Get Better Grades: Pest Analysis On Tata

Tata Motors Limited, formerly known as TELCO (TATA Engineering and Locomotive
Company), was formed in 1954. It is the only fully integrated automobile manufacturer that now
stands as India's largest and the world’s 5th largest passenger automobile and commercial
vehicle manufacturing company with a product range designed to meet national and international
transportation needs.
Tata Motors has a wide portfolio ranging from a Tata Mercedez Benz truck to diversifying into
passenger cars like Tata Sierra,Tata Estate,Tata Indigo and Indica, concept vehicles like Aria
Roadster and Tata Elegante, commercial vehicles like Tata heavy trucks and military vehicles.
Tata Motors was first listed on the NYSE in 2004. It created wealth of Rs. 320bn during 2001-
2006 and stood among top 10 wealth creators in India.
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It has its manufacturing bases in Jamshedpur, Lucknow and Pune. Tata Motors has recently had
a couple of important mergers and acquisitions like with Daewoo in South Korea, Hispanso and
a JV with Fiat.
Tata Motors is a company of the Tata and Sons Group, founded by Jamshetji Tata and is
currently headed by Ratan Tata who is the chairman. The company has the workforce of 22000
employees working in its three plants and other regional and zonal offices across
the country. This report analyses the current market position of Tata Motors and gives details
regarding the company’s plans and strategies for growth in the future.
Pest Analysis On Tata
INTRODUCTION : - Tata Group was Established under the parent company in year 1945. Tata
Motors Limited has become India’s largest automobile company. It was the first Indian
automobile company to list on the New York Stock Exchange. Tata Motors began manufacturing
commercial vehicles in 1954 with a 15-year collaboration agreement with Daimler Benz of
Germany. This partnership has led Tata Motors to not only become India’s largest automobile
company but also India’s largest commercial vehicle manufacturer; the world’s top five
manufactures of medium and heavy trucks and the world’s second largest medium and heavy bus
manufacturer. Having just entered the passenger vehicles market segment in 1991, Tata Motors
now ranks second in India’s passenger vehicle market.
Tata has enjoyed the prestige of having developed Tata Ace, India’s first indigenous light
commercial vehicle; Tata Safari, India’s first sports utility vehicle; Tata Indica, India’s first
indigenously manufactured passenger car.
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car; and the Nano, the world’s least expensive car. They have long been known for their
commercial vehicles and in the past ten years entered into the passenger car market. Currently,
Tata Motors has a line of five passenger vehicles and a large line of commercial vehicles
producing pickups, trucks, tractor trailers, tippers, and buses. Both product lines of the Tata
Motors group have seen success, but much of this has been built upon the more deeply
established commercial vehicle product line.
PEST ANALYSIS
A PEST analysis is one of them that is merely a framework that categorizes environmental
influences as political, economic, social and technological forces. Sometimes two additional
factors, environmental and legal, will be added to make a PESTEL analysis, but these themes can
easily be subsumed in the others. The analysis examines the impact of each of these factors on
the business. The results can then be used to take advantage of opportunities and to make
contingency plans...
Tata Motors Swot Analysis
Group 3
Tata Motors Case Analysis
Question #2 Prepare a SWOT analysis for the company.

Strengths
• Tata Motors is a market leader in automobile industry in India with a high market share.
• Tata Motors has a good employee base which gives them high production efficiency.
• Tata Motors are considered a reputable brand in India which gives them an advantage over its
competitors.
• Tata focuses not only the quality of its products but also on the quality of its management. They
have a program of intensive management development in place in order to establish its leaders
for tomorrow
• Tata Motors understands customer needs and develops products that meet their needs.
• Tata Motors produce low price car with high fuel efficiency which gives them a big customer
base in the country. Example Tata Nano
• Tata Motors has been aggressively acquiring foreign brands to increase its global presence.
Weaknesses
• Tata Motors is known for commercial vehicles and low priced
cars. However, it does not have a foothold in the luxury segment in the domestic market.
• Tata Motors shareholders are not getting much from their investments due to low return on
investments on shares.
• Tata Motors are not able to meet safety standards in their vehicles in comparison to its
competitors.
Opportunities
• Tata Motors can take advantage of their low cost vehicle by entering into third world countries
where people have low purchasing power which gives them a big export opportunity.
• Jaguar and Land Rover provide Tata Motors with an opportunity to establish itself in the luxury
segment.
• Tata Motors can incorporate safety features in their vehicles to gain more customer satisfaction.
• Joint ventures in other countries allow Tata Motors to easily enter into new market
internationally.
Threats
• There are lots of powerful competitors for the luxury market that are beginning to enter the
Indian market such as: Honda, Toyota, Ford and Mercedes-Benz.
• Tata Motors...
Marketing strategies of TATA motors is one of the most successful marketing strategies in automobile
industry. By looking at the SWOT analysis of Tata Motors, you will know why Tata Motors Company is
able to produce more than 4 million different types of vehicles such as cars, trucks, commercial vehicles,
4×4…etc since the company began in 1945. Meanwhile, Tata Motors Limited has also become the largest
automobile producer in India market.
Marketing strategies of Tata motors
What makes the marketing strategy so successful?
1. Product, Branding, and Advertising
Every business started from 0, from no one knows it until everyone know it. Advertising is one of the
most common ways to make car buyer or car enthusiast aware of the new car with special promotion
price. Another more important way of advertising is to create an image or brand image. Take BMW Z3
for example, it was introduced in 1996 and shortly the car has been used in the famous James Bond
movie. This is similar to Nissan 350 Fairlady Z in the recent 2007 Fast and the Furious 3 – Tokyo Drift.
Over the years Tata Motors have been successful in creating their brand image especially they use some
famous stars as their spokesman.
Other important marketing strategies are such as the packaging, innovations, and quality control. Tata
Motors provide many innovative features to attract car lover. One of these innovations is the Tata Safari
4X4 Dicor that has “Reverse Guide System”. A weather-proof camera is fixed to the rear car to help the
driver while reversing the car.
2. Pricing Strategy
There are various factors to determine a price of a car. These factors are such as market condition (it
can’t be too low or too high with the prices of same vehicle from competitors, it has to be at par), cost
incurred to build a car, profit by company, dealer profit.
Giving discount every month and special promotion for certain type of vehicle also one of the strong
strategy use by Tata Motors. Discount can be made from Company’s profit or from dealer’s profit at
certain range.
3. Place
Place of dealership does play an important role. The channel of distribution, physical location, and
dealership method of distribution and sales is generally adopted. The distribution of vehicle must be in a
very systematic way, from the plant to dealership and to end user. This is not only in India itself but also
to the world-wide dealership. (See also Ford Motor Company SWOT analysis)
4. Maintenance and Support
After sales service is also another important marketing strategy for most of the car buyer to choose for
the right car. End user will not want to spend a lot of time to travel to a far place just to service the car
such as change engine oil, oil filter and some simple checking. Parts and accessories must also easy to
access when it is needed to keep the customer satisfy from buying Tata cars until maintaining the car or
even until they sell the car and change to a newer Tata model.
Marketing strategies of Tata motors
By looking at the Marketing strategies of TATA motors, the SWOT analysis (the Strengths, Weakness,
Opportunities, Threats) can clearly tells why Tata Motors marketing strategies is one of the successful
stories in automobile industry nowadays.

Get Better Grades: Pest Analysis On Tata

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Tata Motors Limited, formerly known as TELCO (TATA Engineering and Locomotive

Pest Analysis On Tata

Tata Motors Swot Analysis

Question #2 Prepare a SWOT analysis for the company.

Marketing strategies of Tata motors

What makes the marketing strategy so successful?

1. Product, Branding, and Advertising

4. Maintenance and Support

Marketing strategies of Tata motors

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