Essay On Tata Motors Strategic Business Analysis

J. R. D. Tata In 1945, established Tata Motors, and while he was in charge of the company, it accomplished great success along the way. The company has employees from over one hundred different countries. Tata Motors is the most well-known and successful of India's many automakers, but the country is home to many others. In the fiscal years 2011-2012, revenue for Tata Motors totaled 19 billion USD. In 2008, the Corporation completed the acquisition of both Jaguar and Land Rover. Because of the trade agreement between India and Australia, Tata Motors is now operating in the Australian market, and the company is making efforts to cultivate its brand. The company made its debut in the market for passenger cars with the introduction of the new Tata Zest mini-sedan. Because it has access to low-cost labor and a steel production facility, Tata Motors has a firm footing in India and can compete successfully there. In addition, the government of India makes available tax-free zones for the location of manufacturing facilities. When compared to the US dollar, the value of a country's currency doesn't fluctuate quite as much as it does in India and other countries. Because of this, Tata Motors is the most competitive company in the industry in shipping automobiles to customers in other countries.

 

The external environment significantly influences the extent to which an organization successfully operates. Many factors in the outside world can either help or hinder the progress of a business, depending on how they are combined. For a business to be successful, it needs to be aware of its environment and be able to adjust to constantly evolving conditions. Decisions made by organizations are impacted by factors that can't be influenced by the organization itself, such as the economy, demographics, law and government, society, and technology (Garg, 2019). These factors can't be controlled.

 

 

Political analysis: Tata Motors is a multinational corporation that maintains operations in a variety of nations across the world. They have achieved a great deal of success in many other regions, including, to name just a few, Europe, Africa, Asia, the Middle East, and Australia. When it comes to the political influences in the area, Tata Motors need to close check on the local rules and regulations, as well as the regulatory organizations that are in charge of regulating the space (Rao‐Nicholson et al., 2019). When handling business, trade, and investment, various municipal governments will employ multiple strategies and points of view. It is impossible to differentiate between the national and local influences on the economy and markets of the local area. For instance, Tata Motors has recently completed the acquisition of Ford's Jaguar and Land Rover brand names. For them to be successful in these newly acquired firms, they need to have a thorough understanding of the rules and regulations that are in place in the UK.

 

The corporate headquarters of Tata Motors are located in Mumbai, India, and are subject to rigorous regulations from the municipal government there. The Indian government oversees and controls all dealerships in the country and the global operations. Every nation has its peculiar laws and protocols to follow. Because Tata Motors has production sites worldwide, it is essential to keep a careful eye on any changes in the political climate. Tata Motors needs to comprehensively understand the economic realities, customer expectations, and governmental limits of each country it serves to continue enjoying such a high level of success on the international market (Rao‐Nicholson et al., 2019). As a consequence of this, the top executives and management of the Corporation have devised a set of flexible regulations to ensure that these regulations are compatible with the numerous nations and continents on which the firm corporation conducts business.

 

Economic factors analysis: The Company's desire to increase its market share in domestic and international markets became more and more apparent as the GDP of the country continued to grow. The expansion of both India's and the United States' economies has significantly contributed to the rise in demand for automobiles manufactured by Tata Motors. Other variables that have played a role in this demand increase include: As a direct result of this, the company has established a wide variety of strategies to serve its clients in other countries better (Malagihal, 2021). These strategies include improving its customer representation and its relationship with those consumers. The increase in per capita income influences the market sectors in which the company competes for automobiles and highlights appropriate channels through which to communicate with customers in India and elsewhere. In addition, it has led to the urbanization of rural areas in India, which provides the firm with the potential to expand its operations into these regions. The Corporation is building more customer-friendly transaction terms to encourage customers to select their products rather than its familiar competitors, such as the Chevrolet, Mitsubishi, or Hyundai Motors.

 

Technological analysis: It is safe to say that both Tata Motors and its parent firm, the Tata Group, have made significant strides in the technical realm. The Tata Group has a strong presence in 20 of the world's most prominent companies and operates in over 100 countries. Tata Motors gains a great deal of knowledge and resources as a result of this, which is beneficial to people working in R&D. Understanding financial pressures and the wants of customers and the ability to translate them into customer-requested products is what has driven this company's rapid expansion." Tata Motors' R&D team is ahead of the curve in India and accurate in every other industry. Tata Motors introduced the 'Tata Indica' in 1998, followed by the 'Tata Nano,' the world's most affordable mass-produced automobile. Manufacturers must now be able to operate their businesses with the maturity of being a grownup. Problems now appear that make it challenging to stay on top of the technological curve. The rising cost of gasoline and the resulting pollution are two of these issues. Tata invested a lot of time and money in R&D to stay ahead of the competition, keep up with global trends, and adapt to shifting economic conditions (Dutta & Snehvrat, 2021). Tata decides to keep pace with scientific advances and conduct extensive research and development to build electric and self-driving vehicles with the lowest environmental effect.

 

Social Analysis: In the current climate, everyone wants to purchase something that is both unique and on-trend at the same time. Customers anticipate that Tata Motors will provide stunning automobiles and variants. The variety of cars offered by the manufacturer is constantly expanding to include numerous functions and amenities buyers appreciate having while behind the wheel (Shafiulla, 2019). Tata Motors Corporation purchases will help market and enjoy their native products, forcing the Corporation to deliver reduced prices for long-term clients outside and Indian citizens.

 

Legal and marketing Analysis: According to the company's history, current technological advances have resulted in significant improvement in the production of self-driven vehicles. This country's government values the ability of its branches worldwide to operate with the help of many of its personnel. For customers across the globe, buying from the company is a no-brainer, as importing from other automakers is a poor choice. If you're looking for a company that hasn't complained about its business operations or customer service, this is the one. In addition, the company has chosen to advertise its product on major social media sites such as Twitter, YouTube, Google Ads, and Facebook to raise awareness. Using these channels has enhanced the company's visibility and enticed new clients. Since the company has developed legitimate business methods and opened numerous offices worldwide, it has improved customer trust and interest in purchasing their goods (Ceil, 2019). The organization is rumored to employ highly skilled engineers known for their expertise in designing and producing automobiles. The business has also made automobiles with opulent interiors and exteriors that appeal to Indian consumers.

 

The Tata Motors Corporation can benefit from conducting either a SWOT analysis or an internal analysis as a tool for planning. The interpretation of an organization's structure and operations is one definition of what constitutes strategic action in a commercial context. The market's opinion of the company will likely improve due to this new information (Jain et al., 2019). Tata Motors has implemented several strategic planning initiatives to successfully enter the Indian market and overcome the challenges with utmost commitment.

 

Strengths: Tata Motors is a significant market taker and dominates most of the automobile sector due to its large market share. Tata Motors is a well-run business with a well-structured workforce, and the Tata production facilities are highly productive. They may enjoy a solid brand name in India. Most importantly, they have a low-cost car with minimal gas consumption: the Tata Nano. It provides Tata Motors with a distinct advantage over its competitors. Tata also benefits from the large market and clients it gains due to this strategy. In dealerships, sales, and service, Tata Motors has 3500 touch tips. Some of Tata's offerings are Tata Magic and Tata Account (Choudhari & Jagnade, 2018). As of right now, there isn't anything comparable on the market. The company's high level of corporate responsibility is also a significant selling element.

 

Additionally, they keep an eye on a specific charity by contributing a portion of their rising stock profits to that cause. This shows that they are primarily concerned with improving the quality of life in their neighborhood. Tata Motors has made a habit of buying up multinational brands to expand its global reach. Tata Motors is a major player in the field of innovation. With the help of events such as international motorsports, the Corporation has gained a comprehensive advertising advantage that ensures more excellent commercial opportunities in participating countries worldwide.

 

 

Weaknesses: Investors' returns on Tata Motors stock are pretty low. Comparing their vehicle to its competitors, it doesn't meet the same level of safety standards. Tata Motors' domestic market product sales fall short of expectations. Every year, India sells a lot fewer cars than one million. If individuals don't want to buy a car, how can a firm make money selling them? When compared to its competitors, the pace of technological innovation is lax. Even though Tata was in charge of Jaguar and Land Rover, the company hasn't gotten enough credit for its work in the premium car industry. Tata's latest technology One of my cats still has a few rough spots that need to be smoothed off before I can enjoy the benefits of compressed air without contributing to air pollution or greenhouse gas emissions. Another limitation is that it's a technical issue. In addition, One CAT only travels 56 kilometers in a city cycle at 62 miles per hour. Tata Motors needs to fix this vulnerability and the emissions issue to attract more customers to buy this new car (Jacob & Bernard, 2021). When it comes to automobiles, for example, a company could choose to focus on the development of electric vehicles that are less polluting than the present automobiles on the market.

 

Opportunities: Automobile manufacturers such as Tata Motors can reap the rewards of low-cost models by expanding into emerging markets where customers can buy them. Despite its low price, this fuel-efficient vehicle has the potential to gain a significant share of the market. Additional export prospects are available to them as well. Tata Motors should focus on luxury vehicle development (Snehvrat & Dutta, 2018). Tata Motors may add additional safety features to their automobiles to increase customer satisfaction. They have collaborative initiatives with other countries. Therefore they can enter new markets.

 

As of 2006, China was the second-largest car market in the world, with an estimated annual sales volume of $8 million. The Chinese government predicts that twenty million autos are expected to be sold in China by 2020. The introduction of Tata Motors' cheapest car on the market will significantly impact the automobile market in China. Tata Motors' sales have risen as a result of this. In 2008, Tata Motors and Ford Motor Company struck an agreement. As a result, Tata Motors will have a tremendous potential to gain expertise and cutting-edge technologies in the premium vehicle industry. As a result of this transaction, they will be able to expand into new markets in Japan, Europe, and the United States (Malagihal, 2019). Tata Motors' ability to grow and prosper in both emerging and developed markets will be considerably enhanced by sharing information between the two firms.

 

Threats: If the companies competing with Tata Motors discover a means to cut their production costs, Tata will have no competitive advantage over its rivals. For the time being, though, their rivals have already started to catch up to them on the market. A standard four-wheeler in Pakistan may be purchased for just $2,100 if bought from the Transmitting Motor Company. In addition to the fact that this automobile may be purchased at a not prohibitively high price, the maker has started shipping it to Sudan, Qatar, and Chile countries. We can only hope that this is the beginning of a new pattern in the automotive industry that produces vehicles at more affordable prices (Balaji et al., 2018). There is also the possibility that the cost of recyclable materials like metal, aluminum, and vinyl would go up, which poses another risk for Tata Motors. The company may lose some of its market shares since there are not enough safety regulations.

 

Tata Motors created the Tata Code of Conduct to promote the company's commitment to the conduct of ethical business practices (CoC). All stakeholders are expected to follow the CoC in the Tata Group, including internal and external parties. By putting clauses in their contracts that require them to do so, the company ensures that its suppliers and contractors behave in a manner that is consistent with the highest ethical standards. The contract would typically include requirements relating to preserving human rights, corrupt practices, and other ethical issues. Training and education on the TCoC are provided to every workforce member, and significant stakeholders are made aware of this regularly (Garg, 2019). The company has a method for reporting concerns or irregularities as part of the Whistle-Blower Policy. Because of this, protections have been established to protect informants from being harassed or abused in any way and to maintain the confidentiality of their information. The Policy protects the Whistle Blower from being subjected to disciplinary action, termination, suspension, or any other form of retaliation, as well as any attempt to restrict the Whistle Blower's ability to carry out the responsibilities or functions of their job, including Protected Disclosures. The responsibility for monitoring the Policy falls on the shoulders of the Chairman of the Audit Committee and the Chief Ethics Officer.

 

Tata Motor's strategy plan strives to identify seamless solutions to operational challenges to grow its market share in the international market. A recent financial year saw a drop in market share of roughly 44 percent in commercial and passenger vehicle markets, respectively. We must revamp our strategy in both the commercial and passenger vehicle segments if we want a 50 percent market share gain. By keeping appropriate supplies on hand and launching new vehicles on schedule, the Corporation will be able to match current market demand. Compliance with automotive safety standards is another area that demands deliberate improvement and evaluation. Customers are already aware of the company's commitment to making automobiles that are more secure for their occupants. Tata can build client confidence in its products by adhering to safety requirements while introducing new brands.

 

Chevrolet, Mitsubishi, and Hyundai Motors are currently challenging the Corporation to design, manufacture, and deliver commercial vehicles (Shafiulla, 2019). Achieving a 50% market share in this section of the vehicle market appears difficult. Despite this, Tata Motor's automotive demand in India is rising. The organization should focus on expanding its regional presence to recapture its lost identity. This strategy will establish a solid groundwork to attract more customers from abroad.

 

After an exhaustive analysis, we can conclude that Tata Motors is the world's most successful automobile manufacturing company. The company has made a name for itself in the automotive sector thanks to its products' high market value, broad distribution network, and dedicated research and development efforts. To keep its market share, it must establish a foothold in the luxury vehicle segment. Finding ways to make acquisitions, improve pricing, and develop more efficient digital marketing strategies would be of tremendous advantage. Tata Motors will be able to save money, expand its customer base, and broaden its product line using digital marketing strategies such as SEO, SMM, media tactics, and SEM, amongst others. If you have the requisite skills in Digital Marketing and have completed the relevant Certified Courses, working for a large IT company like Tata Motors may be an option for you in the future.

 

Balaji, C., Kusuma, G.D. and Kumar, B.R., 2018. Risk and return analysis of equity shares of selected companies in automobile industry. Asian Journal of Multi-Disciplinary Research, 4(2), pp.37-42.

 

 

Ceil, C., 2019. Strategic Analysis of TATA and Samsung. Available at SSRN 3521090.

 

 

Choudhari, A.A. and Jagnade, M.S., 2018. The Analysis of Financial Operations of Tata Motors, Pune Plant. Business Strategies, p.42.

 

 

Dutta, S.K. and Snehvrat, S., 2021. From paradoxes to trade-offs: metaroutine enabled multi-level ambidexterity at Tata Motors, India. International Journal of Organizational Analysis.

 

 

Garg, S., 2019. Internationalization of Tata Motors: strategic analysis using flowing stream strategy process. International Journal of Global Business and Competitiveness, 14(1), pp.54-70.

 

 

Jacob, L.V. and Bernard, M.H., 2021. Competitiveness of Traditional Indian Manufacturers like Tata Motors and Ashok Leyland in the Indian Heavy Commercial Vehicle Segment. In Interdisciplinary Research in Technology and Management (pp. 660-664). CRC Press.

 

 

Jain, M., Shukla, A. and Gupta, S., 2019. A Comparative Study of Financial Performance of Maruti Suzuki India Ltd & Tata Motors Ltd. Int. J. Sci. Res. in Multidisciplinary Studies Vol, 5, p.9.

 

 

Malagihal, S.S., 2021. Strategic Options for Automobile OEMs of Indian Origin to have Sustained Competitive Advantage: A Case of Tata Motors. International Journal of Global Business and Competitiveness, 16(2), pp.139-152.

 

 

Rao‐Nicholson, R., Khan, Z. and Marinova, S., 2019. Balancing social and political strategies in emerging markets: Evidence from India. Business Ethics: A European Review, 28(1), pp.56-70.

 

 

Shafiulla, B., 2019. Tata Zica to Tata Tiago: Digital Marketing Strategy of Tata Motors for Rebranding. IUP Journal of Marketing Management, 18(3), pp.40-59.

 

 

Snehvrat, S. and Dutta, S., 2018. Multi-level ambidexterity in new product introduction at Tata Motors, India: The role of metaroutines. Journal of Organizational Effectiveness: People and Performance.