Code Karthikeya (1) 21st Nov

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Global Strategic Management 7009MHR 1 | P a g e

Table of Contents Task 2 ......................................................................................................................................... 3 Porter Generic strategies ........................................................................................................ 3 Ansoff Matrix ......................................................................................................................... 3 BCG matrix ............................................................................................................................ 4 GE/McKinsey matrix ............................................................................................................. 5 References .................................................................................................................................. 7 2 | P a g e

Task 2 Porter Generic strategies This group uses a combination of cost leadership, distinctiveness, and focus tactics to overcome competitive pressures. Achieve cost, differentiation, focus, customer base, and revenue growth goals by concentrating on the utmost suitable and targeted development strategies grounded on three major strategic streams ( Lu et al ., 2013). The Tata Group employs aggressive growth strategies to meet its growth goals, including market penetration, product development, market development, and diversification. Cost leadership Cost leadership strategies use cost cutting methods to gain competitive advantage. Cost leadership is a crucial overall goal for the Tata Group across many consumer segments. The In most nations, the middle class are the majority of the global consumer market, so Tata Group can increase its market share by targeting the middle class. Middle-class consumers are frequently very price sensitive, so cost leadership is the best strategy to satisfy their needs ( Moon et al., 2015). Differentiation Using differentiation as a competitive advantage is a common strategy. A supplementary generic approach based on product differentiation can help the Tata Group expand its client base. In order to differentiate itself from its competitors, Tata Group advertises its products using a common differentiation strategy. Since the brand is established, flavorful, and has a strong presence, the company uses uniqueness as a strategy to lessen competition ( Shah, 2014). To differentiate itself from its competitors, the Tata Group invested heavily in marketing, advertising, and celebrity endorsements. Focus strategy Concentration is a third common strategy used in competition. This forces businesses to concentrate on particular expanding niche markets. When businesses use focus strategies, they use niche marketing to obtain a competitive edge and target particular market segments. The Tata Group implements a strategy that prioritises delivering goods and services at the lowest possible cost. Serving the demands of the most economical and narrow market segments is part of a low-cost focus approach. The taste, size, and design of the products that best meet the demands and requirements of the client are taken into consideration when implementing a best value focus strategy ( Shah, 2018). Ansoff Matrix Market Penetration 3 | P a g e

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When an organization has the chance to increase its market share in its current sector, it will employ market penetration strategies. This takes into account the present climate and a sales- oriented approach. Increased sales touch points, direct customer targeting, improved dealer networks, higher customer lifetime values, higher customer cart shares of total spending, can all help achieve market penetration. Market Development Ratan Tata uses market development techniques to expand the markets and distribution channels for its present products ( Srivastava et al., 2021). This entails expanding into new local and international areas as well as collaborating with related businesses to promote our current products. Product Development Tata Ratan creates new goods for existing markets or enhances existing items with additional features during the product development process. One of the most notable instances of a business adopting a product development strategy is Microsoft's regular release of new versions of Windows Office. The product's target market and target customer are largely unchanged, but the company keeps releasing updated versions of the product to appeal to existing markets. Diversification Tata Ratan might use a diversification strategy if the product and the market are both uncharted territory for the business. When a business discovers potential in related or unrelated areas, it employs diversification tactics. Because the company was new to both the product and consumer markets, it was necessary to develop a sales and revenue model that was entirely different from the one utilised for the corporate productivity business. BCG matrix The BCG Growth Share Matrix's four primary quadrants are Stars (High Market Growth, High Market Share), Cash Cows (Low Market Growth, Low Market Share), and Emerging Markets (Low Market Growth, Low Market Share). Question Mark (Rapid Market Growth, Low Market Share), Dog (High Market Share), and Dog are the four main quadrants of the BCG Growth Share Matrix. Selling Dogs and deciding whether to keep or sell Question Marks is the best course of action ( Subramanian, 2022). Question Marks Products in the question-mark quadrant come from markets that are expanding quickly but hold modest market shares. The most difficult product to manage, In order for Question Mark 4 | P a g e

to increase its market share, substantial funding and resources are needed. Investments in question marks are typically financed with cash flows from the cash cow quadrant. Dogs The markets for the products in the dog quadrant are slow-growing and have lower product market shares. Products in the dog quadrant can frequently support themselves and produce a profit, but never those in the star quadrant( Tripathi and Kumar, 2020). Companies typically place their products in the dog quadrant unless they are used to complement another product or to compete with it. Stars Products in the star's quadrant are available in rapidly expanding markets where market share counts. Products in the Star Quadrant are industry leaders and require significant investments to maintain market share, spur growth, and preserve competitive advantage. Cash Cows The marketplaces for the products in the cash cow quadrant are small and have large product market shares. Products in the cash cow quadrant are regarded as market leaders. The product has already received significant investment; further investment is not necessary to preserve its position. GE/McKinsey matrix  Protect position: This entails making investments to maintain the market leadership and quick expansion of the Tata Group.  Build carefully: To become more competitive, Tata Group buys limited-strength specialities. We will pursue a market exit strategy if there is no opportunity for sustained growth or a competitive advantage.  Invest to build: The Tata Group makes investments to develop its strengths and strengthen its position in the market. Vulnerable areas should be managed.  Manage for income: Invest in growing industries with favourable profit and return prospects and minimal risk. The most lucrative goods must be improved to preserve profits( Verma and Srivastava, 2011).  Harvest or Expand: Look for Tata Group's ability to expand with minimal investment. If not, the Tata Group will need to reduce costs in order to recover investment.  Divest: Going forward, this demands no new investments or expense savings. In order to release the company's monetary value, we intend to sell our company. 5 | P a g e

 Preserve position and refocus: It is essential to think about the prospect of reorienting the company in order to channel the Tata Group's current strength toward new markets. 6 | P a g e

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References Lu, Y., Au, K., Peng, M.W. and Xu, E., 2013. Strategic management in private and family businesses. Asia Pacific Journal of Management , 30 (3), pp.633-639. Moon, H.C., Lee, Y.W. and Yin, W., 2015. A new approach to analysing the growth strategy of business groups in developing countries: The case study of India's Tata Group. International Journal of Global Business and Competitiveness , 10 (1), pp.1-15. Shah, S., 2014. Corporate social responsibility: A way of life at the Tata Group. Journal of Human Values , 20 (1), pp.59-74. Shah, S., 2018. The Tata Group: From Torchbearers to Trailblazers . Penguin Random House India Private Limited. Srivastava, A.K., Negi, G., Mishra, V. and Pandey, S., 2012. Corporate social responsibility: A case study of TATA group. IOSR Journal of Business and Management , 3 (5), pp.17-27. Subramanian, S., 2022. Importance of Socioemotional Wealth in Indian Family Business Group: The Case of Tata Group. Paradigm , p.09718907221125964. Tripathi, R. and Kumar, A., 2020. Humanistic leadership in the Tata group: the synergy in personal values, organisational strategy and national cultural ethos. Cross Cultural & Strategic Management . Verma, S.K. and Srivastava, R.M., 2011. Strategic management . ABD Publ.. 7 | P a g e

Code Karthikeya (1) 21st Nov

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