SWOT Analysis of Tata Steel, Its USP and Competitors

Tata Steel SWOT

by Shamsul
SWOT Analysis of Tata Steel
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SWOT Analysis of Tata Steel, Its USP and Competitors

Tata Steel is one of the most reputable Indian steel manufacturing companies. This multinational company is headquartered in Mumbai, Maharashtra. The company mainly operates in the steel and iron sector. It is owned by Tata Group, which has an excellent reputation in the Indian business sector. The company also specializes in manufacturing chemicals and industrial products. Today, we will do a complete SWOT analysis of Tata Steel which predominantly covers its strengths, weaknesses, opportunities, and threats.

A SWOT is one of the most effective strategic planning tools that help to discover the company’s internal (strengths and weaknesses) and external (opportunities and threats) factors. On the basis of collected data, Tata Steel can transform its business strategy and future business plans to diversify its revenue stream and expansion. Due to this reason, SWOT is a handy tool for every business. It is an excellent opportunity for Tata Steel to set its competitive position in the market by conducting a comprehensive SWOT analysis. Let’s get started!

Company Name: Tata Steel Limited

Founders: Jamsetji Tata

Founded: August 25, 1907

Headquarters: Mumbai, Maharashtra

Parent Company: Tata Group

CEO: T.V. Narendran (October 31, 2017-)

Type: Iron and Steel

Sector: Chemicals and Industrial Products

Tagline: Values Stronger Than Steel

Unique Selling Proposition: One of the leading steel companies in the world.

Customers: Steel products, agricultural implements, and iron ore mining.

Target Consumers: Infrastructure, automotive, capital goods, and construction

Revenue: 59,878 crores INR (2022)

Net Income: 78,625 crores INR (2022)

Strengths of Tata Steel

The company has gained a competitive advantage due to its strengths. They are achieving success day by day because of their strengths. The solid financial position of Tata Steel is the major strength of the brand. Below, we have highlighted the company’s key strengths:

  1. The company has raised its captive collieries to over 14 million tons. They are also improving their products in other segments of steel and iron.
  2. Tata Steel has achieved immense success because of its fast adaptability. They can easily transform their business according to the business environment.
  3. They have more than 2000 metallurgists, which makes them a strong brand.
  4. The company has complete control over its raw material.
  5. The overall financial condition of Tata Steel is solid. This is the main reason for its growth and success.
  6. The parent organization of Tata Steel is Tata Group. This kind of strong backing makes it a powerful brand in India.
  7. Commercially, the company has a strong presence in more than 50 countries. However, they are fully operational in more than 26 countries worldwide. This has helped Tata Steel to increase its brand image and awareness.
 

Weaknesses of Tata Steel

In SWOT analysis, weaknesses are the most critical factors. They stop your company from achieving your business goals or targets. In short, they reduce your competitiveness and hinder your growth. Identifying your company’s weaknesses and finding effective solutions to overcome them is crucial. The following are the most critical weaknesses of Tata Steel.

  1. Tata Steel is not that effective and operational compared to international steel companies. This is because of its limited presence and expansion. They should develop effective strategies to compete with international companies.
  2. When it comes to technological advancement, the company is behind when compared to other companies. They can overcome this problem by investing in the latest technology and equipment.
 

Opportunities for Tata Steel

The opportunities in SWOT highlight the areas of improvement which can help Tata Steel to increase its profit margins and expansion. They can focus on their manufacturing, product innovation, and other similar factors to give tough competition to international leaders. Plus, they can utilize their opportunities to retain their position in the Indian and global markets.

  1. The company needs to invest in new technologies such as direct iron ore smelting, The Corex process, and The Hismelt process.
  2. Tata Steel should make local as well as international partnerships with steel companies. They can help the company to promote the business at different levels.
  3. They should also make new acquisitions in Africa, Asia, and Europe to gain the maximum market share.
 

Threats for Tata Steel

The threats for any organization or company can be dangerous. They can negatively impact the business of Tata Steel drastically. It is necessary for Tata Steel to constantly evaluate its business using the SWOT tool in order to identify the threats revolving around the company. However, changing rules and regulations, competitors’ performance, and substitute products can harm the business of Tata Steel.

  1. The increasing cost of coal is one of the biggest threats to the brand.
  2. The current economic ups and downs in India can also create trouble for the business of Tata Steel.
  3. The changing government policies and regulations can also impact the business of the company.
  4. The rising competition in the international market is another big threat to Tata Steel.
 

Competitors of Tata Steel

  • POSCO
  • SAIL
  • ArcelorMittal
  • JSW Steel
  • Essar Steel Limited

 
 

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