SWOT ANALYSIS

Strengths

INTERNAL FACTORS Weakness

Limited Consumer Base Brand Positioning Technology based on older platforms Falling Market share & ROI Design , Quality & Safety Standards Manufacturing practices trail competitors

Strong Domestic Player Strong Global Brands Global Presence M & A helps expanding in new markets Research & Development Activities Lower Cost Leadership Brand Value

Opportunities
Entering into third world countries Enter New Markets through JVs Focus in developing LUXURY CARS Environment friendly transport alternatives. Focus on both Passenger & Commercial Vehicles Fuel Milo fuel efficient buses.

Threats
Increasing competition Passenger Vehicles Sustainability and environmentalism- Extra Cost for this low cost producer Overseas Competition in Luxury Brands. Rising Global & Domestic Prices Legal Barriers

EXTERNAL FACTORS

TOWS Analysis
Internal Factors Strengths 1.Vast Product Portfolio 2.Global Presence 3.Research & Development Activities 4. Management 5.Lower Cost-Peoples Car
SO Strategy Cater to the growing demand. Introduction of fuel efficient compact cars. Greater R & D for environment friendly transport alternatives. Low cost cars -NANO ST Strategy Expansion strategy through M & As. & create unconsolidated marker space. Make competition irrelevantRetailing at little more than a motorbike. Globalization for sustainability as low cost producer in market Emerge as a low cost leader 1. 2. 3. 4.

Weaknesses Product quality & services Limited Product Portfolio Safety concerns Distribution network

External factors Opportunities Huge Market Demand for smaller cars Brand Value Environment Concerns Focus on fuel efficiency Global presence

1. 2. 3. 4. 5. 6.

1. 2. 3. 4.

1.

2. 3.

WO Strategy Introduction of newer technology to compete in the passenger segment. Enter into luxury segment through Jaguar Land Rover M & A for sustainability & environmentalism. WT Strategy Increase R & D & keep innovating. Strengthen product & service quality by continuing improvement to capitalise brand value. Continue expansion of distribution networks to prevent reduction of market share. Improve quality standards & safety norms & raising safety standards.

1.

1. 2.

1. 2. 3.

Threats Competition Perception Price rises

2.

3.

3. 4.

4.

External Factor Evaluation (EFE) Matrix

Key External Factors Weight 0.09 0.09 0.07 0.07 0.08 0.06 0.06 0.05 0.09 Rating 4 4 3 3 2 3 4 3 3 Weighted Score 0.36 0.36 0.21 0.21 0.16 0.18 0.24 0.15 0.24 0.28 0.14 0.14 0.15 0.1 0.04 0.08 3.04

Opportunities
Growing Middle Class Income Domestic Market Potential Focusing on building Luxury Cars Environment Friendly Transport alternatives Growing innovations Expanding Product Portfolio Emerging markets FDI in heavy commercial vehicle

Threats
Domestic Competition

Slowing Economy Gross Domestic Product (GDP) Trend Inflation Trends

Intensive Global Competition Govt. Market Regulations makes business difficult Wage Inflation Monetary & Fiscal Policy Changes Legal Barriers- Environmental, TU activities etc. Totals

0.07 0.07
0.07 0.05 0.05 0.02 0.02 1.00

4 2
2 3 2 2 4

Internal Factor Evaluation (IFE) Matrix

Key Internal Factors Weight .05 .07 .09 .09 .05 .06 .07 .05 .07 .05 Rating 4 4 4 3 2 3 3 2 3 4 Weighted Score 0.2 0.28 0.36 0.27 0.1 0.18 0.21 0.1 0.21 0.2

Strengths
Tata Safari Tata Nano-Tatas Ipod Established Brand Name Strong Management Global Presence Mergers & Acquisitions Low Cost Leadership in Global Car Manufacturing Research & Development Market Access through M & As Financial Leverage Allows Tata Motors to Make Investments

Weaknesses
Limited Consumer Base
Brand Positioning Technology based on Older platforms Falling Market Share Design, Quality & Safety Standards Manufacturing Practices trail competitors Totals

0.07
0.07 0.06 0.05 0.05 0.05 1.00

2
2 2 2 1 1

0.14 0.14 0.12 0.1 0.05 0.05 2.71

Internal External Matrix

IFE Weighted Score
3.0 4.0 GROW

2.71
&

2.0

1.0

3.04

EFE Weight Score

II Tata Motors
V &

BUILD

III

3.0

IV
2.0 HOLD

VI
MAINTAIN

VII
1.0 HARVEST

VIII
OR

IX
DIVEST

Growth through backward integration, forward integration, and horizontal integration should also be considered.

TATA MOTORS should focus on market penetration, market development, and product development

Competitive Profile Matrix (CPM)

Tata Motors Critical Success Factors Weight Maruti Suzuki

Rating
Market Share Product Quality Management Financial Position Global Expansion Price Competitiveness Customer Service Product portfolio Promotion Strategies 0.12 0.12 0.08 0.08 0.07 0.12 0.08 0.10 0.10 1 3 4 4 4

Score
0.12 0.36 0.32 0.32 0.28 0.48 0.16 0.1 0.1

Rating
4 4 3 3 3 3 4 4 4

Score
0.48 0.48 0.24 0.24 0.21 0.36 0.32 0.4 0.4

4
2 1 1 2 4

Sales Distribution
Production Capacities

0.08
0.05 1.00

0.16
0.2 2.60

3
2

0.24
0.1 3.47

Total