Competitive Strategy of Tata Motors-Free-Samples for Students

Question: Discuss about the Competitive Strategy of Tata Motors. Answer: Tata Motors Tata Motors Limited was incorporated in 1945 and it operates in the automotive industry. It is Indias largest vehicle manufacturing corporation and headquarter is situated in Mumbai, India. Tata owns various automotive companies along with luxury car brand Jaguar Land Rover. The company is a part of Tata groups and it manufactures cars, trucks, vans, and other vehicles. The company had revenue of US$42 billion in 2016 financial year. The reason for selecting Tata is that the company is the largest player in the Indian market, with its low cost and fuel efficient vehicles such as Tata Nano. The company has increased its presence in the international market with projects such as Jaguar Land Rover acquisition and Marcopolo joint venture. Competitive Strategy Tata is popular for its fuel efficient and low-cost vehicles in India. In Indian automotive market, the demand for a luxury vehicle is low and there is significantly high demand for low-cost efficient vehicles. Tata focuses on the vehicle requirement of their customers which include fuel efficiency, low-cost, comfortable size, and durability. The company designed a car called Nano priced at US$3000, for the lower class families of India. Tata believes in constant innovation according to the requirements of their customers (Becker-Ritterspach Bruche 2012). The key component of Tata motors success is their supply chain superiority. The company plan with their suppliers to reduce the cost of Nano to $3000. Tata has clearly defined their market in India and the company has gained a significant amount of reputation and trust. Tata leverage this asset to become a global competitor and ensure their sustained growth and long-term success. Tata has acquired British luxury car brand Jaguar Land Rover from Ford for $2.3 billion, which was significantly successful for Tata, providing them an opportunity to enter the international luxury car market (Wells 2010). Business Model The Tata business excellence model (TBEM) assists the company in focusing on providing low-cost quality vehicles to their customers. The company leverage their technical abilities and manufacturing capabilities to reduce the overall cost of vehicles. The company enhances its abilities through the implementation of superior procedures; therefore, Tata invests heavily in technological research. Tata future strategy is to increase their footprint in the international automotive market. With its international acquisitions and joint ventures, the organisation is increasing their international business. The companys business model focuses on environmental preservation by using environmentally friendly components in their vehicles (Management Discussion and Analysis 2017). CAGE Framework The CAGE framework recognises the difference of Cultural, Administrative, and Geographic and Economic factors between two countries. Tata has properly implemented these principles in their business model. The Acquisition of Jaguar Land Rover helps Tata in gaining a reputation in the culture of different countries. Tata properly analyses the political factors before entering a market. The manufacture plants in Britain help Tata in getting geographic advantages. The reputation of Jaguar Land Rover assists Tata to sell it in the developed countries, eventually increasing the revenue of Tata (Mitra 2011). Atlassian Atlassian is an Australian software company that develops team collaboration tools for organisation. The company was incorporated in 2002 and it operates in the software industry. Various giant companies, such as Netflix, Microsoft, and NASA, are among the thirty thousand clients of the company. The organisation earns an income of AU$619.9 million till the half year of 2017 and has a valuation of $3.3 billion (Hennart 2014). The reason for selecting Atlassian is that the company business model has no sales team and its still being able to grow its customers to more than thirty thousand, including various international companies. The enterprise spends less than 21 percent of their income in the marketing of their products compare to its competitors who spend more than 40 percent. Business Model Atlassian business model is focused on providing a great product to their customers instead of spending a large amount of money on marketing. The companys lack of a sales team is a proof of a different business approach. Following are six steps of the business model of Atlassian: Developing a superior application by focusing on customers requirements The price of the application should be low, compare to competitors Focusing on increasing the number of clients each day The products should be easily available to purchase online Providing easy trials and keeping transparency in pricing Atlassian business models focus is customer satisfaction; therefore the organisation has no funding or debt from outside investors. The lack of outside pressure assists company focus on creating better products (Mahroum 2016). Competitive Strategy The organisation strategy is to focus on providing high-quality software applications at a significantly lower price compared to their competition. Various popular applications have been developed by the company, such as HipChat, Confluence, and JIRA. In order to gain competitive advantage, the company takes the acquisition of various other software companies like Trello. The core value of the organisation is to provide customers satisfaction. The prices of companys products are low and focused on customers requirements. Therefore, the company has a high rate of customer satisfaction and positive feedback. The company has adopted an upside down strategy for its operations because of the lack of sales force in the enterprise. Unlike their competitive software companies, Atlassian did not spend their income on marketing. The founder of the company focus on developing a high-quality application, price it low and making it easily available online. This approach helps Atlassian in investing their income in enhancing the quality of their applications (Carlson 2017). CAGE Framework In order to enhance their success and sustain their growth, Atlassian has to increase its global market share. The company requires acquiring or investing in foreign software companies, such as India, Singapore, and China and increase their applications international clients. The company requires ascertaining the culture, government regulations, geographic factors and economic elements of Singapore to invest in its companies. The Singapore software industry is developing rapidly and Atlassian can gain an advantage over its competitors by investing in its companies (Fisher, Koning Ludwigsen 2013). References Becker-Ritterspach, F. and Bruche, G., 2012. Capability creation and internationalization with business group embeddednessthe case of Tata Motors in passenger cars.European Management Journal,30(3), pp.232-247. Carlson, R.M., 2017. Atlassian: Analysis and strategic recommendation. Fisher, J., Koning, D. and Ludwigsen, A.P., 2013.Utilizing Atlassian JIRA for Large-Scale Software Development Management (No. LLNL-CONF-644176). Lawrence Livermore National Laboratory (LLNL), Livermore, CA. Hennart, J.F., 2014. The accidental internationalists: a theory of born globals.Entrepreneurship Theory and Practice,38(1), pp.117-135. Mahroum, S., 2016. Atlassian in Sydney: Beating the Tyranny of Distance. InBlack Swan Start-ups(pp. 215-231). Palgrave Macmillan UK. Management Discussion and Analysis | Tata Motors Annual Report 2015-16. 2017.Tatamotors. Retrieved from https://www.tatamotors.com/investors/financials/71-ar-html/mda7.html Mitra, R., 2011. Framing the corporate responsibility-reputation linkage: The case of Tata Motors in India.Public Relations Review,37(4), pp.392-398. Wells, P., 2010. The Tata Nano, the global valuesegment and the implications for the traditional automotive industry regions.Cambridge Journal of Regions, Economy and Society,3(3), pp.443-457.