SWOT ANALYSIS of TATA Motors

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STRENGTH

n  Tata motors is a market leader in Automobile Industry with high market share.

n  Tata Motors Company have huge employee base.

n  Tata motors produce low price car with low fuel consumption.

n  Tata motors is the reputed brand in Indian Industry.

n  Tata Motors Limited is India’s largest automobile company.

n  Tata Motors has been aggressively acquiring foreign brands to increase its global presence. Ownership of heritage of British motor brands like Land Rover and Jaguar.

n  Tata’s management is strengthened by the collective experience of its partners and acquired companies – this includes general management, marketing, sales and operations.

n  Managerial Expertise – Experience of CEO, CMO & CFO.

n  Successful New Products launched in last 5 years.

n  Strong financial condition.

n  The research and development team of TATA motors is very strong.

WEAKNESS

n  Despite buying the Jaguar and Land Rover brands (see opportunities below); Tata has not got a foothold in the luxury car segment in its domestic, Indian market.

n  Return on Investment on TATA motors shares in low.

n  Most of the automobiles Tata manufactures are based on older platforms.

n  Missing some key skills/competencies.

n  Low level of stocks in times of peak sales.

n  Poor Product Design.

n  No clear Strategic Direction.

n  Weak marketing skills.

OPPORTUNITIES

n  TATA motors can take the advantage of their low cost car by entering into third world countries where people have low purchasing power.

n  Joint ventures in other countries allow TATA motors to easily enter into new market.

n  TATA motors should focus in developing luxury cards.

n  Acquisition of rivals.

n  The Nano could sell well in other geographic markets. Expanding markets such as China may find the Nano just the answer.

n  Favourable Government Policy

n  Expanding to New Geographic Areas

n  Expanding Product Line.

THREATS

n  Rising prices in the global economy could pose a threat to Tata Motors Limited on a couple of fronts. The price of steel and aluminum is increasing putting pressure on the costs of production.

n  Since the company has focused upon the commercial and small vehicle segments, it has left itself open to competition from overseas companies for the emerging Indian luxury segments.

n  Slow Market Growth

n  Rising Raw Materials Cost.

n  Entry of Potential New Competitors.

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