RATAN TATA

Strengths are the Tata Ratan capabilities and resources that it can leverage to build a sustainable competitive advantage in
the marketplace. Strengths come from positive aspects of five key resources & capabilities - activities & processes, financial
resources, past experiences and successes, human resources, and physical resources such as land, building .
- Managing Regulations and Business Environment – Tata Ratan operates in an environment where
it faces numerous regulations and government diktats. In Emerging markets, Leadership areas, the
firm needs to navigate environment by building strong relationship with lobby groups and political
network.

- First Mover Advantage – Tata Ratan has first mover advantage in number of segments. It has
experimented in various areas Emerging markets, Leadership. The Strategy & Execution solutions &
strategies has helped Tata Ratan in coming up with unique solution to tap the un-catered markets.

- Strong Balance Sheet and Financial Statement of Tata Ratan can help it to invest in new and
diverse projects that can further diversify the revenue stream and increase Return on Sales (RoS) &
other metrics.

- Intellectual Property Rights – Tata Ratan has garnered a wide array of patents and copyrights
through innovation and buying those rights from the creators. This can help Tata Ratan in thwarting
the challenges of competitors in various industries Emerging markets, Leadership.

- Diverse Product Portfolio of Tata Ratan – The products and brand portfolio of Tata Ratan is enabling
it to target various segments in the domestic market at the same time. This has enabled Tata Ratan
to build diverse revenue source and profit mix.
Weaknesses are the areas, capabilities or skills in which Tata Ratan lacks. It limits the ability of the firm to build a sustainable
competitive advantage. Weaknesses come from lack or absence of five key resources & capabilities - activities & processes,
physical resources such as land, building, financial resources, past experiences and successes, and human resources .

- Project Management is too focused on internal delivery rather than considering all the interests of external stakeholders. This
approach can lead to poor public relation and customer backlash.

- Track record on environment consideration is not very encouraging – Tata Ratan track record on environmental issues is not
very encouraging. This can lead to consumer backlash as customers are now considering environmental protections as integral
to part of doing business.

- Tata Ratan business model can be easily replicated even with the number of patents and copyrights the company possess.
The intellectual property rights are very difficult to implement in the industry that Tata Ratan operates in. Intellectual Property
Rights are effective in thwarting same size competition but it is difficult to stop start ups disrupting markets at various other
levels.

- Implementation of Technology in Processes – Even though Tata Ratan has integrated technology in the backend processes it
has still not able to harness the power of technology in the front end processes.

- Low Return on Investment – Even though Tata Ratan is having a stable balance sheet, one metrics that needs reflection is
“Return on Invested Capital”. In areas Emerging markets, Leadership that Tata Ratan operates in the most reliable measure of
profitability is Return on Invested Capital rather than one favored by financial analysts such as – Return on Equity & Return on
Assets.
Opportunities are macro environment factors and developments that Tata Ratan can leverage either to consolidate existing
market position or use them for further expansion. Opportunities can emerge from various factors such as - political
developments & policy changes, increase in consumer disposable income, changes in consumer preferences, technological
innovations, and economic growth .

- Lucrative Opportunities in International Markets – Globalization has led to opportunities in the international market. Tata
Ratan is in prime position to tap on those opportunities and grow the market share. Growth in international market can also
help Tata Ratan to diversify the risk as it will be less dependent on the domestic market for revenue.

- Opportunities in Adjacent Markets – Tata Ratan can explore adjacent industries Emerging markets, Leadership to further
market growth especially by extending the features of present products and services.

- Changing Technology Landscape – Machine learning and Artificial Intelligence boom is transforming the technology landscape
that Tata Ratan operates in. Tata Ratan can use these developments in improving efficiencies, lowering costs, and transforming
processes.

- Developments in Artificial Intelligence – Tata Ratan can use developments in artificial intelligence to better predict consumer
demand, cater to niche segments, and make better recommendation engines.

- Growing Market Size and Evolving Preferences of Consumers – Over the last decade and half the market size has grown at
brisk pace. The influx of new customers has also led to evolution of consumer preferences and tastes. This presents Tata Ratan
two big challenges – how to maintain loyal customers and how to cater to the new customers. Tata Ratan has tried to diversify
first using different brands and then by adding various features based on customer preferences.
Threats are macro environment factors and developments that can derail business model of Tata Ratan. Threats can emerge
from various factors such as - increase in consumer disposable income, changes in consumer preferences, economic growth,
technological innovations, and political developments & policy changes .

- Increasing costs component for working in developed market because of environmental regulations – Tata Ratan has to deal
with these costs as governments are trying to levy higher environmental taxes to promote cleaner options. For Tata Ratan it
may result into higher logistics costs and higher packaging costs.

- International Geo-Political Factors – Since the Trump election, geo-political factors have taken a turn for growing
protectionism. Developments such as Brexit, Russian sanctions, foreign exchange crisis & inflation in Venezuela, lower oil
prices etc are impacting international business environment. Tata Ratan should closely focus on these events and make them
integral to strategy making.

- Threats of New Entrants because of Reducing Costs and Increasing Efficiencies – As Tata Ratan can leverage low cost of
reaching customers using social media and e-commerce, so can the competitors – both local and international competitors.

- Culture of sticky prices in the industry – Tata Ratan operates in an industry where there is a culture of sticky prices.This can
lead to inability on part of the organization to increase prices that its premium prices deserve.

- Increasing bargaining power of buyers – Over the years the bargaining power of customers of Tata Ratan has increased
significantly that is putting downward pressure on prices. The company can pursue horizontal integration to consolidate and
bring efficiencies but I believe it will be a short term relief. Tata Ratan needs fundamental changes to business model rather
than cosmetic changes.