Tata Motors has experienced tremendous success in the hyper competitive Indian automobile industry. Using PESTLE analysis, we are going to analyze how macro-economic factors including political, economic, social, technological and environmental issues are affecting the company. We are also going to analyze the competitive environment in the industry and how it is affecting Tata's profitability. This is followed by a SWOT analysis to examine Tata's strengths, weaknesses, opportunities and threats and how it can use external opportunities and strengths to mitigate arising threats and internal weaknesses.
Magezi, K. Prudence (2019) "A Pestle and Swot Analysis of Tata Motors 2018" 123 Writing [Online] at https://www.123writing.com/free-sample/a-pestle-and-swot-analysis-of-tata-motors-2018
Tata Motors Strategy Case Study
Key Learning Outcomes
- Understand the broad macro-environment of Tata Motors and the Indian automobile industry in terms of political, economic, social, technological, environmental and legal factors (PESTEL).
- Use our swot analysis example to gain an overall understanding of Tatas strengths and weaknesses and strategic options arising from the opportunities and threats that have been identified from the analysis of the business environment.
- To apply strategy business models and frameworks such as Pestle, Swot etc to real company cases.
Tata Motors limited is an Indian multinational automobile manufacturer established in 1945 in India. The company is part of the $100billion Tata group and one of the largest automobile companies in India. As the world’s largest truck manufacturer and the fourth largest bus manufacture (Car Wale 2018), Tata Motors operates in UK, South Africa, South Korea, and Thailand and has a global network of 76 subsidiaries and associate companies including Tata Daewoo in South Korea and Jaguar Land Rover in UK. Tata is India’s market leader in commercial cars and among the top in passenger cars with approximately nine million vehicles only in India. With its designs and R&D centers in UK, South Korea and India, the company has its presence in approximately 175 countries and owns approximately 6,600 sales and service points (Tata Motors 2018). The company’s revenue as of 2017 was $41million increasing from $40 million in 2016 while its profit margin grew form 4.57% in 2016 to 3.45% in 2017 (Orbis 2017). Tata Motors commands 5.3% market shares of the Indian automobile industry after Suzuki with 49.7% ,Hyundai Kia with 16.4%, Mahindra with 6.9% and Honda at 5.6% as of 2017(Statista 2017).
2.0 Tata motors pestle analysis 2018 (opportunities and threats)
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