Analysis of Tata Group Business Model

Key Partners

Innovation plays a crucial role in Tata’s business. Despite the age of its president, Ratan Nawal Tata, in order for the organization to remain competitive, he regularly approves various innovations together with his partners (Sharmelly and Ray, 2021). They allow the Indian diversified conglomerate to maintain its reputation as an advanced service provider. The most significant aspects of innovation in Tata company are issues related to ecology and optimization of production. Tata Group introduces innovations both in production and in employee management methods using joint ventures.

Key Activities

My recommendations for improvement are to change the type of innovations. Due to the fact that key activities are being implemented simultaneously in several aspects of production, this can be risky (Winkler et al., 2020). Therefore, my recommendations are to mitigate the radical nature of the key changes and gradually implement them step by step. As key activities, Tata Group creates innovations based on scientific works and advanced technologies demonstrated during various conferences by other companies.

Key Recourses

For Tata Group, innovation is the main development of the company, and continuous development and improvement are the basis of corporate strategy. Thus, the development of an innovative strategy by the company implies the strengthening of the corporate strategy. For that, the use of various resources, such as economic diversification, is necessary.

Value Propositions

Tata Group’s internal innovation management includes the formation and reorganization of structures that implement innovation processes (Mithas and Arora, 2015). Most often, the technique of creating structural units or units designed to carry out innovative activities is used. Tata Group’s external innovation management is mostly based on its value propositions while improving the quality of life of communities. This mechanism significantly reduces the timing of entering the market with a new product (Srivastava et al., 2013). In addition, it allows getting a synergistic effect from combining innovative achievements.

Customer Relationships

In order to appropriate innovations, Tata Group evaluates the impact of innovations on the company’s performance and the customer relationship. The company actively exploits innovation in order to improve the services provided, get new service qualities, and improve online channels and physical retail outlets (Srivastava, 2012). With the help of innovation, Tata Group also has an economic boost in the long term.

The key innovation processes are simple, inter-organizational, and advanced. A simple intra-organizational innovation process involves the creation and use of innovations within the Tata Group. The expanded innovation process manifests itself in the creation of innovations based on the improvement of consumer properties of the service in the IT segment as a whole (Srivastava et al., 2013). They are managed both through the cooperation of productions and within the organization itself by creating new departments within the Tata Group.


The sources of innovation for Tata Group are changes in the structure of the industry and the market. The company’s specialists monitor multiple business channels in order to implement them within the framework of this company. The capture of innovations takes place during external management through the convergence of technologies and working with authorized resellers. Further, in the internal management process, the industry’s maturation for its major structural transformations is assessed. At Tata Group, innovations are exploited primarily with a reproducing function (Mithas and Arora, 2015). It acts as an important source of financing for expanded reproduction. The meaning of the reproducing function is to profit from innovation and use it as a source of financial resources.

Customer Segments

Theoretical concepts claim that the most rational use of the profits from innovation is an investment in the further development of the company. Thus, the way of managing the finances obtained from the introduction of innovations at the Tata Group belongs to the theoretical foundations (Sharif, 2021). Tata Group has a really good innovation strategy, which makes the customer segment of high-profile companies cooperate with them. However, the introduction of several radical changes is quite risky. Therefore, in order to do better in terms of innovation, companies should implement them step by step.

Reference List

Mithas, S. and Arora, R. (2015) ‘Lessons from Tata’s corporate innovation strategy’, IT Professional, 17(2), pp. 2–6.

Sharif, N. (2021) ‘The significance of corporate social responsibility in modern healthcare in India: the case of Tata steel’, Journal of Innovation in Social Science, 2(2), pp. 5–9.

Sharmelly, R. and Ray, P. K. (2021) ‘Managing resource-constrained innovation in emerging markets: perspectives from a business model’, Technology in Society, 65(6), pp. 229–238.

Srivastava, A. K. (2012) ‘Corporate social responsibility: a case study of Tata group’, IOSR Journal of Business and Management, 3(5), pp. 17–27.

Srivastava, S. C., Mithas, S. and Jha, B. (2013) ‘What is your global innovation strategy?’, IT Professional, 15(6), pp. 2–6.

Winkler, T., Ulz, A., Knöbl, W. and Lercher, H. (2020) ‘Frugal innovation in developed markets: Adaption of a criteria-based evaluation model’, Journal of Innovation & Knowledge, 5(4), pp. 251–259.

Find out your order's cost