Strategic Analysis of Jaguar Land Rover Automotive PLC

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This report provides a comprehensive analysis of Jaguar Land Rover Automotive PLC, examining its business operations, products (Jaguar and Land Rover), and global market presence. The report delves into the company's vision of 'Destination Zero,' its marketing strategies, and its competitive advantages, including its brand equity and global logistics network. It also explores the challenges faced by Jaguar Land Rover, such as adapting to changing consumer preferences and technological advancements, and discusses the company's future plans, including its investment in electric vehicles and diversification strategies. The report also considers the impact of globalization and customization on the company's operations and highlights the role of Tata Motors as its parent company. The report concludes with a discussion of the company's main success factors and potential future actions.
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Running head: SHAPING BUSINESS OPPORTUNITIES
SHAPING BUSINESS OPPORTUNITIES
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1SHAPING BUSINESS OPPORTUNITIES
About the Organization
Company
The selected organization is Jaguar Land Rover Automotive PLC, which was founded
in the year of 2008. Headquarter of this organization is in Whitley, Coventry the United
Kingdom. This company is a subsidiary of Tata Motors, which is an automotive organization
from India. Headquarter of this business house is situated in Whitley, Coventry, United
Kingdom. The organization belongs from the automotive industry, which can be regarded as
one of the most competitive business sectors among all other business sectors that exists in
the global business environment. The vision of this organization is to provide smart and
sustainable mobility across the4 world, which they term as Destination Zero. They are
focused to provide zero emission vehicles along with zero congestion and zero accidents. All
this will lead to zero waste. The management are focused on providing the vehicles according
to the ever-changing requirements of the people, so that they can satisfy the requirements of
the people in the market places where the organization sell their vehicles. Customers are at
the heart of every strategies that they design, and Jaguar Land rover Automotive PLC was
purchased by Tata Motors and became a single business entity in the year 2013 (Jindal 2015).
Products
Two major products that are designed, developed, manufactured and sold in the global
market are Jaguar and Land Rover. Both of this are globally reputed brands. The management
successfully designs and manufacturers two kinds of products, which can be classified as
luxury vehicles and sport utility vehicles. In this context, it can be stated that Jaguar started
their journey in the year of 1930 and Land Rover started theirs in the year 1940, when they
were separate business entities (jaguarlandrover.com 2020).
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2SHAPING BUSINESS OPPORTUNITIES
Markets and Activities
As discussed, the brands that are manufactured and sold by the management of Jaguar
Land Rover Automotive PLC are offered to the worldwide market place, and a lot of
promotional activities are performed by them to sustain in this highly competitive global
automotive market. Market research team identifies the needs and requirements of the people
across the world and incorporate them in the new models of both the above discussed brands
that are designed, developed, manufactured and sold in global market places. This is the
principal or major activity that is performed by the management of this business entity.
Strong brand presence is possessed by this organization globally along with a positive image,
which involves modern technology in the overall designing, developing, manufacturing and
selling of different models of Jaguar and Land Rover in global market places.
Meaning of Global Organization
The term global organization means the presence of a particular business entity in
more than one nation, which signifies of performing business operations by a particular
company across the borders of nations. International presence is the major thing that helps to
address whether a company will be treated as a global organization or not. The same can be
regarded to the organization of Jaguar Land Rover Automotive PLC, as they also possess
their business operations across the world. The organization need to have their presence in
many countries and the same is true for the organization of Jaguar Land Rover Automotive
PLC. Though they are bought by Tata Motors, still they possess their presence in many
countries across the world. Different models of the above mentioned brands are designed,
developed, manufactured and sold and it can be noted in this context that there are many
facilities and plants where all these processes except sales are performed by the senior leaders
of this organization in order to sell the finished model of vehicles and sale them in the market
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3SHAPING BUSINESS OPPORTUNITIES
places where Jaguar Land Rover Automotive PLC have their presence (Namita and Gupta
2019).
Main Success Factors
The main success factor that is enjoyed by the management and the owners of Jaguar
Land Rover Automotive PLC is the overall manufacturing of their cars. It can be stated in
this context that the production of the vehicle Land Rover stated in the year 1948 at their
plant which is situated in West Midlands. More than 2 million models have been rolled off in
their journey of this 72 years. Apart from this, the ongoing developmental process of this
organization has helped them to become one of the greatest growth stories in the field of
manufacturing items in the region of the United Kingdom.
Marketing Strategies
Value based positioning strategy is used by the management of Jaguar Land Rover
Automotive PLC to stay ahead over the rival firms of this company. As both the brands of
Jaguar and Land rover are from premium or luxury category, new age technology is
implemented in the overall process of manufacturing and positioning of the vehicles along
with following innovative techniques in selling methods of the organization. Brand equity in
the marketing strategy and selling different models of Land Rover and Jaguar through
exclusive retail outlets also includes in the marketing strategies that are followed by the
management of this company. Presence of strong network of global logistics also acts as an
added advantage in the strategies that are designed and followed by Jaguar Land Rover
Automotive PLC.
Competitors and Competitive Advantage
The main competitors of the organization of Jaguar Land Rover Automotive PLC are
Mercedes-Benz, Audi, BMW Group, Lexus, Toyota, Rolls-Royce and others. Each one of
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4SHAPING BUSINESS OPPORTUNITIES
this company has its own style of designing and manufacturing of their vehicles, but the
competitive advantage is enjoyed by the management of this business house, as they have the
benefits of two separate brands under one roof, which are Jaguar and Land Rover.
Advantages of using the wide range of models of these two brands are enjoyed by the present
management body of this company. The values that the customers possess by using these two
models separately are added as the competitive advantage of Jaguar Land Rover Automotive
PLC over its above mentioned and other rival houses those who are present in the global
automotive market place. But it can be stated in this context that the management of this
business entity has incurred a huge loss amounting to £3.6bn in the year 2018, which was the
biggest loss that the company suffered in its history, mainly due to fall in the diesel car sales
and weak market of China (Davies 2020). Presence of the reputation of Tata Motors as the
strong parent company along with the focused operations that are followed and maintained by
the management of Tata Motors help to gain the competitive gain over others. Strategically
expanding the production facilities to regions like India, Slovakia, Austria, China and Brazil
also helps to gain the competitive advantage in the global market place.
Globalization vs. Customization
The meaning of globalization has already been discussed earlier in this paper.
Customization, on the other hand, means to design distinctive marketing strategies for
separate marketing environments where the organization exists. It can be noted in this context
that the management has taken measures to meet the ever-increasing demand of the people.
For example, all social media platforms are not active in all the places where they perform
their business, and have to communicate with their targeted segment through other social
media platforms or any other kind of communication channel. Preferences for the people in
India will not always match with the people who are present in the United States, so all
Jaguar and Land Rover models will not be sold in these two markets. Full-size luxury car,
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5SHAPING BUSINESS OPPORTUNITIES
sports car and high end compact luxury SUV models will be sold more in the American and
European market rather than that of the Asian market. These are the measures that has been
taken by the management of Jaguar Land Rover Automotive PLC under customization
policies, whereas new policies has been undertaken under globalization in the form of
introduction of electric models for both Land Rover and Jaguar.
Main Challenges faced by Jaguar Land Rover Automotive PLC
The major challenge that are faced by the management of this identified business
entity is meeting the ever-changing needs and requirement of the tastes and preferences of the
global customers. Ever-changing demands of the people changes the positioning statement of
the company and customers often find it difficult to relate the brands sold by them as there
are many competitors in this global automotive market who are offering similar kind of
vehicles with similar facilities that are offered by Jaguar Land Rover Automotive PLC.
Increase in the competition also changes the environment where this organization exists,
along with alterations in the political, economic and social factors that prevails in the nations
where this firm operates. Increase in competition also changes the market share of the
companies, which hampers the flow of the business operations, and the management has to
constant alter their strategies to maintain a sustainable competitive advantage in the market
places. Advancement in the technology are also forcing to change the consumer behaviour
and the management has to follow innovative things to attract and retain the customers
towards their own brand. All these are forcing to change the product life cycle and as the
product life cycle may vary for the brands of Jaguar and Land Rover, it acts as a major
challenge for Jaguar Land Rover Automotive PLC to sustain in this highly competitive global
automotive market (Fuertes and Serena 2016).
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6SHAPING BUSINESS OPPORTUNITIES
Future Plans and Actions
The major plan of action is to design, manufacture and sale more electric models of
these two brands in order to reduce the carbon emission in the air, which will help to reduce
the level of pollution in the global atmosphere (Tata JLR unveils major electric car
investment plans for UK 2020). Jaguar Land Rover Automotive PLC has already introduced
some Jaguar and Land Rover models in the market place. Shifting of manufacturing facilities
to comparatively cheaper markets like in India, Slovakia, Austria, China and Brazil has
already been performed as the future plans of this business house. As discussed, major
investment plans are on the cards for introduction of electric cars, but Brexit issue might
affect the overall plans of actions for the management of the organization of Jaguar Land
Rover Automotive PLC (Kumar 2017). New diversification strategies will also need to be
followed by them to sale these electric models and increase both the market share and
revenue earning of the company.
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7SHAPING BUSINESS OPPORTUNITIES
Reference
(2020). [Ebook]. Retrieved from http://file:///C:/Users/LAPTOP_MP0375/Downloads/21.-Jaguar-
Land-Rover-Automotive-Plc.pdf
(2020). Retrieved 26 February 2020, from
http://annualreport2019.jaguarlandrover.com/assets/files/jlr-strategic-report.pdf
Davies, R. (2020). Jaguar Land Rover reports record £3.6bn loss. Retrieved 26 February
2020, from https://www.theguardian.com/business/2019/may/20/jaguar-land-rover-record-loss-
chinese-market-diesel-sales
Davis, M., 2014, July. Automotive Innovation. In WMG Doctoral Research and Innovation
Conference International Manufacturing Centre, University of Warwick 10-11 July 2014 (p.
6).
Fuertes, A. and Serena, J.M., 2016. Insights from matched firm-bond level data: market of
issuance and credit quality. IFC Bulletins chapters, 41.
Jindal, R., 2015. Mergers & Acquisitions: More Failures Than Successes. Mergers &
Acquisitions, pp.148-151.
JLR Corporate Website. (2020). Retrieved 21 February 2020, from
http://www.jaguarlandrover.com/
Kumar, S.H., 2017. Impact of Brexit on Tata Groups. In pursuit of Excellence, p.29.
Namita, M. and Gupta, M., 2019. Cross Border Acquisition of JLR: A Boon or Pain for Tata
Motors.
Tata JLR unveils major electric car investment plans for UK. (2020). Retrieved 26 February
2020, from https://economictimes.indiatimes.com/industry/auto/cars-uvs/tata-jlr-unveils-major-
electric-car-investment-plans-for-uk/articleshow/70092482.cms?from=mdr
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