Tata Motors & Volkswagen: A Comparative Analysis

This assignment requires a comparative analysis of the business strategies employed by Tata Motors and Volkswagen. Students must evaluate each company's strengths, weaknesses, opportunities, and threats (SWOT) in the context of the global automotive industry. The analysis should encompass various aspects, including market position, manufacturing capabilities, technological advancements, and overall competitive landscape.

Running head: AUTOMOBILE INDUSTRY
Automobile Industry

AUTOMOBILE INDUSTRY 1
Table of Contents
Introduction.................................................................................................................................................2
Tata Motors- Background........................................................................................................................2
Volkswagen Group- Background............................................................................................................3
Globalization strategies...............................................................................................................................4
Tata Motors.............................................................................................................................................4
Volkswagen Group..................................................................................................................................4
Manufacturing/technology interface............................................................................................................5
Tata Motors.............................................................................................................................................5
Volkswagen Group..................................................................................................................................6
Marketing/technology interface...................................................................................................................7
Tata Motors.............................................................................................................................................7
Tata Motor- Marketing plan................................................................................................................7
Technology by Tata Motors.................................................................................................................8
Volkswagen Group..................................................................................................................................9
Volkswagen Group- Marketing strategy..............................................................................................9
Technology of Volkswagen.................................................................................................................9
Organization/technology interface...........................................................................................................9
Organizational interface- Tata Motors.................................................................................................9
Organization interface- Volkswagen Group......................................................................................10
Conclusion.................................................................................................................................................10
References.................................................................................................................................................11

AUTOMOBILE INDUSTRY 2
Introduction
Automobile industry is in the business of manufacturing and selling of vehicles it includes farm
equipment, passenger cars, commercial vehicles and trucks. It helped customers to travel long
distance for shopping, work, etc. and it is the reason for the development of subsidiary industries,
such as travel and oil business. Automobile mobile industry is the biggest buyer of
manufacturing products such as steel and one of the reason for economic growth (Infoplease.
2017). Report involve brief discussion of world’s two major automotive companies they are Tata
Motors and Volkswagen Group. Report will explain about companies Global strategies,
Manufacturing/technology interface, Marketing/technology interface and
Organization/technology interface.
Tata Motors- Background
Source [https://www.google.co.in/search?
rlz=1C1CHBF_enIN760IN760&biw=1366&bih=613&tbm=isch&sa=1&q=Image+of+Tata+Mot
ors+logo&oq=Image+of+Tata+Motors+logo&gs_l=psy-
ab.3...19107.33028.0.33601.49.30.1.0.0.0.817.4649.2-2j2j2j3j1.10.0....0...1.1.64.psy-
ab..39.8.3167...0j0i24k1j0i67k1.0.PtfS8-guKfQ#imgrc=EgD_oSJLDjfA3M]
In 1868, Jamsetji was the one who founded Tata Motors. USD 100 billion group’s one of the
member is Tata Motors (Tata Motors. 2017). Their main Moto is to give back to the society and
to sustain in the market. They maintain good corporate relationships with their competitors as
well as with their customers. It is one of the leading automobile company. We provide customers
variety of the choices and respect their choices and demands. They are trying to change the

AUTOMOBILE INDUSTRY 3
background of Indian vehicle commercial by providing advance technologies, with good
performance and less life-cycle rate. Tata Motors passenger cars are designed for higher
connectivity, performance and comfort. Their focus on future objectives and providing good
services is the reason for their success. The UK, Korea, Italy and India are the locations of Tata
Motor’s R & D department (Tata Motors. 2017).
Volkswagen Group- Background
Source [https://www.google.co.in/search?
q=image+of+Volkswagen+logo&rlz=1C1CHBF_enIN760IN760&tbm=isch&source=iu&pf=m
&ictx=1&fir=B3GN9DJXXTPk4M%253A%252CybFFvrJqw238CM
%252C_&usg=__ONWKN_v77_0VwfSop0QHG2_oNkc%3D&sa=X&ved=0ahUKEwiNr-
Lz1uvWAhUB6Y8KHYOLDekQ9QEIJzAA#imgrc=B3GN9DJXXTPk4M:]
Audi, Lamborghini, MAN, Volkswagen Passengers cars, Ducati, Scania, Bentley, SEAT,
Porsche, Volkswagen Commercial Vehicles, Bugatti and SKODA are the brands comprises by
the Volkswagen group (Volkswagen. 2017). Besides this, it also deals is different financial
services like insurance, banking, leasing, etc. Volkswagens present focus is on their
“TOGETHER-Strategy 2025”, it will lead to the major change in the history of the Volkswagen

AUTOMOBILE INDUSTRY 4
group to become the leading car makers in all over the world. By 2025 it will transform its
automotive business and will provide fully electric cars with technology of battery expanding
and self-directed driving features (Volkswagen. 2017).
Globalization strategies
Tata Motors
Tata Motors was recognized in 1945, it is one of the biggest multi-holding company. It works
under three segments internationally they are Commercial vehicles, Utility vehicles and
Passengers cars. Heavy vehicles, first light and mini-truck were first introduced by Tata Motors
in India. Tata Motors have launched many new products in the market by entering into the joint
ventures and strategic acquisition. Tata motors main strategy is to maintain their core three
segments i.e. Commercial vehicles, Utility vehicles and Passengers cars and want to be
specialized in these three segments. The reason behind the international expansion of Tata
Motors are Increase in sales, market will expand, increase in customer base (Uni Assignment.
2017).
Volkswagen Group
Volkswagen is one of the leading automobile company in the world. Volkswagen involve twelve
brands i.e. Audi, Lamborghini, MAN, Volkswagen Passengers cars, Ducati, Scania, Bentley,
SEAT, Porsche, Volkswagen Commercial Vehicles, Bugatti and SKODA. They are spreading
their brands all over the world as their strategy is to cover larger market area. By 2018, they want
to become environmental and economic leader and their goals are:
 Volkswagen wants to become leader in providing good quality and customer satisfaction
by adopting new technologies and innovations as customer satisfaction will help business
to sustain into the market and will lead to the success of the company.
 Volkswagen focus is on increasing the sales every year and want to increase the
percentage of the growth in the market.
 Volkswagen wants to become the best employer in the industry of automobile. They need
best team of fit, skilled and motivated people to manufacture best vehicles.
High competition faced by Volkswagen Group, but they handled it as a strong company by
launching different brands over years. Automobile industry is gaining high growth in China and
improving in North America. Although, other automobile companies are giving high competition

AUTOMOBILE INDUSTRY 5
to Volkswagen and trying to attain this growth. Ford motors company, General motors and
Toyota are the competitors who have established their sound existence in the global market.
Innovation, customer satisfaction and research and development are the key success factors on
which company spend a lot for sustainability (Pratt, B. 2017).
Manufacturing/technology interface
Tata Motors
Source [http://www.tatamotors.com/about-us/facilities/]
Tata Motors manufacturing services are not only the state of skill technology, they have
experienced and talented engineers who produce quality vehicles. Determination towards
excellence is essential chunk of Tata Motors. Manufacturing plants of Tata Motors are certified
for providing good quality and manufacturing standards. Their main focus is on technology and
automation, it is the reason for their success in the automobile industry (Tata Motors. 2017).
Development cycles basis feature of IT industries is decreasing human interface. Today all the
companies has started gaining benefits of Digital Manufacturing. When all the manufacturing
process is managed on computers is known as Digital Manufacturing. With the help of Digital
Manufacturing’s offering like “Design for Servicing” and “Design for Manufacturing” Tata
Motor’s productivity got enhanced and were effectively handling their process of manufacturing.
Due to this time taken in manufacturing and cost of manufacturing process also decreased. If the
process or work flow are established then it became tough and expensive to correct it but a
preceding support will help business to recognize such problem at previous stage of planning, it
will save time and cost of restructuring (Design tech. 2015).

AUTOMOBILE INDUSTRY 6
Volkswagen Group
Source
[http://inthesetimes.com/working/entry/17777/my_boss_would_yell_at_me_every_day_until_i_c
ried_lean_production_at_tenness]
To meet the market demands Volkswagen make their manufacturing plant and methods of the
higher standards (Volkswagen fleet sales. 2017). The life cycle valuations directed by
Volkswagen not only examine manufacturing of vehicle at their own plants but also analyze all
the process not related to the plant. For manufacturing vehicle first of all iron ore, oil and sand
like raw material is produced, then these raw materials are used to produce body and engine of
aluminum, rubber and plastic for tyres and windows. Suppliers who supply raw materials to the
Volkswagen with the help of trains and trucks use fuel and power and release emissions.
Volkswagen arranges the bases for the life cycle of the vehicle valuation at the growth stage,
determining the manufacturing procedure and the environmental influence on the life cycle. It
will provide the reason for efforts towards improving the efficiency.

AUTOMOBILE INDUSTRY 7
Volkswagen group also works for reducing the consumption of fuel and emission by reducing
the weight of the vehicle. These are the factors that gets affected by the material selection,
process of manufacturing and design of the vehicle. Vehicle’s environmental profile also gets
affected due to the design of light weight. Hot stamping is the process used by Volkswagen for
the body parts production. Hot stamping is more energy-exhaustive than the conservative
procedures it changes- about 22 kilograms of CO2 are released per vehicle but it is said to be
environmentally capable in the matter of whole life cycle. In the process of hot stamping less
steel is used to produce the parts, it means the use of energy and raw material is less. The Passat
body is lighter than the old methods. Volkswagen operated a distinct Life Cycle Assessment for
this process to know hot stamping benefits. Process of new painting is another step taken by
Volkswagen in manufacturing stage to improve vehicle’s environmental outline (Volkswagen.
2017).
Marketing/technology interface
Tata Motors
Tata Motors is the part of Tata Group and known as the top automobile company in India. Tata
Motors manufacture three type of vehicles such as passenger vehicles, utility vehicles and
commercial vehicles. It provide employment to approx. 24000 employees. In the world Tata
Motors is said to be the fifth leading manufacturer of Commercial vehicles. Different marketing
strategies and technologies are used by Tata Motors to compete with the competitors.
Tata Motor- Marketing plan
Organization should know the market scenario for effective market plan as it is very important
for an organization. Every year Tata motors introduce new vehicles with different price, feature
and design but their main focus is on midsize cars because they are affordable for middle class
people and they use different plan for their vehicles (Innovative project. 2017). For Example- In
2012 and 2013 Tata launched their Tata Nano car in USA and Africa respectively due to the
increase demand of Tata Nano in India because of its lower cost as compared to other cars. In
case of Tata Nano they wanted to provide cars to customers easily, for this they decided to use
Croma and Westside conventional outlets for selling the cars and ignored dealership option
(LinkedIn. 2015). Marketing plans like providing key chains, caps and t-shirts to others were
used for attracting people. Upgrading automobiles is another marketing plan of Tata Motors. In
this they focus on changing the look, features and design of the automobile with extra mileage

AUTOMOBILE INDUSTRY 8
and engine. They provide warranty of 2-3 years, insurance facility, after sales services, etc. to
cover the larger market area. To find out the strength, weakness, opportunity and threat SWOT
analysis is done by organization for marketing plan.
Strengths
Tata Motors is known for producing lower cost vehicles with the feature of less consumption of
fuel. Tata Motors have established their business in many countries. With vast employee base
they provide many employment opportunities. The Research and Development department of
Tata Motors is very strong and effective. Market share of Tata Motors is large with strong brand
image in the market of India (Jacoby. 2009).
Weakness
Safety standards are not met by the vehicles of Tata Motors. Domestic sales is less of the
vehicles of Tata Motors and return of investment is also low (Kasi. 2017).
Opportunities
Tata Motors should work for increasing the return on investment. New ideas should be used for
business segmentation by Tata Motors and by concentrating on midsize cars they should also
focus on luxury cars (Blitterswijk, M.V & Karadzhov, R. 2009).
Threats
Sales can be affected due to ignoring the safety measures. Different challenges can be faced by
Tata Motors due to increase in the prices of raw material (Marketing. 2016).
Product, branding and advertising are very important for the marketing plan. Advertising is done
by organization for promoting the product and creating successful brand image in the eyes of the
customers is another way of doing advertising. Tata Motors achieved success in the case of
creating good brand image in the market. Spokesmen are used by Tata Motors. Tata Motors use
quality control, packing and innovation strategies for marketing. They change their pricing
strategy every year for covering the market. Tata Motors use other marketing strategies like
providing after sales services for supporting and maintaining the customers (Philip, L. 2014).
Technology by Tata Motors
Technology used by Tata Motors helped them to increase their productivity and growth.
Business of Tata Motors is expanded due to use of the technology. It will help in solving

AUTOMOBILE INDUSTRY 9
problem faced by Tata Motors with reducing the work load. Tata Motors should adopt those
technology that will help them in developing service and product.
Volkswagen Group
Volkswagen main focus is to increase the core business by increasing productivity and reducing
cost of production. To achieve these goals, the company is focusing on different strategies like
divesting those segments that are non-core, introducing new models and restructuring.
Volkswagen aim is to provide safe environment, quality product and improving productivity.
Volkswagen Group- Marketing strategy
Double marketing strategy is used by Volkswagen for the position of its brand. Double
Marketing does not mean communicating various messages into one campaign. In this different
messages in multiple campaigns are advertised parallel. Coke was the one who followed double
marketing because they have vast budget of marketing. In that various add campaigns are
advertised at same time but the results are not so good. Volkswagen main focus is on the easy
availability of the product for this they opened 44 production sites in different countries of the
world. Branding of the products in various sections of production lines is the marketing strategy
of Volkswagen (Economic Times. 2014).
Technology of Volkswagen
Volkswagen use Blueprinting technology, it means the science of reconstructing engine.
Carefully fitting, balancing and measuring is done in the process of blueprinting that makes an
engine for performance improvement. Process of setting all acceptance in the engine to its best
worth is known as engine blueprinting. Volkswagen use those techniques which are environment
friendly for this they use recyclable and recycled ingredients where ever it is possible
(Volkswagen. 2017). SWOT analysis is also done by Volkswagen for effective marketing plan.
Organization/technology interface
Organizational interface- Tata Motors
Organizational climate and knowledge management are the integral part of the organization
structure. Communication between worker and employer is important in Tata Motors company
either it can be formal or informal to make employees feel comfortable and familiar towards
organization. Interaction between different levels is easy in Tata Motors because it has flat
structure. Tata Motors adopt transformational strategy at international market to transfer local
manager at new location and to transfer senior managers from Indian market to new market. In

AUTOMOBILE INDUSTRY 10
this way Tata Motors transfer their expert and talented employees to other place for increasing
productivity. Tata Motors have partnership with giant Fiat that helped both of them in increasing
market share, growth and productivity. Characteristics of culture followed in Tata Motors are
adaptability, involvement, constancy and change (Economic Times. 2017).
Organization interface- Volkswagen Group
In the automobile industry Volkswagen is the top group of various brands. Divisions of business
activities are Financial and Automotive services. Automotive division of Volkswagen are
officially independent distinct companies except Volkswagen commercial vehicles and
Volkswagen passenger cars. Business activities of Volkswagen concentrate on manufacturing,
developing and retailing light commercial vehicles, buses, trucks and passenger cars.
Volkswagen provide different ranges from luxury vehicles, small cars, motorcycles. Commercial
vehicles of Volkswagen provide busses and trucks. Volkswagen provide different financial
services, further planning to expand it and providing mobility services. Volkswagen is providing
their services in different countries like Brazil, Turkey, USA, Chine and Europe. Volkswagen
AG’s management board manage the Volkswagen Group and Volkswagen AG according to the
procedure rules and article of association. Committees discuss different strategic issues like
investment, foreign currency etc. at group level. Management board of Volkswagen control all
the activities of Volkswagen group brands. Targets of Volkswagen group are also assigned by
management board (Volkswagen. 2016).
Conclusion
In the conclusion it can be said that Tata Motors and Volkswagen both are the leading companies
of Automobile industry and focused towards improving performance and increasing market
share. Main focus of Tata Motors is on the core products provided by them such as Commercial
vehicles, Utility vehicles and Passengers cars and on the other side focus of Volkswagen is on
the twelve brands provided by them such as Audi, Lamborghini, MAN, and Volkswagen
Passengers cars, Ducati, Scania, Bentley, SEAT, Porsche, Volkswagen Commercial Vehicles,
Bugatti and SKODA. Tata Motors and Volkswagen has different manufacturing, marketing
strategies for increasing profitability and attracting customers. Technologies implemented by
both the companies are used for saving the time and cost. Organization structure of Tata motors
is flat whether Volkswagen’s all the divisions are independent except commercial vehicles and
passenger cars.

AUTOMOBILE INDUSTRY 11

AUTOMOBILE INDUSTRY 12
References
Volkswagen fleet sales. 2017. Manufacturing. Accessed on: 11 October 2017. Accessed from:
http://vwcorporatefleet.com/vw/common/why-vw/manufacturing
Design tech. 2015. Advantages of Technology in Manufacturing. Accessed on: 11 October 2017.
Accessed from: http://www.designtechsys.com/articles/advantages-technology-
manufacturing.php
Pratt, B. 2017. Case Analysis: Volkswagen Group. Accessed on: 10 October 2017. Accessed
from: https://people.ucsc.edu/~brpratt/Courses/ECON136Su15/VWAG_Example.pdf
Uni Assignment. 2017. International Strategic Issue of Tata Motors Marketing Essay. Accessed
on: 10 October 2017. Accessed from:
https://www.uniassignment.com/essay-samples/marketing/international-strategic-issue-of-tata-
motors-marketing-essay.php
Innovative project. 2017. Marketing strategies of Tata Motors. Accessed on: 11 October 2017.
Accessed from: http://www.innovativeprojectguide.com/home/12/73-marketing-strategies-of-
tata-motors-would-you-apply-in-your-organization.html
LinkedIn. 2015. Analysis of marketing strategy for Tata Nano. Accessed on: 10 October 2017.
Accessed from: https://www.linkedin.com/pulse/analysis-marketing-strategy-tata-nano-kumar-
utkarsh
Jacoby. 2009. SWOT analysis of Tata Motors. Accessed on: 11 October 2017. Accessed from:
http://www.businessgrowthconsultant.com/swot-analysis-of-tata-motors/
Blitterswijk, M.V & Karadzhov, R. 2009. Financial and Strategic Analysis of Ford Motor
Company and Tata Motors. Accessed on: 11 October 2017. Accessed from:
http://studenttheses.cbs.dk/bitstream/handle/10417/708/miel_van_blitterswijk_og_rosen_karadzh
ov.pdf
Marketing. 2016. SWOT analysis of Tata Motors – Tata motors SWOT analysis. Accessed on: 11
October 2017. Accessed from: https://www.marketing91.com/swot-tata-motors/

AUTOMOBILE INDUSTRY 13
Philip, L. 2014. Tata Motors' 5 key strategies. Accessed on: 11 October 2017. Accessed from:
http://economictimes.indiatimes.com/automobiles/tata-motors-5-key-strategies-to-lure-
youngsters-towards-nano-twist/articleshow/29015830.cms?intenttarget=no
Economic Times. 2014. Volkswagen revamps its India strategy. Accessed on 12 0ctober 2017.
Accessed from: http://economictimes.indiatimes.com/industry/auto/news/passenger-vehicle/
cars/volkswagen-revamps-its-india-strategy/articleshow/35620078.cms
Volkswagen. 2016. Structure and Business Activities. Accessed on: 12 October 2017. Accessed
from: http://annualreport2016.volkswagenag.com/group-management-report/structure-and-
business-activities.html
Economic Times. 2017. Biggest restructuring? Tata Motors shrinking structure of its white-
collar workforce. Accessed on: 12 October 2017. Accessed from:
http://economictimes.indiatimes.com/news/company/corporate-trends/biggest-restructuring-tata-
motors-shrinking-structure-of-its-white-collar-workforce/articleshow/56723362.cms
Tata Motors. 2017. About us. Accessed on: 10 October 2017. Accessed from:
http://www.tatamotors.com/about-us/company-profile/
Volkswagen. 2017. About us. Accessed on: 10 October 2017. Accessed from:
https://www.volkswagenag.com/en/group.html
Tata Motors. 2017. Facilities. Accessed on: 11 October 2017. Accessed from:
http://www.tatamotors.com/about-us/facilities/
Volkswagen. 2017. Manufacturing. Accessed on: 11 October 2017. Accessed from:
http://en.volkswagen.com/en/company/responsibility/environmental_commendations/
environmental_commendation/life_cycle/Manufacturing.html
Volkswagen. 2017. Technology. Accessed on 12 October 2017. Accessed from:
http://volkswagen-poznan.pl/en/technology
Infoplease. 2017. Automobile industry. Accessed on: 10 October 2017. Accessed from:
https://www.infoplease.com/encyclopedia/social-sciences-and-the-law/economics-business-and-
labor/businesses-and-occupations/automobile-industry

AUTOMOBILE INDUSTRY 14
Kasi. 2017. Tata Motors SWOT analysis. Accessed on: 11 October 2017. Accessed from:
http://marketingmixx.com/marketing-basics/swot-analysis-marketing-basics/170-tata-motors-
swot-analysis.html