Type Joint venture

Industry Watches
Founded 1987
Founder(s) Ratan Tata
Headquarters Bangalore, India
Area served 4 continent and 40 countries. India and other
countries esp.Middle east, Asia
Pacific and Africa
Key people Xerxes Desai, Founder
Products Watches, Jewellery, Eyewear & Precision
Engineering
Revenue 6,532.97 crore (US$1.32 billion)
Parent Tata Group
Website www.titanworld.com
REPORT:-
Titan Industries is the world's fifth largest

wrist
watch manufacturer and India's leading producer of
watches under the Titan, Fastrack, Sonata, Nebula,
RAGA, Regalia, Octane & Xylys brand names. It is a
joint venture between the Tata Group, and
the TIDCO. Its product portfolio includes watches,
accessories and jewellery, in both contemporary
and traditional designs. It exports watches to about
32 countries around the world with manufacturing
facilities in Hosur, Dehradun, Goa and manufactures
precious jewellery under the Tanishq brand name,
making it India's only national jewellery brand. It is
a subsidiary of the Tata Group.

INTRODUCTION
Titan industries limited- a joint venture of The
Tamil nadu industrial development corporation and
Tata group of industries was setup in 1987 under
the leadership of Xerxes desai who was the vice
chairman and the managing director of the
company. Initially, Titan entered the market as a
watch manufacturing company. Then later in 1995,
it entered into the manufacturing of precious
jewellery segment under the brand
name Tanishq.
Cont

The company also manufacturers charismatic
decorative table clocks in many classical and ethnic
styles. Titan watches currently hold 25% of share in
Indian watch market. Its manufacturing facility
includes a buildup area off 33000 sq.meters that
employs around 3700 personnels. Its main
manufacturing plants are located in Hosur in Tamil
nadu with an assembly unit in Dehra Dun in Uttar
Pradesh. It has also come up with an electronic
circuitry manufacturing division in Goa. The
companies headquarter is located in Bangalore.
Cont.

In a short period of time, Titan has built an
inevitable name for its products, services and
corporate practices. In a survey conducted by
Economic times, Titan was voted as Indias most
admired brand. Infact Titan industries were also
ranked as Indias leading consumer durable
marketing company for seven consecutive years
from 1993-1999.

SCANNING
Environmental scanning can be defined as the
study and interpretation of the political, economic,
social and technological events and trends which
influence a business, an industry or even a total
market.




Modes of scanning:--
There are three modes of scanning the business
environment: -

Systematic scanning
Ad hoc scanning
Processed-form scanning



Systematic scanning

Information related to markets and customers,
changes in legislation, regulations having a direct
impact on the organization's activities, government
policy etc are collected continuously by taking
relevant factors into account.
Ad-hoc scanning

Conducting special surveys and studies to deal with
environmental issues from time to time.
Processed-form scanning

Using information in a processed form available
from different sources inside and outside the
organization.
Scanning
SWOT PEST
SWOT
Threats
Opportunities
Weaknesses
Strengths

POSITIVE/ HELPFUL
to achieving the goal

NEGATIVE/ HARMFUL
to achieving the goal

INTERNAL Origin
facts/ factors of the
organization

Strengths
Things that are good now,
maintain them, build on
them and use as leverage
Weaknesses
Things that are bad now,
remedy, change or stop
them.

EXTERNAL Origin
facts/ factors of the
environment in which the
organization operates

Opportunities
Things that are good for the
future, prioritize them,
capture them, build on
them and optimize
Threats
Things that are bad for the
future, put in plans to
manage them or counter
them
Strengths

a) The quality of watches is impressive.

b) Innovation is core to its strategy.

c) Visual Merchandizing has been Titans strength ever
since its inception.

e) Good retail network by WORLD OF TITAN

f) Excellent customer service.


Weaknesses:--

a) Waterproof watches not a part of its kitty.

b) Rural India does not form a substantial part of
customer base.

c) Kids are fascinated with mobile phones rather
than watches and incidentally, they show the time.

Opportunities
a) Under-penetrated market for watches as only
35% (approximately) of Indian population possesses
watches.
b) Watches positioned as a fashion wear rather
than just utility products.
c) Huge market in the exchange business.

d) Introducing water proof watches.

e) Rural market may be tapped
Threats
From competitors -
a) Japanese- Citizen, Casio

b) Chinese watches

c) Unorganized sector/ Grey market.

d) Mobile phones and wall clocks are a substitute to
watches.

e) The fashion trend keeps on changing.

PEST
PEST analysis:-

A PEST analysis is an analysis of the external macro-
environment that affects all firms. P.E.S.T. is an
acronym for the Political-legal, Economic,
Sociocultural, and Technological factors of the
external macro environment. The PEST analysis is
particularly useful for strategic managers in
international business which operate in a number
of different national environments.

Political-legal
Political-legal factors include government
regulations and legal issues and define both formal
and informal rules under which the firm must
operate. Some examples include:
political stability
level of freedoms, for example freedom of
expression and association
incentives to foreign investors
competition law and policy
employment laws
trade restrictions and tariffs

Economic
Economic factors affect the purchasing power
of potential customers and the firms cost of
capital. The following are examples of factors
in the macro economy:
level of economic development
trends in gross domestic product (GDP)
rate of inflation
wage levels and level of unemployment
strength of currency and convertibility
rates of taxation and exchange

Sociocultural
Sociocultural factors include the demographic and
cultural aspects of the external marcoenvironment.
Some Sociocultural factors include:
growth rate of population and age distribution
of population language.
main religious and cultural groupings.
educational attainment levels.
level of social cohesion

Technological
Technological factors can lower barriers to entry,
Some Technological factors include:
government spending on R&D
energy availability and costs
transport infrastructure and cost
innovation system, including availability of
skilled workforce.
level of technology transfer

CONCLUSION
Titan is growing rapidly and has successful
operations. All these can be confirmed from lots of
information. Titan has obtained a high reputation in
a short period. As a latecomer of watch industry
of India, the company surpassed the formers and
has got the first position of marketing share. As a
watch company, Titan founded a famous jewelry
brand successfully. It adopted appropriate
marketing strategies which defeated competitors,
meanwhile expanded its marketing share on local
market.