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.