SWOT Analysis for Jaguar Land Rover Corporation

In the United Kingdom car marketplace, there is an array of inspiring wagon producers. They produce various car modes to match the demands of the consumers and also to compete in the competitive marketplace (Ford Motors 2009). The major car producers in the United Kingdom are GM (Vauxhall/Opel), Tata Motors (Land Rovers, and Jaguar), Nissan, Toyota, VW (Bentley), BMW (MINI, Rolls Royce), and Honda. For the last five years, locomotive has been the largest United Kingdom export segment whereby the company export in excess of seventy-eight per cent of the produced cars abroad.

Wagon manufacturing is a very lucrative corporate, that is why most of the manufacturing businesses are day-to-day improving their market-mix to meet the demands of the consumers also to meet the market competition. Thomson (2008) says that this a mature arcade and there are barriers to entry that has been imposed for newcomers. The corporate wants sufficient resources also heavy hoards as a source of raw materials, as well as strong technical experience (Thomson 2008).  For all market segments, newcomers are facing robust competition as they attempt to enter into the trade. 

The Jaguar Land Rover is among the United Kingdom wagon manufacturing corporation that was instituted in 1992 by two motorbike fanatics namely William Walmsley and William Lyons a Jaguar. Initially, the corporation was manufacturing motorbikes, side carriages and later changed to car production. In 1966, the business amalgamated with the British Motor Corporation and similarly, in 1975 it became British Leyland. At first, Jaguar was listed in the London Stock Exchange in nineteen eighty-five, then became FTSE100 index component till Ford acquired it in 1989. In the year 2008 March, both Land Rover and Jaguar were purchased by Tata Motors that is an Indian Company. Nonetheless, according to Ford Motors (2009), via a pact, Ford had the duty to feed Jaguar with essential info, know-how, powertrain and equally the imminent products.

Jaguar Land Rover is not only recognized in the United Kingdom but globally for being the foremost in manufacturing the comfiest carriages. The corporation produces an extensive range of comfortable wagons such as convertibles, Sedans like S type, X type, XK, sedans and XJ. There are similarly the Range Rovers for the Land Rovers. Presently, the corporation is 4th listed in the United Kingdom marketplace after GM, BMW, and Honda with a yearly income of £3, 397000. Jaguar Land Rover operates within a niche marketplace as their products have the little customer base within the international marketplace. This was well established from the amenity as the managerial segments that is answerable for nearly eleven thousand wagons that are marketed yearly in the United Kingdom. This is because of this marketplace stiffness that has led JLR to employ some strategies that elucidated in form of SWOT analysis that will aid to improve the operations of the company.

Business Analysis for JLR Corporation

The SWOT analysis

Strengths

The strengths of the company depend on the business’s well-renowned for manufacturing topmost range carriages and outstanding staffs (Duane & Michael 2011).  JLR also have strengths in R&D that allow the company to repeatedly have a competitive advantage over rivals.

JLR have very effective brands in the international market that have their strengths. To begin, the major strength of the company is their foremost brand of comfortable wagons. Most of the carriages of the corporation have gained some admired prizes making the goods openly tolerable. This has made JLR have a prompt decipherable icon. Some of these prizes comprise, Gear magazine that had twofold victory (best centre of the day also the best executive wagon of the time in 2009), also Magazine fleet realm credits. These prizes come along when the corporation had announced exclusive vending points in Jaguar drive selector, Shift TM, Jaguar Control TM, as well as Jaguar Sequential.

Furthermore, the TATA proprietorship has positive impacts on the corporation. Although formerly had undesirable reaction concerning the sales of Jaguar Land Rover in 2008, TATA, has up to now made

known an honest commitment in developing the current corporate brands and similarly advance additional brands that will fit in the marketplace and progress the sale. This is since TATA Vehicles Limited is an ancient business also is the biggest wagon production corporation in India.  Following the TATA SWOT study, there is a prodigious hope of developing the sales of the Jaguar Land Rover Business.  The Land Rovers British product image is similarly one of the key strengths of JLR. The defender car is amongst the sturdiest endurance compared to other wagons. The point that the features of the cars are set for the maximum to remodel, it brought in a virtuous move in the twenty-first century.  Also, the Range Rover product endures to top auctions, particularly in the Chinese plus Indian arcades. The Range Rover has also established a decent market within the Middle Eastern Marketplaces of which they have gained virtuous arcades in the present time.

Weaknesses

Jaguar Land Rover Company has not been seen as a specifically ecological friendly corporation and this has a rising effect the performance of the company. As the corporation sales high end wagons, the corporation is selling just in smaller market niches, and hence missing out to tap into the markets for inexpensive substitutes (Duane, I, & Michael, 2011).  Although the JLR is quite common in the United Kingdom, it is the same scenario in the whole world. The business is experiencing a hard hostility in the struggle for markets shares in other landmasses such as North America, Europe and Asia by their opposing players such as Porsche, Mercedes, BMW 7 and 3 series, as well as Audi. Furthermore, in the existing marketplace reports, the corporation has been losing in the United States markets with their sales reducing day-to-day. At the end of 2008, Jaguar Land Rover evoked 2008/09 XF Sedans because of rare seatbelt concern assembly. They similarly recollected 2003/04 XJ model to gather abrasion of rust defense problem.

The rising dependence of 4X4 in the international marketplace will lead to an rise in risks in contemplation of the international rise of economic emergency. The existing trend problem on the release of Carbon dioxide, as well as the run regulation concerning the matter will bring in some alterations and impacts 4X4 automobiles. Because of the road tax rise did not have a serious effect on the marketplace, there would be an introduction to the sturdier technique of lessening the augmented amount of large unproductive automobiles. Hence, Pierini & Eckert (2008), state that the Land Rover needs to be prepared for this earlier; definitely will be the next terminus.

Most of the models of the company need to progress to gain trusts from consumers in German and Japan arcades. There has been a slight development in branding over the last few years besides this called for more advancement so as to face the high competitions. According to Duane & Michael (2011), all Jaguar Land Rover products were considered below average in the years 2011 in contrast to their costs as well as the expected off-load abilities.

Opportunity

In need of rising market shares as well as sales, Jaguar Land Rover has targeted Canada as its innovative marketplace, where it has established some of their original models such as XF series, besides 2010 Jaguar XF Modified. The business has similarly extended its activities in the Chinese and Indian marketplaces also it has been placed amongst the fastest rising wagon marketplace at the moment (Barney 2010).  Moreover, Jaguar Land Rover has been active and committed to lessening release carbon dioxide gas, the energy usage for each automobile rise investment within the know-how innovation thus a virtuous hopefulness of development.

Jaguar Land Rover has to carry on to develop upon their quality status if they must retain their competitive advantage with the market. Jaguar Land Rover has outstanding Research and Development and it uses this to advance their environmental image since this is increasingly becoming significant within the car business.

Threats

The international economic climate will carry on to threaten the strategic position of JLR owing to rising prices of fuel, less disposable incomes, as well as altering interest rates. Legislative regulations will also threaten JLR, for instance, severer discharge regulations will make Jaguar Land Rover spend surplus outlay to upgrade then advance current facilities and brands,

Moreover, since most Jaguar Land Rover wagons are exported abroad, the firm marketplace will highly rely on the day-to-day variation of the money which occasionally can lead to disadvantage in the international rivals. For example, sturdy British Pounds contrasted to weak Yen or Euros would decrease the sales of the business or deteriorate the fiscal status of the corporation in the European as well as Chinese Marketplaces (Gross 2008). The variation in the oil price, as well as raw materials, are also threats to the profits of the company. According to Gross (2008), the existing legislation rules from European Union standards on the emission of Carbon dioxide gas may lead to high fiscal calamity if they fail to fully obey.

Following the SWOT study, there is a need to comprehend modern wagon models of the firm as well as their effect as scrutinized within the market mix (Huselid 2006). It is perfect to state that although Jaguar Land Rover enjoys market power within Europe markets, in other landmasses, the company faces stiff opposition from other producers.  Currently, in most of these abroad marketplaces, Jaguar Land Rover Company brands have been experiencing undesirable results in the sale. According to Huselid (2006), the reduction of auctions has similarly been highly inspired by the existing economic crunches internationally that have impacted all firms that manufacture vehicles. For Jaguar Land Rover to appreciate virtuous auctions as well as marketplace shares in both Europe markets as well as abroad, there are several modifications besides strategies laid down to realize this. This will include some decisions including Human Resource issues to meet and increase the opportunity so as to make the performance of the business effective. This is mostly in the market mix strategies of the business.

impact on the company’s business or corporate strategy.

JLR company policy ‘Changing the brands as well as business activities through ecological invention, capitalizing on people, progressing know-how and supporting communities globally.’ Jaguar Land Rover assumed two key sustainability approaches which are social responsibility along with social responsibility following the analysis of its business environment via SWOT study (Huselid, 2006). The ecological duty is a longstanding development objective, behind it comes bearable brands as well as functioning resolutions to allow the business besides environs to gain. To realize this, the company has set some aims such as the reduction of emissions of Carbon dioxide gases, and influence product life-cycle (Huselid, 2006). As for the maintainable business activities, it has been advanced by showing headship in operation as well as supply chain. Some of the main foremost performance pointers set for are getting rid of wastes, also improve the efficiency of resources, reduction of ecological effects of the company’s logistic (Azevedo, and Barros, 2017). The world social duty is creating chances as well as communities by targeting healthy talents as well as skills, developing talents plus skills for imminent staff prosperous society around the globe, this by progressing know-how, developing talents as well as skills. The company aims at improving performance and to foster talents, improve strategies and expertise abilities for the prospect. Main aims are sets include staff to volunteer to improve societies, and to support international communities. The sustainable policy depends on the significant matter to the investors as well as how the Jaguar Land Rover can best react to worldwide trends also where the corporation can have the best influence. Based on the sustainable strategies that JLR developed after analyzing the business environment, the SWOT analysis also impacted the following company strategies: 

Product strategy

Jaguar Land Rover wagons can gratify the desires of several precious clients since the company uses the modern material as well as the know-how to aid the business the most effective besides comfortable. According to Barney (2010), the fashionable designs of the wagon model is amongst the largest edges of the company since it makes the brands very attractive to potential customers. For example, the interior of the wagon ‘is superbly smart also effortlessly elegant.

The JLR carriages interior characteristics a suite of the newest know-how to offer passengers as well as drivers with the comfiest, most enjoyable experience possible (Huselid, 2006). As stated by Huselid 2006), all versions of Ranger Rovers comprise Climate Control-Automatic with Air Purification, Covered Centre Console Interior Mood light, besides the Oxford Leather Steering Wheel. The 2.2-L 150hp eD4 engine of Range Rover for amongst the greatest strengths that contrasts the wagon from the preceding

Pricing Strategy

The cost of the Jaguar Land Rover wagons varies depending on the engine spec and model of the car. As inscribed on the websites of Landrovers, consumers can select one of the design ideas: Dynamic, Pure and Prestige. Pure is the inexpensive car version that ranges between £ 31, 185-33,805, while the costliest model is range rover Evoque. To attract more consumers, the corporation must come with different pricing strategies. For the model, the XJ Luxury 3.0 V6 Diesel will be accessible from £56, 756 tax inclusive. Although most of the company’ s wagons care meant for opulent individuals, the business is making an effort to revolutionalize the markets by manufacturing models that will compete with inexpensive carriages from other corporations

Promotion Strategy

The JLR corporation has instituted a marketing plan via Television music competition whereby a wagon will be an incentive for the best soloist, and this will be the best technique to build the company’s image. Also, usage of dealership alone is equally popular promotion plan. In this strategy, the pressure is placed on consumers then swayed to purchase the wagons, and this is mainly done via inspiring display areas as well as product deals (Barney, 2010). The company also uses internet press advert in fashion, style of men as well as in car magazine

Execution of the market mix

The promotion mix must be executed by teams of promotion specialists who are answerable for advert via a company with the music business, Television as well as Newspapers (Media Group), Internet advert, as well as PR (PR along with Internet group), collaboration with intermediary/sale centers (supply group). There must be a surplus group that controls the performance of the product on the marketplace (sales record, pricing strategy, consumer gratification). The group will supervise trades per month, and if the sales decrease, the business may vary the pricing strategy (for instance periodic pricing reduction)

Conclusion

JLR faces a difficult market as there is an extensive range of SUV rivals from most manufacturers of cars, and since the marketplace is large also comfy SUVs like Cadillac along with Escalade are greatly liked. Hence, launching again of Range Rover Evoque is a foremost component of making the different image of the business that has the crowd must notice to raise its proceeds

References

Azevedo, S. and Barros, M., 2017. The application of the triple bottom line approach to sustainability assessment: The case study of the UK automotive supply chain. Journal of Industrial Engineering and Management, 10(2), pp.286-322.

Bacon, N 2009, ‘Competitive advantage through human resource management: best practice or core competencies?’ Human Relations, Vol.4, pp. 361–372.

Barney, J 2010, ‘Firm resources and sustained competitive advantage’, Journal of Management, 17, pp. 99–120

Duane, I, & Michael, A 2011, Understanding business strategy: concepts and cases: Mason, South-Western Cengage Learning

Ford Motors 2009, ’Tata Motors enter into Definitive Agreement with Ford for purchase of Jaguar Land Rover’, Press release.

Gross, S 2009, End-of-life vehicles management in Europe: driving the change: Cases of Sweden and Germany. IIEE, Lund University

Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University Press.

 Huselid, A 2006, ‘Strategic human resources management: where do we go from here?’ Journal of Management, Vol. 32, pp. 898–925

Pierini, M & Eckert, V 2008, ‘Strategy-based approach to eco-design: Application to an automotive component’, International Journal of Vehicle Design, vol. 6, pp 156-171

Thomson, R 2008, “Tata Motors completes acquisition of Jaguar’, Press release