The Tata Group

The Tata Group

Initiatives of Ratan

Creation of the Tata Group

The building of a business empire has got enormous advantages for business organizations to prosper, rather than, dwell on small individual units of the business. As a result, the entire process of execution of business is recreated and executed in a much more productive manner. the creation of an empire-brand for any business that has name, fame, as well as, resources could lead to a much stronger version of the business that aid reaping profits and generate better strategic strength. In case of the Tata group, the advantages for creating a strong brand through building Business Empire are discussed below;

Pros

The rise of strategic strength: building a brand through Business Empire lead to a much stronger execution of the strategic course map outlined by the company, as well as, assures the success of the company. The unification of all the small players in the Tata Group under single brand name entailed their uniform strategic direction, as well as, the oneness of planned and implemented course. It unifies the successes of all the players, whereas, minuses the impact of failures. In that case, the brand aids the Empire creating an image that is sustainable, as well as, magnificent in the eyes of the competition.

Competitive advantage: another major facet that is catered encompasses of the creation of a competitive advantage through creation of a business group. The creation of the brand leads to synergy that multiplies the strength of the group to cater to the competition. For that matter, the group has much stronger and competitive capacity to combat the forces of competition in the emerging competition.

Creation of an identity: the creation of an Empire for business leads to identification and development of the business with a distinct name. The name of the brand is sufficient to convince people buying a product. Eventually, the tactic adds to the success of the business by creating an identity that is distinct for all the products and services. It adds to the profitability of the company in general, as well as, to that of small companies in particular.

Enhancing customer focus: the strategy leads to development of an enhanced customer focusing spirit. It leads the brand to focus on emerging trends in the market, as well as, look for the desire of the customer. As a result, the customer focus is sharpened, and the value of the brand as a whole fosters the relationship between customers and products of all the given companies.

Cons

Loss of individual brand identities: the approach has some of the darker aspects for the business. Small players falling under the domain of the group are faced loss of brand identities for their own products and services. This affects their performance in the industry in a much adverse manner. As a result, these players are less competent to their individual industries and require a sound course of action that is far more sophisticated and developed for the purpose of ...