This document contains a SWOT analysis and external factor analysis for an automotive company. It identifies strengths such as strong brands, global presence, and research & development. Weaknesses include limited consumer base and older technology platforms. Opportunities exist in entering new markets and developing luxury cars. Threats include increasing competition and rising costs associated with sustainability. The external factor analysis evaluates opportunities like growing markets and threats such as competition and regulations. Based on the internal and external analyses, the company should focus on market penetration, development, and growth through integration to build upon its position.
This document contains a SWOT analysis and external factor analysis for an automotive company. It identifies strengths such as strong brands, global presence, and research & development. Weaknesses include limited consumer base and older technology platforms. Opportunities exist in entering new markets and developing luxury cars. Threats include increasing competition and rising costs associated with sustainability. The external factor analysis evaluates opportunities like growing markets and threats such as competition and regulations. Based on the internal and external analyses, the company should focus on market penetration, development, and growth through integration to build upon its position.
This document contains a SWOT analysis and external factor analysis for an automotive company. It identifies strengths such as strong brands, global presence, and research & development. Weaknesses include limited consumer base and older technology platforms. Opportunities exist in entering new markets and developing luxury cars. Threats include increasing competition and rising costs associated with sustainability. The external factor analysis evaluates opportunities like growing markets and threats such as competition and regulations. Based on the internal and external analyses, the company should focus on market penetration, development, and growth through integration to build upon its position.
This document contains a SWOT analysis and external factor analysis for an automotive company. It identifies strengths such as strong brands, global presence, and research & development. Weaknesses include limited consumer base and older technology platforms. Opportunities exist in entering new markets and developing luxury cars. Threats include increasing competition and rising costs associated with sustainability. The external factor analysis evaluates opportunities like growing markets and threats such as competition and regulations. Based on the internal and external analyses, the company should focus on market penetration, development, and growth through integration to build upon its position.
Strong Global Brands Global Presence M & A helps expanding in new markets Research & Development Activities Lower Cost Leadership Brand Value Weakness Limited Consumer Base Brand Positioning Technology based on older platforms Falling Market share & ROI Design , Quality & Safety Standards Manufacturing practices trail competitors Opportunities Entering into third world countries Enter New Markets through JVs Focus in developing LUXURY CARS Environment friendly transport alternatives. Focus on both Passenger & Commercial Vehicles Fuel Milo fuel efficient buses. Threats Increasing competition Passenger Vehicles Sustainability and environmentalism- Extra Cost for this low cost producer Overseas Competition in Luxury Brands. Rising Global & Domestic Prices Legal Barriers INTERNAL FACTORS EXTERNAL FACTORS SWOT ANALYSIS TOWS Analysis Internal Factors Strengths 1.Vast Product Portfolio 2.Global Presence 3.Research & Development Activities 4. Management 5.Lower Cost-Peoples Car Weaknesses 1. Product quality & services 2. Limited Product Portfolio 3. Safety concerns 4. Distribution network
Opportunities 1. Huge Market 2. Demand for smaller cars 3. Brand Value 4. Environment Concerns 5. Focus on fuel efficiency 6. Global presence SO Strategy 1. Cater to the growing demand. 2. Introduction of fuel efficient compact cars. 3. Greater R & D for environment friendly transport alternatives. 4. Low cost cars -NANO
WO Strategy 1. Introduction of newer technology to compete in the passenger segment. 2. Enter into luxury segment through Jaguar Land Rover 3. M & A for sustainability & environmentalism. Threats 1. Competition 2. Perception 3. Price rises ST Strategy 1. Expansion strategy through M & As. & create unconsolidated marker space. 2. Make competition irrelevant- Retailing at little more than a motorbike. 3. Globalization for sustainability as low cost producer in market 4. Emerge as a low cost leader WT Strategy 1. Increase R & D & keep innovating. 2. Strengthen product & service quality by continuing improvement to capitalise brand value. 3. Continue expansion of distribution networks to prevent reduction of market share. 4. Improve quality standards & safety norms & raising safety standards. External factors External Factor Evaluation (EFE) Matrix Key External Factors Weight Rating Weighted Score Opportunities Growing Middle Class Income 0.09 4 0.36 Domestic Market Potential 0.09 4 0.36 Focusing on building Luxury Cars 0.07 3 0.21 Environment Friendly Transport alternatives 0.07 3 0.21 Growing innovations 0.08 2 0.16 Expanding Product Portfolio 0.06 3 0.18 Emerging markets 0.06 4 0.24 FDI in heavy commercial vehicle 0.05 3 0.15 Threats Domestic Competition 0.09 3 0.24 Slowing Economy Gross Domestic Product (GDP) Trend 0.07 4 0.28 Inflation Trends 0.07 2 0.14 Intensive Global Competition 0.07 2 0.14 Govt. Market Regulations makes business difficult 0.05 3 0.15 Wage Inflation 0.05 2 0.1 Monetary & Fiscal Policy Changes 0.02 2 0.04 Legal Barriers- Environmental, TU activities etc. 0.02 4 0.08 Totals 1.00 3.04 Key Internal Factors Weight Rating Weighted Score Strengths Tata Safari .05 4 0.2 Tata Nano-Tatas Ipod .07 4 0.28 Established Brand Name .09 4 0.36 Strong Management .09 3 0.27 Global Presence .05 2 0.1 Mergers & Acquisitions .06 3 0.18 Low Cost Leadership in Global Car Manufacturing .07 3 0.21 Research & Development .05 2 0.1 Market Access through M & As .07 3 0.21 Financial Leverage Allows Tata Motors to Make Investments .05 4 0.2 Weaknesses Limited Consumer Base 0.07 2 0.14 Brand Positioning 0.07 2 0.14 Technology based on Older platforms 0.06 2 0.12 Falling Market Share 0.05 2 0.1 Design, Quality & Safety Standards 0.05 1 0.05 Manufacturing Practices trail competitors 0.05 1 0.05 Totals 1.00 2.71 Internal Factor Evaluation (IFE) Matrix Internal External Matrix I II Tata Motors III IV V VI VII VIII IX IFE Weighted Score E F E
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1.0 2.0 3.0 4.0 3.0 2.0 1.0 2.71 3.04 GROW & BUILD MAINTAIN & HOLD DIVEST OR HARVEST TATA MOTORS should focus on market penetration, market development, and product development Growth through backward integration, forward integration, and horizontal integration should also be considered. Competitive Profile Matrix (CPM) Critical Success Factors Weight Tata Motors Maruti Suzuki Rating Score Rating Score Market Share 0.12 1 0.12 4 0.48 Product Quality 0.12 3 0.36 4 0.48 Management 0.08 4 0.32 3 0.24 Financial Position 0.08 4 0.32 3 0.24 Global Expansion 0.07 4 0.28 3 0.21 Price Competitiveness 0.12 4 0.48 3 0.36 Customer Service 0.08 2 0.16 4 0.32 Product portfolio 0.10 1 0.1 4 0.4 Promotion Strategies 0.10 1 0.1 4 0.4 Sales Distribution 0.08 2 0.16 3 0.24 Production Capacities 0.05 4 0.2 2 0.1 Total 1.00 2.60 3.47