TATA- Business Strategy

 Tat  T ata a Profi Profile le:: 

India’s Largest business group

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Diverse businesses in 7 sectors

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International income 61% of Group Revenue

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Operations in over 80 countries

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Products and services exported to 85 countries

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Largest employer in private sector: sector: over 300000 employees

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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.

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CORE VALUES: Integrity, understanding, understanding, excellence, unity un ity and responsibility responsi bility..

Market Mark et capitalization of various companies

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Current Strategy S trategy:: 

Diversification

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Inorganic Growth

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Backward Integration

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Market exploration

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Blue Ocean Strategy

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Globalization Strategy

Swot of tata Group Experience Microenvironment Business Model Resource and capabilities

 Value   Value Chain Distribution Macro environment

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Exports New Products New Markets  Acquisitions   Acquisitions and Mergers

Free Market Low Barriers Globalization of Economy

Established: 1945 Market Cap: Rs 6.763cr/$1.4bn India’s largest automobile company by revenue Leadership position in commercial vehicles Global no.4 in M&HCV trucks; No.2 in buses

No.3 in Passenger car vehicles in India Strong subsidiaries/associates Tata Daewoo, Hispano , Telcon , Tata Technologies, European Technical centre in UK and Tata motors Thailand

Thrust on growing International Presence

While many of its competitors have Largest truck manufacturer and second largest h ave aggressively passenger vehicle manufacturer of India. expanded into overseas markets, Tata Motors has Company is the fifth largest truck manufacturer in the ventured into foreign countries only in the recent past. orld. Produces a diversified range of vehicles catering to a ide range of customers and is witnessing a constant growth in its sales. Goodwill of TATA brand. 

An Industrial partnership agreement with Fiat Huge unexploited market. Acquisition of DCVC Unveiling of the world’s ‘low-cost’ car  . 

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,  performance, going forward. Safety & reliability issues. 

Suggested Strategies 

Product differentiation by means of space, efficiency, comfort and luxury

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Segment penetration penetrati on (Tata (Tata Nano) N ano)

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Cost Leadership

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Backward Integration

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Contingency Plan

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Partnering with Global Brands

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Jams Jamsh hedpur pur wor works ks , Corus ,Natsteel As Asia Tata Tata Stee Steel l (Thai Thaila land nd)

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Brown Brownfi fiel eld d: Jams Jamshe hedp dpur ur Work Works s Gree Green nfield eld : India an and ov overseas

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.Self sufficient in the case of the major raw material Iron ore.  Very   Very advanced research and development wing. Strong retail and distribution network.  Aggressive   Aggressive mergers and acquisitions

Enormous scope for increasing consumption. Unexplored rural market Booming infrastructure

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.

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

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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 

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Current Curre nt strategies 

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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 inaugura te 100 1 00 TrueV TrueValue alue 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 

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Since it is penetrated only in urban areas, a reas, it needs to focus on rural penetration.

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With existence of cut throat competition competiti on , the  TTSL shall adopt customer centric plans.

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Number portability has further added to the baskets of problem. Now for TTSL, the most important factor is its customer loyalty

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It shall provide the value added services so that customer can be retained.