Bhaijaan
Hall of Famer
- Joined
- Jan 10, 2011
- Runs
- 72,363
- Post of the Week
- 1
Tata's biggest strength is NOT captive consumption. Just to clear a common misconception, about 3% of TCS revenues. Useful but hardly the 'big chunk' you're talking about. Historically Tata's biggest growth has come from letting the conglomerate's group companies operate as independent entities paying dividends and royalties for the use of the name to the parent. Whenever the parent has tried to involve themselves in strategy, it's usually not turned out well.
Let's see where they go from here but the last 30 years haven't been very kind to conglomerates.
3% of TCS business is in billions of dollars and sometimes that is a difference maker. Of course no business is built on captive consumption alone only but when you have synergies working for group companies, its a huge leverage and often tough to deal with for competitors.
.