The paper "Jaguar: Strategic and External Environment Analysis" is a perfect example of a business case study. India-based Tata Group became the parent company of Jaguar Land Rover (JLR) after it acquired it in 2008. By operating in the UK market, Tata has set particular ambitions and goals for its Jaguar Land Rover (or just Jaguar) subsidiary. Jaguar is distinguished for producing some of the most beautiful premium luxury cars in the world (Vizard 2014). Tata needs to decide the kind of strategies to be adopted that would enable its jaguar subsidiary to increase profitability and to survive.
Jaguar, therefore, needs to take into consideration the macro-environment elements in the UK automobile industry such as political, demographical, socio-cultural, environmental, geographical, and economic factors. This paper examines the strategy and methods used by the business to grow. It also explores the PESTLE factors that are shaping the external environment in which Jaguar operates. Strategy and methods used by Jaguar to grow The company depends on quality leadership rather than cost leadership through the production of premium luxury vehicles that are regarded as highly efficient.
It is difficult for the company to engage in cost leadership because it does not benefit from economies of scale. Jaguar has created a quality culture that is identified in the company and the global car market. The company uses differential strategy by manufacturing high-quality cars that set themselves apart from competitors’ cars such as BMW in order to position its products in the competitive car market. Jaguar has therefore centred on improving design and quality, making its products range to appeal to a wide consumer market (Vizard 2014).
For instance, features of cars found in British made Jaguar are not found in German-made BMW cars. Indeed, it is because of this strategy that the company witnessed a record car sale of 425,006 in 2013 across its major markets such as Europe, China and North America.
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Vizard, S 2014, Jaguar Land Rover looks to cement brand positioning after record sales," Marketing Week, viewed 13 July 2014, http://www.marketingweek.co.uk/sectors/automotive/jaguar-land-rover-looks-to-cement-brand-positioning-after-record-sales/4009082.article