Competitive Strategy Analysis: Tata Motors and Atlassian Companies

This report provides a comparative analysis of the competitive strategies employed by Tata Motors and Atlassian. It begins with an overview of Tata Motors, examining its competitive strategy focused on low-cost, fuel-efficient vehicles, its business model centered on the Tata Business Excellence Model (TBEM), and its application of the CAGE framework, particularly in its acquisition of Jaguar Land Rover. The report then shifts to Atlassian, exploring its unique business model that prioritizes product quality over extensive marketing and its competitive strategy of offering high-quality software at lower prices. The analysis includes an examination of Atlassian's CAGE framework considerations for global expansion. The report concludes by highlighting the key differences and similarities in the strategic approaches of these two companies, providing valuable insights into their respective successes in the automotive and software industries.

Running head: COMPETITION PLANNING 0
Competitive Strategy

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Table of Contents
Tata Motors................................................................................................................................2
Competitive Strategy..............................................................................................................2
Business Model......................................................................................................................2
CAGE Framework.................................................................................................................3
Atlassian.....................................................................................................................................3
Business Model......................................................................................................................3
Competitive Strategy..............................................................................................................4
CAGE Framework.................................................................................................................4
References..................................................................................................................................5

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Tata Motors
Tata Motors Limited was incorporated in 1945 and it operates in the automotive industry. It is
India’s largest vehicle manufacturing corporation and headquarter is situated in Mumbai,
India. Tata owns various automotive companies along with luxury car brand Jaguar Land
Rover. The company is a part of Tata groups and it manufactures cars, trucks, vans, and other
vehicles. The company had revenue of US$42 billion in 2016 financial year. The reason for
selecting Tata is that the company is the largest player in the Indian market, with its low cost
and fuel efficient vehicles such as Tata Nano. The company has increased its presence in the
international market with projects such as Jaguar Land Rover acquisition and Marcopolo joint
venture.
Competitive Strategy
Tata is popular for its fuel efficient and low-cost vehicles in India. In Indian automotive
market, the demand for a luxury vehicle is low and there is significantly high demand for
low-cost efficient vehicles. Tata focuses on the vehicle requirement of their customers which
include fuel efficiency, low-cost, comfortable size, and durability. The company designed a
car called “Nano” priced at US$3000, for the lower class families of India. Tata believes in
constant innovation according to the requirements of their customers (Becker-Ritterspach &
Bruche 2012).
The key component of Tata motors success is their supply chain superiority. The company
plan with their suppliers to reduce the cost of Nano to $3000. Tata has clearly defined their
market in India and the company has gained a significant amount of reputation and trust. Tata
leverage this asset to become a global competitor and ensure their sustained growth and long-
term success. Tata has acquired British luxury car brand Jaguar Land Rover from Ford for
$2.3 billion, which was significantly successful for Tata, providing them an opportunity to
enter the international luxury car market (Wells 2010).
Business Model
The Tata business excellence model (TBEM) assists the company in focusing on providing
low-cost quality vehicles to their customers. The company leverage their technical abilities
and manufacturing capabilities to reduce the overall cost of vehicles. The company enhances
its abilities through the implementation of superior procedures; therefore, Tata invests heavily
in technological research. Tata future strategy is to increase their footprint in the international

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automotive market. With its international acquisitions and joint ventures, the organisation is
increasing their international business. The company’s business model focuses on
environmental preservation by using environmentally friendly components in their vehicles
(Management Discussion and Analysis 2017).
CAGE Framework
The CAGE framework recognises the difference of Cultural, Administrative, and Geographic
and Economic factors between two countries. Tata has properly implemented these principles
in their business model. The Acquisition of Jaguar Land Rover helps Tata in gaining a
reputation in the culture of different countries. Tata properly analyses the political factors
before entering a market. The manufacture plants in Britain help Tata in getting geographic
advantages. The reputation of Jaguar Land Rover assists Tata to sell it in the developed
countries, eventually increasing the revenue of Tata (Mitra 2011).
Atlassian
Atlassian is an Australian software company that develops team collaboration tools for
organisation. The company was incorporated in 2002 and it operates in the software industry.
Various giant companies, such as Netflix, Microsoft, and NASA, are among the thirty
thousand clients of the company. The organisation earns an income of AU$619.9 million till
the half year of 2017 and has a valuation of $3.3 billion (Hennart 2014). The reason for
selecting Atlassian is that the company business model has no sales team and it’s still being
able to grow its customers to more than thirty thousand, including various international
companies. The enterprise spends less than 21 percent of their income in the marketing of
their products compare to its competitors who spend more than 40 percent.
Business Model
Atlassian business model is focused on providing a great product to their customers instead of
spending a large amount of money on marketing. The company’s lack of a sales team is a
proof of a different business approach. Following are six steps of the business model of
Atlassian:
1. Developing a superior application by focusing on customer’s requirements
2. The price of the application should be low, compare to competitors
3. Focusing on increasing the number of clients each day
4. The products should be easily available to purchase online

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5. Providing easy trials and keeping transparency in pricing
Atlassian business model’s focus is customer satisfaction; therefore the organisation has no
funding or debt from outside investors. The lack of outside pressure assists company focus on
creating better products (Mahroum 2016).
Competitive Strategy
The organisation strategy is to focus on providing high-quality software applications at a
significantly lower price compared to their competition. Various popular applications have
been developed by the company, such as HipChat, Confluence, and JIRA. In order to gain
competitive advantage, the company takes the acquisition of various other software
companies like Trello. The core value of the organisation is to provide customers satisfaction.
The prices of company’s products are low and focused on customer’s requirements.
Therefore, the company has a high rate of customer satisfaction and positive feedback.
The company has adopted an upside down strategy for its operations because of the lack of
sales force in the enterprise. Unlike their competitive software companies, Atlassian did not
spend their income on marketing. The founder of the company focus on developing a high-
quality application, price it low and making it easily available online. This approach helps
Atlassian in investing their income in enhancing the quality of their applications (Carlson
2017).
CAGE Framework
In order to enhance their success and sustain their growth, Atlassian has to increase its global
market share. The company requires acquiring or investing in foreign software companies,
such as India, Singapore, and China and increase their application’s international clients. The
company requires ascertaining the culture, government regulations, geographic factors and
economic elements of Singapore to invest in its companies. The Singapore software industry
is developing rapidly and Atlassian can gain an advantage over its competitors by investing in
its companies (Fisher, Koning & Ludwigsen 2013).

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References
Becker-Ritterspach, F. and Bruche, G., 2012. Capability creation and internationalization
with business group embeddedness–the case of Tata Motors in passenger cars. European
Management Journal, 30(3), pp.232-247.
Carlson, R.M., 2017. Atlassian: Analysis and strategic recommendation.
Fisher, J., Koning, D. and Ludwigsen, A.P., 2013. Utilizing Atlassian JIRA for Large-Scale
Software Development Management (No. LLNL-CONF-644176). Lawrence Livermore
National Laboratory (LLNL), Livermore, CA.
Hennart, J.F., 2014. The accidental internationalists: a theory of born
globals. Entrepreneurship Theory and Practice, 38(1), pp.117-135.
Mahroum, S., 2016. Atlassian in Sydney: Beating the Tyranny of Distance. In Black Swan
Start-ups (pp. 215-231). Palgrave Macmillan UK.
Management Discussion and Analysis | Tata Motors Annual Report 2015-16.
2017. Tatamotors. Retrieved from < http://www.tatamotors.com/investors/financials/71-ar-
html/mda7.html >
Mitra, R., 2011. Framing the corporate responsibility-reputation linkage: The case of Tata
Motors in India. Public Relations Review, 37(4), pp.392-398.
Wells, P., 2010. The Tata Nano, the global ‘value’segment and the implications for the
traditional automotive industry regions. Cambridge Journal of Regions, Economy and
Society, 3(3), pp.443-457.