five force model on TATA motors.

1. SDM COLLEGE OF ENGINEERING AND MANAGEMENT
DEPARTMENT OF MANAGEMENT STUDIES
REPORT ON
PORTER FIVE FORCE MODEL
OF
TATA MOTORS
SUBMITTED TO:
Dr Saleem Sonnekhan
SUBMITTED BY:
DEEPA M
SURAJ P
MRUTHYUNJAY H S
NAVEEN H
RAHUL

2. Company Overview
 India’s largest and most trusted
Multinational Conglomerate.
 Founded by Jamsetji Tata in 1868.
 Headquarters in India.
 It comprises over 100 operating
companies, with operations in more than
100 countries across six continents,
exporting products and services to over
150 countries.
 The revenue of Tata companies, taken
together, was $103.27 billion (around
Rs624,757 crore) in 2015, with 67.2
percent of this coming from businesses
outside India.
 Around 581,000 employees worldwide.

3. Tata Motors Limited
 India’s largest automobile company.
 It is the leader in commercial vehicles in each segment,
and among the top in passenger vehicles with winning
products in the compact, midsize car and utility vehicle
segments.
 Also listed in the New York Stock Exchange
(September 2004), has emerged as an international
automobile company.

4. Porter’s Five Forces Chart

5. Bargaining Power of Suppliers
 To Manufacture vehicle number of
inputs used like steel,seat covers,tyres
etc..
 High competition among suppliers
 Diverse distribution channel
 Low cost of switching suppliers
 Volume is critical to suppliers

6.  High capital requirements
 Economies of scale
 Demand side benfit of scale.
 Customer switching cost.
 Distribution Channels...

7. Bargaining Power of Customers
 Driving prices far below competitors, causing them to exit, thus shifting
power with buyers back to the firm.
 Low buyer price sensitivity.
 Large number of customers.
 The barganing power of customer is low bcz company dominates
market with quality & reputation of so many years.
 However when automobile company goes for backward integration in
that case Buyer have the heigher barganing power like tata which have
its own steel plants so can face the problem of shortage of raw
materials.

9. Intensity of Existing Rivalry
 Large industry size,strong.
 Fast industry growth rate.
 The market is dominated by a few number of
large scale companies like maruti
suzuki,hyundai,tata motors comprising about
60% market share.
 Rivary is some what Reduced due to degree of
diffrentiation luxury & budget.
 Since industry competitivness is high.