TaTa Motor’s Strategy Case Analysis

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Company Overview
Tata Motor is one of the seven business divisions of the Tata Group, the largest corporation
in India. With $34.7 billion in revenues (Wikipedia, Tata Motor, 2013), Tata Motor is the
seventh largest automobile manufacture in the world. Their manufacturing plants and
research labs are located globally in over 182 countries (Motor, 2013), mainly by joint
ventures and acquiring.
In Correspond to India Economy
India is one of the fastest growing economies in the world with the average GDP growth
rate at 5.8% (Wikipedia, India, 2013). Strategic geography position, rich natural resources,
young population and highly educated, low wages workforce are the main contributing
factors to this rapid emerging economy. However, unstable macro-economy, weak
organized economic system, high corruption rates, tampered environments, etc. have
negatively impacted on the company’s performance, especially multinational company and
highly environmental sensitive like Tata Motor.
As the seventh largest country and the second-most population in the world, India
domestic demands for auto vehicles contributed a significant advantage for Tata Motor.
The position of a domestic market leader allowed Tata Motor to sufficiently generate stable
profit internally, and build a strong foundation base to go global. Moreover, the number
one corporate position of the Tata Group in India economy generated positive impacts on
Tata Motor operating, in term of governmental supports, authorities’ relationships and
financial strengths which are essential to vehicles manufacturing industry.
The SWOT Analysis
The figure bellow presents a general views on the company current condition. As we can
see, although Tata Motor has tremendous supports and advantages in domestic market, it is
still suffering from their competitors and economy conditions which leaded to reducing in
profits (domestic market share in commercial vehicles reduced from 64% (2009) to 59.5%
(2013); passenger vehicles shares dropped from 14% (2009) to 8.9% (2013) (Motor,
2013)). The main reason come from the downturn of global economy which leaded India
to become a highly referable market by many automobile who having difficulty in other
countries.
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Company Strategies
In my point of views, Tata Motor considers their domestic market as the profit generating
center while they are seeking to expand internationally and establish sustainable market
competitive. Think global act global, they had maintained consistency among markets and
cover their weaknesses in brand awareness. The advantages of being the market leader in a
low-cost manufacturing country gain them the competitive in proving the same quality
products with lower costs. Furthermore, their international expanding approaches focus on
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