ENT5002: Jaguar Range Rover - Entrepreneurship and Strategic Decisions

This report presents a comprehensive analysis of a case study focusing on Jaguar Range Rover Limited's strategic challenges, particularly its international expansion issues. The report begins with background information on the company and highlights two primary market problems: declining sales i...Read More

Running Head: ENTREPRENEURSHIP AND STRATEGIC DECISION MAKING
Entrepreneurship and strategic decision making
Student’s Name
University Name
Author’s Note

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Table of Contents
Introduction......................................................................................................................................3
Background information of the case study......................................................................................3
Problem statement...........................................................................................................................4
Problem situation analysis...............................................................................................................4
Problem solving application............................................................................................................7
BCG Matrix analysis of the business issues and their outcome..................................................7
Key decision criteria and evaluation of alternatives......................................................................10
Conclusion.....................................................................................................................................12
Reference List................................................................................................................................13

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Introduction
This is a report developed on the basis of the case study. The case study introduces two major
market problems that Jaguar Range Rover Limited has been facing in terms of their International
expansion. In the initial part of the report the background information regarding the company
and the specific issues highlighted in the case study have been detailed. This is followed by the
statement of the main business problem that the companies in facing and a detailed situation
analysis of the problem in context to the marketing aspects of Jaguar Range Rover Limited.
Followed by this, problem analysing tools have been implemented in order to find market
alternatives for Jaguar Range Rover Limited. The primary decision undertaken for substantiating
the loss of car sales has also been evaluated under apprehension of the futuristic market
conditions. This section also incorporates relevant and most strategic market recommendations
for the organisation.
Background information of the case study
The case study highlights two major international business problems that Jaguar Range Rover
Limited has been facing in context to their Global Business. The major issue that has been
highlighted in the case study is drop of sales in the Chinese mainland. Secondly, most of the cars
of Jaguar Range Rover Series of cars are not feasible, efficient and includes high end combustion
engines. This is why the imposition of strict regulations for cleaner production of vehicles in the
market of Europe, which is considered to be the greatest market for the company, has emerged as
a recent business threat. Carbon output over 0.24 will be considerable as a threat for the
environment and as an outcome of that, large number of vehicles has to undergo emission tests
within latest 6 months. As an obvious outcome of this business issue, the sales of Jaguar Range
Rover Limited are dynamically dropping in the European market (White 2015). Analysing the

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most recent outcomes of business issues, the case study highlights that dropping sales might lead
to the closure of operations in certain market segments of Jaguar Range Rover Limited (Rover
2016). The current ownership of the organisation lies with Tata Motors of India (Chaligné,
Turner and Gaylard 2017). It is apprehended, as evidenced in the research findings by Agnihotri
and Bhattacharya (2018), if the European market does not revamp within two financial years, it
is expected that Tata Motors will sell largest shares of Jaguar Range Rover limited to some
indigenous organisation of Europe.
Problem statement
There are two strategy problems that Jaguar Range Rover Limited has been facing recently. The
first issue is the significant and dramatic drop of sales of the series of Jaguar Range Rover
limited in China. Secondly, it can be stated that as per the ideas of Ahmad et al. (2018), perhaps
the bigger business issue is the imposition of strict business regulations regarding the need for
cleaner production and operations of vehicles in Europe. As informed by Fuchss et al. (2019),
most of the cars of Jaguar Range Rover Limited series are not fuel efficient and the combustion
engine of most of the cars of the organisation are generating higher percentage of carbon dioxide
compared to other leading brands in the market of Europe.
Problem situation analysis
The Government of most of the European countries have developed strict regulations for
production of cars in respective regions. In this context there is growing demand for Cleaner
manufacturing based on latest technology. This implies that the sales of the currently
manufactured models of cars of Jaguar Range Rover Limited will drop sharply. However, as per
the findings of Ahmad et al. (2018), there are other large markets threats that the company need

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to consider. The challenging market condition of China is one among them. China has been one
of the biggest markets for the company and recently 15 self owned assembly units have been set
up in the country (Samiee and Chirapanda 2019). The on road price of the sales of cars of Jaguar
Range Rover Limited in China along with the increasing demand exhibited by the Chinese
government in importing the cars of Jaguar Range Rover Limited aggravated the importance of
China as a strategic market for the company (Ahmad et al. 2017).
In the last 2 financial years, the sales of Jaguar cars in China have dropped by at least 50%
(Ahmad et al. 2018). It is apprehended, by financial analysts like Ahmad et al. (2018), which the
company has accounted for losses equivalent to 50 to 60 million pounds annually. As highlighted
in the case study, the Global sales of the car manufacturing and retailing brand has reduced by 1
million in the last financial year and the sharp drop of sales of the cars of latest model in China is
the major reason behind this drastic outcome.
Secondly, the issue of imposition of strict regulations for reduction in carbon output as well as
increase in demand for cleaner vehicles in Europe deserves mention. This market threat has been
given equal importance with the previous business issue in the case study. The current scenario
of car sales in Europe has been analysed by Sanderson (2018). In regards to the issue, as it has
been highlighted in the case study and based on the research findings of the same author, it can
be depicted that the sales of diesel powered cars has dramatically reduced in almost all countries
of Europe and especially in UK (Chaligné, Turner and Gaylard 2017). On top of that, the case
study depicts that most of the car models of Jaguar Range Rover Limited are powered by diesel.
Hence, the sharp drop of sales of Jaguar Range Rover cars in Europe is no odd phenomenon. In
fact while depicting the future impact of this business trade, the case study directly speaks of the
chances of losing major shares of the target market of Europe in future, if Jaguar Land Rover

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Limited is not able to develop alternative product lines, by the end of the financial year 2025-26
(Sanderson 2018).
Detailed analysis of the problem shows that North America is also another in aged market of
Jaguar Range Rover Limited. The target market in North America is small for the company;
however there is stability of annual sales in the market of North America. Now, the case study
highlights one essential point of sales of the organisations in the statement that the combined
sales of the company in Europe, especially in the market of UK and that of North America could
have jointly balance the losses incurred by Jaguar Range Rover Limited for the sharp drop of
sales in the Chinese Market (Donnelly, Begley and Collis 2017). However format in quick
succession after the drop of sales in China, the regulations for cleaner production in Europe also
restricted the rate of castles in Europe. Although the entire consequence of the imposition of
regulations for senior production in Europe has not been encountered by the organisation, as of
in 2019, however, researchers like Agnihotri and Bhattacharya (2018), clearly depicts that within
the financial year of 2020-2026, Jaguar Ranger Power Limited will experience combined effect
of the financial losses encountered in the Chinese as well as European markets. In this context,
business analyst like Donnelly, Begley and Collis (2017), have identified with conviction that
exempting write down, which impacts on the balance sheet, although having no effect on the
cash flow, Jaguar Range Rover limited has accounted a financial downturn of 273 million euro
already from there market sales of Range Rover cars in the year 2017-18 and 2018-19 (Dowsett
et al. 2018).
Since, Jaguar Range Rover Limited had been a big Global brand with a large brand equity in
Europe, the Incompetence of complying with the cleaner production regulations of the country,
accounted for significant loss of brand loyalty in almost all major markets of Europe for Jaguar

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Range Rover Limited. As identified by Elena (2016), another major reason of outcome in Europe
is that as a response of the 273 million euro loss encountered by the Organisation in the latest
and the currently running financial year, they have been compelled to cut about 15 to 18% of the
jobs, in the Global market. Researchers like Uhlemann (2017), are of the opinion that the
organisation has terminated most employees from the European market since out of all the
operational sectors of Jaguar Range Rover Limited in the different countries, it is the European
sector which give most input for maintaining the human capital so far as salaries, bonuses as well
as other form of compensation are concerned.
The rest of the work force of Jaguar Range Rover Limited in Europe is also apprehending bigger
negative outcomes when the company will actually realise the combined effect of the loss of
strategic markets in Europe and China, together (Fuchss et al. 2019).
Problem solving application
BCG Matrix analysis of the business issues and their outcome
Cash cows
Cash cows are considered to be those products which have maximum market potential,
pertaining to any big brand. Significant shares of revenue outcome of any organisation depend
on the sales of those product categories. The international market shares of Jaguar Range Rover
Limited identify the large market value of the cars of their SUV range as well as HCV and LCV
Rangers as the cash cows for Jaguar Range Rover (Schiavullo 2017). Strategic discussion
conducted in the case study highlights that the sales of these cars are not highest in the European
market (Schiavullo 2017). In this context, it can be analysed that compared between the major
two market, namely Europe and China, where the market conditions of Jaguar is deplorable, it

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can be argued that the comparative position of the Chinese Market is still better than Europe. As
of the European market, it can be clearly stated that there is no other alternative for the
organisation, then developing any alternative product line which consumes less fuel and is able
to run on alternative fuels also. The entire lot of currently employed combustion engine model
have to be replaced so far as car sales of Jaguar in Europe is concerned. However, in the Chinese
Market substitution of new market entrants is the major reason why the sale of Jaguar Range
Rover cars has dropped sharply. In this context, the sales of cars of foreign brands like Audi,
BMW, MG Motors, Renault and few other brands have increased recently in China because of
which there has been repeated market segregation (Uhlemann 2017). However, analysing the
annual car sales data of Jaguar Range Rover Limited in the Asian market in the last leaf financial
years, it can be analysed that the market demand of the car models highlight in above has not
fallen beyond the threshold limit (Elena 2016). In this context, the marketers of Jaguar Range
Rover limited have to look for other opportunities to promote their cars in the Asian market. So
far as the primary target market of the company in Asia is concerned, which mainly comprises of
young customers, who have maximum purchasing and compensating capability. In order to
extract this class of buyers, the company needs to promote the elegant looks and the Classic
interior designs of the Jaguar Range Rover cars. Another important market strategy for
revamping the Asian market can be considering market entry into the surrounding potential
alternative markets from China like India, Australia, and New Zealand and so on. As stated by
Samiee and Chirapanda (2019), in case if Jaguar is able to make their market position
consolidated in the new markets, as specified above, within a timer of three financial years, they
can be able to make up the loss from lack of sales in China by at least 40 to 50%.
Stars

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The annual reports of Jaguar Range Rover Limited exhibit that regardless of the drop in sales of
the major card models in China, the market demand and sales proportion against unit production
has not dropped. In fact when the sales of other car models of Jaguar have dropped in China, the
cars of White X series of Jaguar Range Rover Limited as well as the Pace cars has increased
slightly. Hence, the company can consider entering the alternative markets, as suggested in the
previous parts of this report, with these two car ranges (White 2015). In spite of the sharp drop of
sales in the Asian market, the marketing head of Jaguar in Asia is still hoping that the market
will soon revamp and the high impact of the entrance of new entrants that has been experienced
in the Asian market will dissolve in due time which will stabilize the sales promotion of Jaguar
Range Rover Limited in Asia within a span of 2 to 3 financial years time range (Rover 2016).
Question Marks
The diesel powered car models operating in Europe can be identified as the question marks of
Jaguar Range Rover Limited. These cars are fitted with combustion engines that Run with diesel
only and the highdiesel consumption rate accounts for larger proportion of carbon dioxide
emissions, most of which are higher than the permissible level determined by the governments of
countries pertaining to the UK region. At this moment, the company needs to develop innovative
and alternative engines which will run on alternative fuels also and provide greater mileages
compared to the previous engines (Dowsett et al. 2018). In case if the currently existing car
models can be alternatively introduced in the market by changing their high fuel consumption
engine, then only there is slight chances of market Sustainability of these car models (Ahmad et
al. 2017). The case study highlights that if the company cannot substitute the models ofcars,
powered by diesel with new product series that complies with the cleaner production laws of the

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government all replace the engines of the current existing car models these fuel powered cars of
Jaguar Ranger Power Limited will drop down into the dogs category.
Dogs
The dogs can be the Chinese Market of Jaguar Range Rover Limited. Most of the expenses over
advertising and promotion of SUV car models has been done by Jaguar in the Asian market and
especially China in the last 5 years (White 2015). The recent drop of sales exhibits that all major
investments behind promotion and market acquisition has gone into waste. It is evident that the
amount of investment that has gone into development of market value is much higher compared
to the financial returns gained by the company from this market.
Key decision criteria and evaluation of alternatives
Considering the availability of alternatives in the hands of the company so, it can be analysed
that there are three best marketing strategies open to them. As highlighted in the above analysis
the company has been facing loss in the Chinese Market because the sales of SUV, HCV as well
as the LCV series of cars has not reached the expected value in the Chinese Market in the last
two financial years (Dowsett et al. 2018). Analysing this market condition, and considering the
fact that there has been emergence of 324 alternative major product brands in the Chinese
Market as new entrants, it is worth suggesting that the company should look up to the alternative
biggest Asian market that is India. Carsales, pertaining to the new and reputed foreign brands has
increased by 35% in the major Metropolitan cities (Dowsett et al. 2018). In this context, it should
also be highlighted that ownership of Jaguar Range Rover Limited lies with Tata Motors, which
is an Indian organisation. Hence, there is a consumer value associated with purchase of Jaguar
cars in India. Marketing analyst like Rover (2016), expects that Jaguar Range Rover Limited will

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do good business if they consider to campaign their products in the Indian market, full fledged.
Nevertheless, they can also consider, coming up with new alternative product lines in the
Chinese Market (White 2015). They can introduce electric powered vehicles for cars that run on
alternative vehicles and gives high mileages. Nevertheless, considering the current technological
support of the research and development team of the company, it can be specified that there are
there chances of such occurrences. In this context, the most feasible marketing decision would be
to restrict the sales of cars in China, partly and implement the marketing, promoting and logistics
budget for entering the Indian market for full fledged promotion and sales (Schiavullo 2017).
The purchase in pattern of car buyers in China and India is different. The Indian customers give
more value to their cars and consider them as a part of their lifetime assets. That is why; the
Indians have a different fascination towards foreign car models which have elegant looks and
fascinating interior décor. These product qualities have higher prioritisation from their
perspective compared to the mileage or the carbon emission rate.
So far as the suggestions for or developing the market conditions in the European market is
concerned, there is no other alternative then and coming up with a crossover vehicle range that
will be powered with alternative fuels. However, the major problem lies in the fact that latest
technology in the hands of Jaguar Range Rover Limited does not support development of high
mileage cars which can run with alternative fuels (Sanderson 2018). Hence, the market rate is
expected to be overcome not only by the introduction of cars that pertains to alternative fuels but
also providing equal mileage compared to the diesel powered cars that Jaguar range Rover
Limited used to run in the European market for so long. The diesel powered cars are not able to
satisfy the strict government regulations for cleaner production. As an alternative, if the company
information alternative fuel powered cars in the market which are not able to deliver the same

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mileage, then such models will be discarded by buy the largest consumer section of Europe. On
top of that, it is worth discussing that it will not be enough to develop an alternative product line
in Europe only. Introduction of any new product line so far as the car manufacturing and sales
industry is concerned, will have to gain confirmation tags from the European Union as well as
the local governments. Again, it deserves mention that the organisation cannot increase the price
of cars if they develop alternative product lines in Europe. There will be a loss of at least $11,000
million if the first two production lines fail to conduct business. This is because, as highlighted
by Sanderson (2018), the production of new car models the reputed Global car manufacturing
companies is focused upon delivering latest features to the customers, at most reasonable prices.
In this market competition, if Jaguar Range Rover Limited comes up with a car range with
higher price compared to the expected SUV prices, it is likely that it will not be able to sustain
the tough European market.
Conclusion
Jaguar Ranger versus limited has been severely impacted by the drop of car sales in the two
major markets, namely China and Europe. The sales parity of the cars is only high in the North
American market which is the third alternative market after these two potential markets. In the
European market, the diesel powered cars are accountable for the increase in pollution rate,
because of which the government has introduced strict regulations for Carbon emission by the
diesel powered vehicles. Since most of the car Rangers, specifically the SUV range of Jaguar
Range Rover Limited is diesel-powered; the organisation has come under a big threat in the
European market. Under this market condition, it is advisable that they have to develop
alternative range of vehicles that will be able to deliver more mileage and that also at competitive
prices. So far as the Chinese Market is concerned the organisation needs to implement closing

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sales model as well as consultative sales model for taking any further step in the market of
China. Rather, this report highlights that Jaguar Range Rover Limited can considered India as an
alternative market for recovery of the financial losses that has been incurred in China.

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