SDM COLLEGE OF ENGINEERING AND MANAGEMENT DEPARTMENT OF MANAGEMENT STUDIES

REPORT ON

PORTER FIVE FORCE MODELOF

TATA MOTORS

SUBMITTED TO: Dr Saleem Sonnekhan

SUBMITTED BY:DEEPA MSURAJ P

MRUTHYUNJAY H S NAVEEN H

RAHUL

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.

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.

Porter’s Five Forces Chart

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

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

THREAT OF NEW ENTRANT

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.

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.