Tata Steel Case Study Essay

6972 Words28 Pages
Strategic Management
Credit Accumulation & Transfer Scheme (CATS) – Undergraduate – Degree in Business & Management Studies

“Position Analysis of Tata Steel”
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Table of content

Title page | 1 | Table of content | 2 | 1. Introduction | 3 | 2. Historical
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2.1 History

In 1907, Jamsetji Tata, an industrialist, established Indians biggest and first steel plant. At the same time it was Asia’s initial private sector steel company. The reason of Tata Steel’s establishing was that Jamsetji had the idea of developing an iron and steel industry in his own country.

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2.2 Strategic drift

One significant point in position analysis is the strategic drift, which is defined and illustrated (exhibit 1.1) in appendix 1.
Since its establishment, Tata has shown a strategy of incremental change. Arguably, that point was important because so the group might vary within the current market. In the nineteenth – century steel was seen as an unprofitable section. Even more than 50 independent steel producers went into bankruptcy in the USA (Business Monitor International Ltd, 2010: 54).
In the late twentieth century, demand growth was strongly low. In contrast, the twenty –first century saw a boom in demand. For instance, Tata bought weaker players internationally, such as NatSteel in 2004, which was Tata Steel’s first overseas acquisition, and the Anglo – Dutch giant Corus in April 2007. Through the investment in Corus, Tata has created a manufacturing and marketing network in Europe, South East Asia and the pacific – rim countries. These acquisitions were also the result of using a strategy of
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