Case Study of TATA MotorsA Journey From Indica to Jaguar

Prepared By:Malhar Shah

(147340592121)

HistoryStarted in 1954 in a joint venture

of Germany’s Daimler-Benz.Founder- J.R.D. TataFirst SUV car launched in India-

TATA Sierra (1991).First passenger car of tata – Tata

Indica (1998).

Journey of TATA motors2004 •Acquired Daewoo’s South korea manufacturing unit (Commercial vehicles)

2005 •Acquired 21% of controlling stake of Hispano Carocerra (Spanish bus and coach Manufaturers)

2006 •Joint venture with Marcopolo ( Brazil based bus and coach manufacturing company.

2008 •Acquired Jaguar Land rover•Launched TATA NANO (Economical City car)

Continued……2009 •Started Tata trucks with Tata Daewoo.

•Acquired Hispano Carocerra.

2010 •Acquired 80% stakes of italian design and engg. Company Trillex.

2012 •Invested with DRDO in development for futuristic Combat vehicles

2014 •introduced first Truck Racing championship in India "T1 Prima Truck Racing Championship".

Interpretation As per the journey we have seen so far of TATA

motors who started with a joint venture with Mercedes now is in each and every segment of Automobiles industry.

First when Tata motor started it started with passenger car tata indigo which targeted taxi market.

And the first SUV car they launched was tata Sierra which was targeting a totally different class of population.

Then they acquired and ventured with coach and bus making companies like Hispano corerra and marcopolo which are the targets for Public transport Industry.

Continued…..In 2008 tata took two significant steps first

is launching tata nano which targeted the middle class population of India and acquired companies like Jaguar Land rover which are well-known and reputed car brands in Higher class society.

So in 2008 we can say tata targeted almost each and every economical classes.

By manufacturing Buses and Utility vehicles it acquired public transport , By Nano Middle classs and by acquiring Jaguar land rover Higher class.

Continued…..After acquiring whole population

of all classes tata started with truck manufacturing it targeted heavy utility vehicle’s market as well.

And by acquiring Trillex and by investing in future combat vehicles it also secured its market for future also.

Strategies which TATA has used.Focused Cost Leader ship:

◦By launching Tata nano at most economical price tata used cost leadership strategy to gain market share which was acquired by two wheelers and public transport or any other low end cars like Alto and Maruti 800.

◦And Nano had variants for Middle class to higher middle class like from basic to sports edition so it became a major step by tata although it wasn’t much successful but still tata acquired quite a significance in automobile industry.

Focused differentiation strategy:◦Tata acquired Jaguar land rover and

by doing that it targeted higher class of society whose needs are totally different from the population of cost leadership strategy

◦What this class needs is status symbol , features , they don’t concentrate on price they concentrate on features and quality and services.

◦So as it can be explained this class is very much concentrated and specific in terms of population.

ConclusionAs we saw that tata applied both

strategies Focused cost leadership as well as Differentiation by launching and acquiring two totally different class products it can be explained as best example of melding both strategies as one and getting most out of it so we can say Tata used integrated strategy of both focused as well as differentiation.

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