SWOT ANALYSIS
OF
A COMPANY
Objective
• The objective of this activity is to analyze internal & external
environment of the company.
• To gain the in depth knowledge of the company & Sector
• To develop an entire overview about the company like
strategies, competitors, challenges, list of products and
services, business structure .
Introduction
• In this activity every student will
be assigned a company to which
he/she has to analyze on different
parameters as discussed further
Contents
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Company Profile
SWOT Analysis
Recommendations/ Suggestions
References & Sources
Working Material
Company Profile
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Define The Business
Promoters : Who started/run the business
Current Top Management
Vision/Mission of the Company
Current Goals & Objectives If Possible
All Product lines, Manufacturing Units
Capacity, Various types & Medium of Point
of Sales
Strengths
1.Strong financial condition• Owner’s Capital
• No of shareholders
• Foreign Investment
• Institutional Investment
• Profitability of last 4 Quarters
2.Market share and standing in market
3. Patents and Trademarks
4. Successful New Products launched in last 5 years
5. Successful Advertisement Campaigns
6. Strong Customer Service- any Award won for
customer service.
7. Joint ventures, Strategic Alliances, Takeovers and
Mergers
8. Managerial Expertise – Experience of CEO, CMO &
CFO
9. Distribution System: No. of Dealers, C&F agents
and distributors in the country.
10. Comparatively Comparison on Prices for various
Product line with Competitor
Weaknesses
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Human Resource
Lack of Working Capital
No Technical Expertise of Company/Division
No Control over Raw Material
No clear Strategic Direction
Competitive Capabilities.
Weak balance sheet; excess debt.
Poor Product Design
9. low level of stocks in times of peak sales
10. Falling behind in R&D
11. Higher overall costs than rivals
12. Missing some key skills/competencies
13. Internal operating problems . . .
14. Weak marketing skills
Opportunities
1. Few and Weak competitors
2. Favourable Government Policy
3. Expanding to New Geographic Areas
4. Expanding Product Line
5. Transferring Skills to New Products
6. Increase market share from Rivals
7. Acquisition of rivals
8. Alliances or JVs to Expand coverage
9. Openings to Exploit new technologies
10. Openings to Extend brand name/image
12. Adequate training opportunities
13. Serving additional customer groups
14. Vertical integration
Threats
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Restive Labour Force
Rising Raw Materials Costs
Entry of Potential New Competitors
Loss of Sales to Substitutes
Slow Market Growth
Adverse shifts in Exchange Rates & Trade
Policies
7. Government Bureaucracy
8. Natural Disasters
9. Costly New Regulations
10. Vulnerability to Business Cycle
11. Growing Leverage of customers or suppliers
12. Reduced Buyer Needs for product
13. Demographic Changes
Recommendations & Suggestions
References & Sources
• Company’s Website
• Journals
• News Papers
SWOT ANALYSIS
OF
TATA MOTORS
Company Profile
• The company was established in 1935 as a locomotive
manufacturing unit and later expanded its operations to
commercial vehicle sector in 1954 after forming a joint
venture with Daimler-Benz AG of Germany.
• Ratan N Tata is the chairman of Tata Sons, the Tata
promoter company.
• Tata Motors Ltd is a multinational corporation headquartered
in Mumbai, India. Part of the Tata Group, it was formerly
known as TELCO (TATA Engineering and Locomotive
Company). Tata Motors has a consolidated revenue of USD
16 billion after the acquisition of British automotive brands
Jaguar and Land Rover in 2008.
Cont…
• It is India's largest company in the automobile and
commercial vehicle sector with upwards of 70%
cumulative market share in the domestic commercial
vehicle segment, and had a 0.81% share of the world
market in 2007.
• Second largest manufacturer of commercial vehicles in
the world. The company is the world’s fourth largest
truck manufacturer, and the world’s second largest bus
manufacturer. In India Tata ranks as the leader in every
commercial vehicle segment, and is in the top 3 makers
of passenger cars
Cont…
• The company is the world's fourth largest truck manufacturer,
and the world's second largest bus manufacturer.
• The company's 24,000 employees are guided by the vision to
be "best in the manner in which we operate, best in the
products we deliver, and best in our value system and
ethics.“
• Tata Motors is also expanding its international footprint,
established through exports since 1961.
• Tata Motors is committed to improving the quality of life of
communities by working on four thrust areas – employability,
education, health and environment.
Tata Motors In India
• Tata Motors Limited is India’s largest automobile company,
with revenues of 35,651.48 crore (US$ 7.74 billion) in 200708.
• The company’s manufacturing base in India is spread across
Jamshedpur (Jharkhand), Pune (Maharashtra), Lucknow
(Uttar Pradesh), Pantnagar (Uttarakhand) and Dharwad
(Karnataka).
• Following a strategic alliance with Fiat in 2005, it has set up
an industrial joint venture with Fiat Group Automobiles at
Ranjangaon (Maharashtra) to produce both Fiat and Tata
cars and Fiat powertrains. The company is establishing a
new plant at Sanand (Gujarat).
Cont….
• The company’s dealership, sales, services and spare parts
network comprises over 3500 touch points.
• Tata has been actively acquiring and joint venturing with
other companies during the past five years. The purchase of
Daewoo Commercial Vehicles (2004), a minority investment
in Spanish bus and coach manufacturer Hispano Carrocera
(2005), an alliance with Fiat, a joint venture with Brazilian
bus and coach manufacturer Marcopolo and with Thailand’s
Thonburi Automotive Assembly Plant Company (2006).
Cont….
• 2008 heralded two major events: the purchase of Britain’s
icons Jaguar Land Rover and the launch of the Tata Nano,
the “People’s Car” for 100,000 rupees or approximately
$2,100. Seating 4, the Nano is a mere 10 feet long and has a
4 gallon fuel tank.
• Tata’s competitive price advantage will be under pressure as
environmental regulations are tightened,
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There is a trending rise in diesel fuel costs which will hurt
Tata’s line of products
Tata's Global Operations
• Jaguar Land Rover, a business comprising the two iconic
British brands that was acquired in 2008.
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• In 2004, it acquired the Daewoo Commercial Vehicles
Company, South Korea’s second largest truck maker. Today
two-thirds of heavy commercial vehicle exports out of South
Korea are from Tata Daewoo.
Cont…
• In 2005, Tata Motors acquired a 21% stake in Hispano
Carrocera, a Spanish bus and coach.
• Tata Motors has expanded its production and assembly
operations to several other countries including South Korea,
Thailand, South Africa and Argentina and is planning to set
up plants in Turkey, Indonesia and Eastern Europe.
• Tata also has franchisee/joint venture assembly operations
in Kenya, Bangladesh, Ukraine, Russia and Senegal.
Cont….
• Tata has dealerships in 26 countries across 4 continents.
• Tata Motors continued its product line expansion through the
introduction of new products into the market range of buses
(Starbus & Globus) as well as trucks (Novus).
• Though Tata is present in many countries it has only managed
to create a large consumer base in the Indian Subcontinent
namely India, Bangladesh, Bhutan, Sri Lanka and Nepal and
has a growing consumer base in Italy, Spain and South Africa
Passenger Cars and Utility
vehicles
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Tata Sumo/Spacio
Tata Safari
Tata Indica
Tata Vista
Tata Indigo
Tata Manza
Tata Indigo Marina
Tata Winger
Tata Magic
Tata Nano
Tata Xenon XT
Tata Aria
Commercial vehicles
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Tata Ace
Tata TL/Telcoline/207 DI Pickup Truck
Tata 407 Ex and Ex2
Tata 709 Ex
Tata 809 Ex and Ex2
Tata 909 Ex and Ex2
Tata 1109 (Intermediate truck)
Tata 1510/1512 (Medium bus chassis)
Tata 1612/1616 (Heavy bus chassis)
Tata 1618 (Semi Low Floor bus chassis)
Tata 1610/1623 (Rear Engined Low Floor bus chassis)
Tata 1613/1615 (Medium truck)
Tata 2515/2516 (Medium truck)
Cont…
• Tata Starbus (Branded Buses for city,inter city,school bus
and standard passenger transportation)
• Tata Globus (Range of fully built luxury coaches)
• Tata Hispano Globus (Rear Engined Inter city coach)
• Tata Marcopolo Bus (Low Floor, Semi Low Floor buses for
Mass Rapid Transit and also standard passenger
transportation Buses)
• Tata 3015 (Heavy truck)
• Tata 3118 (Heavy truck) (8X2)
• Tata 3516 (Heavy truck)
Cont…
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Tata 4018 (Heavy truck)
Tata 4923 (Ultra-Heavy truck) (6X4)
Tata Novus (Heavy truck designed by Tata Daewoo)
Tata Prima (The World Truck designed by Tata Motors
and Tata Daewoo)
Military Vehicles
• Tata LSV (Light Specialist Vehicle)
• Tata 2 Stretcher Ambulance
• Tata 407 Troop Carrier, available in hard top, soft top,
4x4, and 4x2 versions
• Tata LPTA 713 TC (4x4)
• Tata LPT 709 E
• Tata SD 1015 TC (4x4)
• Tata LPTA 1615 TC (4x4)
• Tata LPTA 1621 TC (6x6)
• Tata LPTA 1615 TC (4x2)
• Tata Winger Passenger Mini Bus
Strengths
• TATA motors is market leader in Automobile Industry with high
market share.
• TATA Motors Company have huge employee base.
• TATA motors employee productivity percentage is higher.
• TATA motors produce low price car with low fuel consumption.
• TATA motors is the reputable brand in Indian Industry.
• TATA Motors Limited is India’s largest automobile company,
with revenues of Rs. 92,519 crores (USD 20 billion) in 200910.
Cont…
• The research and development department of TATA
motors is very strong.
• TATA’s management is strengthened by the collective
experience of its partners and acquired companies – this
includes general management, marketing, sales and
operations.
• TATA Motors has been aggressively acquiring foreign
brands to increase its global presence.
• TATA motors posses High corporate responsibility.
Weaknesses
• One weakness which is often not recognised is that in English
the word 'tat' means rubbish. Would the brand sensitive
British consumer ever buy into such a brand? Maybe not, but
they would buy into Fiat, Jaguar and Land Rover.
• The company's passenger car products are based upon 3rd
and 4th generation platforms, which put Tata Motors Limited at
a disadvantage with competing car manufacturers.
• Return on Investment on TATA motors shares in low.
Cont….
• Tata has not got a foothold in the luxury car segment in its
domestic market.
• The Company’s manufacturing practices trail competitors.
• Most of the automobiles Tata manufactures are based on older
platforms.
Opportunities
• TATA motors can take the advantage of their low cost car by
entering into third world countries where people have low
purchasing power.
• Joint ventures in other countries allow TATA motors to easily
enter into new market.
• TATA motors should focus in developing luxury cards.
• Nano is the cheapest car in the World - retailing at little more
than a motorbike.
Cont….
• The range of Super Milo fuel efficient buses are powered by
super-efficient, eco-friendly engines.
• Emerging industrial nations such as India, South Korea and
China will have a thirst for low-cost,environmentally friendly
passenger and commercial vehicles.
• The company has put in place a very proactive Corporate
Social Responsibility (CSR) committee to address potential
strategies that will make is operations more sustainable.
Cont….
• Increase its product line in light & heavy vehicle.
So that it can encash on its Brand image.
• The Company can work on its big product range
with environment friendly Technology.
• The Company should focus on both Passenger &
Commercial Vehicle for improving its Design
(interior & exterior) & Quality of Fiber.
Threats
• Competing car manufacturers have been in the passenger
car business for 40, 50 or more years. Therefore Tata
Motors Limited has to catch up in terms of quality and lean
production.
• 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.
• 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.
Cont..
• TATA motors have low cost advantage over its competitors,
once the competitors find out the low cost production
methodology then there will no competitive advantage.
• Pakistan’s Transmission Motor Company has built a basic fourwheeler for only $2,100. This car is considerably cheap and
the Pakistan Transmission Motor company started exporting
them to Sudan, Qatar, and Chile.
• The low safety standards can impact the sales.
• Powerful competitors for the luxury market including Honda, Toyota,
Ford and Mercedes-Benz are beginning to push into the Indian market
References & Sources
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Tata Motors' Official Website
Wiki - Tata Motors Ltd.
Business Today - Pick and Choose
Business Today - Tata Motors to bring
Jaguar, Land Rover to India