Introduction
Tata group is an Indian multinational conglomerate founded by Sir Jamsetji Tata in 1868. It is headquartered in Mumbai and it is India's largest conglomerate with products and services in over 150 countries. This case study deals with the challenges, opportunities and threats that the Tata group is currently facing and the business strategies that have made the Tata group so successful.
Strengths
The major strengths of Tata group are as follows:
1.Brand Reputation
The first key strength of Tata group is the brand itself. This brand is well known. No matter what product we want to buy, the Tata group is there. Tata has products right from the salt which is called Tata Namak to Tata Jaguar which is purchased by an extremely rich class of people. Tata has served everyone.
2. Massive trust
The company has taken more than 150 years to build this much trust in the customers. When we compare them with other business giants, Tatas are seen in a completely different light and if they enter into a new domain the customers will support them because Tata has built massive trust among the customers.
3. Legacy in Indian Market
Tata has created a legacy which reformed the Indian economy. They have done a massive amount of work for the transformation of our nation and have expanded across different industries.
Challenges
The Tata group is facing 3 major challenges. They are as follows:
1. Intense competition
Tata group is facing intense competition from huge market players like Mahindra and Mahindra, Aditya Birla group and Adani group. In the automobile sector they are facing competition from Maruti Suzuki, in the telecommunication service sector they are facing competition from Jio, Bharti Airtel,and Vodafone. Accenture and IBM are their competitors in the IT sector . In the power sector Adani power and Reliance power are their strong competitors. So the Tata group is facing tough competition from the market.
2. Slow growth rate
Tata companies are more industry oriented and infrastructure heavy business. So their growth rate is comparatively slow because of the complexity.
3. High Debt
Majority of Tata group companies have High debts. Companies like Tata motors, Tata chemicals and Tata steel are facing high debt challenges.
Business Strategies
For overcoming these challenges the Tata group is employing 3 step strategies.
Simplifying product lines:
Simplifying product lines has been one of the key goals as stated by the chairman of Tata group. It is the process of reducing the cost and risk by effective product offering.
Forward looking approach:
This strategy includes considering the future developments when making plans especially when using modern methods and techniques.
Creating an Ecosystem:
The group is creating an industry wide ecosystem that connects markets, industries and businesses across the globe, creating new patterns of consumption and new ways of learning.
Conclusion
According to their latest performance, Tata Group is going to outperform all other groups in the coming years.The 150 year old company that has built so much trust in our nation is definitely going to lead from the front.
- ANJU PAULSON
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August 12, 2023
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