LEADERSHIP WITH
PRESENTED BY,
POONAM WAGHULDE
MITALI
SHIVANGI,ASHISH,PRAJAKTA
NEHA,SANKET.HASAN
TRUST……..ROHIT,VISHWAS
AND ASHISH sawant……….
TATA MOTORS…..
Product Range
TATA Motors: Commercial Vehicles
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Global Footprint
OTHER COLLABORATIONS/M&A & JVs
• Tata Daewoo Commercial Vehicle
• Hispano in Spain & Marcopolo In Brazil
• JV with Jardine Matheson for
ConcordeMotors
• Technology Tie Ups at Spain,Italy
West Europe
U.K.
Italy
Russia*
Ukraine*
Central Asia
Afghanistan
Uzbekistan
North Africa
East Asia
China
South Korea*
Egypt
South Asia
Bangladesh *
Nepal, Sri Lanka
West Africa
Senegal
LATAM
Brazil
West Asia
Saudi Arabia
Iraq, Iran
South Africa
South Africa*
South East Asia
Malaysia*
Thailand
East Africa
Kenya*
* Assembly Operations also
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The Ratan RevOluTiOn…..
Ratan Tata
A Man Who Believes In
“18 TILL I DIE”
Tata Motors
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Established in 1945.
India’s largest automobile company.
India's largest commercial vehicle
manufacturer.
First Indian automobile company to list on the New
York Stock Exchange.
It ranks among the world’s top five manufacturers of
medium and heavy trucks.
It is the world’s second largest medium and heavy bus
manufacturer.
It is India’s second largest passenger vehicle player.
Has six R&D centers in India, South Korea, Spain
and the UK, with over 1,400 engineers and scientists.
Contd...
• Starting with commercial vehicles in 1954, it entered
the passenger vehicles segment in 1991.
• The Tata Indica, India’s first indigenously designed
car, launched in 1998.
• In November 2007, the company rolled off the
millionth car on the Indica platform.
• The company launched the Indigo in 2002, the Indigo
Marina in 2004, and the Indigo XL in 2007.
• In January 2008, Tata Motors also launched the
world’s least cost car, the Tata Nano(Tata Motors’
People’s Car ).
• Has alliance with Fiat.
Industry Overview
Domestic Market Share for 2008-09
Passenger Vehicles
15.96%
Commercial Vehicles
3.95%
Three Wheelers
3.6%
Two Wheelers
76.49%
•Commercial Vehicles segment grew marginally at 4.07 %.
• While Medium & Heavy Commercial Vehicles declined by
1.66%,
• Light Commercial Vehicles recorded a growth of 12.29%
• Commercial vehicles and Passenger Vehicles exports grew by
19.10% and 9.37% respectively.
Industry Overview
• Tata Motors for one, has made its position unique in
the commercial segment of Indian automobile by
having a presence in all spheres, light commercial
vehicles, heavy commercial vehicles and the like.
• However, the other leading automobile players like
the Ashok Leyland and Swaraj Mazda too, are not
lagging behind and they have their own aggressive
expansion plans on show.
• In commercial vehicle, Tata Motors
dominates over 60% of the Indian
commercial vehicle market.
SWOT AnAlYSiS….
Strengths
Weaknesses
• Strong domestic player
• Decline in vehicle sales
• Steady revenue growth
• Employee productivity
• Research and development
activities
Opportunities
Threats
• Product launches
• Increasing competition
• Recent acquisitions
• Environmental regulations
PEST Analysis
• Political
- Operates in multiple countries
- Legislation / Policy
- Pressure Groups
• Economical
- Tata Motors functions with a global economic
perspective
- Global approach enables Tata Motors to adapt and
learn from the many different regions and use
resources
COnT…
• Social
- Cultural Integration Vs. Separation
• Technological
- Focus on R&D as well as Innovation
- Competition from world’s auto giants
Competitive advantage
• Valuable:
Does the resource help a firm neutralize threats or
exploit opportunities?
• Rareness:
Do many competitors posses it?
• Costly to Imitate:
Is the resource costly for a competitor to copy?
• Non- Substitutable:
Are there any structural/strategic equivalents?
Competitive Advantage
Valuable?
Rare
?
Costly to
Imitate?
NonSubstitutable
?
Competitive
Consequence
Performance
Implications
No
No
No
No
Competitive
Disadvantage
Below average
returns
Yes
No
No
Yes/no
Competitive
Parity
Average
Returns
Yes
Yes
Yes
No
Temporary
Competitive
Advantage
Average to
Above average
Yes
Yes
Yes
Yes
Sustainable
Competitive
Advantage
Above average
returns
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PORTeRS 5 fORCeS…..
BCG MATRiX…..
Business level Strategy
Develop action
plan:
Develop
strategic
measures
Define strategic
objectives
Define the
scope of
measurement
Value Chain Analysis
Inbound Logistics
• Long term contract with service provider’s –
transporters and agents.
• Personnel at regional offices for over seeing the
smooth transit of goods.
• Transparency and monitoring through deployment of
IT – all transactions through SAP.
• DTL supplies for critical high value items.
• Efficient storage facilities – easy storage and
retrieval.
Operation
• Capital Equipment Manufacturing division – tooling
development capabilities of global standard.
• Apprentice Trainee Course – ensuring stable source
of skilled manpower.
• Kaizen & TPM team – continuous drive to improve
efficiencies.
• Automated manufacturing processes.
• Distributed manufacturing – Assembly units at South
Africa, Thailand, Bangladesh, Brazil etc.
Outbound Logistics
• Stockyards, all across the country.
• Long term contracts with transporter’s – higher
volume of business to transporters ensures
competitive price.
• Regional Sales Office and Vehicle Dispatch
Section linked through SAP.
• Efficient security system for prevention of any
kind of pilferage.
Marketing & Sales
Structured approach to understanding the requirements of individual
customers – QFD’s conducted at regular intervals.
 Clear identification of product requirements, leading to
development of innovative products – Tata 207 DI, Tata Ace
 Pan India presence and global footprint.
 Independent teams for addressing the requirements of institutional
customers – Defense, State Transport Units
 Helping to augment the scarce resources – Fiat selling vehicles
through Tata dealerships, in return Tata has access to Fiat’s technology
and unutilized capacity.
 Quick assessment of the changing market dynamics and consumer
preferences – Tata 407 LCV
 Large network of dealers – use of technology : DMS.
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Service
• Easy availability of spare parts.
• Efficient collection of data from field and
communication to the respective plants.
• Pan India presence, as well as global presence.
• Large network of workshops – Dealer
workshops and TASS.
• Training facilities – for dealer end and TASS
personnel.
Infrastructure
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Multi – Location facilities
Strong leadership – under the aegis of Tata Sons
Best in class prototype building facilities
Technology – SAP
Large product portfolio
HUMAN RESOURCE
• Vast pool of technically competent engineers and
managers.
• Focus on development of technical capabilities –
Technical Training Center’s, Alliance with technical
Institutes
• Focus on development of managerial capabilities –
MTC’s , TMTC, executive training programs at
premier business schools
• Career advancement schemes – ESS, FTSS
Technology
• Approximately 2% of the annual profits of the
company invested in research and development.
• Knowledge portal – helps employees keep abreast
with the latest technologies.
• Extensive prototype building and testing facilities.
• Strategic partnerships – MDI (France), Fiat etc.
• Formal benchmarking process.
• “ Technology Day” organized across all plant
locations.
Procurement
• E procurement initiative.
• Global Sourcing Team – China , a key destination for
sourcing essential items like tires, power steering units etc.,
Steel procured from Belarus
• Long term relationships with a stable and loyal pool of
suppliers.
• Technology driven procurement – SAP and VCM.
• Strategic subsidiaries & JV’s – TACO group of companies ,
Tata Cummins
• Centralized Strategic Sourcing for key components – FIP’s,
Steel etc.
• Group resources – Tata Steel and Tata International .
• Localized supplier base at mfg. locations – low inventory
levels.
Diversification
 1977– First CV from Pune plant.
 1983– First HCV rolled out.
 1986– First LCV (Tata 407) launched followed by
Tata 608.
 1991– First passenger car Tata Sierra launched.
 1992– Tata Estate launched.
 1994– Launch of Tata Sumo.
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DiveRSifiCATiOn COnT…
 1995– Mercedes Benz car E220 launched
 1997– Tata Sierra Turbo launched.
 1998– India’s first SUV launched.
 1998– India’s first indigenous Passenger Car Indica
launched.
 2001– Second Generation Indica v2 launched.
 2008– Launch of Suma Grande
 2008– Launch of Nano at ninth Auto Expo
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Blue Ocean
STRATeGY….
Red Ocean
Blue Ocean
Compete in the existing market place
Create unconsolidated market space
Beat the competition
Make the competition irrelevant
Exploit existing demand
Create and capture new demand
Make the value cost trade off
Break the value-cost trade off
Differentiation or Low cost
Differentiation and Low Cost
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MERGERS AND AQUISITIONS
• In 2004, TATA Motors acquired the
Daewoo Commercial Vehicle Company of
South Korea
• TATA motors acquired jaguar and landrovers
(UK based) with a value of $ 2.3 billion in
March 2008.
M & A CONT....
• IN 2005 TATA Motors acquired
21% stake in Hispano
Carrocera SA, Aragonese bus
manufacturing company with
an option to acquire 100%
holding
Corporate Advantages from
Diversified Business
 Sharing of Activities/Resource
Tata
Steel
Tata
Motor
TCS
Tata
Cummins
Sharing of Skills/Core Competence
Tata
Steel
Tata
Cummins
Core
Competence
TAML
TACO
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RECOMMENDATIONS
• Industry analysts expect GM to sell the Hummer brand in
2009 and without a seller in sight, there is a real possibility
that the brand will cease to exist.
A push in developing cutting-edge products in the Land Rover
brand could enable Tata to capture Hummer customers as
they look for comparable - or better products.
Company needs to focus on these 3 aspects to attract the
consumers of the high-end market products:
• 1. Brand Appeal and Endorsement
• 2. Performance Characteristics
• 3. Quality
Thank YOu….