TATA motors Ltd a multinational company formerly called TELCO, is headquartered in Mumbai, India. It’s a biggest revenue company of India and is exclusive for the manufacture of motor vehicles. The company was established in 1645 and its first vehicle was introduced in the market in 1954 and now 4 million vehicles are claimed to be sold.

Strengths

• TATA motors limited is the largest automobile company of India mainly manufacturing automobiles and its engines having the highest market share.

• Services of provided by the group are up to the mark and areas includes design and outsourced engineering.

• It’s highest revenue earning corporation, having $20.572 billion of revenue as per 2010 statistics.

• Total assets of this company accounts for approximately $20.192 billion which are its biggest strength.

• Though company is limited to India only but still the employees that are employed are huge in quantity that is 50,000, while providing excellent services as well.

• TATA has been consistent in introducing new user friendly vehicles especially in the previous decade. TATA was the first introducer of mini vehicles in India including TATA Nano and TATA Ace.

• Subsidiaries of TATA Motors are successfully running and include Jaguar, land Rover, TDCV and Hispano Carrocera. The design subsidiaries include Telco Construction Equipment (TELCON), HV Transmission (HVTL) and HV Axles (HVAL), Tata Technologies Limited (TTL) and Tata Motor European Technical Centre.

• Production percentage being high facilitates the customer’s requirements in time.

• The company goes through a high technology research and high corporative responsibility before introducing its product in the market; low fuel consumption is the fruit of their high concern.

• Over 35000 localities own company dealership, services and sales network making it a wide spread network.

• From 2000 to 2010, the company has made number of acquisitions including Daewoo’s truck manufacturing unit, Aragonese, Hispano Carrocera, Marcopolo, British Jaguar Land Rover and Italy based company Trilix.

Weakness

• Market shares of TATA motors are not very productive.

• All the advancements and concerns are associated with design ignoring the safety standards.

• Sales are mostly made by export; the domestic attainment is considerably low.

• Luxury cars though introduced by them for the first time locally but they don’t have command over its technological problems.

Opportunities

• By targeting the third world countries they can generate high revenues.

• Joint ventures of the company provide equal chances for it to excel globally.

• Smooth inductions of new model each year and diverse dealing range of automobiles in four categories that are Passenger cars and utility vehicles, Concept vehicles, Commercial vehicles and Military vehicles.

• TATA luxury cars are having a good feedback in the market except the safety requirement not being met.

Threats   

• Their low cost products are depriving them from low cost advantage as the competitors easily copy their strategies.

• Rising prices of the raw materials including plastic, steel and aluminum is posing a threat to all the automobile companies.

• Safety issues if not dealt properly can damage the brand’s name.

References

• "TATA Motors, Brazil co form joint venture". The Hindu Business Line. Retrieved from http://www.thehindubusinessline.com/2006/05/06/stories/2006050602340200.htm.

• Ford Motor Company. (2008). "ford motor company announces agreement to sell jaguar land rover to tata motors". Press release.

• Tata Motors (2008). "Tata Motors enters into Definitive Agreement with Ford for purchase of Jaguar Land Rover". Press release.

• Lewin, T. (2008). "Classic names are part of Tata deal". Crain Communications work. Automotive News.

• "Tata Motors completes acquisition of Jag, Land Rover". (2008).Thomson Reuters.

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