PESTLE Analysis TITAN

PESTLE analysis is a tool used for look at the environment of the business. PESTLE analysis provide the
information that help Titan to understand the market situation, business position and the direction of
Titan operation. In the following PESTLE analysis will be discussed besides the environmental factor as it
is not really affect to the Titan industry.

Political

India is the largest democracy in the world. In the past, India has instability political but nowadays the
political of India has become stable. In 2004, Indian National Congress (INC) won a lot of seats in election
and formed a new government. The new government has taken some steps to improve the rate of gross
domestic product (GDP) and decrease the inflation rate in India. All this steps help Titan maintain in the
market and perform well in the watch industry. (Ashutosh & Netai, 2009) The profits of Titan for last few
years are summarized in the table below.

Following the economic growth in India, the corruption becomes a big problem. According to the
Transparency International (2010), India is a number of 87 of 178 countries on corruption and India gets
3.3 points, which 0 represent the most corrupt country. So, as the Titan operates business in India, it
must have a good relationship with political parties because it may help Titan to minimize the risk on
business.

Economic

India has become a populous country and it is one of the fast emerging and powerful economic in the
world. Based on the Times of India (2010), in 2008 the India per capital income is Rs.40,141 and in 2009
it raises 10.5% to Rs.44,345. Increasing the income as well as by increasing the purchasing power in
India. As show in figure above the purchasing power in India has been increase year by year. This reflects
that many people have ability to purchase the luxury products. Since, India is an attractive market many
foreign brands enter into market of India and affect the profit margin of Titan. This creates challenge for
Titan to keep up its market share.

Social-cultural

India is the second largest population in the world with 1.2 billion people, which about 16.9% of the
world population. (BBC News, 2010) From being a backward country, nowadays India has become a
powerful country and the Indian standard of living has improved a lot. Changes in the political and
economic, has significant changes the Indian lifestyle. This lead to Indian prefers purchase the good
quality and foreign brand product. So, Titan must emphasis on quality and create strong brand image for
the product. Besides that, gold and jewellery is very important in Indian life. Example, in India, gold is a
symbol of elite status and for woman, gold is the "Stridhan", mean property of woman. Hence, most of
the Indian love to wear gold and jewellery watch. Selling gold and jewellery watch is a potential business
for Titan to gain the market share.

Technology

India has emerged into global research & development hub. Ali Sadhik (2009) stated that India has one
million knowledge and skills workers and a pool of workers are able to speak in English which is useful in
technology area. TATA is reputed organization in the India which has the advanced technology. As Titan
backed up of TATA group, it has better technological practices than other competitors and able to
produce the good quality product. In addition, with the improve technology in India and increase the
percentage of people using internet, India has entered to Top 10 list of higher internet user in the world.
(FIPP New.com, 2006) So, the e-business will become opportunity for Titan. Even this moment e-
business not extensive diffused in India but Titan should invest in this area now because in the few years
it will become a gold mine.

Legal

India government has opened the market to encourage foreign investment. The import license for
watch is easy to obtain by foreign organization. This created the challenge for Titan because many
foreign brands are entering into market of India. Furthermore, by 1992, WTO has removal quantitative
restriction and reduces the import duty to 25% which earlier is 50% on import watches. (Dahiya, 2009)
This influences Titan difficult to maintain a sustainable growth because increase the competition of
foreign brand.

Business strategies:

Since from the beginning Titan has been positioned as a premium brand, because it's high quality
products for its customer. Titan is struggling to have a strong brand image in UK market due to its
numerous sub-brands that caters to different segments in India. It follows different positioning
strategies; these strategies can also be analyzed as given below:

Attribute Positioning:
The company launched first quartz watches to Indian market as its product. The company successfully
penetrate the market by this launch, under this strategy came Raga, Classique and Regalia. Classique
positioned as style corporate wear that leaves a quiet definite impression and qualities of function.
Regalia ranger represent the elegant-wear. Raga is an exclusive watch as positioned. The Raga and silver
Raga collection of style, delicate and feminine with each piece unique truly.

User Positioning:

Titan provides to several user groups - children (the Dash), sportspersons and adventurers. The fastrack
range is seen as being modern and related to present time, reliable and sturdy. The advertising,
packaging and merchandising of this range is young, cool and vibrant.

Benefit Positioning:

Titan offer many deals to differentiate its offering on the basis of superior style and attractiveness which
is offered by Digital range fastrack.

Competitors Positioning:

Titan had to encounter the threat with the entry of several foreign watchmakers into the market; most
the entrants are catering to the upper end of the market - Omega, Cartier etc.

Quality or Price Positioning:

In the overseas market, especially in Europe where it is competing with Swiss and Japanese watches, it is
position itself as "value-for-money" (less than Swiss watches and higher than Japanese), by giving
attractively styled and of good quality.
TATA COMM BUSINESS LEVEL STRATEGY

Core Value Proposition As one of the leading Indian conglomerates, the Tata Group has a long and highly
respected history of achievement and contribution to the many markets, industries and communities it
serves. Tata Communications acts as the flagship global telecommunications and technology solution
leader, leveraging its track record of successes, global investments and emerging market strengths to
continue to forge new global ground and create additional successful ventures as part of the Tata Group
success story.

Our Strategic Relationships

Tata Communications is a truly global communications provider with operations, infrastructure and
partnership across established and emerging markets. The companys strategy is based on its strong
presence in the emerging markets, its portfolio of IP and Cloud services, it strategic partnerships and its
transformation to a Managed Services business model. Tata Communications focuses on serving key
vertical segments, including banking & financial services and media & entertainment, as well as
providing catalyst services such as Telepresence, Content Delivery Networks and Ethernet solutions.

The companys scale of transformation services partnerships include:

1,600 service providers

785 mobile operators

650 IP customers

480 direct voice bilaterals

55 IP peering partners

40+ Network to Network Interfaces (NNIs)

Tata Communications has forged partnerships spanning the consortium of cable operators, including
SEACOM, SEA-ME-WE 4, C2C, SAFE, EAC, APCN-2, Americas 2, CANTAT 3, 121 and others. For global
bandwidth exchange across Asia, Europe and the U.S.Tata Communications manages alliances with BT,
C&W, France Telecom, T-System, Telecom Italia, AT&T, Verizon Business, Sprint, SingTel, NTT, Telstra,
KDDI, Telecom Malaysia and many more.

Tata Communications is a partner of the Metro Ethernet Forum (MEF), the pre-eminent industry
organization dedicated to facilitating the adoption of Ethernet networks and services.

Tata Communications Ethernet Private Line and Dedicated Global Ethernet Services are compliant with
the international MEF14 and 9 specifications. Tata Communications collaborates with the MEF and its
other members to develop Ethernet standards.