Tata Steel Porter's Five Forces Analysis

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Tata Steel is the second largest Indian Steel Companies in terms of domestic production. The vision of Tata Steel are “To be the global steel industry benchmark for Value Creation and Corporate Citizenship”. While for the mission are sustainable growth, differential value creation, enhance employees' competencies, continuous improvement of business processes and being responsible corporate citizen. Tata Steel has develop strategic management for their company. Strategic management is the formulation, implementation and evaluation of a particular strategy. Organizational environment in Tata Steel consists of both external and internal factors. Analysis of internal environment helps in identifying strengths and weaknesses of an organization.…show more content…
This tool is assess how each of the market drivers impact Tata steel. Firstly, rivalry among competitive firms with Tata Steel is high barriers to entry and low barriers to exit. The four major domestic rivals with Tata Steel are SAIL, JSW, ISPAT and ESSAR Steel. Secondly, potential entry of new competitors is high. Barriers to entry are capital requirements, economies of scale, government policy and product differentiation. Tata Steel owns raw material assets such as coal and limestone mines through joint ventures or completely, with the assets spread across countries such as Australia, Oman and Mozambique. Third, potential development of substitute products is low. Steel has already been replaced in some large volume applications such as railway sleepers, large diameter water pipes, small diameter pipes, and domestic water tanks. Fourth, bargaining power of suppliers is low for the fully integrated steel plants as they have their own raw material like iron ore coal. However, those who are non-integrated or semi integrated has to depend on suppliers. Lastly, bargaining power of consumers are mixed. Some of the major steel consumption sectors like automobiles, oil and gas, shipping, consumer durables and power generation enjoy high bargaining power and get favorable…show more content…
The company’s long term strategy is to continue to pursue capacity expansion in India through Green field projects as well including Orissa, Jharkhand and Chhattisgarh projects. Tata Steel has organised its India business into strategic market sectors. The sector teams develop the commercial plan of the business taking into account its differentiated product strategy to secure long-term relationships with its customers. Tata Steel has introduced brands like Tata Steelium, Tata Shaktee, Tata Tiscon, Tata Bearings, Tata Agrico, Tata Wiron, Tata Pipes and Tata Structura. Tata steel are use marketing strategy such as four P’s. Tata Steel products, produced by the Company’s Indian operations and its NatSteel and Tata Steel Thailand operations. Pricing in industrial marketing is closely related to the firm’s product, distribution and communication strategies. Distribution channels at Tata Steel are delivers steel products to Indian customers through direct supply channels. Promotional activities undertaken by Tata Steel are branding steel based on customer focus and branding steel. Tata Steel has made significant innovations in global positioning systems for the mining industry. The inventory of all Research and Development activities is updated regularly for effective leverage in the

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