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Strengths

Strong Domestic Player


Strong Global Brands
Global Presence
M & A helps expanding in new
markets
Research & Development
Activities
Lower Cost Leadership
Brand Value
Weakness
Limited Consumer Base
Brand Positioning
Technology based on older
platforms
Falling Market share & ROI
Design , Quality & Safety
Standards
Manufacturing practices trail
competitors
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
INTERNAL FACTORS
EXTERNAL FACTORS
SWOT ANALYSIS
TOWS Analysis
Internal Factors Strengths
1.Vast Product Portfolio
2.Global Presence
3.Research & Development Activities
4. Management
5.Lower Cost-Peoples Car
Weaknesses
1. Product quality & services
2. Limited Product Portfolio
3. Safety concerns
4. Distribution network


Opportunities
1. Huge Market
2. Demand for smaller cars
3. Brand Value
4. Environment Concerns
5. Focus on fuel efficiency
6. Global presence
SO Strategy
1. Cater to the growing demand.
2. Introduction of fuel efficient
compact cars.
3. Greater R & D for environment
friendly transport alternatives.
4. Low cost cars -NANO

WO Strategy
1. Introduction of newer technology
to compete in the passenger
segment.
2. Enter into luxury segment through
Jaguar Land Rover
3. M & A for sustainability &
environmentalism.
Threats
1. Competition
2. Perception
3. Price rises
ST Strategy
1. Expansion strategy through M &
As. & create unconsolidated
marker space.
2. Make competition irrelevant-
Retailing at little more than a
motorbike.
3. Globalization for sustainability
as low cost producer in market
4. Emerge as a low cost leader
WT Strategy
1. Increase R & D & keep innovating.
2. Strengthen product & service
quality by continuing
improvement to capitalise brand
value.
3. Continue expansion of distribution
networks to prevent reduction of
market share.
4. Improve quality standards & safety
norms & raising safety standards.
External factors
External Factor Evaluation (EFE) Matrix
Key External Factors Weight Rating Weighted Score
Opportunities
Growing Middle Class Income 0.09 4
0.36
Domestic Market Potential 0.09 4
0.36
Focusing on building Luxury Cars 0.07 3
0.21
Environment Friendly Transport alternatives 0.07 3
0.21
Growing innovations 0.08 2
0.16
Expanding Product Portfolio 0.06 3
0.18
Emerging markets 0.06 4
0.24
FDI in heavy commercial vehicle 0.05 3
0.15
Threats
Domestic Competition 0.09 3
0.24
Slowing Economy Gross Domestic Product (GDP) Trend 0.07 4
0.28
Inflation Trends 0.07 2
0.14
Intensive Global Competition 0.07 2
0.14
Govt. Market Regulations makes business difficult 0.05 3
0.15
Wage Inflation 0.05 2
0.1
Monetary & Fiscal Policy Changes 0.02 2
0.04
Legal Barriers- Environmental, TU activities etc. 0.02 4
0.08
Totals 1.00 3.04
Key Internal Factors Weight Rating Weighted Score
Strengths
Tata Safari .05 4
0.2
Tata Nano-Tatas Ipod .07 4
0.28
Established Brand Name .09 4
0.36
Strong Management .09 3
0.27
Global Presence .05 2
0.1
Mergers & Acquisitions .06 3 0.18
Low Cost Leadership in Global Car Manufacturing .07 3
0.21
Research & Development .05 2
0.1
Market Access through M & As .07 3
0.21
Financial Leverage Allows Tata Motors to Make Investments .05 4
0.2
Weaknesses
Limited Consumer Base 0.07 2
0.14
Brand Positioning 0.07 2
0.14
Technology based on Older platforms 0.06 2
0.12
Falling Market Share 0.05 2
0.1
Design, Quality & Safety Standards 0.05 1
0.05
Manufacturing Practices trail competitors 0.05 1
0.05
Totals 1.00 2.71
Internal Factor Evaluation (IFE) Matrix
Internal External Matrix
I
II
Tata Motors
III
IV V VI
VII VIII IX
IFE Weighted Score
E
F
E

W
e
i
g
h
t

S
c
o
r
e

1.0
2.0
3.0
4.0
3.0 2.0 1.0
2.71
3.04
GROW
&
BUILD
MAINTAIN
&
HOLD
DIVEST OR HARVEST
TATA MOTORS should focus
on market penetration,
market development, and
product development
Growth through backward integration, forward
integration, and horizontal integration should
also be considered.
Competitive Profile Matrix (CPM)
Critical Success Factors Weight
Tata Motors Maruti Suzuki
Rating Score Rating Score
Market Share 0.12
1
0.12 4 0.48
Product Quality 0.12
3
0.36 4 0.48
Management 0.08
4
0.32 3 0.24
Financial Position 0.08
4
0.32 3 0.24
Global Expansion 0.07
4
0.28 3 0.21
Price Competitiveness 0.12
4
0.48 3 0.36
Customer Service 0.08
2
0.16 4 0.32
Product portfolio 0.10
1
0.1 4 0.4
Promotion Strategies 0.10
1
0.1 4 0.4
Sales Distribution 0.08
2
0.16 3 0.24
Production Capacities 0.05
4
0.2 2 0.1
Total 1.00 2.60 3.47