STRATEGIC MANAGEMENT

Project on
TATA MOTORS

UNDER THE GUIDANCE OF

Prof. Subramaniam

PREPARED BY:
Group - Section A
Mainali Gautam- 19020841015
Karan A Sejwar- 19020841015
Arun Krishnan-19020841027
 Saumya Pradhan-19020841016

TABLE OF CONTENTS

S.NO CONTENTS Page

. No.
Introduction to Automotive Industry 1

1. Strategy Analysis of TATA motors 2

1.1 SWOT analysis
1.2 PESTEL analysis
1.3 Competencies Analysis

2. Functional Level Strategies 14

2.1 Marketing Plan
2.2 Human Resource plan
2.3 R&D plan
2.4 IT infrastructure plan

3. Business Level Strategy 20

3.1 Competitive Positioning

4. Global Level Strategy 26

4.1 Choice of entry mode ( )

5. Corporate Level Strategy 28

5.1 Integration
5.2 Strategic Outsourcing

6. Future path, Conclusions and inferences 33

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INTRODUCTION
AUTOMOTIVE INDUSTRY IN INDIA
The automobile business in India, the fourth largest in the world with a yearly generation of
roughly 4.02 million units by 2019, is relied upon to get one of the major worldwide car ventures
in the coming years. Various household organizations produce cars in India and the developing
nearness of worldwide venture, as well, has prompted an expansion in by and large development.
Following the monetary changes of 1991 the Indian car industry has exhibited continued
development because of expanded liberating tax policies and regimes.
In 1953, the administration of India and the Indian private part started assembling procedures to
help build up the vehicle business, which had developed by the 1940s in an incipient structure.
Between 1970 to the financial progression of 1991, the car business kept on developing at a
moderate pace because of the numerous administration limitations. Various Indian makers
showed up between 1970-1980.Japanese producers entered the Indian market at last prompting
the foundation of Maruti Udyog. Various international firms joined hands with Indian companies
to utilize the opportunity for their profit.
Following the financial changes of 1991, the car segment experienced delicensing and opened up
for 100 percent Foreign Direct Investment. A flood in financial development rate and acquiring
power prompted development in the Indian car industry, which developed at a pace of 17% on a
normal since the monetary changes of 1991. The business gave work to a sum of 13.1 million
individuals starting at 2006-07, which incorporates immediate and backhanded work. The fare
area developed at a pace of 30% every year during mid 21st century. Be that as it may, the
general commitment of vehicle industry in India to the world stays low starting at 2007.
Expanded nearness of numerous car producers has prompted advertise intensity and accessibility
of alternatives at serious expenses
The Indian car industry is one of the main pillars of the Indian economy, contributing about 49%
to the nation's assembling GDP (total national output) and 7.4% to its general GDP. It provides
employment to 32 million people of the country. In 2018, the generation of bikes in India has
almost trebled, the creation of traveler vehicles and business vehicles in the nation has
multiplied. The USD 100-billion Indian car industry has taken a shift towards environment
friendly products and technologically advanced products, driven by a blend of strategy changes
and purchasers' requests. Nonetheless, the high-octane development of the most recent decade
appears to have gone to a sudden stop, due to low spending and purchasing power due to the
various economic and international developments going around in the world. Due to the
inconsistent business strategies coupled by conflicting perspectives of business partner in in the
shackles of a doom. While a lot of still surfacing up on the horizon as opportunities yet the

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 growth seems to be doubtful. On the future patterns as well, the haze of disarray keeps on
presenting difficulties to the size of presenting electric vehicles (EVs) .

TATA MOTORS

1. Introduction
Tata Motors Limited, also known as TELCO (TATA Engineering and Locomotive Company),
was framed in 1954. It is a primary completely incorporated car producer that currently remains
as India's biggest and the world's seventeenth biggest traveler car and business vehicle
fabricating organization with the competency of production of vehicles that meet national and
global transportation needs.
Tata Motors has a wide portfolio going from a Tata Mercedez Benz truck to broadening into
traveler autos like Tata Sierra,Tata Estate,Tata Indigo and Indica, concept vehicles like Aria
Roadster and Tata Elegante, business vehicles like trucks and military vehicles.
TATA Motors was first recorded on the NYSE in 2004. It made abundant profit of Rs. 320
billion during 2001-2006 and remained among top 10 riches makers in India. It has its
assembling bases in Jamshedpur, Lucknow and Pune. Tata Motors has as of late had a few
significant mergers and acquisitions like with JLR in UK, Daewoo in South Korea, Hispanso and
a JV with Fiat.
In 2008, Tata Motors acquired Jaguar and Rover from Ford making it ultra prestigious on the
horizon of prestigious segment. This diversification was strategic and important for Tata motors
as it was considered and stereotyped for being from lower segment.
1.1 Vision, Mission and Scope
As defined by Tata Motors, their vision lies in their passion to provide mobility solutions to
provide a better and enhanced quality of life.

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Source Annual report -
https://www.tatamotors.com/wpcontent/uploads/2019/07/05155543/TML-IR-AR-2018-19.pdf

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The main foundation for accompany like Tata motors and the legacy it has followed lies in the
following seven pillars including:
1.Integrity
2.Teamwork
3.Accountability
4.Customer Satisfaction
5.Excellence
6.Speed
Mission: Tata motors is aiming to achieve a better ratio of financial returns along with taking up a
holistic perspective of customers and providing sustainable solutions with the help of a dedicated
and engaged work force that will driving towards reached the goals of their business by year
2024.

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 1.2 SWOT Analysis

Strengths
Strong brand with diversified Weakness
portfolio Jaguar performance Nano being from low cost segment
Leading power of defence couldnt capture the market
mobility solutions Perspective of quality over quantity
Efficient cutomer support

SWOT Threats
Opportunities
Inflation
Green vehicle
Government bodies curbing
Electric Vehicle pollution
Cng models Domestic manufacturers
Farming Mechandise

Strengths
• 21% stake in Hispano Carrocera, a Spanish transport fabricating organization and presenting its
top of the line between city transports in the nation.
• Acquisition of Jaguar and Land Rover of UK, help total its portfolio in the excellent fragment
• In 2000, it propelled CNG transports and filled the product offering hole through the presentation
of the 1109 vehicle which is a middle of the road business vehicle and is valuable for medium
tonnage loads.
• Tata Motors has a high residential presentation of ~94% in the MHCV (Medium and Heavy
Commercial Vehicles) section and ~84% in the LCV portion.
• The most recent hit of Tata Motors is its smaller than expected truck Ace which is India's first
indigenously created sub-one ton scaled down truck. Expert has quickly risen as the primary
decision for transporters and single truck proprietors for city and rustic vehicle.

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• There is clear cost favorable position as work cost is 8-9 percent of offers as against 30-35 percent
of offers in created economies.
• Tata engines have broad in reverse and advance linkages and it is emphatically joined with
machine apparatuses and metals areas. Likewise, India is an astounding hotspot for IT based
designing answer for items and procedure Integration.

Weakness
• Tata Motors' scope of traveler vehicles is as yet not far reaching by industry benchmarks. It has a
constrained item portfolio which has given its key rivals (Hyundai engines, Maruti Suzuki) an
additional edge.
• Even in the wake of being in the cars advertise for a long while, some place in the psyches of
purchasers Tata engines is as yet synonymous with overwhelming and business vehicle producers
and not passenger car manufacturers. Similarly, as a result of this customers may figure the
traveler autos can need style and are progressively worked for strength.
• According to auto specialists, ease is a more grounded thought process at Tata Motors that
occasionally makes quality assume a lower priority
• Low sales will hamper expansion in to diverse portfolios.
Opportunities
• Tata plans to use on the solid nearness of TDCV in the overwhelming tonnage run and present
items in India at a fitting time.
• The JV with Marcopolo will be useful to the two organizations since the last will retain innovation
and mastery in case and totals from Tata Motors, and Marcopolo will give know-how in
procedures and frameworks for lifting weights and transport body plan.
• JV with Fiat, it is probably going to access Fiat's diesel innovation and to the last's solid abroad
dissemination organize for its traveler vehicles.
• Tata Motors may stretch out this relationship to different fragments like pick-ups and MHCVs.
• Launch of the worldwide truck will check the section of the organization into created markets like
Europe and the USA. Working with Iveco implies that the plans will be in a state of harmony with
the requirements of modern European clients.
• GOI approach for modernizing of vehicles to capture contamination of air quality and advance
toward global exhausting arrangements connected to time of vehicles, are steps which will prompt
expanded deals for TATA engines Commercial vehicle division.
• The need to move higher volumes of farming and mechanical merchandise.
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• Development of the national thruway advancement program will build TATA deals over the long
haul.
• Tata has built up a vehicle it means to sell for about $2,500 USD, which would be viewed as the
least expensive vehicle at any point made in genuine terms.

THREATS WITHIN THE INDUSTRY

There are a great deal of new rivalries coming up in the business vehicles portion which
compromise the colossal piece of the overall industry which Tata Motors has accumulated. A
portion of the new Joint Ventures and rivalries have been recorded underneath:
• M&M has framed a 51:49 JV called Mahindra International with ITEC, USA, (parent
NAVISTAR), to make business vehicles.ITEC is the pioneer in medium and substantial trucks and
transports in North America, and is the world's biggest producer of medium-obligation diesel
motors.
• Ashok Leyland: Acquisition of Czech Republic-based Avia Ashok Leyland (ALL) as of late
procured the truck unit of Czech Republic-based Avia.
• Volvo, manufacturer of trucks, transports, vehicles, development gear, and air motors has a
fundamental concentration in the region of completely assembled transports

THREATS OUTSIDE THE INDUSTRY

• The land acquisitions made my Tata motors to set up their plants can go against the well being of
cultivators and farmers of the land hence, leading to a backlash by government and other
regulatory bodies.
• With the advent of Make in India movement, a lot of suppliers and domestic manufacturers can
surface on the landscape of car manufacturing that can be a tough competition to Tata Motors due
to certain shift in the perspective of consumers for products of domestic market.
• The geo-political and economic situation leading to limited purchasing power in the hand so the
consumers is major threat that can significantly impact the revenue and sales of the company.

1.2 PESTEL ANALYSIS

1. Political Environment

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 The GST regime serves as an opportunity for automobile sector
 The Brexit has been a significant factor and impacted automobile industries world wide.
 The high barriers of trade are both a threat and an opportunity for the industry.

2. Economic Environment
 India’s stagnant economy is a major threat due to a period of significant slowdown around two
quarters
 The UK slow economic growth post Brexit has resulted into a decline in sales of Tata Motors.
 The intensive competition in the automobile industry.

3. Social Environment
 The changing perspective of the working population and young generation that consider buying
car as liability
 Car pooling services have been a major threat fir a significant time due to their liberty over
access and availability

4. Technology
The technological shift towards Artificial intelligence that is leading to development of Intelligent
cars that will serve a global market of around $78 billion will lead to table shift for traditional car
manufacturers.

5. Environment
The Indian government has revamped their emission standards and other pollution regulation norms
under Form 22 due to significant pollution in Metro cities . Due to which the automobile industry
needs to comply to standards of the government , to prove their worthiness and compliance to
security standards.
Utilizing this, TATA Motors has come up with EGR (Exhaust Gas Recirculation) and SCR
(Silicon Controlled Rectifier) to curb their emission.

6. Legal Environment
With the introduction of GST, the taxes levied on automobiles is 28% that will help in boosting
sales of cheaper cars. The land acquisition made by various automobile plants has led to unrest in
farmers. It is majorly involving State governments of the concerned land to put the well being of
farmers over the establishment of automobile plant.

1.4 Distinctive Competencies

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 Key Internal Factors

Strengths
 Global Presence
 Revamped Vision & Strategy
 Largest Manufacturer in Indian Market
 Strong Brand Management
 Highly driven towards Innovation with the help of dedicated research and development team
 Organisational culture with highly dedicated wide work force
 Diverse portfolio help in gauging market share significantly
 Due to Low Cost advantage, consumers can be from diverse demographics exploring flexible
and variant price ranges

Weaknesses:
 Change in consumer preferences due to environmental reasons and switching to Green Vehicle
 Sensitivity to Fuel Prices and change in production costs due to inflation will lead to dip in sales
and production respectively .

Key Internal Factors

Strengths:

 Low price segment makes it easier to capture the market share leading to generation of
high revenue and thus making it more profitable.
 Diversification in products leads to a competitive advantage which makes it India’s
largest manufacturer along with its low cast advantage
 Since, it is an Indian company it can easily penetrate in the rural Indian market due to
better understanding of domestic market of Indian consumers.
 New acquisition in UK & United States will boost its global presence and thus, mergers
and acquisitions will help TATA planting its name on the map of automobile manufacturers.

Threats:
 Global Recession and Poor Economic conditions will reduce the purchasing power and can have
significant impact on suppliers cost across the world.
 Long term financing problem can hamper the expansion due to limited availability of credit for
financing it
 The strict government measures to curb pollution for imposing string emission standards, safety
standards and road worthiness may lead to increase in production cost.

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 2. TATA MOTORS FUNCTIONAL LEVEL STRATEGY

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Distinctive competencies form the useful level strategies that a corporation will pursue.
Managers, through their decisions with relation to functional-level strategies will build resources
and capabilities that enhance a company’s distinctive competencies. This ends up in a
competitive advantage and superior profitableness and profit growth.
A Core-competency should:
 Make a significant contribution to the perceived customer benefits of the end product.
 Be difficult for competitor to imitate. And it will be difficult if it a complex harmonization
of individual technologies and production skills.
 Increase reach and global connect and capture a wide variety of markets and TATA Motor
has already done so with presence in over 50 countries and more
The ability of a company to attain superior efficiency, quality, innovation and customer
responsiveness will determine if its product offering is differentiated from that of its rivals and if
it has a low cost structure.
TATA Motors struggled to do so from 2006 to 2016 as there were issues such as :
 Complacency: Tata Motors moved into the taxi market, making them irrelevant to
personal buyers. In the taxi space too, they were beaten by Maruti, Hyundai and even Honda, as
Uber and Ola came in,
 Quality levels were bad:  The company had not kept up and reinvented themselves
 Inability to take quick actions: Delay in translating changes into a proper product
 Rising competition
 Faulty product portfolio: Tata Motors had one platform on which they developed three
other models, with half-decent engines.
 Cost issues: EBITDA was negative
 Missing products: In 2009, it showcased the Prima, a concept luxury sedan, which never
went into production; the same happened with the Pixel, a small car showcased in 2011

STRATEGIES

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Issue of stopping the bleeding in volume, market share, and the financial side were addressed by
making changes in their overall Strategies which helped create Products that are leading in
design and performance
1.CUSTOMER FOCUS
 Ask your customer – In TATA Motors case it led to them introducing compact mini-trucks
that serve small businesses into the market. Customers’ needs should be considered as they are
one of the main drivers of a company’s success. They wanted to add a new line to their current
truck offering by introducing TATA ACE, which was a mini truck.
The customers were asked for their views on whether they would prefer owning a four-wheel
cargo vehicle over the usual three-wheel cargo rickshaws in the country. The information
gathered from the respondents tipped towards them wanting a four-wheel cargo vehicle because
of reasons like prestige in owning and running a four-wheeler. Other respondents felt a cheap
vehicle that could take larger amount of produce or products from village to market would
greatly help them. This vehicle gained popularity quick as it was cheaper and better compared to
the three-wheel cargo rikshaws in the country. The new vehicle was a big hit selling 100,000 in
just 20 months
 Partnered with Croma
As an extension to the consumer’s digital lifestyle, Tata Motors has partnered with Croma to
provide a digital retail experience to its customers.
 FOCUS ON NEW PRODUCT DEVELOPMENT
TATA Motors showcased its competency to design with the launch of Nano, the world’s
cheapest car, in 2009.The Nano came to be known as People’s car. Tata Motors introduced to the
Indian public it ultra-cheap car “Nano” that was expected to retail for as little as the equivalent of
$2,500, or about the price of the optional DVD player on the Lexus LX 470 sport utility vehicle. 
ORGANISATION EFFICIENCY AND COST MANAGEMENT
Between 2006 and 2016, Tata Motors’s domestic passenger vehicle business was struggling.
TATA Motors was under huge pressure because of lots of new launches by rivals and pressure
on the contribution margin. There was a change in the strategic direction to make the business
sustainable and viable.

 Wider integration with JLR : Today, even as JLR accounts for about 78 percent of Tata
Motors’s revenue, the company has increased its share in the domestic passenger vehicles
market from 4.6 percent in 2016 to 6.8 percent in December 2018.Today, TATA motors
have hundreds of suppliers for tiers, engines, oils, logistics etc. and the existence of
synchronized coordination between them makes production of vehicles smooth.

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  Emerged as the lowest bidder in to supply electric buses to 6 of the 10 states namely
Guwahati, Indore, Jammu, Jaipur, Kolkata & Lucknow, for supplying 255 electric buses
which makes to 62% of the total buses order
 In certain models there were creation of 24 vehicle modular units that comprise
components such as engines and infotainments and it was decided that they needed to
reduce the cost by half across each, The amount of cost-saving they are doing now is
more than five times higher than what the company has ever done.
GLOBALISATION
Each Tata company was encouraged to develop its own global plan. GE and Tata Group entered
into strategic partnership to manufacture LEAP engine components in India to manufacture CFM
International LEAP engine components in India, for the global supply chain.
PRODUCT DIFFERENTIATION
Electric Vehicles
In June 2018, Tata Motors set up a separate electric mobility business vertical. It is India’s
largest and the only OEM offering extensive range of integrated, smart and e-mobility solutions.
Commercial Vehicles
Has brought in constant innovation and is the market leader in the Commercial Vehicle segment.
Modular product designs were introduced to address market sub-segments
PASSENGER VEHICLES
Tata Tiago became the second highest selling entry-level hatchback in the country, recorded the
highest-ever sales in August 2018
Tata Nexon to be the first and only car in India to bag five stars adult safety rating from Global
NCAP
QUALITY IMPROVEMENT
Customer responsiveness and customer centricity
Tata Motors’s new launch, the Zica, a hatchback that the company had showcased at the Auto
Expo in New Delhi that month, was ready to be rolled out.But it had the same moniker as the
global mosquito-borne virus that was killing infants or causing congenital abnormalities
TATA Motors acted quick and changed the product name to Tiago and saw this as an
opportunity to spread the message across the organisation that quality control will be stringently
applied to all future products
Today it is one of the largest selling vehicles for Tata Motors, with sales of nearly 8,000 units a
month.

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 Acquisition
TATA Motors took over Britain’s Jaguar Land Rover (JLR) for $2.3 billion in 2008. Tata
Motors' subsidiary, Jaguar Land Rover is Britain’s largest automotive manufacturer which
designs, manufactures and sells some of the world’s best-known premium cars. The two iconic
brands of JLR include Jaguar, with a range of luxury sedans, sports cars and luxury performance
SUVs, and Land Rover, encompassing a portfolio of premium all-terrain vehicles.

INFRASTRUCTURE STARTEGY
In order to accelerate the adoption of EVs in India, Tata Motors is closely working with other
Tata Group companies including Tata Power, Tata Chemicals, Tata Autocoup, Tata Motors
Finance and Croma, to create an e-mobility ecosystem, Tata uniEVerse.
LEAN and ACCOUNTABLE ORGANISATION

The future of Tata Motors is going to be two architectures that are versatile.
Making the business more self-funded and profitable by shifting its entire product offering on to
two platforms (a design architecture that includes the underfloor, engine compartment and the
frame of a vehicle):
 Omega, developed by JLR and used in its wildly popular models Discovery
Much of the improvement in the company’s new offerings, such as the Harrier, is also partly
thanks to Tata’s close working relationship with JLR. This combination is something that was
required as it was clear that such a route would be faster than going for iterations or developing
their own architecture
 Alpha, which was developed in-house. The company intends to develop over 12 products
in the next few years on these platforms, reducing development and manufacturing costs, unlike
earlier when there were multiple platforms for various models. Alpha architecture, which
roughly covers vehicles from 3.7 to 4.3 metres. They said they needed to be in the segment
above 4.3 m, not because this is where the volumes were but because this is how they will start
building the brand and offer customers an opportunity to grow with us
 Complicated layers of management that Tata Motors was infamous for. It was
bureaucratic, complex and not agile at all. There were 14 layers that affected overall
productivity. The company brought that down to five, to ensure a lean structure and faster
communication.

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RESEARCH AND DEVELOPMENT

Tata Motors has partnered with Tata Power to provide end-to-end charging solutions at home,
workplace and for captive and public charging.
To develop the component supplier ecosystem, Tata Motors is collaborating with Tata
Chemicals, which is working on manufacturing lithium-ion battery cells, exploring active
chemicals manufacturing and battery recycling. The auto major is also working with Tata
Autocomp for the localisation of battery pack assembly and motor assembly.

MARKETING STRATEGY

Tata Motors does not follow a single marketing approach or formula but it believes that all
members of the community should be served. Brand targets crowd from the rural part to the
metros with its offerings varying from NANO to Jaguar Land Rover segment
Differentiated targeting strategy is used by Tata Motors to target the customers and satisfy their
needs and wants.
There’s something for everyone in its huge line of offerings. Tata Motors has introduced
products such as the following in the past :
Tata ACE  a mini truck mainly used for agriculture transport purpose
Tata NANO for the middle class
Tata Indica and Indigo for commercial purposes
Jaguar in the high-class segment

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OVERALL RESULTS

For a while the company was irrelevant, and now they are seeing a comeback
Since the turnaround strategy was put in place in 2017, the company has seen sales figures go
remarkably north. Between April 2017 and March 2018, Tata Motors sold a total of 184,743
passenger vehicles, a growth of 19 percent over 155,260 units sold year-on-year. Between April
and November 2018, cumulative passenger vehicle sales growth in India stood at 142,137 units,
a growth of 24 percent over the same period in the last fiscal.
 Regained lost ground by bringing its focus towards personal ownership space and it also
successfully moved away from the taxi space. In the long term, personal ownership is important
for the company.
 Nexon, Tata’s compact SUV, recently got a five-star rating from Global NCAP at the
latest round of crash tests; it became the first made-in-India, sold-in-India model to register this
high a score
 The commercial vehicle business, where the company was losing market share, has also
seen a rebound. Between April and October 2018, the company expanded its market share in
medium and heavy commercial vehicles, which include trucks and buses, to a three-year high of
51 percent. In FY17, the share was 49.2 percent. This comes at a time when commercial vehicle
sales have seen a slowdown.
 There has been an overall infusion of energy into the Tata Motors brand.The dealers are
excited, unlike before, and they have been able to create excitement. Suppliers now want to work
with Tata.
 The company is attempting a recovery in its fortunes through newer models, cost
reductions, wider integration with JLR, and making the business more self-funded and profitable.
Top-line cost reduction, improvement of core processes, customer centricity, new technologies,
business models and partnerships, and a lean and accountable organisation.
It’s an all-around performance improvement at Tata Motors, which has been initiated by the
transformation, and which has been significantly accelerated by the turnaround that is now part
of the DNA. It’s no longer something top-down, but deeply rooted in the organisation.”
Tata Motors has a global footprint with operations in the UK, South Korea, South Africa and
Indonesia through a strong global network of 97 subsidiary and 9 associate companies, including
Jaguar Land Rover in the UK and Tata Daewoo in South Korea

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 3. TATA MOTORS BUSINESS LEVEL STRATEGY

Competitive Strategy
Cost Leadership
Cost Leadership strategy involves becoming the leader regarding cost in your industry or
market by :
 Increasing profits by reducing operational costs, while charging industry-average prices.
 Increasing market share by charging lower prices than your competitors.
 Minimize operational costs to ensure positive margins.
 Maintaining tight control over product and overhead costs
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 Minimizing the cost of sales, research and development and customer service
 Building state-of-the-art facilities to boost efficiency and productivity
 Tata nano, the cheapest car in the world
 Swach, the cheapest water filter from Tata Chemicals. less than Rs 1000.
 Tata Motors launched the Ace truck in May 2005 for just above Rs. 200,000.
Differentiation
 Different is good.
 Add value to your products and services, so they’re more attractive than those offered by your
competitors. Because of the additional product or experiential value provided, customers are
willing to pay a premium price. Leads to absorbing higher operating costs.
 This strategy can prove quite lucrative.
 If you release a product or service that makes waves in the marketplace, you can be sure that
your competitors will quickly follow suit.
 As a result, organizations pursuing a Differentiation strategy must keep a constant eye on what’s
next and stay agile with their product development process.

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Red Ocean vs. Blue Ocean

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VALUE CHAIN

Value Chain Analysis

1. Inbound Logistics
 Long term contract with service provider’s transporters and agents
 Personnel at regional offices for overseeing the smooth transit of goods
 Transparency and monitoring through deployment of IT – all transactions through SAP
(System Applications and Products)
 DTL supplies for critical high value items
 Efficient storage facilities – easy storage and retrieval
2. Operation
 Capital Equipment Manufacturing Division – tooling development capabilities of global
standard
 Apprentice Trainee Course – ensuring stable source of skilled manpower
 Kaizen and TPM team – continuous drive to improve efficiencies
 Automated manufacturing processes

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 Distributed manufacturing – Assembly units at South Africa, Thailand , Bangladesh , Brazil
etc.
3. Outbound Logistics
 Stockyards, all across the country
 Long term contract with transporter’s – higher volume of business to transporters ensures
competitive price
 Regional Sales Office and Vehicle Dispatch Section linked through SAP
 Efficient security system for prevention of any kind of pilferage
4. Marketing and Sales
 Structured approach to understanding the requirements of individul customers – QFD
conducted at regular intervals
 Innovation as a result of identifying product requirements
 Global presence and all-India programs
 Institutional customers such as Defence and State Transport are addressed by independent
teams
 Using DMS, allocates large network of dealers
 Customer Service
 Spare parts are proficiently available
 Data procurement for plants is very efficient
 Global footprint
 Dealer workshops and TASA
5. Infrastructure
 Facilities present in multiple locations
 Tata Sons providing strong leadership
 State-of-the-Art prototype building facilities
 SAP facilities
 Portfolio involves numerous products
6. Human Resource
 Availability of talent – engineers and managers
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 Technical training centres, alliance with institutions
 Developing managerial capabilities – MTC, TMTC executive training programs
 Career advancement opportunities – ESS, FTSS
7. Technology
 Heavy investment in R&D
 Knowledge portal to constantly update employees
 Testing facilities and prototype building
 Benchmarking process

8. Procurement
 E-procurement available
 Many parts sourced globally, especially from China
 Long term loyal relationships with stable list of suppliers
 SAP and VCM – technological assistance
 Centralized strategic sourcing
 Tata Steel and Tata International are global suppliers
 Localized suppliers at manufacturing location.

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4.TATA MOTORS GLOBAL LEVEL STRATEGY

•Tata Oil Mill (TOMCO) was divested and sold to Hindustan Levers as soaps and a detergent
wasn't thought-about a core business for the Tata’s.
•The prescription drugs firms of the Tata’s Merind and Tata company – were divested to
Wockhardt.
•The cosmetics company Lakme was divested and sold to Hindustan Levers, as besides being a
non core business, it had been found to be a monopolistic and would have needed substantial
investment to be sustained.

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Tata Motors is presently India's largest automobile company with revenues of $7.2 billion in a
pair of006-07. it's far and away the leader in business vehicles and therefore the second largest
player within the traveller vehicles market with winning merchandise within the compact,
midsize automobile and utility vehicle segments. using around 23000 individuals and
headquartered in urban centre.
The Porter's analysis for the LCV and therefore the M and HCV segments show strikingly
similar results aside from the threat of recent entrants. within the LCV market there exist a tiny
low variety of huge firms between whom there's a high degree of competition. to achieve market
share firms are centred on innovation and powerful promoting methods. the businesses are
typically not heterogeneous on the far side automotive manufacture. As a result, if the
automotive sector is during a downswing, it may raise exit barriers. thus the group action is
powerful during this market.
The company has set to concentrate on a slender base of 14-15 countries wherever market
conditions are almost like that of Bharat. In these countries, Tata Motors currently has dedicated
producing facilities, promoting groups and sales groups. the thought is to own self sustained
operations during this slender band of nations. the corporate evaluates locations on the idea of
market opportunities and labour skills.
Korean Operations
Tata Motors entered the advanced Korean Market by deed Daewoo, with that it's tremendous
synergies in terms of product strategy and R & D. Tata Motors has planned to use this merger
and leverage the technology for developing a World Truck for Bharat and international markets.
South African Operations

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In the export market, Tata Motors enraptured from a fragmented approach to specific markets,
chosen in terms of client behaviour, distribution networks, offer chain, etc. and known Republic
of South Africa collectively of the most effective markets. The sales during this region are
concerning 15K units. This is often a big improvement over what Tata Motors was cumulatively
mercantilism (8000 units) before adopting its new internationalisation strategy.
Thailand Operations
Tata Motors shaped a venture with Thonburi Automotive Plant to enter Thailand. Thailand is
that the second best marketplace for pickups, and therefore the new pickup trucks developed here
are sold in each domestic and export markets.
Latin American Operations
Tata Motors has taken its alliance with order to supply a brand new one-tonne pick-up truck, for
occupier markets from Fiat's facility in Argentina. This arrangement will see Tata Motors
forming a venture with a subsidiary of Iveco, the business vehicle division on order, to line up a
distribution network.
Now that Tata Motors has established a property model in some countries, its main challenge is
to copy this model in different countries similarly.
How to replicate this strategy for different markets?
Sustainable competitive advantage lies not in one, however a mix of multiple resources, every of
that on an individual basis needn't essentially be the most effective, however in overall weighted
average terms, presents the most effective resolution. For Tata Motors, the mixture of resources
providing it competitive superiority on a weighted average basis includes (see Exhibit 3):
1.Product responsibleness
2.Service Network
3.Channel Reach
CONSTRAINTS
•Diverse culture: each country has totally different ethics and attribute. action of the complete
with native culture is that the key to enter the market.
•Heavy custom and import duty: a number of the countries have duties as high as 250% (For e.g.
Nepal). This makes our vehicles terribly valuable as compared to Indian costs. For e.g., a Tata
hunting expedition Storme VX 4X4 is priced at Bureau of Intelligence and Research sixteen
Lakhs in Bharat and is obtainable in Kingdom of Nepal for Bureau of Intelligence and Research
forty Lakhs.
•Inconstant import duties: Erratic and frequent fluctuation big duties poses new challenges each
few years. This conjointly handicaps the strategy formulation for PV-IB. For e.g., Sri Lanka duty
has modified seven times in last four years.

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•Political uncertainty: Stable governments ar a rarity within the world. Kingdom of Nepal has
seen thirty eight Prime Ministers to this point as compared to sixteen in Bharat. With each
amendment of presidency there ar changes within the Foreign Trade Policies and that we ought
to align with new policies oft.
•Complexity of custom clearance/shipping: Documentation/on the bottom law of the land/sea
needs an entire gamut of support. Basically, offer Chain complexness is extremely high.
•Brand Prominence: Tata Motors as a brand is extremely fashionable in Bharat. International
markets every now and then have a distinct story altogether. The complete needs to be
established from scratch.
•Availability of product: This works as per demand of a selected country. For e.g. eightieth of
world market in terms of volume is hand Drive (LHD). Another example is Sri Lanka: As per the
present regulation and custom duties, a manufacturer UN agency encompasses a vehicle with but
one L engine and equipped with Airbag and ABS encompasses a vital skew advantage.
•Currency fluctuation in International market: With each fluctuation the parameters of the
business case amendment considerably.
•Foreign laws and regulations: Legal compliances and Tata Code of Conduct: making certain
moral conduct and law abidance in any respect times throughout business transactions.
•Language barriers: Ethnic teams everywhere in the globe have myriad languages and
connotations.

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5.TATA MOTORS CORPORATE LEVEL STRATEGY
The first and foremost strategy to focus on to achieve the vision is corporate level strategy which
helps businesses to transform that vision into an action plan. Corporate level strategy can be
divided into 3 strategies- A grand strategy like growth, sustainable/stable growth, turnaround, the
secondary level strategies (Expanding/ integrating / diversifying) and a tactical strategy
( organic/ inorganic strategy) .

5.1 Grand Strategy

The strategy proposed for Tata motors is growth strategy. Growth strategy means increasing the
growth for the next years. Through this Tata motors will be able to increase their market share,
sales and thus profit. Reduction of cost of production on account of economies of scale is
achieved which will ultimately help the organization expand in the true sense.
5.2 Secondary Level Strategy
5.2.1 Expansion Strategy
Expanding the operations to more market is proposed via this strategy for Tata Motors. They can
tap into fast emerging markets for example- South East Asia. This will help grow its brand status
and market share. Competing with large players will be possible with this strategy which will
further help to achieve competitive advantage in a more efficient manner. Only a little
customization is needed for Tata motors to tap into newer markets.
5.2.2 Integration Strategies
Integration can be of 2 types- vertical and horizontal. In horizontal the same business is acquired
to expand operations and for economies of scale and to get dominant position in the market. In
vertical either businesses operating at raw material side of supply chain are acquired (backward
integration) or businesses operating at retailer side are acquired (forward integration). This helps
in controlling the production in a better way and achieve greater efficiency. Various integration
strategies undertook by Tata Motors are as follows-
TATA MOTORS ACQUIRING TRILIX SRL
A backward integration - Trilix – Italian design and engineering firm in the automotive sector
was acquired ( 80 % stake) for 11.29 crore. Objective of the deal was to enhance design and
styling capabilities to global standards for Tata motors.
TATA MOTORS ACQUIRING DAEWOO COMMERCIAL VEHICLES
A horizontal merger-Tata Daewoo commercial vehicle(TDCV) is the 2nd manufacturer of heavy
duty and medium duty trucks in South Korea . It is pioneering markets by exporting to 60
countries.

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TATA FIAT JOINT VENTURE
A horizontal merger- This joint venture strengthened Ford’s strategic alliance with Tata group
giving a boost to competitive presence in India by bringing technology of Fiat’s cars at costs
synchronous to local demand.
TATA MOTORS JOINT VENTURE TATA AFRICA HOLDINGS
Assembling of semi knock down kits, heavy, light and medium commercial vehicle became
possible in assembly plant set up in South Africa at Rosslyn. It helped Tata Motors to
consolidate its business operations in target markets, to strengthen supply chains for South
African Medium and heavy Commercial vehicles, to develop OEM production capabilities and
for following industrial development strategy.
TATA MOTOR JOINT VENTURE WITH IMERIAL GROUP AND ACCORDIAN GROUP
A forward integration- Helped Tata motors to market and distribute its pick up vehicles (cars and
light commercial vehicles) and mini buses in South Africa. Helped increase its market share in
international market. Helped in emergence of a new joint venture, Tata automobile corporation
South Africa , helped them come up with 8 tonne trucks designed for South African conditions,
helped them enter the bus segment , and help them to get more funds for other ventures.
TATA JAGUAR LAND ROVER JOINT VENTURE WITH CHINA’S CHERRY AUTO
Helped Jaguar Land Rover to manufacture and sell British luxury brands in Chinese market and
helped them set up a research and development strategy which helped them sell vehicles
developed by the joint venture. Due to this, sales in china grew to 90000 vehicles by 2013. It
helped them achieve profitable and sustainable growth in China and expand its overseas
production facilities.
TATA MOTORS FINANCE LIMITED
Tata motors Finance Ltd. Was incorporated for it to become a financing provider for customers
of Tata motors dealers. It is non deposit taking NBFC.
JAGUAR LAND ROVER
Acquired by Tata motors, it is Britain’s largest automotive manufacturer for premium cars.
Jaguar land rover is known for its quality and excellence, strong global distribution network,
product development and engineering capabilities.
5.3 Intensive Strategies
Intensive strategies use strategies such as market development, market penetration and product
development to achieve competitive advantage.
5.3.1 Market Penetration
Market penetration strategy arc strategy that is used to increased market share in current
operating market, this is being done by using marketing strategies. Brand visibility should be
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created by Tata Motors by increasing the marketing efforts in advertisement and promotion.
Brand ambassadors should be used that will create brand awareness, along with catchy slogans in
marketing efforts.
5.3.2 Market Development
In order to be globally recognized and competitive, Tata Motors should expand to markets where
their competitors are acquiring. Tata motors can reduce their production cost by economies of
scale and increase their production capacity.
5.3.3 Product Development
By Tata Motor engaging in product development, they will be able to compete with their
competitors by producing up to date products and localized product based on customer's
requirement in certain market. Tata Motors should constantly invest in their R&D to ensure that
their product meets customer expectations and arc able to compete with their competitor's
product.

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6. Conclusion & Future Path
Conclusion
It's important for an organization to conduct strategy management, it will help to sustain the
business and the managers will know the trend on how the business is approaching. In this highly
competitive globalization era have caused organization to conduct strategy analysis twice a year
rather than years ago where the changes in business occur in a slower phase. For Tata Motor, it
have to develop globalization strategy as their business tend to be only stronger in India domestic
market where larger players in the automobile industry can monopolize the industry . Tata Motor
should change their current strategy that focuses on smaller segment vehicles and commercial
vehicle as being even more generally focused that will help them to achieve competitive
advantage. Lastly, Tata Motor should work together with their recently acquired Jaguar Land
Rover with branding Tata Motor to be globally recognized with more brand visibility.
FUTURE PATH
Tata motors is pulling multiple strings to get a leading market player tag. Tata Motors, under its
“Turnaround 2.0” plan is trying to win sustainably in passenger vehicle industry and win
decisively in commercial vehicle industry. It involves engaging with suppliers at early stage in
developmental project which was not done before. Tata motors is opting for modules and sub
assembly suppliers instead of independent components. In the emerging electric mobility space,
Tata sons want to put electrification in the right context, moving away from the question of EVs
to the question of ecosystem. The domestic businesses have seen a turnaround but Jaguar Land
rover has seen challenging times and thus a revival by thus turnaround strategy is more needed
now than ever.

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