Marketing Plan and PowerPoint Presentation

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SITUATION ANALYSIS

Situation Analysis

Institutional Affiliation

Date

Introduction

Situation Analysis

TATA Motors limited is one of the largest automobile companies, which offers a wide range of passenger, commercial and defence vehicles to its clients and customers. The TATA motors were founded in 1945 and have formed a more comprehensive range of networks worldwide. The TATA motors are divided into segments, the hatchback, and SUV and sedan segment. The company aims at ensuring value for its customers, and it faces a market problem in its reduced sales. The company has debts and uses the finances borrowed to finance its operations. Poor product positioning, the company has poor marketing, advertising strategies that impact its sales, the decrease in ratings by agencies. The paper will indicate a situation analysis on the TATA Motors limited. The situation analysis shows the internal and external factors of a business, the strengths and weaknesses, the relative, market shares of a company, and the critical elements in the situational analysis.

Strengths of the TATA Motors Limited

Tata Motors is one of the leading companies in the automobile industry.

It is one of the most trusted brands and has high market penetration- TATA has high expertise in entering new markets; in most instances, the entering to new markets is successful. This has proved beneficial to the company since it’s able to generate new sources of income.

The TATA motors provide its services to a large consumer base, the company offers expert service provisions, making it trusted and recognized. The network allows the company to build a reliance network that can reach its market.

The motors also have a highly diversified product portfolio – through innovation, TATA motors' products are diversified. This enables the customers and clients to have a wide range of products from which they can choose from (Garg, 2019).

TATA motors have a legacy that indicates a strong brand- over the years, TATA motors have invested in ensuring that they build a strong brand portfolio. This allows the brand to be useful where the company wants to expand into different categories of products.

Reliable suppliers and dealers – over the years, the company has established suppliers of raw materials hence are able to avoid challenges in the supplies. The company has built a strong relationship with the dealers who enable product and brand promotion.

Weaknesses of TATA motors

Weakness help indicate where the company needs to work on and improve, the TATA motors have various weaknesses which include

Compared to other companies that manufacture car globally, TATA motors have a limited international presence.

Opportunities

The TATA motor has various opportunities to expand in the automobile market- these opportunities will allow TATA an entry into the market that will enable it to increase its competitiveness with its competitors.

New trends in consumer behaviours and purchasing capabilities of the customers also allow new markets, new sources of revenues, and diversifying of products into different categories.

Threats

The changes forces and threats that have impacted the TATA motors company include globalization, increased competition, technology, mergers and acquisitions, e-commerce and weak market policies.

Globalization has strengthened the opportunities for trading among different countries. This has also removed the trade barriers; hence, the market is available to increase competition.

Increased competition with global integration and new technological developments, competition in the automotive industry has increased (Garg, 2019). This is due to the new entrants and old entrants innovating new models; hence competition in the automobile industry has grown. In order to be competitive, the TATA motors need to innovate new products into the market. This indicates the increased need for investments; hence finances are required.

The company has debts and is unable to finance its assets using its income and profits, hence at a higher chance of incurring losses, while repaying the high debts.

Changing consumer needs, the fast-changing needs of consumers are a threat to the company since they have to keep up with the customers' changing needs. With digitalization, people are more aware of different brands and the quality of the brands. The TATA motors have to fuel the clients' needs to ensure it stays competitive in the industry.

Relative market shares

Currently, the TATA motors hold a relative market share of 7.07% at the passenger vehicle segment. More than a decade ago, the company had a 10% market shares, and the shares have continuously reduced over the years. The reduction in sales has caused a reduction in the shares of TATA motor (Grover, 2020)

Competitive strategy

TATA motors are well known for its efficient and low fuel cost vehicles in India. The demand for low-cost, efficient vehicles is high compared to luxury cars. TATA is able to focus on the needs of its clients, which include fuel efficiency, low cost of vehicles, and durability. The company believes in constant innovation to meet the clients' needs. Hence innovations of new products and cost-efficient vehicles give them a competitive advantage in the automobile industry.

Critical elements in the situation analysis

The company has strength s and opportunities that allow it to expand its market to other areas, increase its revenue source, and attract new customers.

The company by focusing on the production of low costs and efficient cars, and marketing the vehicles as cheap, rather than its efficient qualities they may cut out on potential buyers who can afford one.

Due to globalization and entry of new and old vehicle companies into the market, competition has increased. There are also the changing trends in the consumer demands, which need to be addressed for the company to remain competitive and relevant.

Conclusion

The TATA motors limited has a strong brand; hence its ability to venture into new markets. The company should improve its marketing strategies to ensure that they attract and maintain a wide range of customers and clients. The company has a competitive strategy of manufacturing cheap and efficient cars hence have a competitive advantage over other companies in the automobile industry.

References

Baba, M. T. Financial Distress Analysis of Selected Indian Automobile Companies by Using Altman Z score Model.

Garg, S. (2019). Internationalization of Tata Motors: Strategic analysis using flowing stream strategy process. International Journal of Global Business and Competitiveness, 14(1), 54-70.

GROVER, P. (2020) Analysis of Profitability: A Comparative Study of Maruti Suzuki, Tata Motors, Hindustan Motors And Mahindra And Mahindra.

Please take into consideration of the Instructor’s feedback below:

I would have liked to see a lot more detail in your SWOT analysis. Please expand on this when you include it as part of your final marketing plan.