BCG MATRIX ANALYIS AND SWOT ANALYSIS OF TATA GROUP.

1. BCG MARIX AND SWOT ANALYSIS
OF TATA GROUP
PRESENTED BY:
ROHIT
School of management, NIT Warangal

2. TATA Group Profile
• Founded by Jamshedji Tata in 1868.
• Total revenue of TATA companies taken together is 67.4 billion
dollar.
• 28 publicly listed enterprises having combined market
capitalization of 101.96 billion dollar.
• It comprises over 90 operating companies in 7 business sectors:
--communication and information technology
--engineering
--materials
--services
--energy
--consumer products
--chemicals

3. IT SERVICES- TCS
• Founded in year 1979
• 76th most trusted brand according to brand trust report
• Revenue- $8.2bn- 29.1% year on year rise
• Net income- $1.9bn- 31.1% year on year rise
• Market capitalization- $52bn
MATERIALS- TATA STEEL
• Formerly known as TISCO
• Worlds 7th largest steel company
• Total revenue- $22.741 bn
• Profit- $423.5 million
SEGMENTS OF TATA GROUP

4. TATA Teleservices and Communications
• It serves 85million customers in 450,000 villages and towns
• DoCoMo, Tata sky
• First private player to launch 3G service in India
• Revenue- 111.94bn rs.- 9.67% year on year rise
• Net income- 33.83bn rs.- 15.60% year on year fall
SERVICES- Indian Hotels (TAJ)
• Started in 1903 as TajMahal palace in Mumbai
• Company also operates in diversified areas such as TAJ Air, TAJ
safaris etc.
• Revenue- 1724.92 cr rs.- 13.45% year on year rise
• Profit- 141.25 cr rs.- 7.74% year on year fall

5. ENGINEERING- TATA MOTORS
• Worlds 4th largest Truck manufacturer and 2th largest bus
manufacturer
• 70% share in light and heavy commercial vehicle segment and 13%
in passenger vehicle segment
• Revenue- 52136cr rs.- 35.9% year on year fall
TATA AIG (housing and insurance)
• Established in 2001 with 74% stake of Tata sons and 26% stake of
American international holding (AIG)
• Ranked no. 1 in customer satisfaction and Ranked no.2 in claims
settlement satisfaction
• Income- 469cr rs. - year on year rise by 34%
• Annual turnover- 11.5cr rs. –loss of 7.2cr rs. From the previous
year

6. ENERGY- TATA Power
• Tata power started generation of electricity in year 1915 with
India’s first largest hydro-electric project
• It has entered into a 51:49 joint venture with Power grid
corporation of India for the 1200km TATA India’s 1st Transmission
project
• Revenue- 19450.76cr rs
• Net income- 970cr rs
• Market capitalization- 30123cr rs
OTHER SEGMENTS
- TATA CONSUMER PRODUCTS- salt, tea
- TATA CHEMICALS
- REAL ESTATE AND HOUSING
- VOLTAS

7. What is BCG matrix
• It is a chart created by Bruce D. Henderson in 1970 to help
corporations to analyze their business units and portfolio analysis.
• It was created for the Boston consulting group that’s why it is
called BCG matrix.
• The whole BCG matrix is based on relative market share and
market growth rate.
• On the basis of market share and growth rate the main four
element of matrix is determined i.e. cash cow, dogs, star, question
mark.
-STAR- high growth and high relative market share
-QUESTION MARK- high growth but relatively low market share
-CASH COW- low growth and a high market share
-DOG- low growth and low relative market share

9. BCG ANALYSIS OF TATA GROUP
STAR
• TATA steel are on star position in the matrix because they are
having having high market growth with high market share.
• Tata steel is the market leader in Indian steel market with 8.9%
market share
• The reason is mainly its standard quality and low manufacturing
cost.
• In the field of IT, TCS is the market leader with 10.1% market share
in IT sector. Growth rate is 13%
• It has the highest market capitalization of rs 495930.34cr
• TATA consultancy services comes on the star position because of
its leadership and high growth rate and high market share
• Tata hotel industry market is related with tourism and hospitality
with the revenue of 1724.92 cr rs. - 13.45% year on year rise

10. CASH COW
• commercial vehicle and heavy vehicle segments of Tata motors are
cash cows of TATA group due to low market growth rate which is
20.1% fall yearly but they are having high market share
• Reason of being market leader is unavailability of number of
competitors and also greater quality product and services
• consumer products like Tata tea and Tata salt are also in the cash
cow position because they are having a strong market
• Tata power is having market capitalization of 30123cr rs with the
revenue of 19450.73cr rs so it also comes in the cash cow position
QUESTION MARK
• TATA teleservices and TATA communications comes under question
marks as they are having high market growth and low market share
• Tata DoCoMo, Tata sky are the some products of this segments
• Tata Telecommunication and wireless communication segment is on
the 7th position in the market with 7% market share

11. DOG
• Passenger vehicle and light vehicle segment of Tata motors are in
the position of dogs in BCG matrix.
• They are having only 10% market share in comparison to Maruti
Suzuki which is the leader of this segment in market with 45%
market share
• The yearly fall in this segment is 6.05%
• Due to low market growth and low market share it comes in the
dog position
• Tata real estate and housing segment and AIG is also having low
market growth and low market share so they also comes in the dog
position in the BCG matrix

12. STARS
(High market growth and high market
share)
--INDIAN HOTELS
--TCS
--TATA steel
???
(High market growth and low market
share)
--TATA COMMUNICATIONS
--TATA TELESERVICES
CASH COW
(low market growth and high market
share)
--TATA POWER
--TATA motors heavy vehicle
and commercial vehicle
segment
-- CONSUMER PRODUCTS LIKE
TEA, SALT
DOG
(low market growth and low market share)
--TATA motors passenger
vehicle segment and light
vehicle segment
--TATA AIG
--REAL ESTATE
--HOUSING
HIGH
LOW
HIGH
LOW

13. What is SWOT analysis
• SWOT analysis is a structured planning method used to evaluate
the strengths, weakness, opportunities and threats involved in a
project or business venture
• A SWOT analysis can be carried out for a product, place, industry
or person
• It involves specifying the objective of the business venture or
project and identifying the internal and external factors that are
favorable and unfavorable to achieve the objective
• STRENGTH: characteristics of the business or project that give it
an advantage over other
• WEAKNESS: characteristics that place the business or project at a
disadvantage relative to others
• OPPORTUNITIES: elements that the project or business could
exploit to its advantage
• THREATS: elements in the environment that could cause trouble
for the business or project

14. Analysis of TATA Group
STRENGHT
• Global network delivery model In the field of information
technology
• Largest addition to workforce of 69685 professional in 2010-11
• Tata teleservices ltd has diversified into many sectors like mobile
services, wireless desktop phones, public telephony services, wire
line services, Tata sky etc.
• Tata motors focus on small car market-fuel efficient and low cost
• Tata motor trying to tap markets in us and Europe
• Turned around JLR(JAGUAR LANDROVER) into a profit making
• Tata steel having target to achieve 100 million ton by 2015
• Overseas acquisition have added capacity of 21.4 million tones

15. • Recently started a joint venture in airlines as AIR ASIA
• With the increase In tourism and travel in India company needs to
gear up with innovative ideas to keep up with competition
• Tata hotels -The best 5 star quality service in India
• Association with companies like GVK hotels and oriental hotels are
also in process for setting up new properties
• Continues to pursue contracts in India as well as south east Asia
• Tata power is planning to generate 8000MW in next 3-5years
• Tata power has announced its partnership with sun energy an
Australian firm to build India's first floating solar plant
• Tata AIG is planning to launch products in four different categories-
rural, well assurance, SMEs and high net worth individuals

16. WEAKNESS
• Unable to hold the market strongly in light vehicle and passenger
vehicle segment
• Maruti Suzuki is the leader in the Indian market with 45% market
share and Tata motors is not able to compete it in this segment
• Mahindra and Mahindra gives Tata motors a strong competition in
heavy vehicle and commercial vehicle segment
• With the rise of other insurance and housing companies TATA AIG is
not able to attract customers
• Not able to expand its real estate business, housing and insurance
sector
• In Telecommunication segment bharti Airtel and Vodafone gives a
strong competition
• Failure of Tata DoCoMo
• Late entry in wireless communication market
• Poor advertising strategy
• Poor network coverage

17. OPPORTUNITY
• Travel and tourism in India
• Make in India projects
• Merger and collaboration with the other big companies in different
sectors
• New market, exports and acquisitions
• Focus on Consumer products
• Expand in the countries US UK Australia middle east
• Construction
• Oil and gas sector
THREATS
• Startups in hotel industry like OYO ROOMS
• Strong market capitalization of other automotive industries
• Infosys Accenture IBM in IT field
• Free Indian market
• Other Public sector units

18. • STRENGTH
--Experience
--Micro environment
--Business Model
--Resources and capabilities
--Culture
• WEAKNESS
--Value chain
--Distribution
--Macro environment
• OPPORTUNITIES
--Exports
--New Products
--New Markets
--Acquisition & Mergers
• THREAT
--Free Market
--Low Barriers
--Globalization Of Economy

19. CONCLUSION
• In the whole TATA group is acquiring different strategy in different
market such as in home country Tata’s strategies are same as to
cost leadership and differentiations.
• No frill strategy- combines a low price and low value added, low
perceived product/services benefits and a focus sensitive market
• A hybrid strategy- to achieve differentiation and a price lower
than competitors
• It is India’s largest private sector employer, biggest taxpayer and
greatest foreign-exchange earner
• 134 years old TATA group is having a brand name and the most
trusted brand in India so it should also focus on other emerging
business segments and technology, it can enter in any segment
freely

20. THANK YOU