Ansoff Analysis of Tata MotorsAnsoff, H I (1958) developed a matrix to analyze the product marketing strategy of an organization when designing

a model for diversification. Following is the image of original sketch of the matrix drawn by Ansoff himself:

A simpler form of Ansoff product marketing strategy is presented below:

Each of these quadrants describes a specific product marketing strategy as detailed below:

Existing products to be marketed in existing markets market penetration strategy New products to be marketed in existing markets product development strategy Existing products to be marketed in new markets market development strategy New products to be marketed in new markets diversification strategy In order of risks, the strategy based on existing value chains of organizations possesses lowest risks while the strategy requiring deployment of altogether new value chains by organizations possesses highest risk. Thus market penetration strategies possess lowest risks associated with the implementation but diversification possesses highest risks associated with the implementation. If we take a closer look at the strategies of Tata Motors and map with Ansoff matrix, we can easily conclude that Tata Motors is applying strategies with highest risks and hence is in a make or break mode. We present the following analysis for justifying this conclusion: Tata Motors is currently implementing high risk strategies given that they have attempted to enter two new markets where they do not possess any expertise UK and European premium car markets with the help of Jaguar and Land Rover and the $2500 Nano car that may altogether develop a new car market globally. If things favor them, they have the potential to become the next Ford of the world but if the happenings do not favor them (like the Singur crisis witnessed by them), then they can suffer losses that will take decades for them to repair.