We all know that Tata Group is an Indian multinational company that manufactures airplanes, automobiles, and many more products. Jamsetji Nusserwanji Tata, widely known as Jamshedji Tata, founded this company in 1868.
Tata Group is one of the most popular firms all over the world because it applied unique and useful techniques and effective marketing policies. After the Covid-19 pandemic digital marketing has become the latest trend of marketing.
In this article, we are going to discuss the SWOT analysis of Tata Group along with some basic details about the company.
A Quick Overview of Tata Group
At this moment Tata Group is operating in over 100 nations and across six continents. The only mission of this company is to enhance the quality of life of the societies. There are nearly 29 companies that are publicly registered. The headquarter of Tata Group is located in Mumbai, India in the name of Bombay House.
Tata contributes a lot to the GDP of India. The firm has included nearly 4% of the GDP of the nation at the time of the Covid 19 pandemic.
The company has become so successful because of its goodwill, genuineness, and marketing policies. To improve the marketing policy of the company, Tata Group utilizes various marketing tools and techniques. One of the best examples of marketing that the company applies is Digital Marketing.
Have a Quick Look at the Basic Details of the Tata Group
|Jamsetji Nusserwanji Tata
|Year of Invention
|Place of birth
|Mumbai, Maharashtra, India
|Number of workers
|More than 800,000
|Type of the company
|$300 billion as of 2021
|$103 billion as of 2021
The Beginning – The Vision of Jamsetji Tata
Jamsetji Tata set up a trading firm in 1870 with money of INR 21,000. He purchased a bankrupt lubricant factory at Chinchpokli and transformed it into a cotton factory named Alexandra Mill which he sold for a gain after 2 years. In 1874, he built another cotton factory at Nagpur in the name of Empress Mill.
He has four primary aims: building an iron and steel firm, an outstanding inn, a famous educational organization, and a hydroelectric plant. The Taj Mahal Hotel at Colaba waterfront was launched in 1903, creating the first in energy in quite a while during his lifetime.
Jamsetji Tata encouraged learning. He intended to create scopes for deserving learners from poor backgrounds to understand their skills and utilize them to serve the nation.
After the demise of Jamsetji, his son, Dorabji Tata came to be the Chairman in 1904. In 1907 he set up the Tata Iron and Steel organization or TISCO which is currently called Tata Steel. Understanding the demand all over the world, Tata Limited launched its first foreign headquarters in London. Shortly as per Jamsetiji’s desire, Western India’s first hydro factory was built and the Indian Institute of Science was also established in 1911.
In 1938 JRD Tata became the Chairman of the Tata Group. The edges of the company grew from $100 million to over $5 billion under his chairmanship. When we took the duty of Tata it had only 14 undertakings big Tata Sons had boosted into a mixture of 95 endeavours.
JRD built an airline in 1952 which is called Tata Air Services (later renamed Tata Airlines). The Administration of India enacted the Air Corporations Act in 1953 and attained a bigger portion of the share in the transporter from Tata Sons. But JRD Tata was Chairman till 1977.
Tata Motors was built in 1945 and was first based on trains. It came into the industry automobile display in the path of creating a joint effort with Daimler-Benz in 1954. Tata Consultancy Services was inaugurated in 1968.
Ratan Tata became the chairman of Tata Group in 1991. This was a juncture of economic development in India. At this moment Tata Group began to get different companies like Tetley (2000), Jaguar & Land Rover (2008) and Corus Group (2007). In 2017, Natarajan Chandrasekaran was named administrator.
What Services does Tata Group Offer?
Tata Group is available in various markets. The company offers its products or services in the below-mentioned parts:
- Information Technology
- Consumer and Retail
- Financial services
- Trading and Investment
Tata Group’s Business Landscape
Tata Group is a personally owned empire of almost 100 firms containing a few primary trade sectors: chemicals, energy, consumer derivatives, engineering, fabrics, data techniques, and services. The center is in Mumbai.
Who are the Opponents of Tata Group?
There is a huge competition in the industry. The company encounters a lot of challenges to survive in the market. A few greatest opponents of Tata Group are as follows:
- Ashok Leyland
A Detailed SWOT analysis of Tata Group
SWOT analysis is done to identify the policies that a company may use to take advantage of external prospects, counter dangers, and decline on and safeguard its powers and eliminate shortcomings. Here is a detailed SWoT analysis of Tata Group:
1. Strengths of Tata Group
We all know that Tata Group is one of the most popular companies in the industry. So, needless to say, the company has a lot of strengths that enable it to prosper in the marketplace. With the help of these strengths, the company not only safeguards its market share in prevailing markets but also makes the new ones strong. The strengths of Tata Group are as follows:
- Sublime Performance in New Markets–
Tata Group is capable enough to go to contemporary enterprise sectors and make them. The enlargement has assisted the connection with developing contemporary bases of income and prospering the economic process danger in the business regions it functions in.
- Powerful Allocation Network–
Tata Group has created a trustworthy allocation grid over the years that may attain most of its potential market.
- Powerful Merchandiser Community–
The company has built a culture among the wholesalers and sellers where the sellers refine the products of the company and put resources into creating the outreach company to publicize to the consumers how they can obtain the best benefits out of the derivatives.
- Trustworthy Providers-
The company has a substantial ground of trustworthy suppliers of simple substances this way authorizing the company to defeat any merchandise network blockages.
- Strong Brand Portfolio-
The company has made acquisitions over the years to formulate an influential brand impression. The SWOT analysis of Tata Group positively highlights this truth. The brand image can be incredibly important inferring the organization’s requirements to experience new product categories.
2. Weaknesses of Tata Group
Every company has shortcomings. And Tata Group is not out of it. The company has to improve its weak areas. The process is connected to simply determining and weaknesses are the areas where an association can also be developed with the help of SWOT analysis and create its strong base and principal position. The weaknesses of Tata Group are as follows:
- Association Structure-
The organizational system is solely attainable with the recent plan of action consequently limiting growth in adjacent item components.
- Need Forecasting-
Weak product order forecasting causes a higher amount of skipped chances in comparison to its opponents. The reason why the day’s stick is strongly compared with its opponents is that Tata Group is not usually extraordinary at request expectations and this incorporates maintaining higher stock in-house as well as in the channel.
- Financial Planning-
Tata Group does not conduct financial planning correctly and effectively. The present investment percentage and liquid investment percentages reveal that the company may use the capital more effectively than what it is conducting currently.
3. Opportunities of Tata Group
The opportunities of Tata Group are as follows:
- Further Development –
The market growth will cause dilution of the advantages of opponents and allow Tata Group to develop its competitiveness in comparison with other opponents.
- Growth –
Financial growth is customer expenditure pursuing quite a while of the downturn and the gradual growth speed in the company is a prospect for Tata Group to grab fresh buyers and improve its market stake.
- Carrier Cost –
Decreasing the expenditure of carriers as an outcome of softer delivery fees may similarly reduce the expenditure of the products of Tata Group and the company will get an opportunity to support its productivity or provide benefits to the consumers to get a part of the all-around enterprise.
4. Threats of Tata
The threats of Tata Group are as follows:
- Upgradation Of Opponents–
If the opponents or market restrictions develop the latest upcoming technologies that might be a severe threat to various industries. It may bring a long-term effect on the other companies.
- Developing Patterns
Developing patterns in the American economy may provoke various state-operated authorities hence conversely influencing multinational contracts.
- Off Season-
The requirement of highly beneficial products is seasonal in nature and any dubious incident at the time of the peak season may affect the income of the business.
- Political Environment-
The company works in different countries. So, money changes especially give the dangerous political atmosphere in different business platforms all over the world.
- Tremendous Rivalry-
Regular productivity has risen the number of performers in the firm in the course of the last two years which has come down to one advantage as well as all-around sales.
The Ratan Tata Era – Further Expansion and Globalization
Ratan Tata as a chairman of Tata Group shaped the company into a global empire. He acquired companies like Jaguar and Land Rover, along with subsidiaries like Air India, Tata consultancy services, and Croma which enabled him to take the incorporated market capitalization of listed commodities of Tata Group to more than Rs 22 lakh crore.
Ratan Tata, the great-grandson of Jamsetji Tata became the chairman of Tata Sons in 1991. The company experienced a revolutionary period denoted by development, diversification, and multinational evolution under his leadership.
Ratan Tata expanded the company beyond its conventional sectors. The empire explored various industries like steel, automotive, information technology, telecommunications, hospitality, and so on. Significant additions like Jaguar and Land Rover in 2008 further reinforced the global presence of Tata Group.
Under the leadership of Ratan Tata, the Tata Group ventured on a transformative voyage, commemorated by substantial landmarks and attainments. During Ratan Tata’s term, the Tata Group earned global acclaim as a leading Indian empire. It’s global investments and strategic coalitions catapulted the group onto the international phase, attaining it admiration and esteem of industry counterparts. Ratan Tata’s priority on technological improvements and creation pushed the Tata Group forward. The Nano car project sought to deliver an affordable way of transportation for the people.
In the year 2000, Tata Group obtained one of the world’s largest tea companies Tetley Group, delivering a strong foothold in the global tea market. In the year 2007, Tata Group acquired European steelmaker Chorus Group, which exceptionally developed Tata Steel’s multinational footprint. In the year 2008, Tata Group obtained the iconic British luxury carmaker Jaguar Land Rover, giving it substantial brand growth.
In the financial year 2020-2021, the Tata Group recorded a packed income of around $106 billion (Rs 7.82 lakh crore). The Tata Group hires a huge workforce globally, with over 750,000 workers. It is one of the biggest employers in India and contributes greatly to employment creation and aptitude growth.
The whole Tata Group is quite effective in different business platforms for instance in-home nation techniques of Tata are the same as expense management and allegations. No adornment process reduces a low cost and is a hub of a touchy market. Tata Group is the largest private area business in India. Tata is also the most important inhabitant and most effective business worker in India. It has a heritage of 134 years. Tata Group is a well-known brand name in India which is all about business and creativity. Moreover, it may even join any part of the market frankly.
Tata Group has a very privileged digital impression and that is why the cordiality of Tata Group has been retained very beautifully. We hope that this case study of Tata Group will help you to improve your thoughts about the company. My Assignment Writing Help is popular for providing any kind of case study help. So, you may contact them.
- What are the powers of Tata Group?
The primary power of Tata Group is its strong brand reputation. With the help of strong brand recognition, the company has been able to grab the attention of a reliable consumer base and keep up its status as one of the leading companies in India.
- What are the 5 values of Tata Group?
The five values of Tata Group are as follows:
- What is the mission and vision of Tata Group?
The mission and vision of Tata Group are to become the most dependable global grid for consumers as well as suppliers. It also aims to be a reliable value maker for all the shareholders.
- Why is Ratan Tata a motivation?
Ratan Tata has set a lot of instances for the young generation to consider and learn. The main reason behind Ratan Tata being a motivation is that he is a mixture of an outstanding businessman and an extraordinary human being.
- Why is Tata Group Successful?
Tata Group follows its mission and jobs on principles. A lot of opponents of Tata Group are publicly owned companies, whereas Tata is a family business that now has developed into a big multinational empire. The success of the company relies on its core values and an unbeatable business strategy.