Swot analysis

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SWOT ANALYSIS OF TATA MOTORS

Transcript of Swot analysis

  • 1. TATA motors is the leading automobilecompany of India, and also having a majorshare outside the country. To make anycompany successful, it is very muchrequired to analyse different factors thosecan influence companys performance.

2. Established in 1945. It was the first Indian automobile companyto list on the New York Stock Exchange.Tata Motors began manufacturingcommercial vehicles in 1954 with a 15-year collaboration agreement with DaimlerBenz of Germany. 3. Having just entered the passenger vehiclesmarket segment in 1991.Tata Motors now ranks 2nd in Indiaspassenger vehicle market.Tata has developed Tata Ace, Indias firstindigenous light commercial vehicle.Tata Safari, Indias first sports utility vehicle.Tata Indica, Indias first indigenouslymanufactured passenger car. and the Nano, the worlds least expensivecar. 4. SWOT analysis is a strategic planningmethod used to evaluate the Strengths,Weaknesses/Limitations, Opportunities,and Threats involved in a businessventure. It identifying the internal and externalfactors that are favorable and unfavorableto achieve the objective. 5. Tata has a strong presence in India and isa key manufacturer of commercialvehicles. Its market share is of 64% which hasalmost remained constant.Tata Motors Limited is Indias largestautomobile company, with revenues of1,23,133.30 crore in 201011. 6. It is a customer-oriented company, andalso taking care of customers preferencesand taste.Long list of portfolios: Its products includepassenger cars, trucks, vans and coaches. It is worlds 4th biggest truck producer,. it is also worlds 2nd biggest bus producer. 7. Tata Motors has been in the process ofacquiring foreign brands to increase its globalpresence. Through acquisition, Tata has operations inthe UK, South Korea, Thailand and Spain.Among these acquisitions is Jaguar & LandRover, that was acquired from the Ford MotorCompany in 2008. In 2004, Tata acquired the DaewooCommercial Vehicles Company, SouthKoreas second largest truck maker. 8. Today two-thirds of heavy commercial vehicleexports out of South Korea are from TataDaewoo.Tata has dealerships in 26 countries across 4continents. 9. Research and Development Activities: The company has a very strong R&D havingover 3000 engineers and scientists. The Engineering Research Centre (ERC) inPune was setup in 1966. It has been honored with two prestigiousawards - 'The DSIR National Award for R&DEffort in Industry - 1999' and 'National Award for SuccessfulCommercialization of Indigenous Technologyby an Industrial Concern - 2000.'Tata Nano was a recent outcome from theERC . 10. Return on Investment on TATA motors sharesis low.Tata motors products are not considered asluxurious. The products are generally targeted forcommercial rather than for luxury. Hence, thecompany lacks a strong footprint in the sectorof luxury products. Safety standards are not maintained/ oftenignored. This has led to diminish of public image of theTATA automobiles (eg- Tata Nano). 11. At a time when the World is looking for eco friendlytransport alternatives, It is now the right time tomove into this segment. The new and emergingindustrial nations such as India, South Korea andChina will have a thirst for low-cost passenger andcommercial vehicles. These are the opportunities. In the summer of 2008 Tata Motor's announcedthat it had successfully purchased the Land Roverand Jaguar brands from Ford Motors for UK 2.3million. Two of the World's luxury car brand havebeen added to its portfolio of brands, and willundoubtedly the chance to market vehicles in theluxury segments. 12. JAGUARLAND ROVER 13. Other competing car manufacturers havebeen in the passenger car business for 40,50 or more years. Therefore Tata MotorsLimited has to catch up in terms of qualityand lean production.Presently, Tata Motors face intensecompetition from its domestic as well asforeign competitors including GeneralMotors, Honda Motor, Maruti Udyog,Mitsubishi Motors, Fiat, Ford and so on. 14. Rising cost of manufacturing: Rising pricesin the global economy could pose a threatto Tata Motors Limited.The price of steel and aluminum isincreasing putting pressure on the costs ofproduction.Low safety standards can affect the publictrusts.