The Swot Examination On Tata Motors Marketing Essay

In this task, I am going to do SWOT analysis consider to establish current position of TATA MOTORS and exactly how this swot examination may be used to develop corporate strategy for them.

TATA was established in 1945. It really is India's largest commercial vehicle company and traveler vehicles and employs 23000 people. It had been the first Indian car company to list on the New York STOCK MARKET. Tata Motors started out manufacturing commercial vehicles in 1954 with a 15-12 months collaboration contract with Daimler Benz of Germany.

SWOT means Strength, Weaknesses, Opportunities and Threats. SWOT analysis is an very important to strategically formulation guideline, which Tata has to embrace. The existing strength can become weaknesses of tomorrow. If Tata does not develop strategies to support those advantages, to convert weaknesses into durability, realize opportunities and also minimize dangers and convert them into opportunities.

For the method of analysis I used Internet, Tata Company's survey, some literatures of management.

Tata Motors is India's most significant automobile company, with consolidated income of $ 4 billion in 2008-09. [www. tatamotors. com] Additionally it is the world's 4th largest manufacture and the 2nd largest bus producer. It is economically strong to permit to spend its resources to Research & Development. They are able to obtain good international publicity which has an implication on the stock exchange for increasing their show prices. [ www. tatamotors. com]

Tata autos, buses and trucks are being marketed in a number of countries in Europe, Africa. The Middle East, South

Africa, South Asia, South East Asia and SOUTH USA. Tata Motors is the country's market innovator in commercial vehicles and among the most notable 3 in passenger vehicles. [www. tatamotors. com/press_release] It includes its procedures in around 85 countries across ix continents. The products and services of the firms of the Tata Group are exported in more than 120 countries. Its market command has increased Tata's international account hence its stock and stocks prices. [www. tatamotors. com]

Innovation and Research and Development

TATA is very impressive company. Tata Motors is progressive through intense research and development

activities. Tata has appreciated the prestige of having developed Tata Ace, India's first indigenous light commercial vehicle; Tata Safari, India's first sports activities utility vehicle; Tata Indica, India's first indigenously manufactured passenger car; and the Nano, the world's most affordable car. They have got been able to make the most affordable car on the market. This innovation offers Tata Motors their main competitive advantage as they are the first in the market and have the ability to dictate the costs. (Competitive Strategies; Michael E. Porter, 1985) Tata Motors makes everything from tractor-trailers to the world's most affordable car. The product diversity grants or loans them a competitive benefit over their competition because they can satisfy more market segments and customer needs. [www. tatamotors. com]

Corporate Social Responsibility

Tata has very good Commercial Friendly Responsibility Programmed where it donates from stock raises different charities and has very good recreational facilities for his or her employees and invests in the personnel development and also gives focus on environmental issues. This helps Tata to be always a good citizen in the community. [Catalyst Consortium (2000). "What is Corporate Social Duties?", www. tatamotors. com]

Environmental Friendly Policies

Tata Motors is also a very eco-friendly company. One of their goals is to produce an emission friendly car, and in 2000 Tata Motors launched the first compressed natural air bus. This air bus requires the owner to plug the car into a typical electric plug for four hours to fill mid-air tank. At the moment pollution leading to vehicles has undesireable effects to the environment and is also of great concern to everyone. [www. tatamotors. com]

Acquisition and Staff policies

Mergers and acquisitions refers to the facet of corporate management dealing with the buying, reselling and incorporating of different companies help an evergrowing company in confirmed industry grow speedily without having to create another business entity. [http://en. wikipedia. org/wiki/Mergers_and_acquisitions] Here, Tata Motors is unique in a way where when it buys a firm. Tata Motors retains the initial management of this company intact. The company that Tata Motors buys will look exactly the same in terms of management and organizational framework as though it was never purchased by Tata Motors. However they will train the personnel into Tata method and corporate culture. [www. tatamotors. com]


Old Models

Tata large range is based on vey old models expect for the Nano. The auto industry is a vibrant one where in fact the major car companies are bringing in new models every year. If you're not competitive in that case your market is bound to be eroded, because the marketplace would like new designs, shapes, and style in its every model on the yearly basis. [www. marketingteachers. com]

Ignorance of Tata's engagement in the blissful luxury car market

Tata has bought the Jaguar and Land Rover brands, but it has not any longer experience in luxury car segment in its local Indian market. Tata is brand associated to low-cost car production and ignorant with their luxury association with Western car suppliers. Therefore they have to publicize their engagement in the luxury this is the need to improve their PR. [www. tatamotors. com]

Bad Protection Standards

Tata Motors encounters are its incapability to meet safety criteria. Although they have made the most inexpensive car out on the market, it includes yet to move all the protection standards which really is a legal necessity. Some consumers questions Tata's capabilities and sincerity to produce such an inexpensive car without reducing corner in terms of basic safety. [www. marketingteachers. com]

Inexperience in making passenger Cars

Tata Motors have only been making passenger autos for the approximately previous ten years. This can be viewed as a weakness from a customer standpoint since a decade does not seem like a great deal to consumers and therefore they will think that Tata Motors is inexperienced car processing. Consumers will ponder how a car producer can maintain the market for 10 years and produce the least expensive car from the market. How do Tata Motors production such a cheap car that satisfies emission and safe practices standards being so young? This causes consumers to be skeptical. [www. marketingteachers. com]

Small Domestic Market & Prices

Tata Motors local market Car sales in India are less than 1 million on a yearly basis yet they expected more than that. Their emission free state is not appropriate and that does not assist in being regarded as a genuine company. Also the Indian labour does not stay cheap. Now the labor prices 're going up. [www. tatamotors. com]

Negative Brand Name

Tat in British means rubbish and this does not help the brand image of Tata. Pr are important to improve that negative impression of such a global player Tata. [www. marketingteachers. com]


Exploitation of large markets in India and China

Tata has a good chance to exploit big market of India and China with large population. Similarly, Tata has market understanding of these marketplaces from growing economies. China's federal government forecasts that demand for automobiles will top 20 million by 2020. If consumers get advanced in that likes of consumers luxury goods and services. That is a huge opportunity for Tata Motors because Nano car is the cheapest car in the market. [www. marketingteachers. com]

Acquisition /Take over

Tata is taking over or acquiring companies' car production in Britain and South Korea.

As of March 2008 Tata Motors finalized a offer with Ford Motor Company to obtain the British businesses,

Jaguar Cars and Land Rover. This is a huge opportunity for Tata Motors given that they will acquire the large

knowledge based and technology for producing and marketing luxury vehicles. This acquisition helps them dive into the more mature marketplaces in Japan, European countries and the U. S. The knowledge transfer from these two companies will greatly improve Tata Motors ability to continue to develop and flourish in both developing and developed market segments. Tata can benefit from sophisticated processing techniques from its companies from Europe and South Korea. Tata Motors, which had a 21% stake in Hispano Carrocera S. A. , Spain, since 2005, has bought the rest of the 79% stocks in Hispano through exercise of the existing call option, through mutual agreement with the other share-holder, Investalia S. A, Spain. [www. tatamotors. com/press_release] This acquisition demonstrates Tata Motors' ongoing determination to Hispano Carrocera. X, Thompson, J. L. Strategic Management: Understanding, Research and Change]

International trade

It has its businesses in around 85 countries across ix continents. The products and services of the

companies of the Tata Group are exported in more than 120 nations. [ www. tatamotors. com ]


Manufacturing complex experience

The company is newly coming in car creation business whereas the other competition are already

established for 40, 50 or more years. [www. marketingteachers. com/swot/tata_motors_swot. html] Therefore Tata Motors Limited has to capture up in terms of quality and lean production techniques. The business has focused to the money-making and small vehicle sections, so it has remaining itself from the competition of overseas companies increasing in Indian luxury sections. [www. marketingteachers. com]

Increases in Recycleables and Labour Costs

Today the prices of global current economic climate are increasing, which may create hazards to Tata Motors Limited. The price of steel and metal is increasing, which put the pressure about them to think about the expenses of production. A lot of Tata's products operate on Diesel petrol which is now expensive globally and within its traditional home market. [www. marketingteachers. com/swot/tata_motors_swot. html] Also the labour cost is increasing now.

Industrial espionage intellectual property rights

The obvious menace to Tata Motors is intellectual property rights. Tata invented the least expensive car on the marketplace and every auto manufacturer wants to know how Tata did it. This is a huge threat to Tata Motors because initially that they had low competition, but once other car makes learn how they invented such a low cost car, and then these businesses too will join plank and design their own line of low cost cars. Others are needs to compete for a few of the market share. Actually, the Pakistan's Transmission Motor Company has built a simple four-wheeler for only $2, 100. This car is noticeably cheap and the Pakistan Transmitting Motor company started out exporting those to Sudan, Qatar, and Chile. That is heading to be the start of new rising car manufactures which will be producing reasonably priced autos. [www. marketingteachers. com, www. tatamotors. com]

Rising gasoline prices

Another obvious hazard is that dealing with gas prices. Gas prices continue to rise and the Nano requires gas, but those who choose the Nano probably don't have a lot of money and so if gas prices keep jumping up then that market of consumers will never be able to purchase the car. If OneCAT can be produced as cheaply as the Nano then that will profit the consumers even more because they'll get an automobile that does not operate on gas and it'll be cheap to purchase. Alternatively, gas company will not want OneCAT to hit the market because there will be no profits to be produced off the vehicle. Gas companies have a whole lot of say over the auto industry so this could be a huge menace. [www. tatamotors. com]


Another main concern that Tata Motors encounters is that cheap automobiles in India will have an adverse effect on pollution and global warming because the majority of the population will be able to afford the autos. With more people driving automobiles you will see more mishaps and fatalities, as well as higher fossil fuels leaked into the environment triggering even more air pollution then there already is. [www. marketingteachers. com]


Tata Motors can be an overall strong company that has found strength and expansion through its father or mother company, Tata Group, but also through its numerous acquisitions and mergers. Although Tata Motors stock prices have fallen since the start of 2008 year due to suggestions that Tata Motors is overreaching by adding luxury brands to pair with the Nano, the world's cheapest car. It is a fascinating SWOT examination is inters exploding the current position. Tata is retaining on the market. It has grown from a tiny company based in India to global company. It grew a producing few products now. To create this task I put my focus on all angles of Tata Company found the Durability, Weaknesses, Opportunities and Hazards.

4. Bibliography

www. tatamotors. com

www. marketingteacher. com

http://en. wikipedia. org/wiki/Mergers_and_acquisitions

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