Batch 4_Group 8_Assignment 3

Case Study on Tata
Motors
By
Paritosh Pachori – 214KD
Shitanshu Kamboj – 105KB
Sourav Sinha – 110KB
Vasu Goyal – 175KC
Vipul Yadav – 116KB

Value Chain Analysis
Inbound
Logistics
Tata Motors has an
extensive supply chain for
procuring various
components.
The Company's associate
company Tata AutoComp
Systems Ltd. manufactures
automotive components
and acts as supplier.
Tata has established many
vendor parks near its
manufacturing operations
which is aimed at ensuring
flow of component supplies
on a real-time basis.
Operations
Company has adopted
platform strategy in their
assembly lines at the
manufacturing floor.
They have shifted from 6
platforms to just 2 platform
(which would be used to
make 8-10 products). This
resulted in decreasing costs
and avoiding wastage of
raw materials.
Repurposing their unused
shop floor for EV assembly
line gave Tata Motors first
mover advantage in Electric
Vehicle Segment in India.
Outbound
Logistics
Tata’s sales and distribution
network in India comprises
of various sales contact
points (showrooms) for the
Passenger and Commercial
Vehicle businesses.
The Company's 100%
subsidiary, TML Distribution
Company Ltd (TDCL), acts as
a dedicated distribution and
logistics management
company to support the
sales and distribution
operations of vehicles in
India.
Sales and
Marketing
Brand targets crowd from
the rural part to the metros
with its offerings varying
from NANO to Jaguar Land
Rover segment.
The promotional strategy in
the marketing mix of Tata
Motors is carried out in the
form of TV, Newspapers,
and electronic media.
Tata Motors is the prime
sponsor of many events and
it helped in creating
awareness about its new
product.
Services
Services include a network
of Tata Motors authorized
workshops spread across
India providing services,
giving warranty claims, etc.
In addition to dealer service
workshops, the Company
uses a network of service
centers on highways and a
toll-free customer
assistance center to provide
24-hour on-road
maintenance (including
replacement of parts) to
vehicle owners.
2

PESTEL analysis of the
Automobile Industry
Political
PLI scheme for automobiles
Shift from BS4 to BS6
Automotive Mission Plan 2016-26.
Economic
Expanding automobile market
Imminent adoption to dearer
renewable fuels
Social
Impact of demography and
geography on sales
Preference to cheaper public
transport
Technological
Competing with auto driven
cars.
Modern Technologies to reduce
emissions.
Environmental
Reduced emissions from EV.
70% lower sulphur and nitrous
compounds in BS VI vehicles
Legal
International tax and
environmental laws in foreign
markets.
Stricter and costlier safety
regulations
3

SWOT Analysis- Tata Motors
STRENGTHS
Recognised brand image
Established supply chain
Dominance in heavy vehicles
First movers advantage in EVs
WEAKNESSES
Stigma of a budget vehicle
manufacturer
Surrounded with controversies
4
Acquisition of players
controlling superior technology
Increased limit of 100% FDI in
automotive sector
OPPORTUNITIES
Competition from players such
as Maruti, Hyundai and Kia
Uncertain prices of Steel &
Aluminium
THREATS

BCG Matrix
HIGH
MARKET SHARE
LOW
Mini
Trucks
Passenger
Vehicles-
Punch, Nexon
STAR
SUV-
Harrier
Electric
Vehicle- Nexon,
Tigor
QUESTION MARK
HIGH
GROWTH
Tata has recently shown significant growth in the passenger
vehicle by registering a market share growth of 75 % in
FY22.
Tata Mini Trucks have shown significant Innovation by
introducing fuel-efficient mini trucks capturing a market
share of over 60%.
CASH COW
Though Electric Vehicle has shown significant growth, due to
high lithium-ion battery cost and semiconductor shortage, the
market is yet to reach its potential.
Tata is also committed to investing 15,000 Cr in the EV
segment expecting a potential boom
PET
HIGH VALUE 1
Tata
Trucks
Tata
Buses
Zest
Bolt
LOW
These have been the primary units of Tata Motors
and also had a consistent market share of over 50%.
The model of Trucks is always based on the
conventional method and New R&D can be applied
to make it more efficient.
Due to a continuous fall in the sale of Zest and Bolt, Tata
Motors has recently discarded these models owing to its
worse performance which was indirectly hampering their
brand image.
LOW VALUE 2
5

Ansoff Matrix - Examples
Product Penetration
Existing Market – Heavy commercial vehicles
Existing Product – Trucks (Tata Prima, Tata
Signa, Tata Ultra)
• There is a unique truck for every kind of
business
• High fuel efficiency for price sensitivity
Product Development
Existing Market – Passenger vehicles
New Product – CNG and Electric vehicles
They adapted to the environment and
Introduced CNG and EV
Market Development
New Market – Foreign market
Existing Product – Budget vehicles
Tata can explore the export opportunities in
line with the benefits announced by the
government of India.
Diversification
New Market – Luxury cars
New Product – Jaguar and Land Rover
Tata merged with the existing luxury brands
to expand its business.
Roadmap to
market
development
6
Research and development International expansion Brand awareness
1 3 5
2
Regional expansion New customer segments Customer education
4
6

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