STRATEGIC ORIENTATION OF TATA MOTORS

Group-10 ,SEC-A Dinesh Hota (27),Keshaw Bharadwaj (51),Phanibhushan Mahapatra (52), Shubhangini Raizada (56), Aditya Narayan Nanda (62), Dibyajyoti 4/12/12 Mazumdar (63)

Background of the company Tata group was founded in the year 1868 and Tata Motors was in the year 1945 by Tata Sons
Limited. Expanded its operations to commercial vehicle sector in 1954 after forming a joint venture with Daimler-Benz AG of Germany . Based on consumer demand, it decided to build a small car. So in 1998 it launched Tata Indica ; India's first fully indigenous passenger car. TELCO Limited is now widely known as Tata Motors that is among the world's top five manufacturers of medium and heavy trucks. Tata Motors is now into various products & services. Advanced Technology and design. Effective PLM

Strategic Direction Mission of Tata motors-best in the manner in which we operate, best in the

products we deliver, and best in our value system and ethics. Vision of Tata motors -Tata motors is committed in letter and spirit to corporate responsibility Objective : a) good and efficient car at reasonable price. b) meaningful recognition in international markets. ) Goals: a) achieve ethics by developing and marketing relevant products 4/12/12 b) international expansion.

External Analysis
PEST forces 1. Political 2. Economic 3. Social 4. Technology

Strength Large domestic market Sustainable labor cost advantage Competitive auto component vendor base Government incentives for manufacturing plants Strong engineering skills in design etc Opportunity Commercial vehicles: SC ban on overloading Heavy thrust on mining and construction activity Increase in the income level Cut in excise duties 4/12/12 Rising rural demand

5 forces analysis of Indian Automobile sector

Weakness Low labor productivity High interest costs and high overheads make the production uncompetitive Various forms of taxes push up the cost of production Low investment in Research and Development Infrastructure bottleneck Threats Rising input costs Rising interest rates Cut throat competition

Internal Analysis
Resource s: Technological Resources:- R & D establishments at Jamshedpur, Pune & Lucknow over 1400 engineers. Financial Resources:- Stable cash flows for years ; Cash rich corporate parent Tata Sons ; Strong reputation access to capital markets Technology Development : Approximately 2% of the annual profits of the company invested in research and development Human Resource : Vast pool of technically competent engineers and managers. Firm Infrastructure : Multi Location facilities , Technology SAP , Large product portfolio COMPETITIVE ADVANTAGE: 1. Introduction of new and innovative product (NANO, cheapest car). 2. Acquisition (eg.Land Rover & Jaguar brands). 3. Partnership with established companies (FIAT) to enhance product portfolio. 4. Developing management development programmes.

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Generic Strategy Of Tata Motors

Low Cost Strategy Diversification in Tata Motors

Competitive Advantage
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RECOMMENDATIONS

SHOULD STRIVE TO BECOME MORE OF A GLOBAL BRANDPERCIEVED AS TOO INDIANISED SHOULD FOCUS ON THE LUXURY VEHICLE SEGMENT FOCUS IS MORE ON COST- HENCE NEW AND ADVANCED FEATURES TAKE A BACK SEAT: WHICH IS FOUND IN WESTERN MARKETS IT COULD LAUNCH ITS LOW COST VEHICLE: NANO IN THE 3RD WORLD NATIONS, WHERE THE PURCHASING POWER IS LESSER. COMPANY COULD EXPORT ITS COMMERCIAL VEHICLES TO REDUCE THE DEPENDENCE ON DOMESTIC SALES. CAN THINK OF LCVs (LIGHT COMMERCIAL VEHICLES) IN ITS PORTFOLIO NEEDS TO POSSESS LOCALIZATION SKILLS EVEN OUTSIDE THE 4/12/12INDIAN MARKET

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