VALUE CHAIN

The value chain of Tata Motors includes the followings

Inbound Logistics
Ø Long term contract with service provider’s – transporters and agents.
Ø Personnel at regional offices for over seeing the smooth transit of goods.
Ø Transparency and monitoring through deployment of IT – all transactions through SAP.
Ø DTL supplies for critical high value items.
Operations
Ø Capital Equipment Manufacturing division – tooling development capabilities of global standard.
Ø Apprentice Trainee Course – ensuring stable source of skilled manpower.
Ø Kaizen & TPM team – continuous drive to improve efficiencies.
Ø Automated manufacturing processes.
Ø Distributed manufacturing – Assembly units at South Africa, Thailand, Bangladesh, Brazil etc.
Ø Maintenance – technical competence.
Ø Capacity Utilization – Mercedes Benz cars make use of Tata Motors paint shop facilities.
Outbound Logistics
Ø Stockyards, all across the country.
Ø Long term contracts with transporter’s – higher volume of business to transporters ensures competitive price.
Ø Regional Sales Office and Vehicle Dispatch Section linked through SAP.
Ø Efficient security system for prevention of any kind of pilferage.
Marketing & Sales
Ø Structured approach to understanding the requirements of individual customers – QFD’s conducted at regular intervals.
Ø Clear identification of product requirements, leading to development of innovative products – Tata 207 DI, Tata Ace
Ø Pan India presence and global footprint.
Ø Independent teams for addressing the requirements of institutional customers – Defense, State Transport Units
Ø Helping to augment the scarce resources – Fiat selling vehicles through Tata dealerships, in return Tata has access to Fiat’s technolog
Ø Quick assessment of the changing market dynamics and consumer preferences – Tata 407 LCV
Ø Large network of dealers – use of technology : DMS.
Service
Ø Easy availability of spare parts.
Ø Efficient collection of data from field and communication to the respective plants.
Ø Pan India presence, as well as global presence.
Ø Large network of workshops – Dealer workshops and TASS.
Ø Training facilities – for dealer end and TASS personnel.
Procurement
Ø E procurement initiative.
Ø Global Sourcing Team – China , a key destination for sourcing essential items like tires, power steering units etc., Steel procured from
Ø Long term relationships with a stable and loyal pool of suppliers.
Ø Technology driven procurement – SAP and VCM.
Ø Strategic subsidiaries & JV’s – TACO group of companies , Tata Cummins
Ø Centralized Strategic Sourcing for key components – FIP’s, Steel etc.
Ø Group resources – Tata Steel and Tata International .
Ø Localized supplier base at mfg. locations – low inventory levels.
Technology Development
Ø Approximately 2% of the annual profits of the company invested in research and development.
Ø Knowledge portal – helps employees keep abreast with the latest technologies.
Ø Extensive prototype building and testing facilities.
Ø Strategic partnerships – MDI (France), Fiat etc.
Ø Formal benchmarking process.
Ø “Technology Day” organized across all plant locations.
Human Resource
Ø Vast pool of technically competent engineers and managers.
Ø Focus on development of technical capabilities – Technical Training Center’s, Alliance with technical Institutes
Ø Focus on development of managerial capabilities – MTC’s , TMTC, executive training programs at premier business schools
Ø Career advancement schemes – ESS, FTSS
Firm Infrastructure
Ø Multi – Location facilities
Ø Strong leadership – under the aegis of Tata Sons
Ø Best in class prototype building facilities
Ø Technology – SAP
Ø Large product portfolio

CORE COMPETENCY

Tata Motors is able to maintain, as well as increase, their market shareby capitalizing on their core competencies. Tata Motors is active, competitive,
many different activities going on inall areas of the company. As a result of the ever evolving automotive industry Tata Motors must always be c
improvements in technology through research and development. One way that TataMotors has done this is by producing one of the most efficient an
competency that Tata Motors has is embedded in their company structure and philosophy. Another core competency that TataMotors holds is bein
market but also the dynamics of emerging and developing markets.This market understanding and knowledge allows Tata Motors to manufacture the
take advantage of the strong labor base in India.

TATA NANO - BLUE OCEAN STRATEGY

Different Strategic Group within the same Industry and new buyer group

a. Many customers in the lower income group buy motorcycles for commuting and better fuel efficiency taking a risk with their safety.
b. Sometimes, the whole family travels on a motorbike flouting all norms and safety regulations just because the other 4 wheeled modes of transpo
c. Maintenance and after sales costs are unaffordable for these non customers.
d. Non customers who dream of buying a car.
e. Non customers who own a car and want to buy a second one.

Features which lead to change of preference (Buying of Motorcycle):

1. Higher Load bearing capacity
2. Better fuel efficiency.
3. Better Aesthetics
4. Better Maneuverability in traffic.
5. Easy handling.

Eliminate Raise
· Air conditioner · Mileage
· Fog Lights · Financing options
· Air bags
· Child Safety
Reduce Create
· Price · Rear engine
· Engine power · Monthly Installments for payment
· Torque
· Driving pleasure
· Gear/Speed
· Suspension
· Interior
Upholstery

Tata Nano is really a breakthrough in frugal engineering where innovation is driven by cost savings and sheer ingenuity. Nano's efficiency came from in
The innovation is not technology driven but surely a much futuristic way to look at to cater to the needs of many non-customers and potential custom
The idea of Nano completely changed the paradigm shift of the automotive industry by thinking beyond the conventional wisdom of owing a car being
The price of the car is what the customer pays in the beginning but later on, only the performance of the car matters. Beyond price, huge importance
As a part of strategy (this is just one example), Tata Motors filed for 34 patents associated with the design of the Nano in contrast to roughly 280 paten
Clearly, finding out ways to reduce cost do offer unprecedented value to the company and helps company in achieving profitable growth. Not only this
s competitive price.

nducted at regular intervals.

ts – Tata 207 DI, Tata Ace

State Transport Units

return Tata has access to Fiat’s technology and unutilized capacity.

er steering units etc., Steel procured from Belarus

technical Institutes
ams at premier business schools
encies. Tata Motors is active, competitive, and dynamic in all aspects of the automotive industry, which means that there must be
tive industry Tata Motors must always be changing and one way to stay at the forefront of the industry is to make continuous
by producing one of the most efficient and low cost vehicles on the market. Acquisitions, mergers, and expansion is another core
ompetency that TataMotors holds is being located in the India. This location has allowed them to understand not only the Indian
ge allows Tata Motors to manufacture their products at lower costs, sell them to emerging markets while making profits as well as
ge of the strong labor base in India.

king a risk with their safety.

se the other 4 wheeled modes of transport are out of their reach.
 ingenuity. Nano's efficiency came from including only those items that were necessary for basic transportation and eliminating the not so relevant ones thus resulting in c
any non-customers and potential customers over a period of time.
conventional wisdom of owing a car being a luxurious dream.
matters. Beyond price, huge importance was given to the balanced design of Nano. Catering the three key requirements - cost, regulatory requirements and acceptable p
the Nano in contrast to roughly 280 patents awarded to General Motors (GM) every year. The rationale behind the fact is that some of the most valuable innovations take
achieving profitable growth. Not only this, such ideas induce the competitors to think out of the box as well and thereby there are chances of seeing many more blue ocea
e not so relevant ones thus resulting in cost savings. Nano is much lighter compared to comparable models with limited features but still maintains Indian emission, polluti

ulatory requirements and acceptable performance standards, Nano proved to create an entirely new blue ocean than still trying to fight it out in red ocean and thus contr
e of the most valuable innovations take existing, patented components and remix them in ways that more effectively serve the needs of large numbers of customers.
chances of seeing many more blue ocean scenarios in the market.
t still maintains Indian emission, pollution, and safety standards and provides an attractive fuel efficiency levels owing to innovative ideas.

fight it out in red ocean and thus contributing to company’s growth and success.
ds of large numbers of customers.
VALUE CHAIN
VALUE CHAIN

Refer to the Word Doc

VALUE CHAIN

Primary activities:
Inbound logistics:
Toyota has managed  a  large supply chain, It receives parts from thousands of suppliers located from around the globe

Outbound logistics:
Toyota has parts and logistics centers in various nations around the globe. It ships thousands of parts and orders each d

Operations:
Toyota is a global brand with its operations spread throughout the world. It has its headquarters in Japan. The brand als

Marketing & sales:

Toyota is a global brand but the level of competition in the industry is very high. It is facing stiff competition from the o

Support Activities:
Technology :
Toyota is a major vehicle brand known worldwide for its exceptional engineering and technology. Apart from great prod

Infrastructure:
Toyota has maintained  a large infrastructure globally. From its headquarters in Japan to North and South Americas as w

HRM:
Toyota had 364.5K employees in 2017. The brand believes in a  human centric approach to value creation and therefore

Procurement:
Toyota procures  raw material from thousands of suppliers around the world. In 2009, the brand formulated a specific ‘T
s located from around the globe. It has handled its inbound logistics efficiently. Its worldwide network of distribution centers and warehou

sands of parts and orders each day from its network of warehouses and distribution centers. Toyota notes on its website, “The Toyota Par

quarters in Japan. The brand also serves its customers across the globe through a  large and global distribution network. Apart from its s

ing stiff competition from the other vehicle brands. To retain its market share and customer base,  Toyota makes major investments in m

chnology. Apart from great production technology, the brand has increased its investment in technological innovation for growth. It has it

North and South Americas as well as Asia and Europe, Toyota has maintained an extensive presence throughout the globe. Currently led

h to value creation and therefore focuses on the development of its human resources. It follows the philosophy of human centered Monoz

e brand formulated a specific ‘Toyota way of purchasing’ that lays down the policies and principles that the procurement staff must follo
distribution centers and warehouses receives parts from the suppliers.

s on its website, “The Toyota Parts Centre Europe is its central distribution centre, at the core of its parts supply chain. The centre is locat

bution network. Apart from its several manufacturing and R&D sites, the brand  has several parts distribution centers a various locations

a makes major investments in marketing and promotions. Toyota uses a mix of traditional and modern advertising mediums for promotin

al innovation for growth. It has its own research centers and has entered into partnership with institutes like MIT and Stanford for faster i

oughout the globe. Currently led by Akio Toyoda, the brand has an impressive presence in most of the major markets of the world.

sophy of human centered Monozukuri. In the automotive industry, smart and able human capital can be a major source of competitive a

he procurement staff must follow. Through its procurement strategy, Toyota has always worked towards contributing to local economies.
supply chain. The centre is located in Belgium and ships thousands of parts every day to its regional depots across the entire region”.

ution centers a various locations throughout the globe.

vertising mediums for promoting its brand and products. Apart from its own website and social media, the brand also uses its sales and

ike MIT and Stanford for faster innovation. Every year Toyota invests a large sum in R&D for innovation in AI and Robotics.

ajor markets of the world.

a major source of competitive advantage.

contributing to local economies.

ots across the entire region”.

he brand also uses its sales and distribution channel for marketing. Events like races and motor shows are also an important method of p

n AI and Robotics.
e also an important method of promotion for Toyota. In 2015 and 2016, the brand invested more than 4 Billion US dollars in advertising.
Billion US dollars in advertising.
VALUE CHAIN

Primary activities:
Inbound logistics:
GM relies on a  global supply chain for raw materials and vehicle components.  It has a large nap global supply chain fr

Operations:
GM has its manufacturing facilities around the world. Its manufacturing, distribution, warehousing, assembly and office

Outbound logistics:
GM has  large distributions channel and dealer network. Its vehicles are shipped to the dealers from its manufacturing

Marketing & Sales:

the brand also spends on marketing of its vehicles and brand. Its advertising and promotions expenditures for the year

Support Activities:

Technology:
GM invests a lot in new technologies and has excellent manufacturing and distribution facilities. In 2016, the brand spe

HRM :
GM also focuses on managing its HR innovatively. As of December 31 2016, it had 135000 hourly employees and 90000

Procurement:
The procurement team of General Motors procures raw materials from its suppliers located around the world.

Firm Infrastructure:
The firm has managed a large infrastructure that includes its manufacturing, distribution and warehousing facilities as

Financial Analysis:
the net sales and revenue of General Motors have kept increasing over the past five years. In 2016, its net sales and re
 nap global supply chain from where it sources raw materials which are shipped to its production facilities.

using, assembly and office facilities are located all around the world in 61 countries. Outside US it has manufacturing and assembly facili

rs from its manufacturing facilities and warehouses for selling to the customers. Apart from that it sells to its corporate customers and fl

expenditures for the year 2016 equalled 5.3 Billion dollars.

es. In 2016, the brand spent 8.1 Billion dollars on research and advertising.

ourly employees and 90000 salaried employees.

round the world.

warehousing facilities as well as offices around the world in 61 countries.

n 2016, its net sales and revenue touched 166.4 Billion rising from 152.4 Billion in 2015. the increase in net sales and revenue was drive
anufacturing and assembly facilities in Argentina, Australia, Brazil, Canada, China, Colombia, Ecuador, Egypt, Germany, Kenya, Mexico, P

o its corporate customers and fleet customers or governments directly.

et sales and revenue was drive primarily by growing sales in North America and across GM Financial. However, the net income of the bra
ypt, Germany, Kenya, Mexico, Poland, South Africa, South Korea, Spain, Thailand and the U.K.

wever, the net income of the brand fell from 9.6 Billion in 2015 to 9.3 Billion in 2016 due to the ignition recall fiasco. EBIT adjusted grew
ecall fiasco. EBIT adjusted grew to 12.5 Billion in 2016 from 10.8 Billions previous year.