tata- business strategy
DESCRIPTION
It is a PPT on Business Strategies of a Conglomerate TATA GroupBy : Neha Arya Anmol Sahni Radhika Gupta Chinmay Jagga, Shivi Aggarwal and Madhusudan PartaniTRANSCRIPT
By:Neha AryaAnmol SahniRadhika GuptaChinmay JaggaShivi AggarwalMadhusudhan Partani
TATA PROFILE: India’s Largest business group
Diverse businesses in 7 sectors
International income 61% of Group Revenue
Operations in over 80 countries
Products and services exported to 85 countries
Largest employer in private sector: over 300000 employees
PURPOSE: Attain leadership through business excellence in the sectors we operate in, while upholding our values and integrity, to improve the quality of life of the communities we serve.
CORE VALUES: Integrity, understanding,
excellence, unity and responsibility.
MARKET CAPITALIZATION OF VARIOUS COMPANIES
Tata Consultancy Services 46%
Tata Elxsi 0%
Tata Communications 4%
Tata Motors 12%
Voltas2%
Tata Steel17%
Taj Hotels, Resorts and
Palaces2%
Tata Power 11%
Tata Tea 2%
Titan 2%
Trent 1%
Tata Chemicals 2%
Rallis 0%
Segmentwise Shares
Change in Strategies –Post 1991
Businesses Entered and Exited
Entries: Exits:•Passenger Cars Soaps and toiletries•Auto Components (Mostly JVs) Cosmetics•Retailing Consumer electronics•Telecommunications Pharmceuticals•Insurance Branded white goods•Home entertainment Paints•Biotechnology IT Hardware Telecom Hardware Oil Drilling Services Cement
CURRENT STRATEGY:
Diversification
Inorganic Growth
Backward Integration
Market exploration
Blue Ocean Strategy
Globalization Strategy
Services
Materials
EnergyEngeneering
Consumer Product
Chemicals
Communication and Info System
Business Sectors
ServicesMaterialsEnergyEngeneeringConsumer ProductChemicalsCommunication and Info System
Steel; 68%
Motors; 4%
TCS; 13%
Tea; 2%
Com-munica-
tions; 4%
Others; 6% Power; 3%
Product wise International Revenue
Steel
Motors
TCS
Tea
Communications
Others
Power
Europe; 57%
Australia; 1%
North Amer-ica; 15%
Africa; 3%
Middle East; 4%
East Asia; 17%
South Asia; 1%Latin America; 2%
International Revenue Share
EuropeAustraliaNorth AmericaAfricaMiddle EastEast AsiaSouth AsiaLatin America
SWOT OF TATA GROUP
Strength Weakness
Opportunities
Threat
•Experience•Microenvironment•Business Model•Resource and capabilities culture
•Value Chain•Distribution•Macro environment
•Exports•New Products•New Markets•Acquisitions and Mergers
•Free Market •Low Barriers•Globalization of Economy
-2-1.5-1-0.500.51
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
Steel
Power
Motors(HCV)
Telecommunications Mahanagar
TATA BCG -2004-05
Steel PowerMotors(HCV)TelecommunicationsMahanagar
-1.5-1-0.500.51
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
Steel
Power
Motors(HCV)
Telecomm
Tata Tele
TATA BCG- 2008-09
Steel PowerMotors(HCV)TelecommunicationsMahanagar
Tata Motors:Established: 1945Market Cap: Rs 6.763cr/$1.4bnIndia’s largest automobile company by revenueLeadership position in commercial vehicles Global no.4 in M&HCV trucks; No.2 in busesNo.3 in Passenger car vehicles in IndiaStrong subsidiaries/associatesTata Daewoo, Hispano , Telcon , Tata Technologies, European Technical centre in UK and Tata motors ThailandThrust on growing International Presence
STRENGTHS
Largest truck manufacturer and second largest passenger vehicle manufacturer of India.
Company is the fifth largest truck manufacturer in the world.
Produces a diversified range of vehicles catering to a wide range of customers and is witnessing a constant growth in its sales.
Goodwill of TATA brand.
WEAKNESSES
While many of its competitors have aggressively expanded into overseas markets, Tata Motors has ventured into foreign countries only in the recent past.
OPPORTUNITIES
An Industrial partnership agreement with Fiat
Huge unexploited market. Acquisition of DCVC Unveiling of the world’s ‘low-cost’ car.
THREATS
Stiff competition from global automobile companies.
Other factors such as rising fuel and raw material costs, stringent emission norms and the related of compliance can affect the company's performance, going forward.
Safety & reliability issues.
M& HCV24%
LCV38%
UTILITY6%
CARS32%
Total Sales~TATA Motors
M& HCVLCVUTILITYCARS
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 20090
500000
1000000
1500000
2000000
2500000
3000000
3500000
Sales-TATA Motors
25%
45%
6%
24%
25%
55%
2%
18%
42%
39%
2%
17%
Exports of Different Segments
M& HCVLCVUTILITYCARS
2009-10
2007-08
Passenger Vehicels
Heavy Commercial
Light Commercial
BCG-TATA Motors
Passenger Vehicels Heavy Commercial Light Commercial
Question MarkQuestion Mark
DogCash Cow
Star
Name Target Benefits POD Tagline Indica ,
Tata Motors
Small- car consumers who want a more spacious car
Spaciousness A small spacious car with no extra cost
“More Car per Car”
Indigo Mid Sized Comfort- Power staring, High-Class Interiors
Safety , Luxury at Affordability,
Spoil Yourself
Marina Midsized family High Powered engine, Fuel efficiency
Spacious Carry Your world in Style with You
Nano, Tata A middle class family that needs a car but cannot afford one
Affordable price, very high fuel efficiency
An engineering marvel in terms of cost , fuel and space efficiency
The People’s Car
Safari Sports Utility Durable and reliable and rough and tough
Engine options of TCIC, Dicor, and MPFI
Reclaim your life
Land Rover
High Powered SUV for Sporty riders
Luxury, International Quality,
Updated Terrain Response System
Adaptive Dynamics
The most well-travelled vehicles on earth
Tata SUMO
For Large families and outstation journeys
Spacious, Efficiency , Multi Utility
Reliability, efficiency, low cost of ownership
'Reclaim your life'!
Sumo Grande
For High End Transportation and a Sporty Family Car
World-class styling, technology, luxury and safety features
A vehicle in middle –end. Stylish and Trendy
More than meets the eye
Victa Large families Stylish Interior and large space
What you Try is who you are.
Perceptual Map- Passenger Vehicle
TATA Indica V2 Accent Maruti 800 Zen Benz E200 Indigo Marina
Indigo Honda City FORD Ikon Optra Nano Ford Fusion
Swift Dzire Aveo Hyundai i20
Cost
Effi
cie
ncy
SUGGESTED STRATEGIES
Product differentiation by means of space, efficiency, comfort and luxury
Segment penetration (Tata Nano)
Cost Leadership
Backward Integration
Contingency Plan
Partnering with Global Brands
Tata Steel:
•Established in 1907•Market Capitalisation:Rs.13.301cr/$2.7bn•Fortune 500 Company•World’s 6th largest steelmaker: 28 MTPAJamshedpur works , Corus ,Natsteel Asia ,Tata Steel (Thailand)•Presence in 50 markets; manufacturing operations in 24 countries•Expansion plansBrownfield: Jamshedpur WorksGreenfield : India and overseas
Strength Weakness
Opportunities Threat
•.Self sufficient in the case of the major raw material Iron ore.•Very advanced research and development wing.•Strong retail and distribution network.•Aggressive mergers and acquisitions
•Raw material for steel production are rapidly depleting and non renewable•Steel production in India is hampered by power shortages•High cost of basic inputs and services•Low Labour productivity.
•Enormous scope for increasing consumption.•Unexplored rural market•Booming infrastructure
•Rising of environmental costs due to increased concerned on global warming.•Threat of substitutes.•Scarcity of non renewable resources.
SUGGESTED STRATEGIES
Invest more in R&D for technological advancements
Focus on rural areas and tier 2 and 3 cities undergoing infrastructure developments.
TATA INDICOM
Services-Fixed/mobile,voice/data/VAS Segments-Carriers, corporate, SME and
individuals Networks-Domestic and International Established 1995 Pan-India 3G ready CDMA network 6bn commitment Entering GSM services shortly 32m customers India’s largest branded telecom retail chain Objective: 80m customers by 2013
CURRENT STRATEGIES
JV with foreign players like NTT DOCOMO of Japan, which provides them global exposure. And also
Aggressive promotion tools like discounted call charges
Pioneer of plans like 1 paisa per second The Limca Book of Records 2007 edition for
being the First telecom operator in India to inaugurate 100 TrueValue Shoppes (TVS) across the nation on a single day.
The addition of Youth Brand i.e. Virgin Mobiles has increased the value of TTSL.
FUTURE STRATEGIES
Since it is penetrated only in urban areas, it needs to focus on rural penetration.
With existence of cut throat competition , the TTSL shall adopt customer centric plans.
The Number portability has further added to the baskets of problem. Now for TTSL, the most important factor is its customer loyalty
It shall provide the value added services so that customer can be retained.