...Application of Porter’s Five Forces Model on Tata NANO Brand Name: Unit Name Unit Code Tutor School Date Introduction The turnover in automotive industry is growing significantly. Companies need to sell their product across borders. To realize this, companies must evaluate the market forces in target markets in order to increase sales. One strategic tool used in evaluating market forces is porters five forces model. This tool highlights the key factors that determine the industry competition and the viability of such a market. The porters five forces model has been evolving with time. The principle ‘’the state of competition in an industry depends on five basic forces’’ (Porter, 2008 P.3) is still relevant. This analysis model covers a wide range of factors affecting the industry. Companies with awareness about their environment are able to make strategic decisions concerning their business. This paper discuses the application of Michael porter’s five forces model by Tata Motors Company on their new product, Tata Nano. Tata motors are the largest automobile company in India with revenues in excess of USD 16 billion in 2011. Tata motors have subsidiary companies and associate companies involved in various industries including mining, oil, manufacturing, and telecommunications. Tata motors have operations in Spain, Korea, Thailand, UK, and South Korea. The paper begins by identifying porters five forces. Second, a brief history...
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...Business Policy & Competitive Strategy Vivek Khanna TATA Motors This project is a part of the internal assessment for the subject Business Policy & Competitive Strategy. I have developed a Porter’s Five Forces analysis for the organization. I identified strategic strengths and weaknesses and identified core competencies of the organization . The company that I have taken into account to analysis the Porter’s Five Forces is the Tata Motors. The Specific product that I will be taking into analysis is the NANO CAR. This segment has a great growth potential in developing countries , especially in a country like India. 1. Potential Entrants – Threat of new entrants 2. Buyers – Bargaining power of buyers 3. Substitutes – a. Threat of substitute products or services b. Rivalry among existing firms 4. Suppliers - Bargaining Power of Suppliers 5. Other Stakeholders – Relative Power of Union, Governments etc. A brief Information about the product : The Tata Nano is a rear-engine, four-passenger city car built by Tata Motors, aimed primarily at the Indian market. The car is very fuel efficient, achieving around 78mpg on the highway and around 92 in the city. It was first presented at the 9th annual Auto Expo on 10 January 2008, at Pragati Maidan in New Delhi, India. Nano had a commercial launch on March 23, 2009 and, a booking period from April 9 to April 25, generating more than 200,000 bookings for the car. The sales of the car will begin in...
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...Topic: Apply the Porter's five forces model on Automobile Industry and analyse the attractiveness of the Industry for Investment purpose Evolution of Porter's Five Forces Model Five forces is a framework for the industry analysis and business strategy development developed by Michael E. Porter of Harvard Business School in 1979. Michael Porter is a professor at Harvard Business School andis a leading authority on competitive strategy and international competitiveness.Michael Porter was born in Ann Arbor, Michigan. Five forces uses concepts developing, Industrial Organization (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of a market. Attractiveness in this context refers to the industry profitability. An "unattractive" industry is one where the combination of forces acts to drive down overall profitability. A very unattractive industry would be one approaching "pure competition". Introduction Five Forces Model by Michael Porter Five Forces model of Michael Porter is a very elaborate concept for evaluating company's competitive position. Michael Porter provided a framework that models an industry and therefore implicitly alsobusinesses asbeing influenced by five forces.Michael Porter's Five Forces model is often used in strategic planning. Porter's competitive fiveforces model is probably one of the mostcommonly used business strategy tools and has proven its usefulness in numerous situations when exploring...
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... 1.1 BACKGROUND OF THE COMPANY Tata Motors is India’s largest automobile company, with revenues of USD 14 billion in 2008-2009. Through subsidiaries and associate companies, Tata Motors has operations in the UK, South Korea, Thailand, and Spain. The company’s 24,000 employees are guided by the vision to be “best in the manner in which we operate best in the products we deliver and best in our value system and ethics” (Tata Motors, 2010) According to the Equity Bulls (2010), Tata Motors' total sales (including exports) of Tata commercial and passenger vehicles in January 2010 were 65,478 vehicles, a growth of 77% over 36,931 vehicles sold in January 2009. The company's domestic sales of Tata commercial and passenger vehicles for January 2010 were 62,202 vehicles, a 74% growth over 35,704 sold in January last year. Cumulative sales (including exports) for the company for the fiscal at 498,108 vehicles, recorded a growth of 24% over 400,284 sold last year. 1.2 TATA MOTORS – TATA NANO In January 2008, Tata Motors unveiled its People's Car, the Tata NANO, which India and the world have been looking forward to. Tata’s NANO is a new product with a new technology which promises the market of an efficient car with a very low cost. The Tata NANO has been subsequently launched, as planned, in India in March 2009. A development, which signifies a first for the global automobile industry, the NANO brings the comfort and safety of a car within the reach...
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...TATA NANO CASE STUDY MIDDLESEX UNIVERSITY Module: - International and cross cultural marketing Module leader: - Dr Michael Kourtoubelides Student name: - KANUPRIYA BANSAL Student number: - M00430431 EXECUTIVE SUMMARY Tata motors ltd. is a renowned automobile company of India and is a part of Tata group. It is a pioneer of commercial vehicles, utility vehicles, passenger vehicles and it is world’s fourth largest manufacturer of trucks and buses. Ratan Tata, the CEO of Tata group had a vision to design a car for a low income group family and he came with the design of Tata Nano in 2008, tagged as “ People’s car” which was created for all the sections of economy. The automakers were shocked that how could Tata motors achieve the price target of 1 lakh ($2500). Tata Nano’s car design won the Edison award in 2009 and best compact car award. Tata Nano was launched in March 2009. The spokesperson of Tata, Mr. Kant agreed that initially the marketing strategy as well as positioning and targeting strategies were inappropriate as it did not reach the targeted customers as a result sales dipped. Many policies were incorporated and the marketing strategy was altered. Tata group’s retail outlets, big bazaar and croma made open distribution. It tied up with banks to provide easy finance to targeted customers. “Happiness guaranteed” was an initiative by Tata motors to boost Nano sales by improving after sale service. Tata motors has international expansion plans...
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...Management Development Institute, Gurgaon MARKETING PLANNING Study on ‘TATA NANO’ Submitted By : Aabid Bains (15P001) Arti Jain (15P011) Gautam Bindlish (15P021) Mayank Rajput (15P031) Rohit Gupta (15P041) Siddharth Gupta (15P051) INDEX Chapter No. Section-1 1 2 3 Section-2 4 5 Section-3 6 Chapter Name Page Number Preface The Curious Case of Tata Nano SWOT and PEST Analysis 3 4 6 Porter’s Five Forces Analysis Analysis of Consumer Behavior 11 14 Positioning Strategies 20 2 CHAPTER : 1 PREFACE The project aims at building a comprehensive understanding of how a company decides its marketing strategy and answer associated questions such as pricing, promotion and positioning of the product. Post launch, the effectiveness of the marketing strategy and performance of the product is also to be analyzed. The project also aims to analyze the decision-making process, purchase behavior and buying patterns from the perspective of the consumer. We will consider the dynamic market environment and changes at the micro and macro levels in the economy which affect the automobile sector 3 CHAPTER : 2 The Curious Case Of TATA Nano Introduced in January 2008 and launched in March 2009, TATA Nano was the most awaited launch of the year or perhaps the decade for the automobile industry. TATA MOTORS invested heavily in the project, not only financially but also as a brand. They were going to build an affordable “Rs...
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...Weaknesses…………………………………………………………………………………5 The External Environment…………………………………………………………………6 Opportunities………………………………………………………………………………..6 Threats ……………………………………………………………………………………….6 Summary of key issues and implications for the eco-Nano…………………….…6 Marketing Objectives……………………………………………………………………..7 Segmentation, targeting and positioning strategies………………………………..8 The marketing mix………………………………………………………………………….9 Marketing budget………………………………………………………………………...10 A marketing Audit the Gap Analysis Recommend evaluation and control…………………………………………………12 Assess the internal marketing environment…………………………………………15 Processes and techniques ……………………………………………………………..16 The Boston Consulting Grid …………………………………………………………….16 McKinsey’s Seven S’s ……………………………………………………………………17 The planning Gap………………………………………………………………………..18 Brand management Role and significance of Branding…………………………………………………….22 Impact of Branding on marketing mix………………………………………………..22 Brand management……………………………………………………………………...23 Recommendation for improvement…………………………………………………..24 core section - task one Case – Tata motors 1 Introduction Tata Motors Ltd is a wholly owned company which is a part of the TATA GROUP. The company is going to launch a new eco-friendly car in the existing segment that another car, the Nano has already been developed for. This new car will run on a different...
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...Analysis for TATA Motors TATA motors are one of the leading motor vehicle producers in the world. TATA motors have strong background and reputation in the market. The company is working to strengthen its position in automobile industry by adopting different strategies. Following are the strengths, weaknesses, opportunities and strengths of TATA motors. Strengths TATA Motors is one of the leading companies in automobile industry with more than 70 years of experience. During this period it had produced more than 3 million vehicles which is huge achievement for the company. TATA motors have been expanding its business which is obviously requiring more workforces. Currently TATA motors employee base is 23,000 Approx. One of the strengths which is very visible in the industry and also beneficial for TATA motors revenue are low price vehicles and low fuel consumption. Due to TATA motors strong brand and quality vehicles it has good reputation in the industry. It is India largest automobile company with revenues of Rs. 35651.48 crores (USD 8.8 billion) in 2007-08. TATA motors are expanding its network in International market by aggressively acquiring foreign companies. TATA motors has been famous to introduce new vehicles, this is possible just because of the strong research and development. TATA motors also play active role in corporate and social responsibility. Weaknesses There are strings attached with every new invention and improvement on products. These strings are Tata Motors...
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...1 A Project Report Submitted on the Technology of “Tata Nano Car” As Part of the Course Managing Technology for Competitiveness PREPARED BY Choidup Dorji (113378) Wangmo Chador (113377) Pishenbay Adilbaevich Umirbekov (113417) Nipu Kumar Nath (112889) Christian Riisager (112846) 2 Executive Summary The study of Tata Nano car technology has demonstrated the fact that how a technological revolution has taken place in Automobile sector by the introduction of Tata Nano car in the market. It is 2 feet shorter than a Mini Cooper, has a comical appearance and weighs less than the four passengers it seats. But for the 350-millionplus middle class of India, Tata Nano, the world's cheapest car at $2,000, is a cause for exhilaration and for the first 100,000 lucky customers drawn via lottery, it's a dream come true. A century after Henry Ford put America on wheels with the Model T; the affordable Tata Nano is doing the same to the less privileged of the world. What is now dismissed by many as a "toy car" could soon reveal itself to be the mouse that roared, one of the most transformational consumer products of the century. Roughly 100,000 Indians lose their lives on the road every year, seven times the rate of the developed world. In a country where it is not uncommon to see entire families overflowing a rickshaw or women in saris sitting side-saddle on a bike with small children on their laps, moving one's family from an unsafe bike into a plastic capsule is a...
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...Marketing Management-1 Project: Tata Motors ------------------------------------------------- Submitted by- ------------------------------------------------- Ranjith Narayanan 0315/52 ------------------------------------------------- Ritesh Kumar 0325/52 ------------------------------------------------- Saahil Nagrani 0335/52 ------------------------------------------------- Sandeep Kumar Pal 0345/52 ------------------------------------------------- Sarthak A Nayak 0355/52 ------------------------------------------------- Shah Yash Virajbhai 0365/52 ------------------------------------------------- Shrey Chaturvedi 0375/52 INDEX Contents | Page no. | Pestel analysis | 2 | porter’s five forces analysis | 9 | STP Analysis | 12 | product portfolio | 16 | Distribution Channels | 22 | curious case of tata nano | 25 | conclusion | 28 | references | 30 | PESTEL ANALYSIS Political ENVIRONMENT:- TATA motors with more than 60,000 employees is plying more than 8million vehicles on Indian roads. It is operating in multiple countries across Europe, Asia, Africa, Middle East and Australia. Because of this it needs to pay a close attention to political climate across the world. Government policies like labor laws, corporate laws, land acquisition, import duties and exports laws have a deep impact on the working of the manufacturing giant, TATA motors. TATA motors has been involved in Singur plant controversy. TATA wanted to build a plant in Hoogly...
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...| | | Tata Motors, Ltd., the automobile division of the global conglomerate the Tata Group, was India’s leading commercial vehicle manufacturer and the third largest passenger vehicle maker in 2012; culminating into unprecedented growth in several areas and, as mentioned in the case study presented by Turnipseed and Gamble of The University of South Alabama, helped to make Tata India’s highest revenue generating automobile company (as cited in Thompson, Peteraf, Gamble, & Strickland, 2013, p. C-246). In the international marketplace, Tata is also very competitive, particularly in China and emerging economies such as Brazil and several countries in Africa. Although the company’s 2012 annual report, along with the analysis conducted by Turnipseed and Gamble, provide an optimistic view of the company’s long-term fiscal health and ability to continue to compete; further research and analysis indicate several challenges and a variety of obstacles for Tata to overcome if it is to become “a global contender in the automobile industry.” The case study that follows offers insight into the macroeconomic environment in which Tata operates, specifically in India, the competitive forces applying pressure on, not just Tata, but the global auto industry as a whole and, finally, a brief analysis of the firm’s financial performance over the past five years. Subsequent to this, we shall uncover the key success factors for Tata and its core competencies and deficiencies; what...
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...WORLD AUTOMOTIVE MARKET The global Automotive industry generated revenues of $1,469.3 billion in 2009 (Datamonitor, 2011), corresponding to the manufacturing of 57.6 million light vehicles1 (PwC, 2011). In 2011, this market rose sharply to 74.6 million vehicles and is expected to grow to 106 million vehicles in 2018 at a 5.2% CAGR in the period (PwC, 2012). The major contribution to this growth will come from emerging markets, with 84%, with the BRIC2 countries alone representing 64%. The Automotive industry is still a very concentrated market, where the top 12 manufacturers represent 83% of the units assembled in 2011 (PwC, 2012). Despite this market structure, there have been a few new entrants, such as Tesla Motors and BYD, both electric car manufacturers. In Table 1, an analysis of the Automotive market environment is presented. FACTORS Political COMMENT IMPACT ON DEMAND/SUPPLY Governments and municipalities interest in green vehicles Positive for green product lines Disposable income Growing wages in developing countries, growing middle class with purchasing power Positive Low interest rates in developed economies Positive Currency fluctuation Loss of competitiveness due to strong currencies (Dawson & White, 2012) Negative for Japanese /Brazilian Lifestyle changes Approach to Western lifestyle in developing countries, demand for low-end cars (Ayres, 2012) Positive Green issues Global awareness regarding...
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...GOSWAMI-10BSPHH010718 INDIAN AUTOMOBILE INDUSTRY (A MACRO AND MICRO ANALYSIS) With a Focus on TATA Motors | FINAL REPORT (Business Strategy) | IBS-2011 BS-SEC I (Group-3) SHINY ACHARYA-10BSPHH010733 SHWETABH SRIVASTAVA-10BSPHH010766 SUNIL Kr. YADAV-10BSPHH011074 SAURABH TRIVEDI-10BSPHH011076 NILABH-10BSPHH011081 RAGHINI SHARMA-10BSPHH010936 SHAUNAK GOSWAMI- | Table of Contents Indian Automobile Industry: An Overview 3 A. Macro analysis of Indian Automobile Sector 3 1. PESTEL Analysis 3 I. Political and Legal Factors 3 II. Economic Factors: 4 III. Social Factors: 5 IV. Technological Factors 6 V. Environmental Factors 6 2. Key Drivers of Growth and Change 6 3. Porter’s Diamond 7 I. Factor Conditions 7 II. Demand Conditions 7 III. Related and Supporting Industries 8 IV. Firm Strategy, structure and rivalry 8 B. Micro-analysis of Automobile Industry 9 1. Porter’s 5 Force Framework 9 2. Dynamics of Competition 9 C. Competitors & Markets 10 1. Strategic Groups 10 2. Market Segments 13 3. Identifying Strategic Customer 16 D. Strategic Gaps 17 E. Tata Motors 19 1. Introduction 19 Mission Statement 19 Vision Statement 19 Goal 19 Core Values 19 Market share 19 Revenue and profits 20 Domestic growth 20 2. SWOT Analysis 22 3. Strategies 24 4. Projection of Revenue/Market Share for next five years 25 5. Implications of the Strategies 27 6. Conclusion 28 F. References 29 ...
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...Tata Motors: Can It Become a Global Contender in the Automobile Industry? * Profil Perusahaan Tata Motors adalah perusahaan mobil terbesar di India, dengan pendapatan konsolidasi USD 34,7 milyar pada 2012-13. Melalui anak perusahaan dan perusahaan asosiasi, Tata Motors telah beroperasi di Inggris, Korea Selatan, Thailand, Afrika Selatan dan Indonesia. Nama besar yang digandeng Tata Motors adalah Jaguar Land Rover, bisnis yang menyandang merek mobil paling terkenal di Inggris. Tata Motors juga memiliki perusahaan patungan dengan Fiat di India. Lebih dari 8 juta kendaraan Tata Motors telah tersebar di seluruh dunia. Tata Motors adalah produsen truk terbesar kelima di dunia dan produsen bus terbesar keempat dan merupakan produsen kendaraan penumpang terbesar di India. Mobil Tata,bus dan truk telah dipasarkan di berbagai negara di Eropa, Afrika, Timur Tengah, Asia Selatan, Asia Tenggara, Amerika Selatan, CIS dan Rusia. Berikut ini adalah profil perusahaan Tata Motors secara garis besar : * Tata Motor anak perusahaan dari Tata Grup (perusahaan terbesar di India) * Tata Motor didirikan pada tahun 1945 dengan nama Tata Engineering dan Locomotive Company. Berganti nama menjadi Tata Motor pada tahun 2003 * Industri kendaraan pribadi terbesar di India pada 2012 * Pernah menjadi manufaktur terbesar ke 4 dalam industri bis dan truk * Pusat industri di India, Inggris, Thailand, Afrika Selatan, Maroko, Korea Selatan, Spanyol * Mengakuisi kepemilikan brand Jaguar...
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...2014 International Business Assignment Tata Motors International Strategies sdfdf Farhan Khan 11/30/2014 Table of Contents Indian Automobile Industry .................................................................................................................................... 2 1. 2. Tata Motors Overview ................................................................................................................................................. 2 3. Porter’s Five Forces Analysis of UK Car market considering Tata Motors Strategy........................................ 3 i. Competitors’ bargaining power............................................................................................................................... 3 ii. Buyers’ bargaining power ........................................................................................................................................ 3 iii. Suppliers’ bargaining power................................................................................................................................ 3 iv. The threat of Substitutes ...................................................................................................................................... 3 v. 4. Strategy adopted by Tata Motors................................................................................................................................ 4 i. Competition at Home...
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