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By: Neha Arya Anmol Sahni Radhika Gupta Chinmay Jagga Shivi Aggarwal Madhusudhan 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 Segmentwise Shares Titan TrentTata Chemicals Rallis 2% Tata Tea 2% 1% 0% 2% Taj Hotels, Resorts and Palaces 2% Tata Power 11% Tata Consultancy Services 46% Tata Steel 16% Tata Motors 12% Voltas 2% Tata Communications 4% Tata Elxsi 0% Change in Strategies –Post 1991 Businesses Entered and Exited Entries: •Passenger Cars •Auto Components (Mostly JVs) •Retailing •Telecommunications •Insurance •Home entertainment •Biotechnology Exits: Soaps and toiletries Cosmetics Consumer electronics Pharmceuticals Branded white goods Paints IT Hardware Telecom Hardware Oil Drilling Services Cement CURRENT STRATEGY: Diversification Inorganic Growth Business Sectors Services Communication and Info System Materials Services Backward Integration Chemicals Consumer Product Engeneering Market exploration Blue Ocean Strategy Globalization Strategy Materials Energy Engeneering Energy Consumer Product Chemicals Communication and Info System Product wise International Revenue Others, 6% Power, 3% Communications, 4% Tea, 2% Steel Motors TCS, 13% TCS Tea Communications Steel, 68% Motors, 4% Others Power International Revenue Share America, 2% South Latin Asia, 1% East Asia, 17% Middle East, 4% Europe Australia North America Africa Africa, 3% Europe, 57% Middle East East Asia South Asia North America, 15% Latin America Australia, 1% SWOT OF TATA GROUP •Experience •Microenvironment •Business Model •Resource and capabilities culture Strength •Exports •New Products •New Markets •Acquisitions and Mergers Opportunities •Value Chain •Distribution •Macro environment Weakness •Free Market •Low Barriers •Globalization of Economy Threat TATA BCG -2004-05 12% 10% Motors(HCV) 8% 1 0.5 0 -0.5 -1 -1.5 6% -2 Steel Power Motors(HCV) Telecommunications Mahanagar Steel 4% 2% 0% Power Telecommunications Mahanagar TATA BCG- 2008-09 12% 10% Motors(HCV) 8% Steel Power 6% 1 0.5 Motors(HCV) 0 -0.5 -1 -1.5 4% Power Telecomm Tata Tele 0% Telecommunications Mahanagar Steel 2% -2 Tata Motors: 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 STRENGTHS WEAKNESSES Largest truck manufacturer and second While many of its competitors have largest passenger vehicle manufacturer of aggressively expanded into overseas India. markets, Tata Motors has ventured into Company is the fifth largest truck foreign countries only in the recent past. 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. 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. Total Sales~TATA Motors CARS 32% M& HCV 24% M& HCV LCV UTILITY 6% UTILITY LCV 38% CARS Sales-TATA Motors 3500000 3000000 2500000 2000000 1500000 1000000 500000 0 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Exports of Different Segments 17% 2009-10 18% 25% 24% 2% 25% 2% 42% 2007-08 M& HCV LCV UTILITY 6% CARS 45% 39% 55% BCG-TATA Motors Star Question Mark Heavy Commercial Light Commercial Passenger Vehicels Cash Cow Dog Passenger Vehicels Heavy Commercial Light Commercial Name Indica , Tata Motors Indigo Target Small- car consumers who want a more spacious car Mid Sized Marina Midsized family Nano, Tata A middle class family that needs a car but cannot afford one Sports Utility Safari Land Rover Tata SUMO Sumo Grande Victa High Powered SUV for Sporty riders For Large families and outstation journeys For High End Transportation and a Sporty Family Car Large families Benefits Spaciousness POD A small spacious car with no extra cost Tagline “More Car per Car” Comfort- Power staring, High-Class Interiors High Powered engine, Fuel efficiency Safety , Luxury Affordability, Spacious Spoil Yourself Affordable price, very high fuel efficiency An engineering marvel in terms of cost , fuel and space efficiency Durable and reliable and rough and tough Luxury, International Quality, Engine options of TCIC, Dicor, and MPFI Updated Terrain Response System Spacious, Efficiency , Multi Utility Adaptive Dynamics Reliability, efficiency, low cost of ownership World-class styling, technology, luxury and safety features at Carry Your world in Style with You The People’s Car Reclaim your life The most welltravelled vehicles on earth 'Reclaim your life'! A vehicle in middle – end. Stylish and Trendy More meets eye Stylish Interior and large space What you Try is who you are. than the Efficiency Perceptual Map- Passenger Vehicle Cost 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 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 MTPA Jamshedpur works , Corus ,Natsteel Asia , Tata Steel (Thailand) •Presence in 50 markets; manufacturing operations in 24 countries •Expansion plans Brownfield: Jamshedpur Works Greenfield : India and overseas •.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 Strength •Enormous scope for increasing consumption. •Unexplored rural market •Booming infrastructure Opportunities •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. Weakness •Rising of environmental costs due to increased concerned on global warming. •Threat of substitutes. •Scarcity of non renewable resources. Threat 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.