Jaguar Case Study

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Jaguar Introduction

Jaguar is world famous luxury brand of automobiles. It is a company based in the UK. Recently, the brand has expanded to the Asian Subcontinent to acquire the huge potential markets in India and China. The company has a good customer base all over the world and they are trustworthy to the customers because of the clean image that persist around the company. The study focuses on the case study of Jaguar in order to assess its strengths and weaknesses by using SWOT analysis. Furthermore, the SWOT analysis also provides information about the opportunities and threats related to the company. Moreover, the study also uses PESTLE analysis in order to provide information about the macro environment related to the company, Jaguar.

Details of the Company

Company Name

Jaguar

Type of Industry

Automobile Industry

Headquarters

Coventry, United Kingdom

Sales/Revenue

604,009 vehicles in 2017 and Revenue was £25.8 million

Areas Served

Worldwide

Number of Stores

4000 (Approximately), all over the world

Competition

Companies like Mercedes, Audi, Porsche, etc

USP

Luxury car with high performance and sports features

Target Group

Royal families and Rich businessmen

Products

Landrover, XF, XJ, XK, etc.

Website

https://www.jaguar.com/index.html

Table 1: Details of the Company

(Source: As influenced by Pathak, 2016)

Jaguar Swot Analysis

Strength

  • The popularity and the clean brand image of the company
  • Good skilled employee strength.
  • Increase in sales of the company in recent years.
  • Lot spent for research and development of the existing as well as the new products

Weaknesses

  • Comparatively less number of product varieties.
  • Criticism of the designs from the customers.
  • Popular in some markets in the world.
  • Some technical problems in the past.

Opportunities

  • Targeting the emerging potential markets of India and China.
  • Moving a step towards the Hybrid Technology
  • Acquisition of the company by Tata Motors.
  • Increasing consumer demand for luxury cars.

Threats

  • Stiff competition in the luxury automobile market.
  • The changing environment which needs a change in government policies.
  • Situation of financial instability.
  • Cost of production increases.

Table 2: SWOT Analysis

(Source: Created by Author)

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Jaguar Analysis

The strength of Jaguar is the popularity of its brand. As per the case study of Jaguar, the skilled employee of the company is a huge strength of the company. The company has an employee strength of 43,224 as in 2018 (Media.jaguarlandrover.com, 2019). In the recent years the company has an increase in its profits with the company’s expansion to the Asian Market. Jaguar had a revenue of £25.8 million in 2017, which is a big increase. Jaguar invested a total of £1,411 million on research and development which is one of the largest by any automobile company in the world (Pathak, 2016). There are certain weaknesses of Jaguar like they have comparatively less number of models for customers to choose from. According to the case study of Jaguar, there is some criticism of their designs. Jaguar is very popular in the markets of the UK, but worldwide they are trying to establish their popularity. There were also some technical issues that Jaguar faced in the past which cost the company its customers. Jaguar is now trying to target the Indian and Chinese markets which are of huge potential. The acquisition of Jaguar by Tata Motors helped them in this cause. Similarly, Jaguar had agreed in a joint venture with Chery, one of the major automobile industries in China. According to the case study of Jaguar, the company is seeking to move from the conventional cars to hybrid cars. This is a move which could help Jaguar immensely in the future. As in today’s world the income of the individuals is growing, there will be an increase in the demand for luxury cars which can increase the sale of Jaguar cars in the market. Jaguar faces stiff competition in the luxury car market from the likes of Mercedes, Audi, Porsche, etc. The changing environmental conditions have led to the change in government policies to conserve the environment and Jaguar needs to update their plans for new vehicles so that they can be ahead of the competition. The financial instability also leads to the lower demand of high range cars. Also, the increasing cost of production is also a threat to Jaguar.

Jaguar PESTLE Analysis

Political

  • Political stability is necessary for an efficient financial performance of the company
  • The company needs to abide by various policies and regulations with respect to the operating country while developing the car

Economic

  • The annual revenue of the company is around 24.2 billion pounds for the year 2019 (Media.jaguarlandrover.com, 2019).
  • Lack of appropriate investments from the stakeholders may affect the performance of the company.

Social

  • The company currently provides employment to around 43,224 (Bbc.com, 2019).
  • The company is also working towards a greener environment by developing vehicles with less fuel consumption.

Technological

  • The company invested around 3.8 billion pounds for the development of products along with implementing new technologies (Media.jaguarlandrover.com, 2019).
  • The company has an expertise in aluminium technology due to which the company was able to develop light weight vehicles.
  • The vehicles developed by the company have intelligent system to optimise their efficiency as per the need
  • The company has also developed Automotive Virtual Reality testing workshop so as to efficiently use time as well as resources

Legal

  • The company needs to abide by the trade law as well as employment law
  • The company also needs to comply with the tax regulations as well as environmental tax.

Environmental

  • The company works towards the wellbeing of the society as well as environment
  • The company ensures that the vehicles release minimal emissions and wastage
  • The company is also working towards a more fuel efficient car design

Table 3: PESTLE Analysis

(Source: created by Author)

Jaguar Analysis

Jaguar operates in various countries due to which the company needs to assess the political condition of every operating country. As per the case study of Jaguar, the company assesses the political factor in every operating country in order to develop fuel efficient car. Furthermore, the company has annual revenue of 24.2 billion pounds in the year of 2019 (Media.jaguarlandrover.com, 2019). The company in order to serve the community in an efficient manner provided employment to around 43,224 employees (Bbc.com, 2019). As per the case study of Jaguar, the company invested a large amount of money for the development of new vehicles which will assist in reducing the emission of the car. The company also invested around 3.8 billion pounds for implementing new technologies in order to develop cars in an efficient manner (Media.jaguarlandrover.com, 2019). As per the case study of Jaguar, the company follows the trade laws of various countries in order to avoid breaching any law. The company also provides the employees appropriate right so as to avoid any conflict with the workforce. As per the case study of Jaguar, the company focuses on developing fuel efficient car in order to minimise the emission as well as the wastage of fuel. Furthermore, in order to minimise carbon dioxide level, the company decided to recall 44,000 cars (Theguardian.com, 2019).

Reference List

Bbc.com, (2019), Jaguar Land Rover to cut up to 5,000 jobs, Available at: https://www.bbc.com/news/business-46810473 [Accessed on: 3rd August 2019]

Media.jaguarlandrover.com, (2019), JAGUAR LAND ROVER REPORTS FOURTH QUARTER AND FULL YEAR RESULTS FOR FISCAL 2018/19, Available at: https://media.jaguarlandrover.com/news/2019/05/jaguar-land-rover-reports-fourth-quarter-and-full-year-results-fiscal-201819 [Accessed on: 3rd August 2019]

Pathak, A.A., (2016). Tata Motors’ successful cross-border acquisition of Jaguar Land Rover: key take-aways. Strategic Direction32(9), pp.15-18.

Theguardian.com, (2019), Jaguar Land Rover recalls 44,000 cars over carbon dioxide levels, Available at: https://www.theguardian.com/business/2019/mar/13/jaguar-land-rover-recalls-cars-over-carbon-dioxide-levels [Accessed on: 3rd August 2019]

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