The Swot Analysis On Tata Motors Marketing Essay

Published: 2020-08-05 21:00:05
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In this assignment, I am traveling to make SWOT analysis consider to set up current place of TATA MOTORS and how this swot analysis can be used to develop corporate scheme for them.
TATA was established in 1945. It is India ‘s largest commercial vehicle maker and rider vehicles and employs 23000 people. It was the first Indian car company to name on the New York Stock Exchange. Tata Motors began fabricating commercial vehicles in 1954 with a 15-year coaction understanding with Daimler Benz of Germany.
SWOT stands for Strength, Weaknesses, Opportunities and Threats. SWOT analysis is an of import for strategically preparation regulation, which Tata has to encompass. The current strength can go failings of tomorrow. If Tata does non develop schemes to back up those strengths, to change over failings into strength, recognize chances and besides minimise menaces and change over them into chances.
For the method of probe I used Internet, Tata Company ‘s study, some literatures of direction.
Tata Motors is India ‘s largest car company, with amalgamate grosss of $ 4 billion in 2008-09. [ ] It is besides the universe ‘s 4th largest industry and the 2nd largest coach maker. It is financially strong to enable to give its resources to Research & A ; Development. They can obtain good international promotion which has an deduction on the stock exchange for increasing their portion monetary values. [ ]
Tata autos, coachs and trucks are being marketed in several states in Europe, Africa. The Middle East, South
Africa, South Asia, South East Asia and South America. Tata Motors is the state ‘s market leader in commercial vehicles and among the top 3 in rider vehicles. [ ] It has its operations in around 85 states across nine continents. The merchandises and services of the companies of the Tata Group are exported in more than 120 states. Its market leading has increased Tata ‘s international profile hence its stock and portions monetary values. [ ]
Invention and Research and Development
TATA is really advanced company. Tata Motors is advanced through intensive research and development
activities. Tata has enjoyed the prestigiousness of holding developed Tata Ace, India ‘s first autochthonal light commercial vehicle ; Tata Safari, India ‘s first athleticss public-service corporation vehicle ; Tata Indica, India ‘s first indigenously manufactured rider auto ; and the Nano, the universe ‘s least expensive auto. They have been able to do the least expensive auto on the market. This invention gives Tata Motors their chief competitory advantage as they are the first in the market and are able to order the monetary values. ( Competitive Strategies ; Michael E. Porter, 1985 ) Tata Motors makes everything from tractor-trailers to the universe ‘s least expensive auto. This merchandise diverseness grants them a competitory advantage over their rivals because they can fulfill more markets and client demands. [ ]
Corporate Social Responsibility
Tata has really good Corporate Social Responsibility Programmed where it donates from stock additions different charities and has really good recreational installations for their employees and invests in the staff development and besides pays attending to environmental issues. This helps Tata to be a good citizen in the community. [ Catalyst Consortium ( 2000 ) . What is Corporate Social Responsibilities? , ]
Environmental Friendly Policies
Tata Motors is besides a really eco-friendly company. One of their ends is to bring forth an emanation friendly auto, and in 2000 Tata Motors launched the first tight natural air coach. This air coach requires the proprietor to stop up the auto into a standard electric stopper for four hours to make full the air armored combat vehicle. At present pollution doing vehicles has inauspicious effects to the environment and is of great concern to everyone. [ ]
Acquisition and Staff policies
Amalgamations and acquisitions refers to the facet of corporate direction covering with the purchasing, merchandising and combine of different companies help a turning company in a given industry grow quickly without holding to make another concern entity. [ hypertext transfer protocol: // ] Here, Tata Motors is alone in a manner in which when it buys a company. Tata Motors keeps the original direction of that company integral. The company that Tata Motors purchases will look precisely the same in footings of direction and organisational construction as if it was ne’er purchased by Tata Motors. However they will develop the staff into Tata process and corporate civilization. [ ]
Old Models
Tata big scope is based on vey old theoretical accounts expect for the Nano. The car industry is a dynamic one where the major auto industries are conveying in new theoretical accounts every twelvemonth. If you are non competitory so your market is bound to be eroded, because the market wants new designs, forms, and manner in its every theoretical account on a annual footing. [ ]
Ignorance of Tata ‘s engagement in the luxury auto market
Tata has bought the Jaguar and Land Rover trade names, but it has non any more experience in luxury auto section in its ain domestic Indian market. Tata is trade name associated to low-priced auto production and ignorant of their luxury association with European auto manufacturers. Therefore they need to publicise their engagement in the luxury merely the demand to better their Public Relations. [ ]
Bad Safety Standards
Tata Motors faces are its inability to run into safety criterions. Although they have made the most cheap auto out on the market, it has yet to go through all the safety criterions which is a legal demand. Some consumers inquiries Tata ‘s capablenesss and earnestness to bring forth such an cheap auto without cutting corner in footings of safety. [ ]
Inexperience in fabricating rider Cars
Tata Motors merely have been doing rider autos for the about last 10 old ages. This can be viewed as a failing from a client point of view since a decennary does non look like a batch to consumers and therefore they will believe that Tata Motors is inexperient auto fabrication. Consumers will inquire how a auto maker can be in the market for 10 old ages and bring forth the cheapest auto out on the market. How can Tata Motors industry such a inexpensive auto that meets emanation and safety criterions being so immature? This causes consumers to be disbelieving. [ ]
Small Domestic Market & A ; Monetary values
Tata Motors domestic market Car gross revenues in India are less than 1 million yearly yet they expected more than that. Their emanation free claim is non right and that does non assist in being considered as an honorable company. Besides the Indian labor does non stay inexpensive. Now the labour monetary values are traveling up. [ ]
Negative Brand Name
Tat in English means rubbish and this does non assist the trade name image of Tata. Public dealingss are of import to alter that negative feeling of such a planetary participant Tata. [ ]
2.3 Opportunity
Exploitation of big markets in India and China
Tata has a good chance to work large market of India and China with big population. Equally, Tata has market cognition of these markets from emerging economic systems. China ‘s authorities forecasts that demand for autos will exceed 20 million by 2020. If consumers get sophisticated in that gustatory sensations of consumers luxury goods and services. This is a immense chance for Tata Motors because Nano auto is the cheapest auto in the market. [ ]
Acquisition /Take over
Tata is taking over or geting companies ‘ auto fabrication in Britain and South Korea.
As of March 2008 Tata Motors finalized a trade with Ford Motor Company to get the British concerns,
Jaguar Cars and Land Rover. This is a immense chance for Tata Motors since they will get the big
cognition based and engineerings for bring forthing and marketing luxury vehicles. This acquisition helps them plunge into the more mature markets in Japan, Europe and the U.S. The cognition transportation from these two companies will greatly better Tata Motors ability to go on to turn and boom in both development and developed market sections. Tata can profit from sophisticated fabricating techniques from its companies from Europe and South Korea. Tata Motors, which had a 21 % interest in Hispano Carrocera S. A. , Spain, since 2005, has acquired the staying 79 % portions in Hispano by manner of exercising of the bing call option, through common understanding with the other share-holder, Investalia S.A, Spain. [ ] This acquisition demonstrates Tata Motors ‘ on-going committedness to Hispano Carrocera. Ten, Thompson, J.L.Strategic Management: Awareness, Analysis and Change ]
International trade
It has its operations in around 85 states across nine continents. The merchandises and services of the
companies of the Tata Group are exported in more than 120 states. [ ]
2.4 Menace
Manufacturing proficient experience
The company is freshly coming in auto fabrication concern whereas the other rivals are already
established for 40, 50 or more old ages. [ ] Therefore Tata Motors Limited has to catch up in footings of quality and thin production techniques. The company has concentrated to the money-making and little vehicle sections, so it has left itself from the competition of abroad companies lifting in Indian luxury sections. [ ]
Additions in Raw stuffs and Labour Costss
Today the monetary values of planetary economic system are increasing, which may make menaces to Tata Motors Limited. The monetary value of steel and aluminium is increasing, which put the force per unit area on them to believe about the costs of production. Many of Tata ‘s merchandises run on Diesel fuel which is going expensive globally and within its traditional place market. [ ] Besides the labor cost is increasing now.
Industrial espionage rational belongings rights
The obvious menace to Tata Motors is rational belongings rights. Tata invented the cheapest auto on the market and every car maker wants to cognize how Tata did it. This is a immense menace to Tata Motors because at first they had low competition, but one time other auto industries find out how they invented such a low cost auto, and so these companies excessively will leap on board and plan their ain line of low cost cars. Other companies are get downing to vie for some of this market portion. In fact, the Pakistan ‘s Transmission Motor Company has built a basic four-wheeler for merely $ 2,100. This auto is well inexpensive and the Pakistan Transmission Motor company started exporting them to Sudan, Qatar, and Chile. This is traveling to be the beginning of new emerging auto industries that will be bring forthing low priced autos. [, ]
Rising fuel monetary values
Another obvious menace is that covering with gas monetary values. Gas monetary values continue to lift and the Nano requires gas, but those who purchase the Nano likely do non hold a batch of money and so if gas monetary values maintain leaping up so that market of consumers will non be able to buy the auto. If OneCAT can be made every bit cheaply as the Nano so that will profit the consumers even more because they will acquire a auto that does non run on gas and it will be inexpensive to buy. On the other manus, gas company will non desire OneCAT to hit the market because there will be no net incomes to be made off the vehicle. Gas companies have a batch of say over the car industry so this could be a large menace. [ ]
Another chief concern that Tata Motors faces is that inexpensive autos in India will hold an inauspicious consequence on pollution and planetary heating because most of the population will be able to afford the autos. With more people driving autos at that place will be more accidents and deceases, every bit good as higher dodo fuels leaked into the environment doing even more pollution so there already is. [ ]
Tata Motors is an overall strong company that has found strength and enlargement through its parent company, Tata Group, but besides through its legion acquisitions and amalgamations. Although Tata Motors stock monetary values have fallen since the start of the 2008 twelvemonth due to suggestions that Tata Motors is overreaching by adding luxury trade names to partner off with the Nano, the universe ‘s cheapest auto. It is an interesting SWOT analysis is inters detonating the current place. Tata is keeping in the market. It has grown from a little company based in India to planetary company. It grew a bring forthing few merchandises now. To do this assignment I put my attending to all angles of Tata Company found the Strength, Weaknesses, Opportunities and Threats.
4. Bibliography
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