Categories: SWOT Analysis

SWOT Analysis of Tata Motors

&NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad1" id&equals;"quads-ad1" style&equals;"float&colon;left&semi;margin&colon;0px 0px 0px 0&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;<p align&equals;"justify">Tata Motors Ltd formerly known as TELCO &lpar;TATA Engineering and Locomotive Company&rpar; is the largest automobile company of India&period; Established in 1945&comma; Tata Motors is the part of Tata Group and it&&num;8217&semi;s headquarter is located in India&period; Commercial vehicles&comma; utility vehicles and passenger cars are the important segments of the company&period; The overall position of the Tata Motors can be analyzed with the help of SWOT analysis&period; <&sol;p>&NewLine;<h3>&&num;160&semi;<&sol;h3>&NewLine;<h3>Strengths<&sol;h3>&NewLine;<p align&equals;"justify">&&num;160&semi;<&sol;p>&NewLine;<ol>&NewLine;<li>&NewLine;<div align&equals;"justify">Tata Motors Limited is India&&num;8217&semi;s biggest automobile corporation&comma; with combine revenues of Rs&period; 92&comma;519 crores &lpar;USD 20 billion&rpar; in 2009-10&period; <&sol;div>&NewLine;<&sol;li>&NewLine;<li>&NewLine;<div align&equals;"justify">Tata motor is the leader in commercial vehicles almost in each segment&comma; and amongst the top three in traveler vehicles with attractive products in the dense&comma; midsize car and service vehicle segments&period; <&sol;div>&NewLine;<&sol;li>&NewLine;<li>&NewLine;<div align&equals;"justify">It is the world&&num;8217&semi;s fourth biggest truck producer&comma; and the world&&num;8217&semi;s second biggest bus producer&period; <&sol;div>&NewLine;<&sol;li>&NewLine;<li>&NewLine;<div align&equals;"justify">It is a demand driven&comma; and customer-oriented&comma; taking care of customers preferences and taste&period; <&sol;div>&NewLine;<&sol;li>&NewLine;<li>&NewLine;<div align&equals;"justify">Tata Motors is known as innovative global leader&period; The company has a very strong research and development having over 3&comma;000 engineers and Scientist&period; Similarly it has&&num;160&semi; Engineering Research Centre which has facilitated pioneering technologies and products&period; <&sol;div>&NewLine;<&sol;li>&NewLine;<li>&NewLine;<div align&equals;"justify">The Company has Achieved economies of scale and economies of scope&period;<&sol;div>&NewLine;<&sol;li>&NewLine;<li>&NewLine;<div align&equals;"justify">Over 4 million Tata vehicles ply on Indian roads&comma; since the first rolled out in 1954&period; <&sol;div>&NewLine;<&sol;li>&NewLine;<li>&NewLine;<div align&equals;"justify">Tata motors has strong strategic alliances and joint-ventures with foreign corporation to make presence in different parts of the world and it has operations in the UK&comma; South Korea&comma; Thailand and Spain&period;&&num;160&semi; <&sol;div>&NewLine;<&sol;li>&NewLine;<li>&NewLine;<div align&equals;"justify">Tata Motors is&&num;160&semi; the 1st corporation from India&&num;8217&semi;s engineering division to be listed in the New York Stock Exchange &lpar;2004&rpar;&period; The company is emerged as a global automobile corporation&period; <&sol;div>&NewLine;<&sol;li>&NewLine;<li>&NewLine;<div align&equals;"justify">Nowadays two-thirds of heavy commercial automobile exports out of South Korea are from Tata Daewoo&period; <&sol;div>&NewLine;<&sol;li>&NewLine;<li>&NewLine;<div align&equals;"justify">Tata motors is the one of the largest global manufacturer of commercial and passenger vehicle having strong presence and operation in many parts of the world such as&colon; Europe&comma; the Middle East&comma; South East Asia&comma; Africa&comma; South Asia and South America&period; It has franchisee&sol;joint venture assemblage operations in&comma; Ukraine&comma; Russia&comma; Senegal and South Africa&comma; Kenya&comma; Bangladesh&period; <&sol;div>&NewLine;<&sol;li>&NewLine;<li>&NewLine;<div align&equals;"justify">Tata motor is the social responsible environment friendly&comma; producer of world&&num;8217&semi;s cheapest<br &sol;>&NewLine;car&period; <&sol;div>&NewLine;<&sol;li>&NewLine;<&sol;ol>&NewLine;<p align&equals;"justify">&&num;160&semi;<&sol;p>&NewLine;<h3>Weaknesses<&sol;h3>&NewLine;<p> &&num;160&semi;<&sol;p>&NewLine;<ol>&NewLine;<li>Tata motors is the symbol of the cheapest and economy car in the local markets and is not considered as luxurious&period; <&sol;li>&NewLine;<li>&NewLine;<div align&equals;"justify">Tata Motors stagger under a harsh business and financial crisis&period; Tata&&num;8217&semi;s Commercial Vehicles Business Unit &lpar;CVBU&rpar; experienced its first loss in its more than 50 years history&period; This loss was enormous It was Rs&period; 108&period;62 Million&period; <&sol;div>&NewLine;<&sol;li>&NewLine;<li>&NewLine;<div align&equals;"justify">Tata motors recently acquired Land Rover and Jaguar from the Ford Motors for &dollar; 2&period;3 billion in 2008&period; To finance this acquisition&comma; they borrowed bridge loan of &dollar; 3 billion from a group of banks&period; Until the end of the January 2009&comma; they are unable to pay the loan&semi; the remaining loan is 2 billion&period;&&num;160&semi;&&num;160&semi; <&sol;div>&NewLine;<&sol;li>&NewLine;<li>&NewLine;<div align&equals;"justify">Jaguar and Rover need more investment to run its operations too quickly&comma; and Tata Motors image has decreased due to remaining loan&period; <&sol;div>&NewLine;<&sol;li>&NewLine;<li>&NewLine;<div align&equals;"justify">Tata&&num;8217&semi;s Nano car needed much more time than predictable&period; <&sol;div>&NewLine;<&sol;li>&NewLine;<li>&NewLine;<div align&equals;"justify">Tata is unable to understand the impact of macroeconomic factors to the company&period; <&sol;div>&NewLine;<div align&equals;"justify">&&num;160&semi;<&sol;div>&NewLine;<&sol;li>&NewLine;<&sol;ol>&NewLine;<p align&equals;"justify">&&num;160&semi;<&sol;p>&NewLine;<h3>Opportunities<&sol;h3>&NewLine;<p align&equals;"justify">&&num;160&semi;<&sol;p>&NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad2" id&equals;"quads-ad2" style&equals;"float&colon;none&semi;margin&colon;0px 0 0px 0&semi;text-align&colon;center&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;&NewLine;<ol>&NewLine;<li>&NewLine;<div align&equals;"justify">Engineering is a diverse sector with a quantity of segments&period; A corporation from this sector can be a power equipment producer &lpar;like transformers and boilers&rpar;&comma; a niche competitor &lpar;like providing environment friendly solutions&rpar;&period; It can be non-electrical and electrical machinery and still tools producer too&period;<&sol;div>&NewLine;<&sol;li>&NewLine;<li>&NewLine;<div align&equals;"justify">Whereas the sector can drift of cost cutting throughout falling debt and reorganization process and manpower explanation&comma; increasing input costs and employee&&num;8217&semi;s costs pared the enhancement in profitability&period;<&sol;div>&NewLine;<&sol;li>&NewLine;<li>&NewLine;<div align&equals;"justify">Opportunities to fight in terms of pricing&comma; experience in specific field&comma; product differentiation and timely completion of projects&period;<&sol;div>&NewLine;<&sol;li>&NewLine;<li>&NewLine;<div align&equals;"justify">Export opportunities to the developing countries and price-conscious countries such as Pakistan&comma; Nepal&comma; etc&period;<&sol;div>&NewLine;<&sol;li>&NewLine;<li>&NewLine;<div align&equals;"justify">Global economy is recovering after the worlds worst crises ever&period; <&sol;div>&NewLine;<&sol;li>&NewLine;<li>&NewLine;<div align&equals;"justify">Indian GDP is about 6&percnt;&semi; which indicate a better economy and infrastructure in Indian rural sides which can sustain growth and improvement of poverty in economy&period;<&sol;div>&NewLine;<&sol;li>&NewLine;<li>&NewLine;<div align&equals;"justify">Indian government&&num;8217&semi;s proposal to bring clearness to the power division improvement is a welcome sign for the sector&period; More management between the Centre and states for infrastructure progress is a step in the right &period; <&sol;div>&NewLine;<&sol;li>&NewLine;<li>&NewLine;<div align&equals;"justify">India&&num;8217&semi;s nuclear contract with the US goes off as designed&period; It will mean big commerce for corporation preparation to go into nuclear accordingly power equipment manufacturing and power generation&period; <&sol;div>&NewLine;<&sol;li>&NewLine;<li>&NewLine;<div align&equals;"justify">If the government unlock up the defense sector to additional contribution from private company&comma; this will provide additional opportunity for definite big firms in the division&period; <&sol;div>&NewLine;<&sol;li>&NewLine;<&sol;ol>&NewLine;<h3>&&num;160&semi;<&sol;h3>&NewLine;<h3>&&num;160&semi;<&sol;h3>&NewLine;<h3>Threats<&sol;h3>&NewLine;<p> &&num;160&semi;&NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad3" id&equals;"quads-ad3" style&equals;"float&colon;none&semi;margin&colon;0px&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;&NewLine;

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