Tata Group of companies is a large conglomerate with its headquarters in Mumbai. Established in 1868, Tata Group is now operating in 100 countries and providing its services and products in 150 countries. Tata Group, an Indian multinational company, was founded by Jamshedji Nusserwanji Tata in 1868. Let’s have a look at the SWOT analysis of Tata Group to determine strengths, weaknesses, opportunities, and threats.
Tata Group: An Overview
Tata Group of companies is a renowned company in the world because of its core values and effective marketing strategies. Tat Group works within a framework of ethics, values, and fairness. The five core values of the Tata Group, a value-driven organization, include integrity, responsibility, pioneering, unity, and excellence.
Tata Group has innovative thoughts, processes, strategies, and approaches. The areas of services of Tata Group include automobiles, airplanes, telecommunications, information technology, and insurance. 1969 to 2017 is the period of expansion for Tata Group. Between these years Tata Group was marked by bold global acquisitions and focussed on new technology.
TATA Group Profile
| Company Name | TATA Motors Ltd |
| Year Of Foundation | 1868 |
| CEO | Ratan Tata |
| Founder | Jamsetji Tata |
| Industry | Automotive |
| Market Cap* | Over $260 billion |
| No of Employees | More than 35,000 |
| Headquarters | Mumbai, Maharashtra, 400093 |
SWOT Analysis Of Tata Group of Companies
SWOT analysis is necessary to get a comprehensive idea about the position of Tata Group in the market.
Strengths of Tata Group
- Diverse Portfolio: Tata Group has extended its operations in multiple sectors including steel, telecommunications, automobile, insurance, and many more. This versatility permits the group to reduce risks and increase opportunities in different industries.
- Reliable Brand: Tata Group is one of the most trustworthy brands in India. Tata Group has been creating a strong reputation since its origin. It is a unique brand for its ethical practices and is famous for its commitment to high-quality products and services.
- Strong Market: Its distribution network is reliable and strong. So the brand has built its potential market over the years.
- Trustworthy Suppliers: Tata Group has reliable suppliers of raw materials. So this dependency empowers the brand to conquer a detailed list of network hurdles.
- CSR: Tata Group focuses on corporate sustainability and social responsibility. Tata Group concentrates on the welfare of the society.
Weaknesses of Tata Group
- Strategic Missteps: Tata Group’s reputation was challenged because of strategic missteps and corruption allegations. These incidents affect investor confidence in the brand.
- Weak Financial Planning: There is a lack of strong financial planning in Tata Group. The liquid assets and the current asset ratios prove that Tata Group could utilize money more effectively.
- Employee Issues: Tata Group of companies maintains a large and diverse workforce. Managing a huge workforce is a challenge to maintaining a cohesive organizational culture.
Opportunities of Tata Group
- International Reach: Tata Group has extended its reach to over 100 countries. The brand is expected to expand its footprint into emerging markets. The growing global demand for its products and services enables the brand to spread its branches all over the world.
- Innovation in Technology: Tata Group has the opportunity to invest in new sustainable technologies. The brand can cut its ecological footprint as well as attract environment-conscious customers by emphasizing environmental responsibility.
- Further Development: The market development can pose a threat to its competitors. Thus, Tata can enhance its power more than other competitors.
- Expense of Transportation: If transportation costs are low, then Tata Group can lower its delivery costs. Consequently, the cost of products and services will automatically be low. It will attract more customers to the brand.
Threats of Tata Group
- Competition: Tata Group has to face strong competition from domestic as well as international businesses. Among domestic competitors, Mahindra & Mahindra holds a prominent name while Toyota, General Motors, and Volkswagen are international competitors. This competition leads to continuous innovation, new strategies, technological advancements, and efficient operations.
- Geopolitical Ups & Downs: As a multinational company, Tata Group is vulnerable to geopolitical ups and downs. The geopolitical upheavals include trade disputes, changes in rules, and diplomatic tensions.
- Inflations: Economic fluctuations can limit the growth process. It even can affect the financial performance of the Tata Group of companies. Inflation’s effect can be reduced if Tata Group diversifies its revenue stream.
Conclusion
In conclusion, we may say the SWOT analysis of Tata Group is necessary to identify the strengths and opportunities of the brand. Moreover, if there is any weakness or threat, the brand can overcome it through SWOT analysis.
Tata Group of Companies is a renowned conglomerate which operates in many sectors. The SWOT analysis will help the brand to expand its business keeping aside its weaknesses.
