BUSINESS STRATEGY: STRATEGY MANAGEMENT AT TATA STEEL
: The government has a favorable policy for steel manufacturers. However, there are
certain discrepancies involved in allocation of iron ore mines and land acquisitions. Furthermore, the
regulatory clearances and other issues are some of the major problems for the new entrants.
Tata Steel being a century old company under the flagship Tata Sons which is known for its Corporate
Social Responsibility already enjoys a respectable position in front of the Indian Government. The
Jharkhand government on May,24th 2009, has granted a prospecting licence (PL) to Tata Steel for the
Ankua iron ore mines. A senior company official said that Tata Steel has been allocated 1,800 hectares for
prospecting in the Ankua area. Another 10,000 acres of land will be allocated to them for their project in
Steel has very low barriers in terms of product differentiation as it doesn’t fall into
the luxury or specialty goods and thus does not have any substantial price difference. However, Tata Steel
still enjoy a premium for their products because of its quality and its brand value created more than 100
years back. Tata Steel has introduced brands like Tata Steelium (the world's first branded Cold Rolled
Steel), Tata Shaktee (Galvanized Corrugated Sheets), Tata Tiscon (re-bars), Tata Bearings, Tata Agrico
(hand tools and implements), Tata Wiron (galvanized wire products), Tata Pipes (pipes for construction)
and Tata Structura (contemporary construction material).Apart from these product brands, the company
also has in its folds a service brand called “steeljunction”.
Currently two Global Steel majors namely Arcelor- Mittal, which is the world’s largest I and POSCO, are
posed to be the biggest threat as they plan to enter the Indian Steel Industry very soon.
The steel industry is truly global in terms of competition with large producing countries like China
significantly influencing global prices through aggressive exports.
Steel, being a commodity it is, branding is not common and there is little differentiation between competing