BUSINESS STRATEGY OF TATA MOTORS

Running head: BUSINESS STRATEGY OF TATA MOTORS
BUSINESS STRATEGY OF TATA MOTORS
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BUSINESS STRATEGY OF TATA MOTORS1
Executive Summary
The regulation of strategic management goes beyond developing strategic plans for the
organization, which includes prior planning processes and strategic planning. Tata group is a
universal corporate unit known for its standard quality and commitment. This report throws the
light on the strategic management action plan of Tata Motors, part of Tata Groups. It is the
leading automotive corporation in India and is known as a market leader in both passenger
vehicles as well as commercial vehicles segment. This report initially shared the introduction of
the company with a detailed description of its market strategies, its tangible and intangible
resources led by the firm for its competitive advantages. This paper also focused on the Porters
Five forces model and its interpretation into the competitive market, highlighting the UN
sustainable development goals of agenda and CSR activities carried by Tata Motors.
Table of Contents

BUSINESS STRATEGY OF TATA MOTORS2
Introduction......................................................................................................................................3
Tata Motors Limited........................................................................................................................3
Strategies of Tata motors over the past three years.........................................................................5
Tata Motors tangible, intangible Resources....................................................................................9
Competitive analysis of Tata motors using Michael Porter’s Five Force Analysis......................11
CSR of Tata Motors in line with United Nation’s Sustainable Development Goals of Agenda
2030...............................................................................................................................................13
Recommendation for Tata motors.................................................................................................16
Conclusion.....................................................................................................................................20
Reference.......................................................................................................................................21

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Introduction
Tata motors limited is the dominating automobile manufacturing industry formerly
TELCO, an Indian global company headquartered in Mumbai. It has entered into the joint
ventures and strategic acquisition in its mid-stage and launched new products at a swift pace in
various markets. It aims to provide Customers satisfaction at their best value; Tata Motors has an
outstanding portfolio for passengers and commercial customer’s vehicles and leaders in Indian
commercial space for several years. It employees 695,699 workers around the world and
operates for around one hundred and fifty years and is now active in more than one hundred
countries, covering six continents, selling its goods to more than one hundred and fifty nations. It
mainly focuses on connecting the aspirations of tech-enabled products helps in establishing the
forefront of the market. It is the world's leading car, bus, utility vehicles, truck, and vehicle
manufacturers. The portfolio of Tata motors automobile products ranging from all varieties of
passenger cars, buses, and coaches, it also includes gross weight trucks and pickup trucks of
1ton-49 tons.
Tata Motors Limited
Tata Motors Limited incorporated in 1945, an Indian multinational automotive
manufacturer based in Mumbai, Maharashtra, India. It is the world's leading car, bus, utility
vehicles, truck, and vehicle manufacturers. As the most significant Indian automobile firm and
part of the $ 100 billion Tata group, Tata Motors operates in the UK, Thailand, South Korea,
South Africa, and Indonesia with a robust global network with 76 subsidiaries and affiliates,
including Tata Daewoo South Korea and Jaguar Land Rover in the United Kingdom. In India,
Tata Motors is the market ruler in commercial vehicles with 9 million vehicles on Indian roads

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and is one of the top passenger car manufacturers (Tatamotors 2020). The company’s
innovations are much more focused on developing pioneering technologies that are sustainable
and well situated for evolving aspirations for the market as well as for customers. Tata Motors
venture to launch new products that fire the artistry of GenNext customer’s
vehicle, fueled by state of the creative design and Research & Development
centres located in the UK, India, Korea, and Italy.
Currently, Tata Motors established five-passenger vehicles and a huge production of
commercial vehicles includes trucks, pick-ups, tippers, tractor-trailers, buses and vans. Both
product lines of the Tata Motors Group have been productive and are based on the more deeply
developed commercial vehicle product line. Tata Motors' commercial line has been operating for
many years in a variety of market segments such as the Middle East, Africa, Europe, Australia,
South East Asia and South Asia. Tata Motors grew its business and market share worldwide
through a sequence of acquisitions (Athreye. and Kapur 2015).
Tata Motors expands through acquisition rather than spending a decade in building a
business. It builds its reputation through commercial vehicles accounted for 80-85 percent of the
company's profits. The same business strategy continued to move into the passenger car market.
In 2008, Tata Motors made international headlines in the automotive industry by acquiring
Jaguar and Land Rover from Ford (Su et al. 2016.). Tata motors have much more experience in
luxury automobile, entitling the brand new segment of the company to be managed by previous
management. The success of the company shortly can be derived through its acquisition —
success, diversity and competitiveness of Tata motors derived through the significant outbreak in
the automotive industry.

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It has acquired tremendous market share by endorsing passenger vehicles, commercial
vehicles globally. For instance, the memorandum of understanding was signed in 2017 with
Volkswagen to develop vehicles for the Indian market. In 2018, to unlock their potential Tata
sold its aerospace and defence business to other Tata group entities. Later in 2019, Tata motors
come into a partnership with Nirma University in Ahmadabad to provide a B.Tech degree
program for its employees of the Sanand plant. Tata motor is India's fifth-largest vehicle maker;
it is growing in commercial vehicles; still, the domestic passenger vehicle segment is declining.
In 2016 Tata motor's passenger car grew its sales up to 25% about 55,000 units. In 2017 the sales
were 57,300 units, but it dropped down to 52,796 units in 2018; thus, falling 7.8 percent of the
domestic sales market (Agnihotri and Bhattacharya 2018). The critical challenge for Tata motors
to be relevant in the local market as it fails to achieve any market share over the next 2-3 years
due to the low economic activity and uncertainty of consumer's buying behaviour. The market
seems to be critical for acquiring its position back in the local market by 2021. There is a chance
of steady growth of Tata motors and achieving 5 to 10 percent of the market share by 2021-2022.
Strategies of Tata motors over the past three years
Business strategy is concerned about how to compete, and corporate strategy address to
compete in which business. Whereas, the growth strategy is an action plan designed to capture a
large number of market share. It mainly focuses on the target market, and industry occupied.
These strategies aim to achieve long-term business success.
Previously the domestic passenger car market share was just three percent, and now it
has increased about seven to eight percent. Tata Motors has recently undergone an organisational
transition. To gain a competitive advantage, lay off redundant workers and transferred jobs
around the company for restructuring purposes (Rajashekar and Mallika 2018). Tata Motors are