TATA Group Is The Largest Private Companies Marketing Essay

Tata Group of companies is the greatest private corporate group in India and has been named one of the very most respected companies in the world that was founded by Jamsedji R Tata in 1991. The company has businesses in more than 85 countries across six continents and its companies export products and services to 80 countries and the Tata Group comprises (114) companies and subsidiaries in seven business areas (Tata Sons Ltd. , 2010).

SBU's of TATA group :( For details please refer to appendix no. 1)

SBU's which form a significant part of the Tata group include

Tata steel

Tata motors Ltd.

Tata consultancy services

Tata Technologies

Tata tea

Tata power

Tata Communications

Tata Teleservices

Tata hotels

1. 1 Company account: Tata consultancy services (TCS)

SBU of Tata group:

Source: http://biet. beadvg. org/images/logos/tcs_logo_cmyk. jpg

Tata Consultancy Services (TCS) is one of the SBU of Tata band of companies. It is a Software services consulting company which is a subsidiary Tata group. It's the largest professional of information technology (IT) and business process outsourcing services in Asia. It includes office buildings in 42 countries with an increase of than 142 branches across the globe. The business is stated on the National STOCK MARKET (NSE) and Bombay Stock Exchange(BSE) of India. TCS mainly offers a consulting-led, included portfolio from it and IT-enabled services provided through its unique strategic Global Network Delivery Model which is recognized as the standard of excellence in the IT industry (LinkedIn Corporation, 2010). TCS happens to be buying new technology, new techniques & people to be able to accomplish an competitive edge (Amdocs Ltd. , 2010). (For details please make reference to appendix no. 2)

TCS helps some of the world's most significant companies to look at the right technology-enabled solution that helps them in following manner (Tata Sons Ltd. , 2010).

Optimize business performance

Facilitate alignment of business with technology

Connect their expanded supply chains

Reduce product development time

Improve product differentiation

Provide real-time business insight

Lower functional costs

TCS business framework:

Following diagram illustrates operating structure of TCS

Fig 1. TCS operating structure

Source: http://www. allbusiness. com/glossaries/organizational-structure/4943569-1. html

2 Business Level Strategies:

TCS is rolling out its business level strategy by supposing as world finance institutions are in a tremendous shock of turmoil and think of scaling up earnings from other industries. (Tata Consultancy Services Small, 2010). TCS names its business divisions as Industry Service Practice which can only help them to collect maximum earnings from Bank Financial Services and Insurance Sectors. (Please make reference to appendix no. 3)

Generic Business Strategies of TCS:

TCS provides low cost Global delivery with the assistance global strategy.

TCS mainly give attention to customer marriage management & customer retention to be able increase the business earnings.

TCS provides timely delivery of computer services by using proven delivery & quality framework called as (iQMS)

TCS uses differentiation strategy by giving low end services in conditions of cost, resources.

TCS also diffenciate its high end services such as consulting in term of specific niche market offerings.

TCS has strong knowledge management system & resource

Strength where they has successful in achieving the overall cost authority in the (IT) industry.

TCS has create a resolute strategy where these are providing (IT) services based on the requirements of customer and the nature of business. & focusing on new market segments like Middle East, Europe, and Asia-pacific.

Currently TCS Concentrate on Centres of Brilliance (CoE) to hold ability to be able to construct technology such as service-oriented architecture, evaluation, and virtualization which can only help TCS to try outsized projects in order to modify customer's (IT) applications.

Business level strategy model:

Following diagram illustrates various business level strategies of TCS which are carefully related to the business.

Fig 2. Business level strategy model-TCS

Source: Author

Business level Strategies are the following

Global Strategies

Strategic Alliance strategy

Acquisition strategy

TCS: Co technology network (coin) strategy

(1) Global strategy:

TCS global strategy structure have a tendency towards its global operations to implement a Customer centric and built-in approach which will help them to control external factors due to the Economic Meltdown in american countries. TCS's global procedure units is split into five main divisions includes the set up markets like North America K & American Europe as well as the new markets includes mainly Latin America, Midsection east, India and Eastern European countries. TCS was the first someone to set the global delivery centre in China which recognized TCS from other corporate companies (Mitra, 2005).

This global strategy of TCS increase Company's market expansion rate at the pace of 40% every year. TCS is creating global delivery centres outside India which illustrate TCS as a Global company. Lately TCS was frequently changing its methodology towards global market. (For details please refer to appendix no. 3)

Global strategy map:

Following map illustrated the countries where TCS collaborate its global strategy

Mainly includes US, Mexico, China, India, Hungary, UK, West-Europe etc.

http://htmlimg3. scribdassets. com/entwg1s84irfuww/images/15-8f526c1a8f/000. jpg

Fig. 3 Global Strategy map

Source: http://www. cogmap. com/chart/tata- consultancy-services

2 Strategic Alliances strategy:

Tata consultancy services have been having a strategic relationship with various International technology (IT) suppliers such as Intel, Hewlett-Packard (Horsepower), IBM this distinguished as service provider, customer, company, and alliance spouse. (Mitra, 2005). The connections with the international technology vendors have made TCS to keep up a holistic approach to create a jv opportunities with these international suppliers on joint research by which each other's advantages provides a strategic edge by pursuing ways(For details please make reference to appendix no. 4)

It creates joint engagements with (IT) vendors.

It provide new or superior alternatives on problems

It helps to take up a Joint go-to-market technique for the precise (IT) alternatives.

3. Acquisition strategy:

TCS divides its acquisition strategy into two components. Organic means and inorganic means (Mitra, 2005). The Inorganic way of acquisitions of companies this has business sense to TCS as part of its technique to look at expansion options has create an interior team which will concentrate only on acquisition strategies. (For details please refer to appendix no. 5)

4. Co- technology network (coin) strategies:

TCS have applied a Co-innovation strategy to be able to face your competition in today's globalization world. Where competition one of the IT companies is increasing daily. TCS is rolling out & implement an impressive technology that will bring about collaborating a "Globally Distributed Network (GDN)" (Mitra, 2005). (Please make reference to appendix no. 6)

Bowman's strategic clock:

Business level strategy of TCS may also be explained with the aid of Bowmans Strategic clock (work of Cliff Bowman) (For details please make reference to appendix no. 7)

Fig 4. Bowman's tactical clock

Source: Implemented from (Faulkner & Bowman, 1995)

Based on the competition encountered by TCS they are employing two parallel strategies to be able to support in the (IT) sector.

Differentiation:-TCS use differentiation strategy by offering its low &high end services such as talking to in term of market offerings & conditions of cost resources. Knowledge that is different from those of the competition in (IT) industry & that are valued by the customers.

Low price:-TCS has achieved cost (price) command in the (IT) industry by using its strong knowledge management system as compare to challengers.

According to Bowman's proper clock differentiation & Good deal strategy comes under 'cross strategy'. So, it is noticeable that TCS use these strategies in order to keep up with the appearing (IT) tendencies and working out towards its goal to be the most chosen brand in the (IT) industry.

TCS Business level Strategies can also be identified and described with the help of Ansoff matrix which divides the strategy of a company into four different categories namely,

(i) Market Penetration Strategy

(ii) Market Development Strategy

(iii) Product Development Strategy

(iv) Diversification Strategy

TCS's growth and development strategies based on Ansoff's matrix

Ansoffix expansion matrix :( For details please refer to appendix no. 8)

TCS'S Business level Strategies can even be identified and described by making use of Assnsoff matrix the following

Existing Products New Products

(Market Penetration)

Existing Marketplaces: USA and Europe

Existing Products: ADM, BPO, KPO, consultancy services & software products.

(Product Development)

Existing Market: USA and Europe

New Product: Consultancy and package implementation services in relatively growing industries life sciences & healthcare, aviation sector, and KPO services

(Market Development)

New markets: India, Middle-east and Australia

Existing Products: ADM, BPO, KPO, consultancy services & Software products (financial products).


New products:

vertical- Specific services packages, TCS Financial Alternatives, and Platform-based BPO

New marketplaces: Latin America, Eastern Europe, Middle East & Africa and India),

Existing Market

New Market

Fig 4. Ansoffix expansion matrix of TCS

Source: Author

(i) Market penetration strategy:

As per the expansion matrix TCS is currently penetrates its range of services into USA and Europe where they offer ADM, BPO, KPO, consultancy services (in BFSI, creation and retail organizations) as well as they provide software products (financial loans) to the organizations as most large clients in US and European countries are concentrating on slicing costs of (IT) related services (Tata Consultancy Services Limited, 2010). TCS must be more intense on cost slicing strategy with good quality.

(ii) Market development strategy:

As per the development matrix TCS is concentrating on new markets like India, Middle-east and Australia where they provide products like ADM, BPO, KPO consultancy services (in BFSI, making and retail) and software products (financial loans) (Tata Consultancy Services Limited, 2010). Since these are the most fast producing IT market where TCS needs to keep a paradigm as a transfer in emphasis from US & European union market segments to these new market segments.

(iii) Product Development Strategy:

As per the progress matrix TCS is providing its new products such as Consultancy and deal implementation services in relatively growing sectors especially in life sciences & professional medical, aviation sector, and KPO services into existing markets like USA and Europe (Tata Consultancy Services Limited, 2010). This plan will definitely help on building competence in these domains by tactical acquisitions.

(iv) Diversification strategy:

As per the growth matrix TCS has diversified their services like vertical- Specific services packages, TCS Financial Alternatives, and Platform-based BPO into new market segments like Europe & and other rising markets where the market progress of the company has increased by 40 % (Tata Consultancy Services Limited, 2010). TCS varied its function to new markets like Latin America and Middle East for considerable expansion. In order to penetrate a new market TCS has generated delivery and just offshore centres in countries like Brazil, Uruguay and Mexico.

3 Strengths & weaknesses predicated on business Level Strategies:

Following desk illustrates (TCS) advantages and weaknesses



Extensive Common reach

Strong economic performance

Strong brand name and awareness

Unique service Offerings

Employee Management Skills (HR Skills)

Innovation lab system

Fame of founder

Momentous promotion to financial markets

Lack of focus on the domestic market segments.

Deficient in degree of consulting


Source: Author

3. 1 Strengths:

(1) Extensive General reach: TCS has widespread a global reach by its product and services throughout its branches across the world includes in UK, U. S, Middle east, Australia, Europe etc. (Tata Consultancy Services Limited, 2010). This provides a diverse income base for the company to have an lively control on its business businesses universally.

(2) Strong financial performance: TCS has made noticeable and strong economical presentations around the globe which makes its clients to be economically confident about the business and hence it'll increase company's reputation.

(3) Strong brand name and recognition: As the level of popularity of the brand TCS (Tata consultancy services) has been reach around the globe which made TCS a reputed brand image in the Global it (IT) and software business.

(4) Unique service Offerings: TCS provides a unique range of services including business consulting; it, business process outsourcing (BPO), infrastructure, and executive which distinguished them from competitors participate in IT industry (Tata Consultancy Services Small, 2010).

(5) Worker Management Skills (HR Management Skills): The domestic bottom part of TCS i. e. 'India' is well -known for its skilled employees in IT field which obviously made TCS a very strong in HR management. TCS is also recruited its plank of Directors are from international countries to be able to adopt the strategies from all the elements of the entire world.

(6) Creativity in lab system: TCS have most reliable infrastructures and progressive labs worldwide with modern technologies that assist its employees with an access to upgrade the most up-to-date information to make research in various IT related areas (Tata Consultancy Services Limited, 2010). This gives TCS an competitive border.

(7) Fame of creator: Tata is recognised as the most renowned brand in Asia as well as the popularity of the founder Mr. Ratan J Tata also added value to TCS (Tata Consultancy Services Limited, 2010).

3. 2 Weaknesses:

(1) Momentous promotion to financial marketplaces:

The Excess subjection on the financial service markets at a worldwide level (Datamonitor, 1998). Which generally necessitate to be keep private as they it shows company's private regulations and legal conditions which is considered as the principal & key weakness of Tata consultancy services (TCS)

(2) Insufficient concentrate on the domestic markets:

As per the strength of TCS it has an Extensive Universal reach by its product and services throughout it are around the globe branch which provides a diverse income base for the business. (Datamonitor, 1998). But at the same time domestic marketplaces are also influenced due to lack of focus by the business. This is actually the key weakness of Tata consultancy services (TCS).

(3) Deficient in level of consulting businesses:

Lack in Effective consulting team which show a strong reflection of decline in the development Routine of the TCS, Being a company which mainly works on Freelancing on scale large projects and task which generally requires a very good effective consulting team which acts as the link between the Clients and company (Tata Consultancy Services Limited, 2010). TCS company is lacking behind in its degree of consulting functions.

Report to the Panel of Directors


The Board of Directors,

Tata consultancy services Ltd.

Subject: Recommendations for the (TCS) business product.

Respected Board members,

In the survey which is attached plus a critical research and evaluation has been done on the organization strategy followed by your company. The study and analysis has been conducted by using various corporate and business strategy tools and methods and the business's past and current strategies have been outlined.

On the foundation of the strengths and the weaknesses of the strategies we've stated so; pursuing are the suggestions which I was able to generate after studying the strategies adopted by the TCS

TCS should create specific value propositions directed directly at the relevant stakeholders such as business professionals, IT personnel in order to boost your market positioning in domestic marketplaces.

The excess coverage on the financial service markets which usually need to be kept confidential is recognized as the primary weakness of TCS to allow them to should focus more on increasing their IP (Intellectual Property) belongings in order to lower the momentous publicity to financial market segments (Tata Consultancy Services Small, 2010).

TCS can also go for isolation strategies with premium services like IT solutions and concentrate on a niche market.

In market Meltdowns (recession) marketing can work as a differentiator. TCS can alter its target from Low priced benefits to high quality services considering quality being pioneer in the (IT) industry.

TCS may offer diverse services to refrain from being over-dependent and increasing contact with the vulnerabilities of few areas like USA.

TCS can take up ADM (Application Development and maintenance) system to increase value added services, BPO to Consulting and Package deal Implementation (Tata Consultancy Services Small, 2010).

Consolidation and tactical acquisitions are crucial for future progress of income. The HP-EDS merger (one of the biggest ever merger in this industry) is proof to this. TCS should plan such opportunities which can be proper fit for the business.

TCS has rightly placed SMB (Small and Medium Businesses) as a separate strategic unit, which should be centered aggressively. They also needs to focus talking to practice on a single business unit (Tata Consultancy Services Limited, 2010).

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