Tata Motors Strategi.docx

Tata Motors Limited Strategic Case Study

MGMT 4020: Strategic Management Ferguson, Jade Garcia, Orlando Giusti, Jefferey Smith, Konnor

Table of Contents Brief History of Tata Motors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . page 3 Timeline . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

page 5

PESTEL Analysis: Political & Economic Factors. . . . . . . . . . . . . . . . . . . . . . . . page 6 PESTEL Analysis: Socio-Cultural & Technological Factors . . . . . . . . . . . . . . . . page 7 PESTEL Analysis: Environmental & Legal Factors . . . . . . . . . . . . . . . . . . . . . . page 8 Financial Analysis& Ratios. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

page 9

Tangible Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . page 10 Intangible Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . page 11 VRIN Analysis: Valuable & Rare . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . page 12 VRIN Analysis: Imitable & Non-Substitutable . . . . . . . . . . . . . . . . . . . . . . . . . .

page 13

Value Chain Analysis: Supply Chain Management . . . . . . . . . . . . . . . . . . . . . . . page 14 Value Chain Analysis: Operations & Marketing and Sales . . . . . . . . . . . . . . . . . page 15 Value Chain Analysis: Service, Human Resources & Technology . . . . . . . . . . . . page 16 Competitive Position Assessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . page 17 Direct Competitor Comparison . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

page 18

SWOT Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

page 19

SWOT Analysis: Strengths & Weaknesses . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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SWOT Analysis: Opportunities & Threats . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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TOWS Analysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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TOWS Analysis: ST, SO, WT, & WO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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Epilogue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

page 24

Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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Brief History of Tata Motors Tata Motors was first founded in 1945 as the Tata Engineering and Locomotive Company Limited to manufacture locomotives and other engineering products. It is India's largest automobile company, with over $39 billion in revenue in 2015. Based out of Mumbai, Maharashtra, India and Tata Motors is a division of the Tata Group, one of India’s largest corporations. They manufacture various products including, military vehicles, construction equipment, buses, coaches, vans, trucks, and passenger vehicles. (Thompson C275) Tata Motors entered the passenger vehicle market in 1991 with the launch of the Tata Sierra. “India’s first sports utility vehicle, the Tata Safari, was launched in 1998, and its independently designed Indica V2 (pictured to the left) became the number-one car in its segment in India in 2001.” (Thompson C275) Tata Engineering and Locomotive Company officially became known as Tata Motors Limited in 2003 and shortly after became the first company from India's engineering sector to be listed in the New York Stock Exchange in September 2004. They then went on to become an international automobile company through a variety of acquisitions, subsidiaries and associate companies. Tata Motors currently has operations in the UK, South Korea, Thailand and Spain. In 2004, Tata acquired the Daewoo Commercial Vehicles Company, South Korea's second largest truck maker. Nowadays, two–thirds of heavy commercial vehicle exports out of South Korea are from the newly dubbed Tata Daewoo Commercial Vehicles Company. In 2005, Tata Motors bought a controlling interest of 21% in Hispano Carrocera, a reputed Spanish bus and coach manufacturer. In 2006, they formed a joint venture with the Brazil–based Marcopolo, a global leader in body–building for buses and coaches to manufacture

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fully–built buses and coaches for India and select international markets. In 2008, they bought Jaguar and Land Rover, a business made up of the two iconic British brands. By 2009, Tata Motors had launched what they dubbed “the ‘People’s Car,’ named the Nano (pictured to the right). The Nano hit the market at a base price of about $2,250, [reputed to be the ‘world’s cheapest car’] and won India’s Car of the Year award.” (Thompson C275). In 2010, Tata had designed a version of the Nano called the Nano Europa for distribution and sale in Europe. After celebrating their 50th year in international business in 2011, launched a variety of products including long distance buses, SUVs, and a few heavy trucks. During that same year, Tata motors won the Louis Vuitton award in Paris for their car the Jaguar CX75 (pictured to the left) and their Range Rover Evoque won Car Design of the Year. Tata’s success continued through innovation and product launches throughout 2011 and 2012. In 2014, their compact car models, The Zest and The Bolt, were introduced to compete directly with similar Suzuki, Honda, and Hyundai models. Most recently, Tata Motors has launched the Tata Tiago (pictured to the right), a sleek hatchback modestly priced at $4,800.00 and are currently in the midst of an extensive marketing campaign to promote

the

car.

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P.E.S.T.E.L. Analysis A PESTEL analysis is a tool used by the marketing department of a company to determine, analyze and monitor a variety of factors in the external marketing environment that have a direct impact on the success of the business. Primarily positioned in India, the seventh largest nation in the world, Tata Motors’ success is tied directly to the political, economic, sociocultural, technological, environmental and legal components of the Indian environment. Political Factors: Due to the subsidizing of fuels by the Indian government and controls placed on diesel due to its impact on inflation, the auto industry saw a decline in sales in 2012 by 6.7% and dropped even further in 2013. Mining bans which impacted more than 200 mines caused almost 20,000 heavy trucks to remain idle, thereby dramatically lowering demand for newer models. A variety of serious corruption scandals between 2010 and 2012 also gridlocked any legislative work and produced little to no economic reform.

Economic Factors: As the price of crude oil continued to increase, the subsidies instituted by the Indian government continued to increase the deficit. As inflation grew, the value of the Indian rupee continued to depreciate, lowering the overall buying power of its population. The continuing spikes in crude oil prices brought additional inflation that worsened the Indian economy and hurt sales within the automotive industry. Currently priced at 66 rupees per US dollar, the Indian rupee exchange rate remains high but seems to be on a downward trend heading into 2016. As the INR and Indian economy begin to gain strength, companies such as Tata Motors would benefit from investing in diesel or alternative fuel cars at affordable prices.

Socio-Cultural Factors: With a highly educated workforce and high social value for education, India remains one of the major providers of engineering, design, and information technology services. “However, continuing problems such as significant overpopulation, environmental degradation, extensive poverty, widespread corruption, and the slowing economic development” (Thompson C277) continue to hinder the progress of Indian peoples and businesses. Due to these worsening conditions, the domestic Indian automobile industry is seeing very little growth.. Tata Motors, however, positioned as an international organization and catering to global markets can uniquely combat these hindrances through increased investments in their overseas ventures such as Jaguar and Land Rover, two luxury brands that are seeing sustained growth as of 2015.

Technological Factors: Tata Motors’ “initial launch of the Nano in 2009 did not produce the desired level of sales” (Thompson C282) due in large part to a lack of technological components and several safety issues including the lack of air bags and cars catching fire. However, as they progressed into 2014, Tata relaunched an upgraded Nano called the Nano Twist Active at the auto expo in Delhi. The Twist Active had a variety of technological features, as well as, some much needed safety features. In keeping up with advancing technologies, Tata Motors partnered with MDI to develop the world’s first vehicle to run on compressed air. As they hone that technology they are also looking into developing a diesel Nano to help combat high fuel prices.

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Environmental Factors: “Ongoing national urban and rural highway projects through 2014 had been expected to increase national and state highways by 110,000 kilometers and rural roads by 411,000 kilometers.” (Thompson C279) Although, most infrastructure projects were put on hold due to the economic downturn the growing strength of the Indian economy would put these projects back on track. The development of roadways in India on such a massive scale would be very beneficial by driving up the demand for affordable and fuel efficient vehicles, a core competency of Tata Motors.

Legal Factors: The main concern for Tata Motors, within the legal component of their marketing strategy, is the concern for customer safety in the use of their vehicles. “A reported Nano defect that could cause the vehicle to catch fire” was a major concern and had a variety of real legal implications. Not only would Tata Motors be liable for the lives and damages caused by the Nano, but the public relations implications would also be catastrophic. Despite, a few legal issues that Tata Motors found themselves faced with in late 2013, they have been able to reposition themselves to be leading manufacturers in the Indian automobile industry. Their luxury brands Jaguar and Land Rover continue to produce innovative new products and that division comprises a good percentage of Tata Motors overall business. As they head into 2016, producing affordable, fuel-efficient and, most importantly, safe should be at the forefront of their priorities.

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Financial Analysis

TATA MOTORS REVENUE(IN BILLIONS) Revenue

32.613

34.863

2012

2013

41.949

39.211

2014

2015

TATA MOTORS NET INCOME(IN BILLIONS) Net Income 2.253

2.196 2.062 1.649

2012

2013

2014

2015

Financial Ratios

Current Ratio Quick Ratio Long Term Debt to Equity Inventory Turnover Total Assets Turnover Gross Profit Margin Net Profit Margin Return on Assets (ROA) Earnings Per Share Book Value

Tata Motors Financial Ratios(2011-2015) 2011 2012 2013 0.52 0.5 0.42 0.54 0.43 0.4 0.48 0.41 0.42 13.15 12.91 11.07 1.47 1.99 1.48 7.01 4.73 -0.24 3.84 2.28 0.67 315.36 61.84 59.98 28.55 3.91 0.95 314.98 61.77 59.91

2014 0.43 0.36 0.51 9.78 1.12 -8.69 0.97 59.58 1.04 59.51

2015 0.42 0.42 0.83 8.23 1.16 -10.58 -13.05 46.18 -14.72 46.1

Tangible Resources The definition of a tangible resource or asset is one that has a physical form. They include both fixed assets (ex. machinery, buildings, land) and current assets such as inventory. In the type of industry that Tata Motors is in examples of a type of tangible resource or asset they have are their cars. Of the many different types of vehicles and models they offer there are a couple that separate them from the rest. These model vehicles include: the Tata Nano and their commercial vehicle line. The Tata Nano is one of the most efficient and low cost vehicles on the market. It is this efficient and low cost vehicle that follows their business strategy for passenger cars perfectly. Tata Motors’ slogan for this vehicle is “The People’s Car”, and that is exactly what it is, with a base price of just $2,500 and a gas mileage of nearly 50 gallons per mile. But perhaps it is not the characteristics of the vehicle that make it so appealing but rather the environment in which it fits into perfectly. India’s hope to develop “national urban and rural highway projects through 2014 [that] would increase national and state highways by 110,000 kilometers” (Thompson C279) is a clear economic decisions by the government that benefits the car industry in an economy where cost efficient vehicles is in high demand.Tata Motors’ commercials vehicles have a distinctive competence strategy that separates itself from its competitors. It is this distinctive competence that makes it a tangible resource or asset. Arguably, one of the most significant aspects of a business’s strategy is constant environmental scanning, or looking for opportunities that will help a business grow. In the case of Tata Motors, the creation of the commercial line they offer focuses on customer service throughout the product life cycle. In the case of a commercial line of vehicles, you are selling to clients who use the vehicles for their own business. A vehicle bought through Tata Motors is an investment for that buyer. It is clear that customer service is a big aspect of the buying process and experience.

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Intangible Resources The definition of intangible resources or assets is one that lacks physical substance and is usually very hard toevaluate. It includespatents,copyrights,franchises,goodwill,trademarks, trade names, etc. There are two ways that Tata Motors has expanded itself and ensured its future success. The two ways they have done so include: acquisitions and mergers that they then integrate the management, culture, and knowledge of the businesses it buys out and investment into research and development. These are some examples of intangible resources that Tata Motors has implemented successful strategies for. Tata Motors has shown success in acquiring other company’s assets in its history. One example of them doing this is with Jaguar and Land Rover. With these two brands, Tata formed a separate divisions within their company and identified a different target market from their other products. Second, Tata has shown success in their investments with research and development of the company. They have done this by focusing on its product development, environmental technologies, and vehicle safety within its engineering department.

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VRIN Analysis The VRIN analysis is a four-part test that measures the competitive power of a resource or capability. It is this four-part test that is broken up into separate sections to determine if a company’s resource or capability is valuable, rare, inimitable, and non-substitutable. This test is done on a singular basis. If there are more than one resource or capabilities a company has, which is probable, a completely new test must be done from the beginning. For the purposes of this case study the focus is on the Tata Nano. Valuable Tata Motors strategy for passenger cars was geared towards all around value in its product line. It is this product line that is focused on all-around value, including fuel efficiency. Indeed the Tata Nano is directly related to its company’s strategy. It is this vehicle that is the biggest player in Tata’s efforts to be a leading competitor in its industry. Also, the Tata Nano fits perfectly in the Indian culture. It is a culture that focuses on value and basic necessities rather than perks and auxiliary attributes. Rare Is the Tata Nano a rarity? The answer to that question is to define rarity. In the purpose of a VRIN analysis, a rare resource is one that a company’s rivals lack. If the Tata Nano were sold in the U.S. it would not be as rare of a resource as it is in the country of India. Fortunately, India is indeed where this vehicle is being sold. The Tata Nano is a rare resource because it is geared specifically towards the customer needs. Some of Tata’s competitors have vehicles that are focused on aspects other than value. The Tata Nano is geared toward a middle-class family that is looking for a vehicle to commute a significant amount of people (i.e. 3 or more).

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Inimitable The VRIN analysis defines an inimitable resource as one that is hard to copy. Unfortunately, the Tata Nano does not meet this requirement. However, for some unforeseen reason the Tata Nano has not been copied nor compromised which is one of the reasons Tata has seen great success with this vehicle. Some of the attributes of the product are extremely basic and have little to no unique qualities. One important thing to note is the Tata Nano can be characterized as the famous slogan “the whole is greater than the sum of its parts.” It is not the features that stand out to the customer but rather the simplicity of the vehicle put together. Non-substitutable The VRIN analysis defines a non-substitutable product as one that is invulnerable to the threat of substitution from different types of resources and capabilities. In the case of the Tata Nano, this resource fits the guidelines. It is this resource that along with the company’s business strategy is non-substitutable. Perhaps the non-substitutable factor is Tata Motor’s understanding of its customers and market. It is this understanding that Tata knows better than any of its competitors. The results speak for themselves as Tata has shown a significant increase in sales of passenger vehicles starting from 2005 to 2011.

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Value Chain Analysis Value chain analysis is a process where a firm identifies its primary and support activities that add value to its final product and then analyze these activities to reduce cost or increase differentiation. The value chain analysis represents the internal activities a firm engages in when transforming inputs into outputs. The value chain is broken up into two categories, one being primary activities, which include inbound logistics, operations, outlook logistics, marketing and sales and service. The second category is support activities, which include firm infrastructure, human resources, procurement and technology. Supply Chain Management Supply chain oversees the logistics of the supply and delivery of parts for its vendors while Production and Planning Management oversees execution of new projects. TataMotors has undertaken initiatives to reduce fixed and variable costs by using e-sourcing to procure supplies through reverse auctions. Their initiative to leverage information technology in supply chain has resulted in improved efficiency through real-life information exchanges. Tata has an extensive supply chain for procuring various components. They outsource many manufacturing processes and activities to various supplies. Tata has also established vendor parks in the vicinity of its manufacturing operations in India which has reduced logistics, inventory costs and reduced uncertainties usually present in a long distance supply chain.

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Operations Operations are an act or instance, process, or manner of function or operating. Tata Motors has production units located in multiple places. They have vehicle manufacturer plants located in India, United Kingdom, South Korea, Thailand, South Africa and Spain. With TataMotors having a large production of cars, trucks and buses, they have the best in class prototype building facilities. They use a capital equipment manufacturing division, which is responsible for tooling development capabilities of global standards. They also uses Kaizen and Total Productive Management teams to ensure continuous drive to improve efficiencies. The process of Tata Motors manufacturing is entirely automated. The firm has technical competence and renowned capacity utilization practices. Marketing and Sales Marketing and sales consists of promotion of the brand and advertising. Since Tata Motors is one of the biggest automobile manufacturing companies in India, they have a large Indian presence as well as a large global footprint. Tata Motors has a structured approach in order to understand the requirements of its customers. Their product requirements have led to innovative products such as Tata 207 DI, Tata Ave and Tata Prima. TataMotors has independent teams for addressing the requirements of institutional customs like defense, state transport unions, etc. They also have a large network of dealers that they can use to sell their products.

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Service Tata Motors service mission is to bring speedy assistance to customers when in need. They offer five services for this. The first is Speed-o-Service, which provides service to customers with the shortest turnaround time of ninety minutes for scheduled services and minor repairs. This offers reduced waiting periods and ensures quick, timely and same day delivery. TataMotors also offers and ensures spare parts are easily available. They offer online service, doorstop service, 24x7 roadside assistance and quick repairs. They also have a large network of workshops such as dealer workshops, TASS and provide training facilities for dealer end and TASS personnel. Human Resources Human resources are primarily concerned with the management of people in the organization and maximizing employee performance. Tata Motors’human resources has a large amount of competent engineers that are technically advanced and managers. The human resources department focus on the development of technical capabilities, have many technical training centers of its own, and have also made alliance with various technical institutes.Tata Motors offers many career advancement schemes and programs to advance and develop the career of their employees and implement such programs such as the “fast track” program. Technology Tata Motors invests a lot in technology into their prototype building and testing facilities. Technology is a huge part of automobile manufacturers as it can allow for increased improvements and a technological edge over competitors. Tata Motor’s has recently signed into a partnership with Fiat and various other companies to have access their technology and innovative systems.

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Competitive Position Assessment Tata Motors was ranked number six out of ten in top automobile companies in India in 2015. Their units sold in fiscal year 2014 were 134,032 and their market share was 5.30%. The biggest competitors to Tata Motors are Ford Motor Company, Suzuki Motor Corporation and General Motors Company. Other motor companies that are also a threat to Tata Motors include Volkswagen, Hyundai, Chevrolet and Nissan. These automobile companies offer similar vehicles to the Tata Nano such as the Ford Figo, offered at $7,000 for base model and the Volkswagen Golf model priced at $8,495. These two models were much better well equipped than the Nano. Other comparable models were France’s Renault Pulse model, the Nissan Micra, the Maruti Ritz, the Chevrolet Beat, the Nissan Versa and the Hyundai Accent. All of these comparable models are priced from $7000 - 8000 making the Tata Nano by far the least expensive. Tata Motors is still one of the biggest automobile manufacturers in India and has had some success over the years, especially with Jaguar and Land Rover. They have developed a geographic market and have made many affordable cars. Although they had some issues in 2014 and saw a slight decline in sales, Tata still has a lot to offer competitively.

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Direct Competitor Comparison

Dollars

Market Cap:

Employees

60

250,000

50

200,000

40

150,000

30

100,000

20 50,000

10

0

0 Market Cap:

Tata Motors 19.82

Ford

Suzuki

53.52

0

General Motors 49.49

Revenue & EBITDA

Employees Tata Motors

Ford

Suzuki

General Motors

Gross and Operating Margins

General Motors

General Motors

Suzuki

Suzuki

Ford

Ford Tata Motors

Tata Motors 0

50 EBITDA (ttm)

100 Revenue (ttm)

150

200

0

0.1

Operating Margin (ttm)

0.2

0.3

0.4

Gross Margin (ttm)

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SWOT Analysis Tata Motors has a strong global presence and has been manufacturing cars for more than fifteen years, employing over 60,000 people with a company turnover of $42 billion dollars. (Tata Motors)This data is very impressive, though the company still has some shortcomings. The following SWOT Analysis has been performed to show the strength, weakness, opportunity and threats of Tata Motors. This will be the framework to identify how the company can face

Strengths India's largest automobile company, Sells vehicles in more than 50 countries, Strong global network, 76 direct and indirect subsidiaries and associate subsidiaries such as Land Rover and Jaguar, $42 billion company turnover

Weaknesses Bad Saftey Standards Poorly Made Not a luxury or pretigious brand

SWOT Opportunities

Threats

Sustainabilty, Tap into the luxury market DESIGNEXT

Pollution Manufacturing Costs Rise in fuel prices

possible growth and combat any challenges it might come across.

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Strengths(S) Tata Motors is a leading automobile manufacturer with a range of products including trucks, buses, sport vehicles, cars, and defense vehicles, with a company turnover of $42billion. Tata Motors has a large global distribution network and caters to a diverse market because it sells and produces its products in more than 50 countries. Tata Motors also has associate companies which include Tata Daewo in South Korea and Jaguar and Land Rover in the UK. Since 1961, Tata Motors has established through exports seventy-six direct subsidiaries abroad and in India.

Weaknesses (W) Tata Motors promotes India’s rising middle class and is considered cheap. In 2011, Kunal Bahl looked at Tata Motor’s vehicle for his first car and said “it sounded like an autorickshaw.”(The Wall Street Journal) He then decided to buy a Hyundai, even though it was more expensive. The importance of safety standards are often overlooked. In 2010, Tata Motors’ image was almost tarnished because some of the cars were catching on fire. A lot of their vehicles are made from fiberglass and plastic to keep the cost of manufacturing the car low. Nowadays, a Tata Motors vehicle is considered a poorly made car.

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Opportunities (O) Sustainability could be a huge opportunity for Tata Motors. With the world trying to be greener and the eco-sustainability movement in full bloom, Tata Motors can look into greener resources for production such as recycling equipment and developing hybrid or electric cars. Not only would it be wise to tap into the sustainability market, but it would also be sensible for Tata Motors to tap into the luxury market and expand upon what Land Rover & Jaguar have to offer. In order to do so, they must continue to improve the quality and safety standards of their vehicles.

Threats (T) In 2013, transportation contributed more than half of carbon monoxide and nitrogen oxides in the air. This is not only a risk to the environment but also to our individual and collective health. In the United States transportation is the largest source of air pollution. With environmental legislation and people demanding that we live in a more sustainable and healthy environment, cars with diesel fuel could pose a problem with consumer buyer tastes. Another issue is the rise of fuel prices. The average price of a vehicle at $2000 many of Tata Motors’ target customers can barely afford to buy a vehicle, let alone put ever-increasing expensive gas into said car. The rise in the price of steel is also making cars and other vehicles more expensive.

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TOWS Analysis

Internal Strengths (S) India’s largest automobile company $42 billion company turnover Sells vehicles in more than 50 countries Strong global network Tata Motors has associate and subsidiary companies which include Land Rover and Jaguar 76 direct and indirect subsidiaries in India and abroad Internal Weaknesses (W) Some consider Tata Motors poorly made Not considered a luxurious brand Bad safety standards

External Opportunities (O) Tap into the luxury market Sustainability HORIZONEXT

External Threats (T) Rising fuel prices Manufacturing Costs Competitor Brands Pollution/Product Waste

SO- Strength and Opportunities How can Tata use their strengths to take advantage of their opportunities? Use resources to improve costs of vehicles Improvement of vehicle quality would strengthen global presence across the board Use global network to tie in the fact that luxury cars are also a part of the brand

ST- Strength and Threats How can TATA use their strengths to avoid potential threats? Increase use of quality materials would prevent perception that car is cheaply made Reduce production of diesel fuel cars would make them more green and possibly more affordable

WO- Weakness and Opportunities How can Tata use their opportunities to overcome their weaknesses Selling in 50 countries would allow customizing cars to fit economy of each country Either spin off Land Rover and Jaguar as separate and make them more luxurious or Emphasize that company embraces top and bottom of car spectrum Improve safety standards and advertise facts

WT-Weaknesses and Threats How can Tata avoid threats and conquer weaknesses? Use of better materials Use economy of scale to create better supply chain Embrace green concept Embrace sustainability concept in use of plastics Explore electric and battery operated car concept

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Strength and Opportunities (SO) - Tata Motorscan make a plan to improve the quality of the car itself which can later be expandedinto the luxury market and strengthen their overall image. Strength and Threats (ST) - The 8th most traded product in the world is car parts. (OEC) The second largest car part exporter is the United States has $35billion in revenue. Car parts include sensors, gauges, meters, mufflers, switches and starters. Tata Motors could become a trade partner with the United States. Not only could that open the door for future endeavors, but it could also improve the quality of the components and materials in their cars. Weaknesses and Opportunities (WO) - Opportunities that can improve Tata Motors’ weaknesses are the overall safety standards and quality of their vehicle. A next level strategy that Tata Motors has invested in is DESIGNEXT. DESIGNEXT is a strategic vison to improve the company’s fuel and engine performance, engineering and design. This concept could be promoted through varying advertisements and marketing campaigns. They could also publicize the fact that Tata Motors embraces the luxury goods on the other side of the spectrum through their innovative products produced by Jaguar & Land Rover.

Weaknesses and Threats (WT) - Tata Motors can also embrace the concept of being eco friendly and invest in sustainable practices. One option could be to invest in electric cars or battery operated vehicles instead of depending on diesel fuel. Tata Motors could also recycle car parts to reduce waste in landfills. In order to recycle car parts, customers can be given an incentive to do so. Incentives could be buy-back programs, higher trade-in value, and reduced repair costs. Being that Tata Motors is such a large company, they can use economies of scale to negotiate lower prices and discounts on car parts with their suppliers thereby reducing costs.

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Epilogue Tata Motors Limited has a rich history filled with successes and failures. As India’s leading automotive manufacturer, they are perfectly poised to expand their product line and capture even more market share. Their distinctive competencies are affordability, low maintenance costs, and fuel efficiency. Tata Motors is a world leader in the truck and bus manufacturing industry. Now, they just need to push their passenger vehicle divisions to the limit and provide Indian and global consumer with Grade A vehicles at low price points. With the launch of the Tata Tiago, spurred on by an extensive social media campaign tagged with such slogans as “Its #Fantastico!” Tata Motors’ future is looking ever promising. Along the lines of innovation, they are also ramping up research and development on cars catered towards women and self-driving cars. On the New York Stock Exchange, their listing, TTM, is making significant gains and will hopefully reach peak 2015 levels by next year. Macro-economic conditions in India are also beginning to improve which could spark huge economic growth in the coming year. All factors considered, Tata Motors is positioned for considerable growth should they choose to improve their current offerings and continually expand into new markets and technologies.

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Bibliography AJG Simoes, CA Hidalgo. The Economic Complexity Observatory: An Analytical Tool for Understanding the Dynamics of Economic Development. Workshops at the Twenty-Fifth AAAI Conference on Artificial Intelligence. (2011) “TTM Competitors | Tata Motors Ltd Tata Motors Lim Stock - Yahoo! Finance.” TTM Competitors | Tata Motors Ltd Tata Motors Lim Stock - Yahoo! Finance. Web. Apr. 2016. “Management Discussion and Analysis | Tata Motors Annual Report 2014-15.” Management Discussion and Analysis | Tata Motors Annual Report 2014-15. Web. Apr. 2016. Mclain, Sean. “Why the World's Cheapest Car Flopped?” The Wall Street Journal. Dow Jones & Company Inc, 14 Oct. 2013. Web. Apr. 2016. Mishra, Ashish Kumar. “Tata's Nano: Fire!” Forbes. Forbes Magazine, 21 May 2010. Web. Apr. 2016. “Responsive Service.” Tata Motors. Web. Apr. 2016. Satpathy, Anurag, and Arjun Agrawal. “Tata Motors.” Innovation Strategy for Enterprises in Emerging Economies: Case Studies for the Digital Age. 11-16. Print. “Sustainability at Tata via @Tatacompanies.” Sustainability at Tata. TATA Sons LTD, 2016. Web. Apr. 2016. “Tata Motors Limited: Largest Indian Automobile Manufacturer." Tata Motors Limited Official Website. Web. Apr. 2016. “Tata Motors: Reports, Company History, Directors Report, Chairman's Speech, Auditors Report of Tata Motors." NDTV Profits. New York Stock Exchange. Web. Apr. 2016. Thompson, Arthur A., Margaret A. Peteraf, John E. Gamble, and A. J. Strikland III. Crafting and Executing Strategy: The Quest for Competitive Advantage. 12th ed. New York, NY: McGrawHill Education, 10121. Print. “TTM Competitors | Tata Motors Ltd Tata Motors Lim Stock - Yahoo! Finance.” TTM Competitors | Tata Motors Ltd Tata Motors Lim Stock - Yahoo! Finance. Web. Apr. 2016. “Vehicle Parts.” OEC. Macro Communications, 2015. Web. Apr. 2016.

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