TATA- Business Strategy

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 _{India’s Largest business groupIndia’s Largest business group}

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 _{Diverse businesses in 7 sectorsDiverse businesses in 7 sectors}

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 _{International income 61% of Group RevenueInternational income 61% of Group Revenue}

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 _{Operations in over 80 Operations in over 80 countriescountries}

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 _{Products and services exported to 85Products and services exported to 85}

countries countries

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 _{Largest employer in private Largest employer in private sectorsector: over: over}

300000 employees 300000 employees

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 _{PURPOSE:PURPOSE: Attain leadership through businessAttain leadership through business}

excellence in the sectors we operate in, excellence in the sectors we operate in,

while upholding our values and integrity, to while upholding our values and integrity, to improve the quality of life of the

improve the quality of life of the communities we serve. communities we serve.    

 _{CORE VALUES:CORE VALUES: Integrity, Integrity, understandinunderstanding,g,}

excellence, un

excellence, unity ity and responsiand responsibilitybility..

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Current S

Current S

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trategy:

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 _{DiversificationDiversification}

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 _{Inorganic GrowthInorganic Growth}

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 _{Backward IntegrationBackward Integration}

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 _{Market explorationMarket exploration}

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 _{Blue Ocean StrategyBlue Ocean Strategy}

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Swot of tata Group

Swot of tata Group

ExperienceExperience

MicroenvironmentMicroenvironment

Business ModelBusiness Model

Resource and capabilitiesResource and capabilities

culture culture

 Value Chain Value Chain

DistributionDistribution

Macro environmentMacro environment

ExportsExports

New ProductsNew Products

New MarketsNew Markets

 Acquisitions and Mergers Acquisitions and Mergers

Free MarketFree Market

Low BarriersLow Barriers

Established: 1945 Established: 1945

Market Cap: Rs 6.763cr/$1.4bn Market Cap: Rs 6.763cr/$1.4bn

India’s largest automobile company by revenue India’s largest automobile company by revenue Leadership position in commercial vehicles

Leadership position in commercial vehicles Global no.4 in M&HCV trucks; No.2 in buses Global no.4 in M&HCV trucks; No.2 in buses No.3 in Passenger car vehicles in India

No.3 in Passenger car vehicles in India Strong subsidiaries/associates

Strong subsidiaries/associates

Tata Daewoo, Hispano , Telcon , Tata Technologies, European Tata Daewoo, Hispano , Telcon , Tata Technologies, European Technical centre in UK and Tata motors Thailand

Technical centre in UK and Tata motors Thailand Thrust on growing International Presence Thrust on growing International Presence

Largest truck manufacturer and second largestLargest truck manufacturer and second largest

passenger vehicle manufacturer of India. passenger vehicle manufacturer of India.

Company is the fifth largest truck manufacturer in theCompany is the fifth largest truck manufacturer in the

orld. orld.

Produces a diversified range of vehicles catering to aProduces a diversified range of vehicles catering to a

ide range of customers and is witnessing

ide range of customers and is witnessing a constanta constant growth in its sales.

growth in its sales.

Goodwill of TATA brand.Goodwill of TATA brand.

While many of its competitors hWhile many of its competitors have aggressivelyave aggressively

expanded into overseas markets, Tata Motors has expanded into overseas markets, Tata Motors has ventured into foreign countries only in the recent past. ventured into foreign countries only in the recent past.

An Industrial partnership agreement with FiatAn Industrial partnership agreement with Fiat _{Huge unexploited market.Huge unexploited market.}

_{Acquisition of DCVCAcquisition of DCVC}

Unveiling of the world’s ‘low-cost’ car Unveiling of the world’s ‘low-cost’ car ..

Stiff competition from global automobile companies.Stiff competition from global automobile companies. _{Other Other factors factors such such as as rising rising fuel fuel and and rawraw}

material costs, stringent emission norms and the material costs, stringent emission norms and the related of compliance can affect the company's related of compliance can affect the company's  performanc

 performance, going e, going forward.forward.

_{Safety & reliability issues.Safety & reliability issues.}

STRENGTHS

STRENGTHS WEAKNESSESWEAKNESSES

OPPORTUNITIES

Suggested Strategies

Suggested Strategies

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 _{Product differentiation by means of space,Product differentiation by means of space,}

efficiency, comfort and luxury efficiency, comfort and luxury

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 _{Segment Segment penetratipenetration (Ton (Tata Nata Nano)ano)}

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 _{Cost LeadershipCost Leadership}

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 _{Backward IntegrationBackward Integration}

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 _{Contingency PlanContingency Plan}

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 _{PPartnering with Global artnering with Global BrandsBrands} 

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.Self sufficient in the case of the.Self sufficient in the case of the major raw material Iron ore.

major raw material Iron ore.

 Very advanced research and Very advanced research and

development wing. development wing.

Strong retail and distributionStrong retail and distribution

network. network.

 Aggressive mergers and Aggressive mergers and

acquisitions acquisitions

Raw material for steelRaw material for steel

production are rapidly depleting production are rapidly depleting and non renewable

and non renewable

Steel production in India isSteel production in India is

hampered by power shortages hampered by power shortages

High cost of basic inputs andHigh cost of basic inputs and

services services

Low Labour productivity.Low Labour productivity.

Enormous scope for increasingEnormous scope for increasing

consumption. consumption.

Unexplored rural marketUnexplored rural market

Booming infrastructureBooming infrastructure

Rising of environmental costsRising of environmental costs

due to increased concerned on due to increased concerned on global warming.

global warming.

Threat of substitutes.Threat of substitutes.

Scarcity of non renewableScarcity of non renewable

resources. resources.

Suggested Strategies

Suggested Strategies

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 _{Invest more in R&D for Invest more in R&D for technologicaltechnological}

advancements advancements

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 _{FFocus on rural areas and tier 2 ocus on rural areas and tier 2 and 3 citiesand 3 cities}

undergoing infrastructure developments. undergoing infrastructure developments.

 Tata Indicom

 Tata Indicom

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 _{Services-Services-Fixed/mobile,voice/data/VASFixed/mobile,voice/data/VAS} 

 _{SegmentsSegments-Carriers, corporate, SME and-Carriers, corporate, SME and}

individuals individuals

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 _{NetworksNetworks-Domestic and International-Domestic and International} 

 _{Established 1995Established 1995} 

 _{PPan-India 3G an-India 3G ready CDMA networkready CDMA network} 

 _{6bn commitment6bn commitment} 

 _{Entering GSM services shortlyEntering GSM services shortly} 

 _{32m customers32m customers} 

 _{India’s largest branded telecom retail chainIndia’s largest branded telecom retail chain} 

 _{ObjectiveObjective: 80m customers by 2013: 80m customers by 2013}

Curre

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nt strategies

strategies

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 _{JV with foreign players like NTT DOCOMO of  JV with foreign players like NTT DOCOMO of} 

 Japan, which provides them global exposure.  Japan, which provides them global exposure.

And also And also

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 _{Aggressive promotion tools like discounted callAggressive promotion tools like discounted call}

charges charges

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 _{Pioneer of plans like 1 paisa per secondPioneer of plans like 1 paisa per second} 

 _{The Limca Book of Records 2007 edition for The Limca Book of Records 2007 edition for}

being the First telecom operator in India to being the First telecom operator in India to inaugura

inaugurate 1te 100 T00 TrueVrueValue alue Shoppes Shoppes (TVS)(TVS) across the nation on a single day.

across the nation on a single day.

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 _{The addition of Youth Brand i.e. Virgin Mobiles The addition of Youth Brand i.e. Virgin Mobiles}

has increased the value of

has increased the value of TTSL.TTSL.

Future Strategies

Future Strategies

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 _{Since it is penetrated only in urban aSince it is penetrated only in urban areas, itreas, it}

needs to focus on rural penetration. needs to focus on rural penetration.

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 _{With With existence existence of of cut cut throat throat competiticompetition on , , thethe}

 TTSL shall adopt customer centric plans.  TTSL shall adopt customer centric plans.

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 _{The Number portability has further added to The Number portability has further added to}

the baskets of problem. Now for TTSL, the the baskets of problem. Now for TTSL, the most important factor is its customer loyalty most important factor is its customer loyalty

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 _{It shall provide the value added services soIt shall provide the value added services so}

that customer can be

that customer can be retained.retained.