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    Core Competencies of TATA Motors

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    Masoom Ali
    Tata Motors has developed a core competency in designing highly efficient engines at low cost. A core competency is something unique, important, and difficult to copy that provides strategic advantage. Tata Motors is able to produce very efficient vehicles at low prices due to their expertise in engine design and global distribution network. This core competency of developing efficient engines at low cost can be leveraged across different vehicle types and uniquely identifies Tata Motors.

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    Core Competencies of TATA Motors

    Uploaded by

    Masoom Ali
    387 views6 pages
    Tata Motors has developed a core competency in designing highly efficient engines at low cost. A core competency is something unique, important, and difficult to copy that provides strategic advantage. Tata Motors is able to produce very efficient vehicles at low prices due to their expertise in engine design and global distribution network. This core competency of developing efficient engines at low cost can be leveraged across different vehicle types and uniquely identifies Tata Motors.

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    Core Competencies of TATA motors

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    Tata Motors has developed a core competency in designing highly efficient engines at low cost. A core competency is something unique, important, and difficult to copy that provides strategic advantage. Tata Motors is able to produce very efficient vehicles at low prices due to their expertise in engine design and global distribution network. This core competency of developing efficient engines at low cost can be leveraged across different vehicle types and uniquely identifies Tata Motors.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    387 views6 pages

    Core Competencies of TATA Motors

    Uploaded by

    Masoom Ali
    Tata Motors has developed a core competency in designing highly efficient engines at low cost. A core competency is something unique, important, and difficult to copy that provides strategic advantage. Tata Motors is able to produce very efficient vehicles at low prices due to their expertise in engine design and global distribution network. This core competency of developing efficient engines at low cost can be leveraged across different vehicle types and uniquely identifies Tata Motors.

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    Core

    Competencies of
    TATA motors
    Core Competency Model
    • Developed by Prahalad and Hamel

    • It is a strategic tool that tells a long-term competitive advantage is achieved by having the ability to
    build a core competency at a lower-cost and faster than competitors.
    • Strategy is about competing to be unique.
    What is a Core Competency?
    • A core competency is something unique and important that a business can do strategically well.

     “Unique” means that competitors aren’t doing it.

     “Important” means that it is fundamental to helping the company generate sales.

     “Strategically well” means that it’s difficult for competitors to copy.

    • For example, IKEA’s core competency is its unique design capabilities.


    How to find your Core
    Competency
    There are 5 tests to determine whether something is a true core competency. If you can answer yes to all
    of these questions then you might just have identified a core competency.

    1. Does it provide consumer benefits?

    2. Is it difficult to imitate?

    3. Can it be leveraged widely?

    4. Does it uniquely identify the company?

    5. Is it difficult to pin down?


    Core Competency of TATA motors
    Tata Motors Limited has developed its core competency in designing highly efficient engines at low
    cost.

    1. Does it provide consumer benefits?

    Yes. Consumers get very efficient vehicles at low cost.

    2. Is it difficult to imitate?

    Yes. It’s very difficult to produce vehicles with high efficiency at very low prices. Even if a competitor
    could match Tata motors’ efficiency it wouldn’t be able to match it on price. This is due to the
    economies of scale of Tata Motors’ global distribution network and its location in India.
    3. Can it be leveraged widely?

    Yes. Tata Motors’ expertise in developing highly efficient engines at low price can be used to produce
    all kinds of products, from passenger cars, trucks to luxury cars & buses.

    4. Does it uniquely identify the company?

    Yes, Tata motors has been known for its efficient vehicles at low prices.

    5. Is it difficult to pin down?

    Tata Motors’ core competency has developed through a combination of technology, skills and
    processes, which makes it very difficult to pin down.

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