SWOT Analysis of TATA MOTORS

Strengths

The internationalization strategy thus so much has been to stay native managers in new acquisitions, and to only transplant a couple of senior managers from Asian nation into the new market. The benefit is that Tata has been in a position to exchange experience. For example after the Daewoo acquisition the Indian company leaned work discipline and the way to urge the ultimate product ‘right 1st time.’

The company contains a strategy in place for succeeding stage of its expansion. Not only is it focusing upon new merchandise and acquisitions, but it additionally has a programme of intensive management development in place so as to determine its leaders for tomorrow. The company has had a successful alliance with Italian mass producer act since 2006. This has enhanced the product portfolio for Tata and act in terms of production and data exchange. For example, the Fiat Palio vogue was launched by Tata in 2007, the companies have an agreement to create a pick-up targeted at Central and South America.

Weaknesses

The company’s passenger automotive merchandise are primarily based upon third and fourth generation platforms, which place Tata Motors restricted at a disadvantage with competitor automotive makers.

Despite buying the panther and Land Rover brands; Tat has not got a foothold within the luxury automotive section in its domestic, Indian market. Is the brand related to business vehicles and inexpensive rider cars to the extent that it's isolated itself from moneymaking segments in a very a lot of aspiring India?

One weakness which is usually not recognized is that in English the word ‘tat’ suggests that rubbish. Would the brand sensitive British shopper ever purchase into such a brand? perhaps not, but they would place act, Jaguar and Land Rover

Opportunities

In the summer of 2008 Tata Motor’s announced that it had with success purchased the Land Rover and panther brands from Ford Motors for Great Britain £2.3 million. Two of the World’s luxury automotive whole have been value-added to its portfolio of brands, and will doubtless off the corporate the prospect to plug vehicles within the luxury segments.

Tata Motors Limited noninheritable  Daewoo Motor’s business vehicle business in 2004 for around USD $16 million.

Nano is the cheapest automotive within the World – marketing at very little quite a bike. Whilst the World is preparing for greener alternatives to gas-guzzlers, is the Nano the solution in terms of concept or brand? Incidentally, the new Land Rover and Jaguar models can price up to eighty five times a lot of than a customary Nano!

The new global track platform is concerning to be launched from its Korean (previously Daewoo) plant. Again, at a time when the World is probing for environmentally friendly transport alternatives, is now the right time to maneuver into this segment? the solution to the current question (and the one above) is that new and rising industrial nations like Asian nation, South Korea and China can have a thirst for inexpensive rider and business vehicles. These are the opportunities. However the company has place in situ a awfully proactive company Social Responsibility (CSR) committee to deal with potential ways which will build is operations a lot of property.

The range of Super grain sorghum fuel economical buses ar power-driven by super-efficient, eco-friendly engines. The bus has optional organic clutch with booster assist and higher air intakes that can cut back fuel consumption by up to 100 percent.

Threats

Other competitor automotive makers have been within the coach business for forty, 50 or a lot of years. Therefore Tata Motors restricted has to catch up in terms of quality and lean production.

Sustainability and environmentalism might mean additional prices for this inexpensive producer. This could impact its underpinning competitive advantage. Obviously, as Tata globalises and buys into other brands this drawback might be eased.

Since the company has focused upon the business and tiny vehicle segments, it has left itself receptive competition from overseas companies for the rising Indian luxury segments. For example ICICI bank and DaimlerChrysler have invested in a very new Pune-based plant which can build 5000 new Mercedes-Benz once a year. Other players developing luxury cars targeted at the Indian market embody Ford, Honda and Toyota. In fact the whole Indian market has become a target for alternative world competitors together with Maruti Udyog, General Motors, Ford and others.

Rising prices within the world economy might create a threat to Tata Motors restricted on one or two of fronts. The price of steel and aluminium is increasing putt pressure on the prices of production.