Tata Motors

Limited

GLOBAL STRATEGIES
Sahar Ahmad
MBA (G)
28

ABOUT THE COMPANY

Tata Motors is the Indias largest automobile company.

The company is the fourth largest truck manufacturer and the second
largest bus manufacturer.
Tata motors is one of the largest automobile company established in
1945 .
Now it is present all over the country.

 Tata

Motors is equally focussed on environmentfriendly technologies in emissions and alternative

fuels.
It has developed electric and hybrid vehicles both
for personal and public transportation.
It has also been implementing several environmentfriendly technologies in manufacturing processes.
The companys support on education and
employability is focused on youth and women.
. The company has won several awards recognising
its training programmes.

product profile
Passenger
Vehicles

Commercial
Vehicles

Military Vehicles

Branches in INDIA
Northern Region

Western Region

Subsidiary
Companies

Competitors

Jaguar Land Rover

Tata Macropolo Motors
Tata Daewoo
Hispano Carrocera
Tata Motors( Thailand)
Telcon
Tata Motors European Technical Care
Tata Technologies
TAL Manufacturing Solutions
HV Transmission and HV Axles
Tata Auto comp
TML Distribution.Co
Tata Motor Finance

Ford
Toyota
Hyundai
Maruti Suzuki
Honda
Chevrolet
Fiat

What are the driving forces which impact the

company ?
Driving Forces which impact the company are
Emerging new internet capabilities and applications
Increasing globalisation
Changes in who buys the product and how they use it

Product innovation
Technological change and manufacturing process innovation
Marketing innovation
Entry or exit of new firms
Changes in cost and efficiency
Changing societal concerns, attitudes and lifestyles
Regulatory influences and govt. policy changes.

MULTI COMPANY OPERATIONS

Through subsidiaries and associate companies, Tata Motors has operations in

the UK, South Korea, Thailand, Spain, South Africa and Indonesia. Among
them is Jaguar Land Rover, the business comprising the two iconic British
brands.
Tata Motors, the first company from India's engineering sector to be listed in
the New York Stock Exchange (September 2004), has also emerged as an
international automobile company.

 Tata

Motors developed the first indigenously light

commercial vehicle, Sports Utility Vehicle and in 1998,
the Tata Indica, Indias first fully indigenous passenger
car.

Within two years of launch, Tata became Indias largest

car in its segment.

The

companys dealership, sales, services and spare

spats network comprises over 3500 communication
points.

Branches

Joint Ventures & Acquisitions

Tata Motors the first company from Indias engineering sector

to be listed in New York stock exchange in 2004.

In 2004 it acquired Daewoo Commercial Vehicles South
Koreas second largest truck maker
In 2005, Tata Motors acquired a 21% stake in Hispanso
Carrocera, a reputed Spanish bus and coach manufacturer,
and subsequently the remaining stake in 2009.

 In 2006, Tata Motors formed a joint venture with the Brazil-

based Marcopolo, a global leader in body-building for buses

and coaches to manufacture fully built buses and coaches
for India and select international markets.
In 2008 it acquired Jaguar Landrover, in the same year it
from Ford motors and in the same year it launched Nano,
peoples car.
Tata Motors is also expanding its international footprint,
established through exports since 1961. The company's
commercial and passenger vehicles are already being
marketed in several countries all over the world.
A 50:50 joint venture company between Tata Motors
Limited and Fiat Company.

Financial Highlights

Market Capitalisation (as on March 31, 2014) 1,18,777 crores

2,33,662 crores
Total Revenue
18,869 crores
Consolidated profit before tax
EBITDA margin 16.1%
Quarter ended 30 June 2014
Total Income 7,61,289.00
PBT 39,365.00
Net Profit 39,365.00
EPS Rs.1.21

(in lakhs)

*Approximate market share

30
25
20

Price
15
10

Skoda/V
W
Ford
Toyota/Ho
nda

BMW

Tata/ma
hindra

Maruthi/
Hyundai

sales volume
for passenger
car vehicles

5
0
0

10

20

30

40

50

60

70

Effectiveness in Strategy Implementation

New internationalization strategy, the company has decided to focus on a

narrow base of 14-15 countries where market conditions are similar to

that of India
In these countries, Tata Motors now has dedicated manufacturing
facilities, marketing teams and sales teams
The company evaluates locations on the basis of market opportunities
and labour skills.

 In the framework pertaining to international expansion strategies, Tata

Motors can be identified as an Extender, and is focusing on expanding
into markets similar to those of the home base, using competencies
developed at home

Competitive Advantage

Sustainable competitive advantage lies not in one, but a

combination of multiple resources, each of which individually
need not necessarily be the best, but in overall weighted
average terms, presents the best solution. For Tata Motors,
the combination of resources providing it competitive
superiority on a weighted average basis includes:
Product Reliability
Service Network
Channel Reach

In terms of product reliability, Tata Motors offers products of

reasonably high standards. However, foreign players like
Volvo and even local competitors like Ashok Leyland arguably
offer products that are far more refined. But this is more than
compensated by a dependable service network and extensive
channel reach. Tata's service and distributor network is by far
the most extensive of any player in the trucks industry. Hence
in overall weighted average terms, Tata Motors still has a
winning proposition.

Conclusion
Tata

Motors is an overall strong company that has found strength and

expansion through its parent company, Tata Group, but also through its
numerous acquisitions and mergers. Although Tata Motors stock prices have
fallen since the start of the 2008 year due to suggestions that Tata Motors is
overreaching by adding luxury brands to pair with the Nano, the world's
cheapest car.

The future presents challenges and opportunities for the company in equal
measure both domestically and internationally. While pitfalls are many, Tata
Motors looks well positioned indeed to capitalize on these opportunities and
take on the world.

Thank you

Thank
you