Sahar Ahmad

MBA (G)

28

GLOBAL STRATEGIES

Tata Motors Limited

ABOUT THE COMPANY

• Tata Motors is the India’s largest automobile company.

• The company is the fourth largest truck manufacturer and the second largest bus manufacturer.

• Tata motors is one of the largest automobile company established in 1945 .

• Now it is present all over the country.

• Tata Motors is equally focussed on environment-friendly technologies in emissions and alternative fuels.

• It has developed electric and hybrid vehicles both for personal and public transportation.

• It has also been implementing several environment-friendly technologies in manufacturing processes.

• The company’s support on education and employability is focused on youth and women.

• . The company has won several awards recognising its training programmes.

Commercial Vehicles

Passenger Vehicles

Military Vehicles

product profile

Branches in INDIA

Northern Region

•New Delhi•Chandigarh•Jaipur•Lucknow

Eastern Region

•Kolkata•Orissa•Patna

Western Region

•Mumbai•Pune•Nagpur•Indore•Ahmedabad•Raipur

Southern Region

•Bangalore•Hyderabad•Cochin•Chennai•Madurai•Salem•Coimbatore

Subsidiary Companies• Jaguar Land Rover

• Tata Macropolo Motors

• Tata Daewoo

• Hispano Carrocera

• Tata Motors( Thailand)

• Telcon

• Tata Motors European Technical Care

• Tata Technologies

• TAL Manufacturing Solutions

• HV Transmission and HV Axles

• Tata Auto comp

• TML Distribution.Co

• Tata Motor Finance

Competitors

• Ford

• Toyota

• Hyundai

• Maruti Suzuki

• Honda

• Chevrolet

• Fiat

What are the driving forces which impact the company ?

Driving Forces which impact the company are

• Emerging new internet capabilities and applications

• Increasing globalisation

• Changes in who buys the product and how they use it

• Product innovation

• Technological change and manufacturing process innovation

• Marketing innovation

• Entry or exit of new firms

• Changes in cost and efficiency

• Changing societal concerns, attitudes and lifestyles

• Regulatory influences and govt. policy changes.

MULTI COMPANY OPERATIONS

• Through subsidiaries and associate companies, Tata Motors has operations in the UK, South Korea, Thailand, Spain, South Africa and Indonesia. Among them is Jaguar Land Rover, the business comprising the two iconic British brands.

• Tata Motors, the first company from India's engineering sector to be listed in the New York Stock Exchange (September 2004), has also emerged as an international automobile company.

• Tata Motors developed the first indigenously light commercial vehicle, Sports Utility Vehicle and in 1998, the Tata Indica, India’s first fully indigenous passenger car.

• Within two years of launch, Tata became India’s largest car in its segment.

• The company’s dealership, sales, services and spare spats network comprises over 3500 communication points.

Branches

UK

South Korea

Russia

Europe

Africa

the Middle East

South East Asia

South Asia

South America.

Joint Ventures & Acquisitions

• Tata Motors the first company from India’s engineering sector to be listed in New York stock exchange in 2004.

• In 2004 it acquired Daewoo Commercial Vehicles South Korea’s second largest truck maker

• In 2005, Tata Motors acquired a 21% stake in Hispanso Carrocera, a reputed Spanish bus and coach manufacturer, and subsequently the remaining stake in 2009.

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• In 2006, Tata Motors formed a joint venture with the Brazil-based Marcopolo, a global leader in body-building for buses and coaches to manufacture fully built buses and coaches for India and select international markets.

• In 2008 it acquired Jaguar Landrover, in the same year it from Ford motors and in the same year it launched Nano, people’s car.

• Tata Motors is also expanding its international footprint, established through exports since 1961. The company's commercial and passenger vehicles are already being marketed in several countries all over the world.

• A 50:50 joint venture company between Tata Motors Limited and Fiat Company.

Financial Highlights

•  Market Capitalisation (as on March 31, 2014) 1,18,777 crores

• Total Revenue 2,33,662 crores

• Consolidated profit before tax 18,869 crores

• EBITDA margin 16.1%

Quarter ended 30 June 2014 (in lakhs)

• Total Income 7,61,289.00

• PBT 39,365.00

• Net Profit 39,365.00

• EPS Rs.1.21

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10

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Price

sales volume for passenger car vehicles

Maruthi/Hyundai

BMW

Skoda/VW

Ford

Toyota/Honda

Tata/mahindra

*Approximate market share

Effectiveness in Strategy Implementation

• New internationalization strategy, the company has decided to focus on a narrow base of 14-15 countries where market conditions are similar to that of India

• In these countries, Tata Motors now has dedicated manufacturing facilities, marketing teams and sales teams

• The company evaluates locations on the basis of market opportunities and labour skills.

• In the framework pertaining to international expansion strategies, Tata Motors can be identified as an Extender, and is focusing on expanding into markets similar to those of the home base, using competencies developed at home

Competitive Advantage

Sustainable competitive advantage lies not in one, but a combination of multiple resources, each of which individually need not necessarily be the best, but in overall weighted average terms, presents the best solution. For Tata Motors, the combination of resources providing it competitive superiority on a weighted average basis includes:

• Product Reliability

• Service Network

• Channel Reach

In terms of product reliability, Tata Motors offers products of reasonably high standards. However, foreign players like Volvo and even local competitors like Ashok Leyland arguably offer products that are far more refined. But this is more than compensated by a dependable service network and extensive channel reach. Tata's service and distributor network is by far the most extensive of any player in the trucks industry. Hence in overall weighted average terms, Tata Motors still has a winning proposition.

Conclusion

• Tata Motors is an overall strong company that has found strength and expansion through its parent company, Tata Group, but also through its numerous acquisitions and mergers. Although Tata Motors stock prices have fallen since the start of the 2008 year due to suggestions that Tata Motors is overreaching by adding luxury brands to pair with the Nano, the world's cheapest car.

• The future presents challenges and opportunities for the company in equal measure both domestically and internationally. While pitfalls are many, Tata Motors looks well positioned indeed to capitalize on these opportunities and take on the world.

Thank you

Thank you