Tata Motors Case Analysis
Question #2 Prepare a SWOT analysis for the company.
Strengths
• Tata Motors is a market leader in automobile industry in India with a high market share.
• Tata Motors has a good employee base which gives them high production efficiency.
• Tata Motors are considered a reputable brand in India which gives them an advantage over its competitors.
• Tata focuses not only the quality of its products but also on the quality of its management. They have a program of intensive management development in place in order to establish its leaders for tomorrow
• Tata Motors understands customer needs and develops products that meet their needs.
• Tata Motors produce low price car with high fuel efficiency which gives them a big customer base in the country. Example Tata Nano
• Tata Motors has been aggressively acquiring foreign brands to increase its global presence.
Weaknesses
• Tata Motors is known for commercial vehicles and low priced cars. However, it does not have a foothold in the luxury segment in the domestic market.
• Tata Motors shareholders are not getting much from their investments due to low return on investments on shares.
• Tata Motors are not able to meet safety standards in their vehicles in comparison to its competitors.
Opportunities
• Tata Motors can take advantage of their low cost vehicle by entering into third world countries where people have low purchasing power which gives them a big export opportunity.
• Jaguar and Land Rover provide Tata Motors with an opportunity to establish itself in the luxury segment.
• Tata Motors can incorporate safety features in their vehicles to gain more customer satisfaction.
• Joint ventures in other countries allow Tata Motors to easily enter into new market internationally.
Threats
• There are lots of powerful competitors for the luxury market that are beginning to enter the Indian market such as: Honda, Toyota, Ford and Mercedes-Benz.
• Tata Motors
References: http://www.tatamotors.com/ http://en.wikipedia.org/wiki/Tata_Motors