TATA Motors SWOT Analysis 2021

TATA Motors SWOT Analysis 2021

Its SWOT for TATA Motors is going to provide a detailed analysis of the strengths and weaknesses and the threats and opportunities to one of India’s largest automobile firms in India.

TATA Motors is one of the most renowned multinational corporations of India established in 1945. The company was earlier known under TELCO. TATA Motors is the world’s fifth-largest automobile manufacturing company. 

The chief executive and founder of TATA are Ratan Tata, and the headquarters are located in Mumbai, India. With its diverse portfolio, it includes a wide range of products. 

The items include passenger cars, trucks buses, vans coaches, construction equipment, military vehicles.

tata motors swot analysis

SWOT Analysis

Let’s examine what SWOT is in a systematic manner. The acronym for SWOT is Strengths, Weaknesses, Opportunities, and Threats. 

It’s the process of analyzing four main aspects of the company prior to making any decision that is strategic.

 Strengths In The SWOT Analysis of TATA Motors

tata motors swot analysis

  • This internationalization strategy up to now has been to include local managers involved in new acquisitions and to transfer a few high-ranking managers from India to this new marketplace. The benefits are that Tata has had the ability to share expertise. For instance, following the Daewoo acquisition, the Indian company was taught about discipline and how to create that final product “right the first time.’
  • The company has established a strategy that is in its place to move into the following phase of expansion. In addition to focusing on the development of new items and acquisitions as well, but also an agenda of extensive development in management development put in place to identify its leaders for the future.
  • The company has enjoyed an excellent partnership with Italian mass-producer Fiat since the year 2006. The alliance has expanded the product range of Tata along with Fiat with regard to production as well as knowledge exchange. For instance, Fiat Palio Stile Fiat Palio Style was launched by Tata in 2007 and the two companies signed agreed to construct an automobile that is targeted towards Central as well as South America.

Weaknesses In The SWOT Analysis of TATA Motors

tata motors swot analysis

  • The company’s passenger vehicle product lines are built on the 3rd as well as 4th-generation platforms which put Tata Motors Limited at a disadvantage compared to other car manufacturers.
  • Despite purchasing both the Jaguar as well as Land Rover brands; Tata has not got an advantage in the luxury car market in its local, Indian market. Is Tata a company connected with low-cost passenger vehicles in a way that it’s insulated its business from the lucrative segments of the more promising India?
  • A flaw that is frequently not acknowledged is it is that the word “tat” in English the word “tat” is a reference to rubbish. What kind of brand-conscious British consumer ever purchase the brand? It’s possible but they might purchase Fiat, Jaguar, and Land Rover

Opportunities In The SWOT Analysis of TATA Motors

tata motors swot analysis

  • In the summer of 2008, Tata Motors announced it had purchased its Land Rover and Jaguar brands from Ford Motors for UK PS2.3 million. Two of the world’s top cars are now part of its brand portfolio, and will surely give the company the opportunity to promote its vehicles that are in the luxury segment.
  • Tata Motors Limited acquired Daewoo Motor’s commercial vehicle company in the year 2004 at USD $16 million.
  • Nano is the most affordable car in the World Nano is the cheapest car in the world, selling less than the price of a motorbike. While the world is getting ready to go green with alternatives to the gas-guzzlers on the road is Nano the right choice to the question of concept or brand? In addition, the new Land Rover and Jaguar models can cost as much as 85 times the price of the standard Nano!
  • The brand new worldwide track system is slated to go live at the Korean (previously Daewoo) plant. It is also an age when the world is seeking environmentally sustainable transportation options, is this the perfect time to enter into this sector? This query (and the one mentioned above) is that the newly emerging industrial countries like India, South Korea, and China will be in an appetite for low-cost passenger as well as commercial vehicles. This is a potential opportunity. However, the company has established a highly active corporate social responsibility (CSR) panel to explore strategies that can make the company’s operations better able to sustain.
  • The selection of Super Milo fuel-efficient buses is powered by ultra-efficient eco-friendly engines. The bus comes with optional engineered clutches with booster assistance and improved air intakes that will cut down on fuel consumption by as much as 10%.

Threats In The SWOT Analysis of TATA Motors

tata motors swot analysis

  • Some of the other rival carmakers were in the car passenger business for 40 or more years. This means that Tata Motors Limited has to get ahead in terms of quality and efficiency production.
  • Sustainability and sustainability can mean an increase in expenses for this low-cost manufacturer. This could negatively impact its competitive advantages. It is evident that as Tata globally expands and acquires other brands, this issue might be addressed.
  • Because the company has primarily focused on small and commercial vehicles, however, it is exposed to the competition of foreign firms for the upcoming Indian premium segments. For instance, ICICI bank, as well as DaimlerChrysler, have made investments in a new manufacturing facility in Pune that will manufacture 5 000 new Mercedes-Benz annually. Other manufacturers of luxury vehicles that are targeted towards the Indian market are Ford, Honda, and Toyota. In reality, all of the Indian markets are now a potential target for global rivals such as Maruti Udyog General Motors, Ford, and others.
  • The rising costs in the global market could put a strain on Tata Motors Limited on a few aspects. The cost of aluminum and steel is rising and making it more expensive to run the costs of production.

Limitations of SWOT Analysis for Tata Motors Limited

While it is true that the SWOT analysis is used widely as a tool for strategic planning, however, it does have its fair share of drawbacks.

  • Certain abilities or aspects of an organization could be both a strength as well as a weak point at the same. This is among the main drawbacks of SWOT analyses. Changes in environmental regulations can be risky for companies, but as well as an opportunity in the sense that it allows companies to be on the same level or gain an advantage over its competitors when it is could develop the product quicker than competitors.
  • SWOT is not a method of determining how to get a competitive edge and therefore it shouldn’t be considered a solution in and of itself.
  • The matrix is merely an initial point of reference for an analysis of how the proposed strategies might be implemented. It provides an evaluation window, but it did not provide a plan of implementation that is based on the strategic competitiveness and the competitiveness of Tata Motors Limited
  • The SWOT model is a static analysis that analyzes the existing conditions and a small number of potential modifications. When circumstances, capabilities threats, strategies, and circumstances evolve, the dynamic of the competitive landscape cannot be analyzed in one single matrix.
  • SWOT analysis could cause a company to focus too much on the importance of a single external or internal element in formulating strategies. There are interrelations between the important external and internal elements that SWOT cannot reveal that can be vital in formulating strategies.

Weighted SWOT Analysis of Tata Motors Limited

Due to the previously identified shortcomings of the SWOT analysis/ matrix, the corporate management determined to give an appropriate amount of weightage for each of the strengths and weaknesses of the business. 

Companies also evaluate the probability of events that will occur in the near future and what the effect can be on the performance of the company. This technique is known as the Weighted SWOT analysis. 

It’s better than basic SWOT analysis as With weighted SWOT analysis Tata Motors Limited managers can concentrate on the most important aspects and eliminate the less important ones. 

This also helps solve the problem of a long list which is when organizations create lengthy lists but not addressing any of the elements are considered to be crucial.

Conclusion:

Following a comprehensive review of the swot study for Tata Motors, we have concluded that Tata Motors is indeed the most renowned automobile manufacturing firm in the world. 

The competition, tech race and controversies, as well as price wars, and the uncertain economic climate are just a few of the most significant problems. 

Tata Motors should utilize its resources to grow its market as well as address the challenges of technology and innovation.

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