Jaguar and Tata Companies’ Strategic Planning

Nature of Strategic Management

Description of the company

Jaguar is a profit-oriented international organization that deals in automotives in different countries. Over the years, the organization has faced several challenges, which are either based on management or strategic planning. Since the aim of every company is to progress and obtain more profit, it is important to identify strategies for the company very well to be within the most competitive business trends (David, 2010). In addition, dealing in global automotives requires establishment of proper strategies to ensure that the company’s survival in spite of the increasing competitions from the related countries.

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Long-term Objectives

Jaguar’s main driving force is its objectives to become the leading automotive industry in the globe. This has kept the organization very focused through trying various avenues to realize its goals. In reference to this, the organization has laid down several strategies to ensure its relevance in the global automotive industry. Therefore, it has laid several long-term objectives.

The first long-term objective of Jaguar is to venture into environmentally friendly vehicles. In this, the company aims at producing quality automotives that reduces air pollution. Through this, the organization will gain market in several countries as most countries resort to the use of vehicles releasing low-carbon content. In respect to this, the company has also formulated a long-term objective to produce low-carbon vehicles. This innovation will satisfy its customer as well as increase its market networks. This objective will meet the international automotive industry requirement as well as securing the best place in global automotive markets. The last long-term objective of the company is securing several partnerships with various profit-oriented companies. Through healthy partnerships, the organization will progress as well as diversify its markets in the global business. In addition, going into partnerships with more stable organizations will facilitate obtaining more capital to ensure rapid expansion of its business network.

Strategy formulation

The organization’s strategies have been described as the key components in the planning process to warrant the success of the business (David, 2010). These outlined strategies are normally set out to realize that the business achieve its anticipated objectives. The strategies have been laid to cover a period of three years of Jaguar operations in global automatic industry. The organization has, therefore, grouped its strategies as integration, intensive, diversification, and defensive strategies (David, 2010).

Integration strategies

The company has formulated various integration strategies to ensure its progress. Therefore, it has outlined several steps to warrant its moving forward irrespective of the stiff competition evident in the current business operations. The company has formulated vertical integration strategies, which encompass forward, backward, and horizontal integration. For the forward integration, Jaguar has increased the number of suppliers of raw materials to boost its production capacity. This increase will ensure that the produced automotives do not run low in supply as the new objectives aim at producing high-quality vehicles.

The organization has also laid down various steps towards achieving backward integration. The company has increased on the purchase of the raw materials as compared to the past. This will ensure the maintenance of its production level as well as ensuring that the businesses remain as threats to several competitors.

On horizontal integration, jaguar has launched a price policy strategy to reign over its competitors. The organization will make sure that the vehicles’ production will be at low price and high quality to control of the global markets. Also, they will note that the outcome will appear after they maximize on both forward and backward integration strategies.

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Intensive strategies

There are also several intensive strategies that have been outlined by the organization. Among these include market penetration, market development, and product development. On the product development, the organization has strategized to increase the sale of cars by twenty percent every year for a period of three years. This has been outlined for achievement through online marketing of the cars.

On the market development strategy, the organization has strategized to increase the number of showrooms and outlets where the vehicles can be obtained. The organization has set aside funds to market its products globally and get potential markets for all its products in various countries. Therefore, the company will increase on the number of products to be sold as well experiencing business challenges in different geographical areas.

The last intensive strategy is the market penetration. To realize that the business increases its markets shares in various countries, the organization has set several ways to increase the number of employees working for the organization. Salespersons are also going to be increased so as the organization can fit well in the current business atmosphere. There will be the sales promotion in various countries for the business can market itself to various people of the world.

Diversification strategies

This is the strategy where the organization aims at widening its scope. However, the company plans to use a lot of money in widening the scope in order to release various products it cannot accommodate. Apart from manufacturing and selling of the vehicles, Jaguar has laid down plans to buy used cars from those homes.

Defensive strategy

The most important aim of every organization is to survive the competition and remain as a leading business in the market. Jaguar has, therefore, formulated various strategies to ensure that its competitors do not release counterfeit products. In this case, the organization has laid down strategies to ensure that customers identify its products using a distinctive brand. It has put forward the brand to single out its products from other competitors’ products.

The External Assessment

Michael’s Porter’s Generic Strategies

For the business to secure a workable competitive advantage, it has to adopt various strategies termed as generic. These strategies incorporate cost leadership, cost focus, differentiation strategy, and differentiation focus (David, 2010).

For the cost leadership strategy, the company has formulated some guidelines on how it is going to cut or even reduce on the cost of production. This will be done through reduction of labor cost. This will enable the organization to improve on its capital while minimizing the input costs. On the differentiation strategy, the company aims at producing unique vehicles with outstanding brands that will guarantee the outstanding aspects of the company in the global industry. Innovation of low-carbon vehicles would enable the organization to remain the most unique automotive industry in the global market.

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The focus strategy will also be adopted where the operations of the organization will be Gerard towards a specific segment of the market. The company, therefore, aims at producing classic cars that would attract the young people paying attention to the sporty appearances. In respect to this, the organization has decided to concentrate on producing sporty cars so as it can capture the booming market amongst the youth.

Implementing Strategies Management and Operations Issues

There are various techniques that a company can adopt to ensure the realization of all strategies. These ways are enhancing the corporation among competitors, joint venture and partnering, merger, private-equity acquisition, first-mover advantages, and outsourcing. Therefore, the company has decided on two ways to realize that their strategy is met (David, 2010). The first measure that the organization has taken involves participating in a joint venture and partnering with the Tata Company. This would mean that the two companies would eliminate very many countries competitors since they will be pulling resources together. Collaboration between these organizations will ensure that the companies grow and even prosper in various aspects.

The other way to ensure that all their strategies are realized is through the corporation among competitors. This business will collapse in a situation whereby the competitors are more aggressive than this company. In this regard, the company has been involved in various activities with the competitors to thrive well amidst the competitors. This implies that all the objectives and strategies set by the company would work against its competitors through giving Jaguar the best space to survive. Therefore, Jaguar Company has formulated the best strategies to ensure its development and competitiveness in the motor industry.

Works cited

David, Fred R. Strategic Management: Concepts. Harlow: Pearson Education, 2010. Print.

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StudyCorgi. (2020, October 28). Jaguar and Tata Companies' Strategic Planning. Retrieved from https://studycorgi.com/jaguar-and-tata-companies-strategic-planning/

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"Jaguar and Tata Companies' Strategic Planning." StudyCorgi, 28 Oct. 2020, studycorgi.com/jaguar-and-tata-companies-strategic-planning/.

1. StudyCorgi. "Jaguar and Tata Companies' Strategic Planning." October 28, 2020. https://studycorgi.com/jaguar-and-tata-companies-strategic-planning/.


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StudyCorgi. "Jaguar and Tata Companies' Strategic Planning." October 28, 2020. https://studycorgi.com/jaguar-and-tata-companies-strategic-planning/.

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StudyCorgi. 2020. "Jaguar and Tata Companies' Strategic Planning." October 28, 2020. https://studycorgi.com/jaguar-and-tata-companies-strategic-planning/.

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StudyCorgi. (2020) 'Jaguar and Tata Companies' Strategic Planning'. 28 October.

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