SWOT Analysis of Tata Steel. Tata Steel is a steel-manufacturing Indian multinational company. Dorabji Tata and Jamsetji Tata were the founders of Tata Steel and they laid the foundation of the steel company on August 26, 1907. The headquarter of the company is in Mumbai, Maharashtra, India.
Some of the main products and services of Tata Steel are as follows;
- Household steel goods
- Steel casing pipes
- Wire products
- Structural steel
- Long Steel Product
Key statistical facts and figures about Tata Steel are as follows;
- The annual revenue of the steel company in 2023 was 31 billion US dollars
- Out of which, the net income of the company was 1.1 billion US dollars
- Approximately 32,364 employees are working for the company to manage its worldwide operations
Some of the main subsidiary brands of Tata Steel are as follows;
- Jamshedpur FC
- Tayo Rolls
- Tinplate Tata
- Long Products Tata Steel
- Thailand Tata Steel
- Netherland Tata Steel
- UK Tata Steel
- BSL Tata Steel
Some of the top competitors of Tata Steel are as follows;
- United States Steel Corps
- JSW Steel Ltd
- Nippon Steel Corps
- ArcelorMittal Steel
- APL Apollo
Today, we’ll discuss the swot analysis of Tata Steel. It is going to focus on the internal strengths and weaknesses; external opportunities and threats to the steel manufacturing company. Here’s the swot analysis of Tata Steel as follows;
Strengths of Tata Steel
Some of the main strengths in the swot analysis of Tata Steel are as follows;
According to an estimate, Tata Steel is operating its business in more than 26 countries and serving customers in over 50 countries across the world. The company has employed more than 80,500 people to manage its worldwide operations. The worldwide operations and global network show the commitment of the company to the steel industry.
Strong Parent Brand
Tata Group of Companies is the parent company of Tata Steel. A powerful parent company makes sure that the subsidiary brand keeps floating. However, if it needs capital investment for business expansion, then the parent company would be there to do so.
According to an estimate, Tata Steel is consuming roundabout 14 million tons of ores from quarries, iron ore mines, and collieries in the production of steel. Such a high volume and scale of production allows the company to achieve economies of scale; it helps the company to decrease the per unit cost.
Tata Steel has got great control over raw materials and supplies, and the company has a strong capability to the changing market conditions and environment. In fact, the steel manufacturing company has integrated with over 2000 metallurgists.
Weaknesses of Tata Steel
Some of the main weaknesses in the swot analysis of Tata Steel are as follows;
Low Tech Oriented
The implementation and deployment of technology and tech tools in the production and manufacturing facilities of Tata Steel are very low. The lack of tech deployment is one of the greatest weaknesses of the company that other competitive companies are taking advantage of.
There are two main reasons for the operational inefficiency of Tata Steel; limited use of technology and lack of visionary leadership. The company’s leadership doesn’t have what it takes to make Tata Steel the leading manufacturing company.
Opportunities For Tata Steel
Some of the available opportunities in the swot analysis of Tata Steel are as follows;
Tata Steel has acquired many steel companies like Corus, Millennium Steel, NetSteel, and others over the years. They helped the company to expand its market position in various countries across the globe. In fact, the company should acquire coal mines in Asia and Africa, it would help the company to satisfy its energy consumption needs.
Tata Steel should consider developing partnerships and launching joint ventures with other growing steel manufacturing companies. It would help the company to share, talent, and resources; resultantly, the company would come up with something new.
Tata Steel is slowly adopting technology more than other competitive brands. The company should employ the latest technological processes; it would help the company to achieve efficiency and productivity through the following;
- Direct Iron Ore Smelting
- Hismelt Process
- Corext Process
Threats to Tata Steel
Some of the potential threats in the swot analysis of Tata Steel are as follows;
Steel manufacturing is highly competitive; there are top manufacturing brands operating business in the steel industry. Almost all the companies are producing the same type of product without any differentiation; it becomes highly difficult for Tata Steel to maintain its position in the market.
Increased Production Cost
The steel manufacturing cost has become very high in recent years due to high coal prices, labor costs, transportation, raw supplies, and other direct or indirect expenses. With high production and manufacturing cost, it decreases the overall profitability and revenue of the company.
Conclusion: Tata Steel SWOT Analysis
After an in-depth study of the swot analysis of Tata Steel; we have realized that Tata Steel is the world’s leading steel manufacturing company. If you are learning about the business of Tata Steel, then you should keep in mind the abovementioned internal and external factors.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.