House Of Tata
The Tata Group
Managing a Conglomerate in an Emerging Market
Environmental Analysis
In 1991 the Indian government introduced a series of drastic reforms, liberalizing its government owned and controlled economy. Product expansion and new market entry became easier for companies in virtually every sector of the economy. This presented Tata with many opportunities to leverage its strong brand equity and financial resources to enter new markets and industries. The strong brand image gave it a tremendous advantage over competitors in a variety of industries. However, the government reforms also lowered barriers to entry and increased competition in all of Tata’s industries. Foreign companies flooded into India, threatening to take market share from Tata companies. The world was globalizing and India was liberalizing its economy. Tata was forced to consider its strengths and weakness, analyze its many businesses and their industries, and evaluate the threats and opportunities presented by this changing global economy.
Internal Analysis
Resources and capabilities we identified as providing competencies for Tata are its skilled workforce, brand equity, the entrepreneurial spirit and strong corporate culture, the capability to create synergies between units, and Ratan Tata’s strong relationship with the Indian Prime Minister. The following table analyzes Tata’s resources and capabilities and their implications on the company’s competitiveness and economic performance.
VIRO Analysis of the House of Tata
Resources/ capabilities Valuable? Rare? Costly to imitate? Exploited by Org. Competitive implication Economic performance
TAS/Skilled Workforce Yes Yes Yes Yes Temporary competitive advantage Above normal
Brand Equity Yes Yes Yes Yes Sustained competitive advantage Above normal
Corporate Culture/
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