TATA MOTORS LTD:
REASON FOR UNDERPERFORMING :
Tata motors limited formerly is an Indian multinational automotive manufacturing company . like other companies Tata motors is even facing challenges with the global semiconductor storage and disruption in the supply chain . Even due to covid-19 and lockdown crises it is facing a struggling period . the shortage is the result of substantial in the demand due to pandemic and increased use of semiconductors in advanced Vehicle. It have already faced controversy over the development of Nano Return on investment on Tata motors shares in low. other competitive car manufacturers have been in the passenger car business for more years , therefore Tata motors limited has to catch up in terms of quality and lean production ,as it relative shares a smaller proportion of market share in passenger vehicle in India.
Tata motors face intense competition in its domestic as well as foreign competition as well as reducing its share .The regulatory intervention is effective sales of commercial vehicle as well as domestic car sales leading to Tata motors losing money on every car sold in India Presently.
PORTERS FIVE FORCE OF TATA MOTORS
• Bargaining Power of Supplier:
Suppliers bargaining power depends upon the underlying factors affecting the
supply chain. The critical factor affecting suppliers’ ability is the importance of
suppliers, the nature of supplies and the value for the buyer’s supply chain.
• Bargaining Power of Buyers:
The buyers’ power to bargain depends upon the underlying factors and the industry. The other generic
factors that impact buyer power are buyers’ concentration, better alternatives, and competitiveness of
the market. The automobile manufacturing industry is highly competitive; significant players are
competing for each market segment.
TATA MOTORS PESTEL ANALYIS :
➢ The goods and factors company is a great opportunity to automobile companies.
➢ The Indian demonetisation policy has largely affected cash intensive industries like automobile manufacturers .
SOCIAL FACTORS :
➢ India’s growing economy is an opportunity for automobile manufacturers as it is considered consistent with robust growth .
➢ The intensive competition in the automobile company.
➢ The changing lifestyle of millennials whereby they have shifted from car ownership to access and buying car has become unnecessary.
➢ The Indian emission norms where by car manufacturers have to give the declaration of the emission level of cars the manufacturer will impact the automobile industry .
➢ The introduction of intelligent connected cars is a major trend which will impact the whole industry.
➢ With the government taxing automobiles only 28% and a reduction on smaller cars and SUVS this will positively impact the automobile industry and the buyer at the same time.
Strategies of Tata motors Limited :
• It is recommended that the company should fallow differentiation strategy and focus on providing unique goods and services to win over the market .
• Digitalisation: Competitive advantage Provide new revenue and value-producing opportunities. Reinvent processes, improve quality and promote consistency.
• Investment in Renewable energy :Low cost, energy efficiency, low emissions, and reusability.30 % of the world’s energy by 2024 Generates saving and commercial opportunities
• Acquisition and mergers of other businesses globally: More resources , scale of operations will increase. Benefit their shareholders Consequently increasing profits .
All the way it help Tata motor to cope up with things.