Tata Motors Company SWOT Analysis - Paper Example

The automobile industry is a broad range of companies that involves themselves in designing, developing, manufacturing, marketing, and selling of motor vehicles. The industry remains one of the worlds most significant economic sector in the creation of revenue. Tata is one of the company in this industry that is based in India and was Indias leading automobile company by revenue and in both commercial and passenger vehicles in 2012.

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SWOT Analysis

Strength

Leading automobile company by revenue

Fourth-largest truck manufacturers in the world

Weakness

Strategic issues

Lack of advertisement

Opportunities

Acquisition of Jaguar and Land Rover

Urbanization

Growth in road and infrastructure

Increasing disposable income

Threats

Poor macroeconomic condition

Increasing competition

Possible elimination of diesel subsidies by the government

Safety demands of the companies Nano model car on the American market that needed the company to adjust the production cost.

Rising interest rates and increase in oil prices

Future company outlook

The company continues to face increased competition from well-established companies such as Toyota. However, with the well-highlighted plan, the company will be heading for success. The brand name still exist, and the company has proved to be successful on some occasions but what brought it down is the lack of innovativeness to cope with changing demand in the automobile industry. With a well-established innovative center in Silicon Valley in the United States, the company is ready for the future. The company has embarked on a slew enterprise that comprises of filling the gaps in its product portfolio and enhancing its manufacturing process as part of its plan of becoming a major player in the passenger vehicle segment by 2019.

Business Strategy Recommendation

Tata Motors have on most occasion focused on collaborating with other players within the industry to manufacture various automobiles. Since the company was established, it has collaborated with more than ten other companies within the industry with the intention of promoting its growth. Also the companys primary target market have been developing countries. To achieve this, the company has focused on manufacturing small engine passenger cars that are fuel efficient and with less attractive features. For instance, the base Nano model did not include air conditioning and had no radio or any CD player, at the same time, there was no trunk door on the outside of the vehicle.

Even though the company has been manufacturing buses and trucks for the year, its principal focus is passenger cars. This has been due to the increasing population in India and also increased rural to urban migration. The Nano model remains one of the successful passenger cars that the company has manufactured in the recent years. However, the company has failed to heat the ground running, and it has been surpassed with major world automobile leaders. The company has focused less on embracing its brand for its own and focused more entering into collaborations that have not been successful. Data should concentrate on believing itself through research and innovation with less dependency from other car manufacturers.

Also, the company had no plan ad was not ready for the future and that is why it was overtaken by corporations such as Toyota. The company should invest in an innovative centre, intensive market research with the aim of understanding the need of the customers. Furthermore, the company failed to attract a global outlook since it focused more on developing countries. For instance, even after purchasing Iconic British brands; Land Rover and Jaguar, it faced difficulties in selling these brands in developed countries such as the United States. In fact, nobody knew about Tata in the USA. The company should focus on marketing itself on a global scale but not concentrate only on developing nations.