STRATEGIC MANAGEMENT

Strategic Review of Tata Motors

Table of Content

Introduction2

Competitors3

PESTEL Analysis4

SWOT Analysis6

Product Distribution and Promotion8

Marketing Mix9

Portfolio Analysis10

Porter's five Forces10

BCG Matrix10

Ansoff Matrix12

Shell Matrix13

Current Financial Data Analysis (For the fiscal year 2010)14

Evaluating marketing effectiveness14

Recommendations15

References16

Strategic review of Tata Motors

Introduction

Tata Motors Limited (Tata Motors) is India's largest and world's eighteenth largest automobile company, which mainly engages in manufacturing utility vehicles, passenger cars, buses, trucks and defence vehicles. It reported US $2.07 billion net profit during the fiscal year 2010-11. The company is providing automotive solutions and engineering, supply chain activities, finance services and manufacturing of automotive vehicle components, through its affiliates, joint ventures and subsidiaries. Tata Motors also develop high-precision tooling, machine tools and factory automation solutions, electronic and plastic parts for computer and automotive applications. It markets and distributes branded cars, such as FIAT in India and Jaguar worldwide (Zeleny 1997, p 77).

The company has principal operations in India. It exports vehicles to Africa, Europe, South and Southeast Asia, the Middle East, and South America. It is headquarter is in Mumbai, Maharashtra, India. Tata Motors was established in 1945, when it began manufacturing steam-engines. It is a dual-listed company and is traded on both the New York Stock Exchange (NYSE) and Bombay Stock Exchange. It has its auto-manufacturing and assembling plants in India, Argentina, United Kingdom and South Africa (Wiggins 2002, p 82).Strategic Business Units of Tata Motors

The Major SBU's of Tata Motors in which they have divided their business are

Commercial Vehicles (Light weight trucks to multi-axle 40 ton vehicles).

Passenger Cars, economy and luxury (Indica, Nano, JLR).

Utility vehicles, standard and premium (Sumo, Safari)

Spare parts, components and accessories (HV Axles and transmission, High horse power engine via Tata Cummins).

Financing for customers and channel partners (via Tata Motors Finance)

Competitors

Tata Motors has a large list of competitors on both the Indian and international front. The lists of competitors include the giants like General Motors, Honda Motors. The list is as follows:

Maruti Suzuki

General Motors

Honda

Hyundai

Nissan

Renault S.A

Mitsubishi Motors

Volkswagen AG Ford

Fiat

Mahinda & Mahindra

Ashok Leyland

SML Isuzu

Eicher Motors.

The table below shows Tata Motors comparison with few of its competitors.

Name

Market Cap.

Sales

Net Profit

Total Assets

(Rs. cr.)

Turnover

Tata Motors

49,434.09

47,807.42

1,811.82

35,912.05

Ashok Leyland

6,984.28

11,117.71

631.3

6,621.14

Eicher Motors

4,317.75

442.67

75.44

474.14

Tata Motors (D)

2,984.17

-

-

-

SML Isuzu

555.2

893.01

36.56

297.79

From the table, it can be observed that Tata Motors has many competitors who posses different levels of threat, for example, the threat presented by Ashok Leyland will be different to the threat presented by Eicher Motos. The same implies to International competitors such as General Motors, Honda and Toyota. It will have to be aware of the strategies; and tactics its competitors are using and developing to ensure reaction according to the situation (Whittington 1996, p 731).

PESTEL Analysis

Political AnalysisThe headquarters in Mumbai, India is ensuring that the company is operating in compliance with laws, rules and regulations of regional governing and law enforcing bodies in its geographical area of presence worldwide. It regulates and oversees operations in all subsidiaries and dealerships, along with ensuring abidance of all labor laws in the different countries where it has its manufacturing plants. It is also keeping a keen eye on the changes in the political climate of countries of operations (Wernerfelt 1984, p ...