Strategic Management




Theproblem identified is that despite the massive development inengineering, consumer products, and materials, Tata Group finds greatchallenges in adding value to the Indian market. The growth of Tatacan, strongly, be attributed to the fact that India was under theBritish Rule immediately after gaining independence, the Indiangovernment designed a federation system that made it hard for foreigncompanies to invest in the country. Companies and organizations hadto obtain a trading license for them to import or conduct business inthe Indian market. Given that Tata Group was a local company, thismeant it had a competitive advantage and a large market to serve. Thegrowth of the company, combined with its diversified expansion, canstrongly be attributed to the state, the government, and the localpeople. This study identifies that despite the massive contribution,which India had for Tata Group, the company’s development is stillinconsistent with the needs of local people. More clearly, thecompany faces myriad problems with its interaction with the localmarkets (Schilling&amp Scott,2013). Majorly, Tata Group serves foreign markets, and its goals andlong-term focus is not only in serving the local market, but it alsoworks towards investing in foreign nations, where there aresignificant chances of successful market entry. The research on theTata Case (Schillinget al., 2013)supports this supposition stating that ‘As the Tata Group goesthrough its new global role and contribution it should find abalance between economic growth and investing in the Indian market.’(Schillinget al.,2013).The company’s entry in South Africa to stimulate the economythrough the provision of affordable trucks and cars is a goodbusiness move. However, given that its inception can strongly beattributed to the local people and the Indian government, it isrecommendable that Tata Group sets its mission, vision, and goals ingrowing the Indian market, improving the local economy, andstreamlining local trade.


Thereare myriad opportunities that can be used as solutions to theaforementioned challenges and problems. The sales percentage of theTata Group is high the leading sectors include engineering,materials, energy, services, consumer products, and chemicals(Schilling, 2010). An alternative solution to investing anddeveloping the economy of the Indian market would be to base most ofits industries locally this will, in turn, create significantemployment opportunities for the locals. An important considerationwill be to liaise with local enterprises in the creation of productsand services that are not only affordable but equally accessible toconsumers. Currently, India is among the fastest growing economies(Schilling, 2010) hence, there is a great potential in most of theproducts that Tata Group specializes in. The company can, therefore,consider basing operations, supply chain, manufacturing, andprocessing locally. This is where it will make use of localresources, invest directly in local infrastructures and facilities,and create an investment climate for the coming generations ofentrepreneurs. When Samjetsi Tata founded the organization, hisprimary goal was to grow the company parallel to the Indian economy.Tata envisioned a developed India, a self-sustaining nation, and anenterprising country that would serve foreign markets. This studysupports that Tata mission based-governance and management does notmake significant sense for an organization that earns a majority ofits income abroad (Schillinget al.,2013). Nevertheless, it has immense potential to invest in localmarkets, to build research facilities, to strengthen bothcommunication and transport infrastructures, and to rejuvenate theIndian economy parallel to its own growth.


Schilling,M.A &amp Scott, N. (2013). Case24: The Tata Group, 2013.1-10.

Schilling,M. A. (2010). Strategicmanagement of technological innovation.New York: McGraw-Hill/Irwin.