SWOT Analysis - Tata Motors Limited
The company began in 1945 and has produced more than 4 million vehicles. Tata Motors Limited is the largest car producer in India. It manufactures commercial and passenger vehicles, and employs in excess of 23,000 people.
Strengths
• The internationalisation strategy so far has been to keep local managers in new acquisitions, and to only transplant a couple of senior managers from India into the new market. The benefit is that Tata has been able to exchange expertise. For example after the Daewoo acquisition the Indian company leaned work discipline and how to get the final product 'right first time.'
• The company has a strategy in place for the next stage of its expansion. Not only is it focusing upon new products and acquisitions, but it also has a programme of intensive management development in place in order to establish its leaders for tomorrow.
• The company has had a successful alliance with Italian mass producer Fiat since 2006. This has enhanced the product portfolio for Tata and Fiat in terms of production and knowledge exchange. For example, the Fiat Palio Style was launched by Tata in 2007, and the companies have an agreement to build a pick-up targeted at Central and South America.
Weaknesses
• The company's passenger car products are based upon 3rd and 4th generation platforms, which put Tata Motors Limited at a disadvantage with competing car manufacturers.
• Despite buying the Jaguar and Land Rover brands (see opportunities below); Tat has not got a foothold in the luxury car segment in its domestic, Indian market. Is the brand associated with commercial vehicles and low-cost passenger cars to the extent that it has isolated itself from lucrative segments in a more aspiring India?
• One weakness which is often not recognised is that in English the word 'tat' means rubbish. Would the brand sensitive British consumer ever buy into such a brand? Maybe not, but they would buy into Fiat, Jaguar and Land Rover (see opportunities and strengths).
Opportunities
• In the summer of 2008 Tata Motor's announced that it had successfully purchased the Land Rover and Jaguar brands from Ford Motors for UK £2.3 million. Two of the World's luxury car brand have been added to its portfolio of brands, and will undoubtedly off the company the chance to market vehicles in the luxury segments.
• Tata Motors Limited acquired Daewoo Motor's Commercial vehicle business in 2004 for around USD $16 million.
They have done well with this, and are selling record amounts of vehicles internationally. Their lineup is impressive, and as a salesman in the automotive business, I have found they have a lot to offer. Their vehicles are well made, and I have a Santa Fe in my family that is an absolute joy to drive. Its a shame that the Tiburon does not live up to the rest of the Hyundai line. Tiburon in Spanish means shark.
By 1954, GM had produced its 50 millionth vehicle in the US market and it controls 54% of the US auto market (“GM: History”, 2009. When the 1970s’s hit GM was forced to adapt to new regulations regarding fuel economy and emissions. This marked the peak of General Motors employment and is slow decline due to increasing competition from European and Asian companies entering the US market. Over the course of the 80’s and early 90’s GM acquires portions of Suzuki, 100% of Lotus and 50% of Saab. They also launch an entirely new auto line branded Saturn (Reuters Staff, 2009).
Because public luxuries are strong for product and brand, and brand is oriented by consumer and identity. Accordingly, brands are regarded as images in the identities of consumers and other identities of target groups (Esch, 2010), which are designed by companies to decide their products (Kotler et al., 2009). Luxury brands are highly associated with their core consumer (Kapferer, 2008). For example, Land Rover is one of the worlds company to produce four-wheel drives, is the famous British SUV brand. The prices of Land Rover mostly are depend on middle-class economic conditions and the appearance of the car and speed of it are based on the male identity, mostly giving a image of tough guy. Despite the fact that public luxuries are more relevant to identities ,which is contrary to the private necessities. For private necessities, such as Haier, is the worlds largest household appliances maker, the global brand share of Haiers refrigerators, washing machines are on the top of the world. Compared with the relationship between the identity and Haier, Haier is more focus on quality of its products. The 1980s, coincided with the beginning of reform in China, many enterprises to introduce foreign advanced technology and refrigerator equipments, likes Haier. At that time, home appliances supply less than demand, there had a lot of enterprises which only focused on production rather than on quality.
Strengths Weaknesses Brand Recognition and loyalty Decline in market share through the years Improvements in quality and manufacturing Consumer change changes daily Large sales in international market Government Bailout American made ideology Negative Reviews 2. How has Chevrolet strategically managed its brand and reputation over the last 100 years? Chevrolet branding strategy comprises the theory of American-made quality with brand recognition. Their popular taglines have made Chevrolet successful such as: “The Great American Value”, “That Chevy Feeling”, and “America’s Best Seller, America’s Best Buy”.
- Strong brand awareness within the U.S. market. Second largest market share in automotive industry after General Motors with 14.8%
Ford is a major USA firm and Mazda is based in Japan. Mazda sold 25 percent of its stock to the Ford and a collaborative arrangement started.
We all know that comapanies go international for many reasons but always typical goal is comapny growth and expantions. When a company searches for new interesting markets abroad and also hires international employees, using well designed international strategy can for sure expand business on foreign markets. Internalization strategy of companies is now possible because is no problem to manage business by phone or e-mail. There is also no problem to travel by plane from Europe to Asia in few hours what was not possible in past.
General Motors Company’s specialty is in designing, building, and selling cars, trucks, and auto parts worldwide. The company was founded in Flint, Michigan in 1908 and has been in the market for more than 10 decades. Today, General Motors is the world’s largest automotive company with operations in more than 120 countries. The company’s automotive operations meet the demands of its target consumer through its four automotive segments: GM North America (GMNA), GM Europe (GME), GM International Operations (GMIO) and GM South America (GMSA). It has four main brands in the United States: GMC, Chevrolet, Buick, and Cadillac.
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This report is divided into two parts. In the first part, the Honda-Rover case is discussed in terms of their capacity and incentive to deliver in the alliance, what they wanted from each other, and what was the outcome of the alliance and why it brought limited benefit to Honda and Rover. In the second part, the reasons are presented to show why Tata might do better than Honda by establishing its engineering expertise in UK.
BMW- differentiation strategy, high price, breadth of product line is moderate, known for their cars being in the shop constantly and high maintenance bills.
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Originated as low-cost manufacturer of black and white televisions in the year 1969, super sized with a semiconductor segment in 1970s, Samsung delivered massive volume of low-cost consumer electronics to domestic and OEM products to both domestic and global markets until 1993. Due to this fact, company didn’t develop global brand awareness until then. In the global arena, Samsung’s brand message was fragmented and its logo presentations were inconsistent.