Tata Motors Limited Strategic Case Study

MGMT 4020: Strategic Management

Ferguson, Jade
Garcia, Orlando
Giusti, Jefferey
Smith, Konnor

Table of Contents
Brief History of Tata Motors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . page 3
Timeline . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . page 5
PESTEL Analysis: Political & Economic Factors. . . . . . . . . . . . . . . . . . . . . . . . page 6
PESTEL Analysis: Socio-Cultural & Technological Factors . . . . . . . . . . . . . . . . page 7
PESTEL Analysis: Environmental & Legal Factors . . . . . . . . . . . . . . . . . . . . . . page 8
Financial Analysis& Ratios. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . page 9
Tangible Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . page 10
Intangible Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . page 11
VRIN Analysis: Valuable & Rare . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . page 12
VRIN Analysis: Imitable & Non-Substitutable . . . . . . . . . . . . . . . . . . . . . . . . . . page 13
Value Chain Analysis: Supply Chain Management . . . . . . . . . . . . . . . . . . . . . . . page 14
Value Chain Analysis: Operations & Marketing and Sales . . . . . . . . . . . . . . . . . page 15
Value Chain Analysis: Service, Human Resources & Technology . . . . . . . . . . . .page 16
Competitive Position Assessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . page 17
Direct Competitor Comparison . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . page 18
SWOT Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . page 19
SWOT Analysis: Strengths & Weaknesses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . page 20
SWOT Analysis: Opportunities & Threats . . . . . . . . . . . . . . . . . . . . . . . . . . . . . page 21
TOWS Analysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . page 22
TOWS Analysis: ST, SO, WT, & WO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . page 23
Epilogue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . page 24
Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . page 25

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 Brief History of Tata Motors
Tata Motors was first founded in 1945 as the Tata Engineering and Locomotive Company

Limited to manufacture locomotives and other engineering products. It is India's largest

automobile company, with over $39 billion in revenue in 2015. Based out of Mumbai,

Maharashtra, India and Tata Motors is a division of the Tata Group, one of India’s largest

corporations. They manufacture various products including, military vehicles, construction

equipment, buses, coaches, vans, trucks, and passenger vehicles. (Thompson C275)
Tata Motors entered the passenger vehicle market in 1991 with the launch of the Tata Sierra.

“India’s first sports utility vehicle, the Tata Safari, was

launched in 1998, and its independently designed Indica

V2 (pictured to the left) became the number-one car in its

segment in India in 2001.” (Thompson C275) Tata

Engineering and Locomotive Company officially became

known as Tata Motors Limited in 2003 and shortly after became the first company from India's

engineering sector to be listed in the New York Stock Exchange in September 2004. They then

went on to become an international automobile company through a variety of acquisitions,

subsidiaries and associate companies. Tata Motors currently has operations in the UK, South

Korea, Thailand and Spain. In 2004, Tata acquired the Daewoo Commercial Vehicles Company,

South Korea's second largest truck maker. Nowadays, two–thirds of heavy commercial vehicle

exports out of South Korea are from the newly dubbed Tata Daewoo Commercial Vehicles

Company. In 2005, Tata Motors bought a controlling interest of 21% in Hispano Carrocera, a

reputed Spanish bus and coach manufacturer. In 2006, they formed a joint venture with the

Brazil–based Marcopolo, a global leader in body–building for buses and coaches to manufacture

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fully–built buses and coaches for India and select international markets. In 2008, they bought

Jaguar and Land Rover, a business made up of the two iconic British brands.
By 2009, Tata Motors had launched what they dubbed “the ‘People’s Car,’ named the Nano

(pictured to the right). The Nano hit the market at a base

price of about $2,250, [reputed to be the ‘world’s

cheapest car’] and won India’s Car of the Year award.”

(Thompson C275). In 2010, Tata had designed a version

of the Nano called the Nano Europa for distribution and

sale in Europe. After celebrating their 50th year in international business in 2011, launched a

variety of products including long distance buses, SUVs, and a few heavy trucks.
During that same year, Tata motors won the Louis Vuitton award in Paris for their car the Jaguar

C-X75 (pictured to the left) and their Range Rover

Evoque won Car Design of the Year. Tata’s success

continued through innovation and product launches

throughout 2011 and 2012. In 2014, their compact

car models, The Zest and The Bolt, were introduced

to compete directly with similar Suzuki, Honda, and Hyundai models.

Most recently, Tata Motors has launched the Tata Tiago (pictured to the right), a sleek hatchback

modestly priced at $4,800.00 and are currently in the midst of an extensive marketing campaign

to promote the car.

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 P.E.S.T.E.L. Analysis
A PESTEL analysis is a tool used by the marketing department of a company to

determine, analyze and monitor a variety of factors in the external marketing environment that

have a direct impact on the success of the business. Primarily positioned in India, the seventh

largest nation in the world, Tata Motors’ success is tied directly to the political, economic, socio-

cultural, technological, environmental and legal components of the Indian environment.

Political Factors:
Due to the subsidizing of fuels by the Indian government and controls placed on diesel

due to its impact on inflation, the auto industry saw a decline in sales in 2012 by 6.7% and

dropped even further in 2013. Mining bans which impacted more than 200 mines caused almost

20,000 heavy trucks to remain idle, thereby dramatically lowering demand for newer models. A

variety of serious corruption scandals between 2010 and 2012 also gridlocked any legislative

work and produced little to no economic reform.

Economic Factors:
As the price of crude oil continued to increase, the subsidies instituted by the Indian

government continued to increase the deficit. As inflation grew, the value of the Indian rupee

continued to depreciate, lowering the overall buying power of its population. The continuing

spikes in crude oil prices brought additional inflation that worsened the Indian economy and hurt

sales within the automotive industry. Currently priced at 66 rupees per US dollar, the Indian

rupee exchange rate remains high but seems to be on a downward trend heading into 2016. As

the INR and Indian economy begin to gain strength, companies such as Tata Motors would

benefit from investing in diesel or alternative fuel cars at affordable prices.

Socio-Cultural Factors:
With a highly educated workforce and high social value for education, India remains one

of the major providers of engineering, design, and information technology services. “However,

continuing problems such as significant overpopulation, environmental degradation, extensive

poverty, widespread corruption, and the slowing economic development” (Thompson C277)

continue to hinder the progress of Indian peoples and businesses. Due to these worsening

conditions, the domestic Indian automobile industry is seeing very little growth.. Tata Motors,

however, positioned as an international organization and catering to global markets can uniquely

combat these hindrances through increased investments in their overseas ventures such as Jaguar

and Land Rover, two luxury brands that are seeing sustained growth as of 2015.

Technological Factors:
Tata Motors’ “initial launch of the Nano in 2009 did not produce the desired level of

sales” (Thompson C282) due in large part to a lack of technological components and several

safety issues including the lack of air bags and cars catching fire. However, as they progressed

into 2014, Tata relaunched an upgraded Nano called the Nano Twist Active at the auto expo in

Delhi. The Twist Active had a variety of technological features, as well as, some much needed

safety features. In keeping up with advancing technologies, Tata Motors partnered with MDI to

develop the world’s first vehicle to run on compressed air. As they hone that technology they are

also looking into developing a diesel Nano to help combat high fuel prices.

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Environmental Factors:
“Ongoing national urban and rural highway projects through 2014 had been expected to

increase national and state highways by 110,000 kilometers and rural roads by 411,000

kilometers.” (Thompson C279) Although, most infrastructure projects were put on hold due to

the economic downturn the growing strength of the Indian economy would put these projects

back on track. The development of roadways in India on such a massive scale would be very

beneficial by driving up the demand for affordable and fuel efficient vehicles, a core competency

of Tata Motors.

Legal Factors:
The main concern for Tata Motors, within the legal component of their marketing

strategy, is the concern for customer safety in the use of their vehicles. “A reported Nano defect

that could cause the vehicle to catch fire” was a major concern and had a variety of real legal

implications. Not only would Tata Motors be liable for the lives and damages caused by the

Nano, but the public relations implications would also be catastrophic. Despite, a few legal

issues that Tata Motors found themselves faced with in late 2013, they have been able to

reposition themselves to be leading manufacturers in the Indian automobile industry. Their

luxury brands Jaguar and Land Rover continue to produce innovative new products and that

division comprises a good percentage of Tata Motors overall business. As they head into 2016,

producing affordable, fuel-efficient and, most importantly, safe should be at the forefront of their

priorities.

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 Financial Analysis

Tata Motors
Revenue(in billions)
Revenue

41.95
39.21
34.86
32.61

2012 2013 2014 2015

TATA MOTORS
Net Income(IN BILLIONS)
Net Income
2.25 2.2
2.06

1.65

2 01 2 2 01 3 2 0 14 2 01 5

Financial Ratios

Tata Motors Financial Ratios(2011-2015)

2011 2012 2013 2014 2015

Current Ratio 0.52 0.5 0.42 0.43 0.42

Quick Ratio 0.54 0.43 0.4 0.36 0.42

Long Term Debt to Equity 0.48 0.41 0.42 0.51 0.83

Inventory Turnover 13.15 12.91 11.07 9.78 8.23

Total Assets Turnover 1.47 1.99 1.48 1.12 1.16

Gross Profit Margin 7.01 4.73 -0.24 -8.69 -10.58

Net Profit Margin 3.84 2.28 0.67 0.97 -13.05

Return on Assets (ROA) 315.36 61.84 59.98 59.58 46.18

Earnings Per Share 28.55 3.91 0.95 1.04 -14.72

Book Value 314.98 61.77 59.91 59.51 46.1

Tangible Resources
The definition of a tangible resource or asset is one that has a physical form. They include

both fixed assets (ex. machinery, buildings, land) and current assets such as inventory. In the type

of industry that Tata Motors is in examples of a type of tangible resource or asset they have are

their cars. Of the many different types of vehicles and models they offer there are a couple that

separate them from the rest. These model vehicles include: the Tata Nano and their commercial

vehicle line. The Tata Nano is one of the most efficient and low cost vehicles on the market. It is

this efficient and low cost vehicle that follows their business strategy for passenger cars

perfectly. Tata Motors’ slogan for this vehicle is “The People’s Car”, and that is exactly what it

is, with a base price of just $2,500 and a gas mileage of nearly 50 gallons per mile. But perhaps it

is not the characteristics of the vehicle that make it so appealing but rather the environment in

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which it fits into perfectly. India’s hope to develop “national urban and rural highway projects

through 2014 [that] would increase national and state highways by 110,000 kilometers”

(Thompson C279) is a clear economic decisions by the government that benefits the car industry

in an economy where cost efficient vehicles is in high demand.Tata Motors’ commercials

vehicles have a distinctive competence strategy that separates itself from its competitors. It is this

distinctive competence that makes it a tangible resource or asset. Arguably, one of the most

significant aspects of a business’s strategy is constant environmental scanning, or looking for

opportunities that will help a business grow. In the case of Tata Motors, the creation of the

commercial line they offer focuses on customer service throughout the product life cycle. In the

case of a commercial line of vehicles, you are selling to clients who use the vehicles for their

own business. A vehicle bought through Tata Motors is an investment for that buyer. It is clear

that customer service is a big aspect of the buying process and experience.
Intangible Resources
The definition of intangible resources or assets is one that lacks physical substance and is

usually very hard toevaluate. It includespatents,copyrights,franchises,goodwill,trademarks, trade

names, etc. There are two ways that Tata Motors has expanded itself and ensured its future

success. The two ways they have done so include: acquisitions and mergers that they then

integrate the management, culture, and knowledge of the businesses it buys out and investment

into research and development. These are some examples of intangible resources that Tata

Motors has implemented successful strategies for.

Tata Motors has shown success in acquiring other company’s assets in its history. One

example of them doing this is with Jaguar and Land Rover. With these two brands, Tata formed a

separate divisions within their company and identified a different target market from their other

products. Second, Tata has shown success in their investments with research and development of

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the company. They have done this by focusing on its product development, environmental

technologies, and vehicle safety within its engineering department.

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 VRIN Analysis
The VRIN analysis is a four-part test that measures the competitive power of a resource

or capability. It is this four-part test that is broken up into separate sections to determine if a

company’s resource or capability is valuable, rare, inimitable, and non-substitutable. This test is

done on a singular basis. If there are more than one resource or capabilities a company has,

which is probable, a completely new test must be done from the beginning. For the purposes of

this case study the focus is on the Tata Nano.

Valuable
Tata Motors strategy for passenger cars was geared towards all around value in its

product line. It is this product line that is focused on all-around value, including fuel efficiency.

Indeed the Tata Nano is directly related to its company’s strategy. It is this vehicle that is the

biggest player in Tata’s efforts to be a leading competitor in its industry. Also, the Tata Nano fits

perfectly in the Indian culture. It is a culture that focuses on value and basic necessities rather

than perks and auxiliary attributes.

Rare
Is the Tata Nano a rarity? The answer to that question is to define rarity. In the purpose of

a VRIN analysis, a rare resource is one that a company’s rivals lack. If the Tata Nano were sold

in the U.S. it would not be as rare of a resource as it is in the country of India. Fortunately, India

is indeed where this vehicle is being sold. The Tata Nano is a rare resource because it is geared

specifically towards the customer needs. Some of Tata’s competitors have vehicles that are

focused on aspects other than value. The Tata Nano is geared toward a middle-class family that is

looking for a vehicle to commute a significant amount of people (i.e. 3 or more).

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Inimitable
The VRIN analysis defines an inimitable resource as one that is hard to copy.

Unfortunately, the Tata Nano does not meet this requirement. However, for some unforeseen

reason the Tata Nano has not been copied nor compromised which is one of the reasons Tata has

seen great success with this vehicle. Some of the attributes of the product are extremely basic

and have little to no unique qualities. One important thing to note is the Tata Nano can be

characterized as the famous slogan “the whole is greater than the sum of its parts.” It is not the

features that stand out to the customer but rather the simplicity of the vehicle put together.
Non-substitutable
The VRIN analysis defines a non-substitutable product as one that is invulnerable to the

threat of substitution from different types of resources and capabilities. In the case of the Tata

Nano, this resource fits the guidelines. It is this resource that along with the company’s business

strategy is non-substitutable. Perhaps the non-substitutable factor is Tata Motor’s understanding

of its customers and market. It is this understanding that Tata knows better than any of its

competitors. The results speak for themselves as Tata has shown a significant increase in sales of

passenger vehicles starting from 2005 to 2011.

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 Value Chain Analysis
Value chain analysis is a process where a firm identifies its primary and support activities

that add value to its final product and then analyze these activities to reduce cost or increase

differentiation. The value chain analysis represents the internal activities a firm engages in when

transforming inputs into outputs. The value chain is broken up into two categories, one being

primary activities, which include inbound logistics, operations, outlook logistics, marketing and

sales and service. The second category is support activities, which include firm infrastructure,

human resources, procurement and technology.

Supply Chain Management
Supply chain oversees the logistics of the supply and delivery of parts for its vendors

while Production and Planning Management oversees execution of new projects. TataMotors has

undertaken initiatives to reduce fixed and variable costs by using e-sourcing to procure supplies

through reverse auctions. Their initiative to leverage information technology in supply chain has

resulted in improved efficiency through real-life information exchanges. Tata has an extensive

supply chain for procuring various components. They outsource many manufacturing processes

and activities to various supplies. Tata has also established vendor parks in the vicinity of its

manufacturing operations in India which has reduced logistics, inventory costs and reduced

uncertainties usually present in a long distance supply chain.

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Operations
Operations are an act or instance, process, or manner of function or operating. Tata

Motors has production units located in multiple places. They have vehicle manufacturer plants

located in India, United Kingdom, South Korea, Thailand, South Africa and Spain. With

TataMotors having a large production of cars, trucks and buses, they have the best in class

prototype building facilities. They use a capital equipment manufacturing division, which is

responsible for tooling development capabilities of global standards. They also uses Kaizen and

Total Productive Management teams to ensure continuous drive to improve efficiencies. The

process of Tata Motors manufacturing is entirely automated. The firm has technical competence

and renowned capacity utilization practices.

Marketing and Sales
Marketing and sales consists of promotion of the brand and advertising. Since Tata

Motors is one of the biggest automobile manufacturing companies in India, they have a large

Indian presence as well as a large global footprint. Tata Motors has a structured approach in

order to understand the requirements of its customers. Their product requirements have led to

innovative products such as Tata 207 DI, Tata Ave and Tata Prima. TataMotors has independent

teams for addressing the requirements of institutional customs like defense, state transport

unions, etc. They also have a large network of dealers that they can use to sell their products.

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Service
Tata Motors service mission is to bring speedy assistance to customers when in need.

They offer five services for this. The first is Speed-o-Service, which provides service to

customers with the shortest turnaround time of ninety minutes for scheduled services and minor

repairs. This offers reduced waiting periods and ensures quick, timely and same day delivery.

TataMotors also offers and ensures spare parts are easily available. They offer online service,

doorstop service, 24x7 roadside assistance and quick repairs. They also have a large network of

workshops such as dealer workshops, TASS and provide training facilities for dealer end and

TASS personnel.
Human Resources
Human resources are primarily concerned with the management of people in the

organization and maximizing employee performance. Tata Motors’human resources has a large

amount of competent engineers that are technically advanced and managers. The human

resources department focus on the development of technical capabilities, have many technical

training centers of its own, and have also made alliance with various technical institutes.Tata

Motors offers many career advancement schemes and programs to advance and develop the

career of their employees and implement such programs such as the “fast track” program.
Technology
Tata Motors invests a lot in technology into their prototype building and testing facilities.

Technology is a huge part of automobile manufacturers as it can allow for increased

improvements and a technological edge over competitors. Tata Motor’s has recently signed into a

partnership with Fiat and various other companies to have access their technology and innovative

systems.

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 Competitive Position Assessment
Tata Motors was ranked number six out of ten in top automobile companies in India in

2015. Their units sold in fiscal year 2014 were 134,032 and their market share was 5.30%. The

biggest competitors to Tata Motors are Ford Motor Company, Suzuki Motor Corporation and

General Motors Company.

Other motor companies that are also a threat to Tata Motors include Volkswagen,

Hyundai, Chevrolet and Nissan. These automobile companies offer similar vehicles to the Tata

Nano such as the Ford Figo, offered at $7,000 for base model and the Volkswagen Golf model

priced at $8,495. These two models were much better well equipped than the Nano. Other

comparable models were France’s Renault Pulse model, the Nissan Micra, the Maruti Ritz, the

Chevrolet Beat, the Nissan Versa and the Hyundai Accent. All of these comparable models are

priced from $7000 - 8000 making the Tata Nano by far the least expensive.
Tata Motors is still one of the biggest automobile manufacturers in India and has had

some success over the years, especially with Jaguar and Land Rover. They have developed a

geographic market and have made many affordable cars. Although they had some issues in 2014

and saw a slight decline in sales, Tata still has a lot to offer competitively.

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 Direct Competitor Comparison

Market Cap: Employees

60 250,000

50 200,000

40 150,000

100,000
Dollars

30
50,000
20
0
10 Empl oyees
Tata Motors Ford
0 Suzuki General Motors
Tata Motors Ford Suzuki General Motors

Revenue & EBITDA Gross and Operating Margins

General Motors General Motors

Suzuki Suzuki

Ford Ford

Tata Motors Tata Motors

0 20 40 60 80 100 120 140 160 180 0 0.05 0.1 0.15 0.2 0.25 0.3 0.35 0.4
Revenue (ttm) EBITDA (ttm) Gross Margin (ttm) Operating Margin (ttm)

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 SWOT Analysis
Tata Motors has a strong global presence and has been manufacturing cars for more than

fifteen years, employing over 60,000 people with a company turnover of $42 billion dollars.

(Tata Motors)This data is very impressive, though the company still has some shortcomings. The

following SWOT Analysis has been performed to show the strength, weakness, opportunity and

threats of Tata Motors. This will be the framework to identify how the company can face

possible growth and combat any challenges it might come across.

Strengths
S
W
O
T

Weaknesses

Opportunities

Threats

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Strengths(S)
Tata Motors is a leading automobile manufacturer with a range of products including

trucks, buses, sport vehicles, cars, and defense vehicles, with a company turnover of $42billion.

Tata Motors has a large global distribution network and caters to a diverse market because it sells

and produces its products in more than 50 countries. Tata Motors also has associate companies

which include Tata Daewo in South Korea and Jaguar and Land Rover in the UK. Since 1961,

Tata Motors has established through exports seventy-six direct subsidiaries abroad and in India.

Weaknesses (W)
Tata Motors promotes India’s rising middle class and is considered cheap. In 2011,

Kunal Bahl looked at Tata Motor’s vehicle for his first car and said “it sounded like an auto-

rickshaw.”(The Wall Street Journal) He then decided to buy a Hyundai, even though it was more

expensive. The importance of safety standards are often overlooked. In 2010, Tata Motors’ image

was almost tarnished because some of the cars were catching on fire. A lot of their vehicles are

made from fiberglass and plastic to keep the cost of manufacturing the car low. Nowadays, a Tata

Motors vehicle is considered a poorly made car.

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Opportunities (O)
Sustainability could be a huge opportunity for Tata Motors. With the world trying to be

greener and the eco-sustainability movement in full bloom, Tata Motors can look into greener

resources for production such as recycling equipment and developing hybrid or electric cars. Not

only would it be wise to tap into the sustainability market, but it would also be sensible for Tata

Motors to tap into the luxury market and expand upon what Land Rover & Jaguar have to offer.

In order to do so, they must continue to improve the quality and safety standards of their

vehicles.

Threats (T)
In 2013, transportation contributed more than half of carbon monoxide and nitrogen

oxides in the air. This is not only a risk to the environment but also to our individual and

collective health. In the United States transportation is the largest source of air pollution. With

environmental legislation and people demanding that we live in a more sustainable and healthy

environment, cars with diesel fuel could pose a problem with consumer buyer tastes. Another

issue is the rise of fuel prices. The average price of a vehicle at $2000 many of Tata Motors’

target customers can barely afford to buy a vehicle, let alone put ever-increasing expensive gas

into said car. The rise in the price of steel is also making cars and other vehicles more expensive.

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Internal Strengths (S)
India’s largest automobile
company
$42 billion company turnover
Sells vehicles in more than 50
countries
Strong global network
Tata Motors has associate and
subsidiary companies which
include Land Rover and
Jaguar
76 direct and indirect
subsidiaries in India and
abroad
Internal Weaknesses (W)
TOWS Analysis
External Opportunities (O)
Tap into the luxury market
Sustainability
HORIZONEXT
SO- Strength and Opportunities
How can Tata use their strengths to
take advantage of their
opportunities?
Use resources to improve costs of
vehicles
Improvement of vehicle quality
would strengthen global presence
across the board
Use global network to tie in the fact
that luxury cars are also a part of the
brand
WO- Weakness and Opportunities WT-Weaknesses and Threats
External Threats (T)
Rising fuel prices
Manufacturing Costs
Competitor Brands
Pollution/Product Waste
ST- Strength and Threats
How can TATA use their
strengths to avoid potential
threats?
Increase use of quality materials
would prevent perception that car
is cheaply made
Reduce production of diesel fuel
cars would make them more green
and possibly more affordable
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 Some consider Tata Motors
poorly made
Not considered a luxurious
brand
Bad safety standards
How can Tata use their
opportunities to overcome their
weaknesses
Selling in 50 countries would allow
customizing cars to fit economy of
each country
Either spin off Land Rover and
Jaguar as separate and make them
more luxurious or
Emphasize that company embraces
top and bottom of car spectrum
Improve safety standards and
advertise facts
How can Tata avoid threats and
conquer weaknesses?
Use of better materials
Use economy of scale to create
better supply chain
Embrace green concept
Embrace sustainability concept in
use of plastics
Explore electric and battery
operated car concept

Strength and Opportunities (SO) - Tata Motorscan make a plan to improve the quality of the

car itself which can later be expandedinto the luxury market and strengthen their overall image.
Strength and Threats (ST) - The 8th most traded product in the world is car parts. (OEC) The

second largest car part exporter is the United States has $35billion in revenue. Car parts include

sensors, gauges, meters, mufflers, switches and starters. Tata Motors could become a trade

partner with the United States. Not only could that open the door for future endeavors, but it

could also improve the quality of the components and materials in their cars.
Weaknesses and Opportunities (WO) - Opportunities that can improve Tata Motors’

weaknesses are the overall safety standards and quality of their vehicle. A next level strategy that

Tata Motors has invested in is DESIGNEXT. DESIGNEXT is a strategic vison to improve the

company’s fuel and engine performance, engineering and design. This concept could be

promoted through varying advertisements and marketing campaigns. They could also publicize

the fact that Tata Motors embraces the luxury goods on the other side of the spectrum through

their innovative products produced by Jaguar & Land Rover.

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Weaknesses and Threats (WT) - Tata Motors can also embrace the concept of being eco

-friendly and invest in sustainable practices. One option could be to invest in electric cars or

battery operated vehicles instead of depending on diesel fuel. Tata Motors could also recycle car

parts to reduce waste in landfills. In order to recycle car parts, customers can be given an

incentive to do so. Incentives could be buy-back programs, higher trade-in value, and reduced

repair costs. Being that Tata Motors is such a large company, they can use economies of scale to

negotiate lower prices and discounts on car parts with their suppliers thereby reducing costs.

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 Epilogue
Tata Motors Limited has a rich history filled with successes and failures. As India’s

leading automotive manufacturer, they are perfectly poised to expand their product line and

capture even more market share. Their distinctive competencies are affordability, low

maintenance costs, and fuel efficiency. Tata Motors is a world leader in the truck and bus

manufacturing industry. Now, they just need to push their passenger vehicle divisions to the limit

and provide Indian and global consumer with Grade A vehicles at low price points.
With the launch of the Tata Tiago, spurred on by an extensive social media campaign tagged with

such slogans as “Its #Fantastico!” Tata Motors’

future is looking ever promising. Along the lines

of innovation, they are also ramping up research

and development on cars catered towards

women and self-driving cars. On the New York

Stock Exchange, their listing, TTM, is making significant gains and will hopefully reach peak

2015 levels by next year. Macro-economic conditions in India are also beginning to improve

which could spark huge economic growth in the coming year. All factors considered, Tata

Motors is positioned for considerable growth should they choose to improve their current

offerings and continually expand into new markets and technologies.

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