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TATA MOTORS Page 1 Tata Motors is one of the largest vehicle manufacturer companies of India. It produces passenger vehicles and commercial vehicles. It is also the largest car manufacturer company of India. Tata Motors began in 1945& since it has produced more than 3 million vehicles. Tata Motors has employed more than 23000 employees. All these features have made Tata Motors a leader in the market. SWOT OF TATA Strengths: Tata Motors is a leader in the market. Tata Motors & its nearest competitors Maruti dominate the biggest part of the industry. Tata Motors has a good employee base & productivity of the Tata manufacturing plants is higher. It gives Tata good production efficiency. Tata has a brand reputation in India. Thus Tata has a plus point over its competitors. Tata motors is the best profit earning Automobile company of India with a total revenue of $8.8 billion. Tata produces the low price cars with high fuel efficiency. This is the requirement of Indian market. It gives Tata a big customer base in the country. We can say thatTATA

NANO is the biggest strength of the company. Tata has also an alliance with Italy based Automobile company Fiat. Tata is going to launch some utility vehicles in central & south America. Tata focuses not only the quality of products but on the quality of management also. Tata also has a program of intensive management development in place in order to establish its leaders for tomorrow. In some segments like Tata Ace & Tata Magic, there is no close competition. No close substitute of these products is available in the market. Weaknesses: Tata is more known for commercial vehicles & low price cars. It has not a good brand value for luxury vehicles. It does not have a foothold in the luxury car segment in the domestic market. However Tata has acquire Land Rover & Jaguar, the popularity of Tata as a luxury car producer is in doubt. A Tata industry has made much investment in Tata motors. But return on investment is not up to the mark. The cars produced by Tata are 3rd & 4th generation. Thus in terms of technology, Tata is behind its competitors. Tata produced cars are not meeting the safety standards as compare to its competitors. This is a big disadvantage for the company.

TATA MOTORS Page 2 Opportunities: As Tata Motors is known for its fuel efficient & low price cars, it can win the big market of Third World Countries. Thus, Tata has a big export opportunity. Acquiring the international luxury car manufacturing brands like Land Rover & Jaguar, Tata has got the a plus-point in luxury vehicle manufacturing. Tata can start the production of these vehicles in India & win the premium range of customers of India. Joint ventures with highly reputated brand like Fiat can give Tata an international exposure easily. Threats:Low price vehicles are the first strength of Tata Motors.However, all the competitors of Tata are spending much amount of their expenditure on R & D to produce the low price & fuel-efficient vehicles. This advantage of Tata may not be for long time. Rising price of Steel, Aluminum & Plastic is a big challenge for Tata as well as whole Industry. Improvement in technology by competitors is also a big challenge to Tata Motors. Some new emerging companies (Like Pakistans Transmission Motor Company & Bajaj

Autos with Renault Motors) have entered in low price cars manufacturing. It can give Tata a big hit in the future.

TATA MOTORS Page 3 Effects on Four Ps Product: Good employee base has given Tata Motors a good quality of product. Safari is the premium quality product of Tata Motors. The brand value of Tata has increased the expatiations of the customers. Tata needs to meet the expatiations of the customers & provide a better quality of products. With the alliance with Fait, Tata has the better technology. No doubt, it helped Tata to improve the technology of the products. The big investment made by Tata industries has made Tata Motors providing a wide range of products from cheapest Tata NANO to premium SUVs Tata Safari & family cars like Indigo & Indica, Tata Sumo & TataGrande etc. It also has a wide range of commercial vehicles from small Ace to heavy trucks. As Tata is seeing the export opportunities, it has focused more on these opportunities &

started improving the vehicles. Indigo Marino can be taken as the best example. Tata is aware of its threats. Nano is the result of its competition in the Indian as well as international market. With the threat of better technology of its competitors, Tata is also trying to improve the technology of its products. Tata Indica Vista has come with a better technology. Price: As Tata is the highest revenue generator company of India, it is able to decrease the price by decreasing its profit margin. Thats why the slowdown in Indian economy hit the sales & profit of Tata but the company remained stable in the market. The production efficiency of Tata manufacturing plants helps Tata to maintain the price of the products. However Tata Motors products are said to be of low technology & less safe, lack of all this helps Tata to maintain the price. Rising prices of the steel & other metals may increase the cost of production. Under these circumstances, Tata has to either increase the price or decrease its profit margin. The emergence of new companies for cheaper products will enforce Tata to decrease thr price.

TATA MOTORS Page 4 Place: Acquiring the Land Rover & Jaguar, Tata has a global market. No doubt, the area covered by Tata in sales accepts has been increased. With Nano, Tata has approached to rural segment of India. Now Tata needs to increase the distribution channels & service centers. With the increase in the competition, Tata has targeted the tire 3 cities. Now the selling service centers & selling points can be seen in small cities also. Promotion: As Tata has come with products with better technology, it has spent a fare amount on the advertisement of its products. Tata is more known as a commercial vehicle producer; it is spending more to come out of this image. Tata Nano is the dream product of India. Making up this dream, Tata has got much promotion by media for no cost. That is why, Tata spent few amount for promoting Tata Nano. Acquiring the companies like Land Rover was the second plus point of Tata, which gave Tata much promotion in India as well as the world.

The brand value of Tata motors has given another plus point in promotion of its products. Tata needs to spend less having this good brand value. SWOT of TATA Motors & Implications Download this Document for FreePrintMobileCollectionsReport Document Report this document? Please tell us reason(s) for reporting this document Top of Form
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