truck manufacturer, and the world's second largest bus
manufacturer.

The company's 23,000 employees are guided by the vision to


be 'best in the manner in which they operate best in the
products they deliver and best in their value system and
ethics.'

Tata Motors, the first company from India's engineering


sector to be listed in the New York Stock Exchange
(September 2004), has also emerged as an international
automobile company. Through subsidiaries and associate
companies, Tata Motors has operations in the UK, South
Korea, Thailand and Spain.
Tata Motors is also expanding its international footprint,
established through exports since 1961. The company's
commercial and passenger vehicles are already being
marketed in several countries in Europe, Africa, the Middle
East, South East Asia, South Asia and South America. It has
franchisee/joint venture assembly operations in Kenya,
Bangladesh, Ukraine, Russia and Senegal.

In January 2008, Tata Motors unveiled its People's Car, the


Tata Nano, which India and the world have been looking

forward to. The Tata Nano has been subsequently


launched, as planned, in India in March 2009. A
development, which signifies a first for the global
automobile industry, the Nano brings the comfort
and safety of a car within the reach of thousands of
families. The standard version has been priced at
Rs.100, 000 (excluding VAT and transportation cost).

In May 2009, Tata Motors ushered in a new era in the Indian


automobile industry, in keeping with its pioneering tradition,
by unveiling its new range of world standard trucks. In their
power, speed, carrying capacity, operating economy and
trims, they will introduce new benchmarks in India and
match the best in the world in performance at a lower life-
cycle cost.
Tata Motors Ltd.
"Leading the Future"

Quick Facts
Founder Jamshed ji Tata

Year of Establishment 1945

Industry Automotive

Business Group The Tata Group

Listings & its codes BSE - Code: 500570


NSE - Code: TELCO & TATAMOTORS
NYSE - Code: TTM

Corporate Office Bombay House


24, Homi Mody Street
Mumbai 400 001, India
Tel.: +(91)-(22)-56561676
Works Jamshedpur, Pune, Lucknow and Dharwad

E-mail [email protected]
[email protected] (for international inquiries)

Website www.tatamotors.com
www.tata.com/tata_motors

SWOT analysis of Tata


motors:-

Strengths:-
The internationalisation strategy so far has been to keep
local managers in new acquisitions, and to only transplant a
couple of senior managers from India into the new market.
The benefit is that Tata has been able to exchange expertise.
For example after the Daewoo acquisition the Indian
company leaned work discipline and how to get the final
product 'right first time.'
The company has a strategy in place for the next stage of its
expansion. Not only is it focusing upon new products and
acquisitions, but it also has a programme of intensive
management development in place in order to establish its
leaders for tomorrow.
The company has had a successful alliance with Italian mass
producer Fiat since 2006. This has enhanced the product
portfolio for Tata and Fiat in terms of production and
knowledge exchange. For example, the Fiat Palio Style was
launched by Tata in 2007, and the companies have an
agreement to build a pick-up targeted at Central and South
America.

Weaknesses:-
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.

Despite buying the Jaguar and Land Rover brands


(see opportunities below); Tat has not got a
foothold in the luxury car segment in its domestic,
Indian market. Is the brand associated with
commercial vehicles and low-cost passenger cars to the
extent that it has isolated itself from lucrative segments in a
more aspiring India?
One weakness which is often not recognised 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 (see
opportunities and strengths).

Opportunities:-
In the summer of 2008 Tata Motor's announced that it had
successfully purchased the Land Rover and Jaguar brands
from Ford Motors for UK £2.3 million. Two of the World's
luxury car brand have been added to its portfolio of brands,
and will undoubtedly off the company the chance to market
vehicles in the luxury segments.
Tata Motors Limited acquired Daewoo Motor's Commercial
vehicle business in 2004 for around USD $16 million.
Nano is the cheapest car in the World - retailing at little more
than a motorbike. Whilst the Worldis getting ready for
greener alternatives to gas-guzzlers, is the Nano the answer
in terms of concept or brand? Incidentally, the new Land
Rover and Jaguar models will cost up to 85 times more than a
standard Nano!

The new global track platform is about to be


launched from its Korean (previously Daewoo)
plant. Again, at a time when the World is looking
for environmentally friendly transport
alternatives, is now the right time to move into this segment?
The answer to this question (and the one above) is that new
and emerging industrial nations such as India, South Korea
and China will have a thirst for low-cost passenger and
commercial vehicles. These are the opportunities. However
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.
The range of Super Milo fuel efficient buses are powered by
super-efficient, eco-friendly engines. The bus has optional
organic clutch with booster assist and better air intakes that
will reduce fuel consumption by up to 10%.
Threats:-
Other 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.
Sustainability and environmentalism could mean extra costs
for this low-cost producer. This could impact its
underpinning competitive advantage. Obviously, as Tata
globalises and buys into other brands this problem could be
alleviated.

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. For
example ICICI bank and DaimlerChrysler have invested in a
new Pune-based plant which will build 5000 new Mercedes-
Benz per annum. Other players developing luxury cars
targeted at the Indian market include Ford, Honda and
Toyota. In fact the entire Indian market has become a target
for other global competitors including Maruti Udyog, General
Motors, Ford and others.
Rising prices in the global economy could pose a threat to
Tata Motors Limited on a couple of fronts. The price of steel
and aluminium is increasing putting pressure on the costs of
production. Many of Tata's products run on Diesel fuel which
is becoming expensive globally and within its traditional
home market.

CONCLUSION:-
Company should focus on the opportunities, work on
weaknesses to remove all weaknesses .company should
make strategy for the threats and make plans to encounter
with the threats weaknesses. Company should regularly
work on the basis of swot analysis. Company should cover its
week point by its strong points.

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