Land Rover Brand Analysis

This assignment delves into a comprehensive analysis of the Land Rover brand. It examines the company's successful establishment as a leading player in the global market, highlighting its maintained brand reputation and effective business strategies. The analysis also explores external factors influencing Land Rover, including customer loyalty, reliability concerns, and competitive pressures. The report suggests recommendations to enhance customer satisfaction, improve product reliability, and ultimately bolster Land Rover's global market share.

STRATEGIC
MANAGEMENT

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
OVERVIEW....................................................................................................................................3
EXTERNAL ANALYSIS OF LAND ROVER ORGANISATION................................................3
PESTLE Analysis...................................................................................................................3
Five Forces Analysis..............................................................................................................4
Competitors............................................................................................................................4
Industrial Life Cycle...............................................................................................................5
EVALUATION OF STRATEGIES OF THE ORGANISATION..................................................5
RECOMMENDATIONS.................................................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
The report focuses on external factors of Land Rover. An overview of the company is
presented and the strategies adopted by the company are discussed. Analysis of the company's
macro environmental factors is done by PESTLE analysis and Porter's Five Force analysis. The
competitors of the quoted firm are assessed and its industrial life cycle is evaluated. Also, the
suitability, acceptability and feasibility of the company's strategy are evaluated (Trivedi and
Griffin, 2013). Though the cited firm has become a global leading brand in automotive it faces
some issues and amendments which are recommended in the report.
OVERVIEW
Automotive sector has gained much popularity since 21st century. Land rover with the
trending technology and advancement has emerged out as the leading brand. The company
specialises in four wheeler drive vehicles. Founded in 1948 and owned by British multinational
car manufacturer Jaguar land Rover. Since 2008, it is owned by the Tata Motors. It is
headquartered in UK. It turned into a brand encompassing range of models including Rover
Sport, Defender, Freelander, Range Rover etc. With around 25000 -26000 employees, the
company had spread out its business across 178 countries and 5 manufacturing sites (Bosch,
Hamersma and Els, 2016). It has become the highest exporter in UK as 80% of its vehicles
manufactured are sold abroad. The company possesses rapid growth and changes.
EXTERNAL ANALYSIS OF LAND ROVER ORGANISATION
PESTLE Analysis
Political Factors-Due to government opposition the manufacturing plant of Land Rover was
shifted from Singur to Sanand. It is because their governmental bodies thought that industries
were harming people rather than helping by taking off their lands but now acts have been
implemented there for industrialisation and for farmer’s safety (Morden, 2016).
Economic Factors-The economic factors affecting the cited company are fluctuations in
demands, oil supply, competitive landscape, financial market's regulation and functionality,
changes in price of raw materials, specific by laws in each country like consumer rights etc.
Social Factors-In business activities, Land Rover is always responsible and ethical. Their social
activities include promotion and improvement of education standards, scholarships etc. In

Thailand, they have donated sun-filter shades, life-vests etc. They have also collaborated with
training institutes for skill development in youth (Pathak and Pathak, 2016).
Technological Factors- They have set-upped a research and development centre in UK to
provide engine enhancement and support. They have also made an agreement with EngageNext
to fasten the advancement process and streamlining the activities.
Environmental Factors- The elected company has developed treatment facilities to avoid release
of polluted water in the environment and also it has introduced hybrid car which is powered by
air and emission free.
Legal Factors-Strikes and shut-downs are common in the automotive industries like Land Rover
and its owed company named Tata Motors have also faced the protest by ITI trainees to increase
their wages and other benefits.
Five Forces Analysis
Threat of new entrants- Land rover carries a brand image so it does not have major threat from
the new entrants (Mukherjee, 2016). Its maintenance cost so other companies can take advantage
of it.
Bargaining power of Buyers-While buying a car, the customer always think of maintenance cost
which is high for Land Rover and it is affordable only by few customers. To increase market
share, the quoted enterprise should reduce its maintenance cost.
Bargaining power of Suppliers-There are limited number of suppliers because the elected
company is a luxury brand. Until now, there is no complaint which has been received by the
suppliers (Chapman, 2014).
Threat of substitutes- Due to high cost and high maintenance cost, customers are looking for its
substitutes like BMW, Porche and Mercedes etc.
Rivalry- Cars have become a necessity for customers today. This has given rise to many other
companies to enter in the industry. They have made solutions to gain market share. Thus, Land
Rover is evident to have many rivalries in the market.
Competitors
Land Rover has established as leading brand and it faces tough competition from other
luxury car brands. Due to high maintenance cost, other companies are conquering the market by
offering less maintenance cost. Companies like Chevrolet, Honda, Toyota, Skoda, Fiat etc are the
major competitors in the small sector. In medium sector Audi, BMW, Volkswagen, Mercedes etc

are trying to muscle their brand (Mutum, Roy and Kipnis, 2014). In luxury sector, Bentley, Rolls
Royce, Mercedes S-Classes, BMW 7 series and Audi A7 are giving big competition to the Land
Rover. Also, there are many companies offering better reliability and quality in terms of loyalty
and equity. Hence, the company needs to work on its weaker sections to increase their market
shares and profit.
Industrial Life Cycle
Land Rover has established its reputation in designing all the terrain vehicles. Initially,
the design of the vehicles were basic but the concepts and innovations grew with the time..
Invention of luxury SUV's with trending technology and design with excellent and rugged
performance off road has boosted up the shares (Johnston, 2016). They have a vision for
sustainability. They follow 360 degree approach aiming for the safe environmental practices
right from design to the end. It works on two principles: environment innovations and CSR's.
They have seven phases of the life cycle: product design, raw material manufacture,
transportation to factories and customers, usage by customers and end of life of the product.
EVALUATION OF STRATEGIES OF THE ORGANISATION
The quoted company has adopted many new strategies which are suitable to meet the
customer demand. These includes development of tighter fuel economy regulations and more
safety features. The firm has focused on developing new city segment cars which will differ in
speed and scope on the basis of cities also intelligent technology is connected in the models. The
PESTLE analysis shows that company needs to focus more on benefits of the employees and to
keep the promises to the public. The shift of headquarter to Sanand was because the company
violated the benefits of farmers and harmed them (Mithas and Arora, 2015). The company has
successfully managed to develop models of the latest technologies and designs. The economic
scenario has matched with the GDP growth rate around 7%. Also, it always keeps in mind the
environmental factors.
Sensitivity analysis of the elected company shows that the collected data is insensitive to
the external changes. The stable data would benefit the automotive in its new ventures. The total
shareholder return(TSR) of the cited company has seen many ups and downs. The TSR declined
due to the fall of global financial sector which resulted in decrease in access to credit and rise in
fuel prices. The rise in price of rubber and steel also added to it (Uhlemann, 2017). The

acquisition of Jaguar Land Rover was another factor that hurt the company. But overall it can be
concluded that the elected firm has always been fair to its shareholders.
The financial feasibility of the quoted company has grown in recent years. Continue
growth in revenue from 2011 has been noticed. The market share value in UK between 2014 and
2016 has raised. Also, India and China are expected to become significant pillars of growth. It
has undertaken many integrated resources to improve the performance. The main problem faced
by the company is the lack of skilled engineers for manufacturing (Moon and et. al., 2014).
However, it has practised the best skill development by traineeships, initiatives on improving the
skills of current employees. It has managed to maintain brand reputation but failed in gaining
public loyalty.
RECOMMENDATIONS
Inspite of establishing itself as a leading brand the cited firm faces complaints from the
customer regarding the reliability of the product. The customers are facing a lot of problems in
the maintenance of the car. I would recommend the company to reduce its maintenance cost after
warranty. Also, the company should set up its new plants in regions of Ural, Russia etc as it will
get good and educated labour and opportunities for effective logistics. It would help the firm to
large customers. The set up of plants in regions of China would help the company to spread its
market in the Asian continents. It should focus on long term effect of environment and social
sustainability and also on R&D resources to persist in current market. Proper research about the
customer desires should be done prior falling in the E-business.
CONCLUSION
The analysis of the report shows that Land Rover has successfully established itself as a
leading brand in the global market and has maintained the brand reputation throughout the years.
Business strategies and external factors shows that the company needs to work on the aspect of
customer loyalty and reliability. The cited company is given tough competition by other
companies by enhancement of its weaknesses. A reduced maintenance cost can add to the global
share of the company. It has managed to cope up with the social and environmental activities and
gain public faith. Some recommendations provided in the report would help the company to
attract more customers and improve the quality and reliability.

REFERENCES
Books and Journals
Bosch, H. R. B., Hamersma, H. A. and Els, P. S., 2016. Parameterisation, validation and
implementation of an all-terrain SUV FTire tyre model. Journal of Terramechanics. (67).
pp.11-23.
Johnston, M., 2016. Brand, image and reality: A guide for small and medium-sized businesses.
The Marketing Review. 16(2). pp.149-182.
Mithas, S. and Arora, R., 2015. Lessons from Tata's Corporate Innovation Strategy. IT
Professional. 17(2). pp.2-6.
Moon, H. C. and et. al., 2014. Extending Porter’s generic strategies: from three to eight.
European Journal of International Management. 8(2). pp.205-225.
Morden, T., 2016. Principles of strategic management. Routledge.
Mukherjee, D., 2016. Case analysis: Tata Motors' acquisition of Jaguar Land Rover. The
Business & Management Review. 8(3). pp.48.
Mutum, D.S., Roy, S.K. and Kipnis, E., 2014. Marketing cases from emerging markets. Springer.
Pathak, A. A. and Pathak, A. A., 2016. Tata Motors’ successful cross-border acquisition of
Jaguar Land Rover: key take-aways. Strategic Direction. 32(9). pp.15-18.
Trivedi, S. K. and Griffin, J. J., 2013. Rothaermel’s Strategic Management: Concepts and Cases.
Journal of Business Ethics Education. (10). pp.365-369.
Uhlemann, E., 2017. Initial Steps Toward a Cellular Vehicle-to-Everything Standard [Connected
Vehicles]. IEEE Vehicular Technology Magazine. 12(1). pp.14-19.
Online
Chapman, C., 2014. Jaguar and Land Rover. [Online]. Available through
<http://www.scoop.it/t/entreprise-4?nosug=1>. [Accessed on 4th March 2017].