It was a very conscious effort considering the situation of global car market and the company’s competitive advantages. Nano has been marketed as the “World’s Cheapest Car” and the company has adopted a very unique development and business model for this special child of it. One of the most important advantages that the company enjoys is that it has more than enough knowledge about its home market i.e. India, its competitors and its suppliers. Tata Motors and its chairman Ratan Tata want Nano to create same magic that Mini did in Britain and Beetle did in Germany. Furthermore, the company and its visionary management could foresee the future of global car market which is expected to be very much dominated by the low-cost as well as ultra-low-cost cars. This paper includes the answers of four questions that are based on a case of Tata Motors and its Nano. The paper aims to discuss the reasons behind the Tata Motors’ decision to enter the market of ultra-low-cost cars, competitive advantages of Tata Motors as well as Nano, probable screening criteria for the Nano’s IMS process and the potential market for Nano beyond India and China. Main Reasons for Tata Motors entering the ultra-low-cost car market Global car industry and its competitive landscape have been experiencing significant alterations which are permanent and dramatic. One of the main reasons behind this is the change in nature of demand of the end users across the globe. A completely new and unique class of car buyers has been emerging in the industrializing countries like China and India. Such incident has created a huge potential for cars which can be found in the price range of $2500 - $5000. Such cars are popular among the manufacturers and buyers as ultra-low-cost cars. A report of A. T. Kearney says that till 2020, almost 16 million cars from this category will be sold every year. India and other Southeast Asian countries will be the key market for such type of cars (A. T. Kearney, 2008). Chinese and Russian consumers are expected to look beyond ultra-low-cost cars as they have moved ahead of their Indian counterparts in terms of income level. This new category of cars is likely to experience tremendous demand especially from India. In 2005, almost 208 million Indian had an income that theoretically allows them to buy a car that costs in between $2500 - $5000. It is expected that by the end of 2020 there will be around 439 million people who will be looking for these ULCCs. It is important to mention that most of these people will be ‘first time buyer’ of car. Research shows that if the car is priced at around $4000 then almost 270 million Indians will be in a position to buy it, whereas if the starting price is set at around $2500 then the number moves up to 530 million (A. T. Kearney, 2008). Tata Motors, being an India based car maker knows the market more than any other company. The company is very much aware of the above mentioned facts and figures; hence this huge potential of ULCCs has definitely influenced Tata Motors to make an entry in ULCC market. Tata Motors did its own research before coming up with the plan of Nano. The company targeted the market that no other auto maker in the country has done it. It has targeted the two wheeler owners. India is such a country where people use two-wheelers as their
Case Analysis Tata Motors Table of Contents Introduction 3 Main Reasons for Tata Motors entering the ultra-low-cost car market 3 Competitive Advantages of Nano in developing Markets 5 Screening criteria for IMS process of Tata Nano 8 Regions and countries where Nano should enter 10 Conclusion 10 References 12 Introduction Indian automobile giant Tata Motors is one of the most important companies among the 98 companies that comprise the famous Tata group…
Tata Motors, formed in 1945 is one of the biggest Indian automobile corporations. It is the first Indian company to be indexed in the ‘New York Stock Exchange’, in the year 2004. Like a true global player, Tata Motors has presence in the UK, Spain, Thailand and Korea.
Ratan Tata as he decided to make a car to target the low cost families and finally has become existent. Although being a lengthy procedure and time consuming option but due to strong will and decisive efforts of Mr. Ratan Tata, it was finally designed with an attractive shape.
Tata Motors focused on top 15% to 20% of the Indian population that commute by two wheelers. This case study reports a successful milestone of Tata Nano, one of the cheapest cars in the world manufactured under the vision of Ratan Tata (The founder of Tata Motors).
According to the report the story of Tata group started back in the year 1868 with the establishment of a Textile Mill at Nagpur by Jamsetji Tata. Starting from there, the company has emerged as one of the leading business group in India with more than 90 business operations in seven different business sectors.
As the company under study ‘Tata Motors’ is a subsidiary of Tata Sons, this site seems to be quite relevant to the entire topic. Tata Motors. 2011. Company Profile. [Online]. Available at: http://www.tatamotors.com/know-us/company-profile.php [Accessed on March 05, 2011]- The same is true about this link.
This report will exclusively attempt to address whether Tata Nano, a vehicle of Tata Motors had been successful in attracting potential customers and the strategies which were followed to achieve the intended desires. The marketing research is conducted by investigating the problem through exploratory research methods.
Tata Motors Company is no exception to this realm having grown from and Indian-based firm to the global presence in automobile products. Since this paper analyses the peripheral environment, and its effects on the automobile industry, identification of market inclination and evaluation of the opportunities and threats are significant in illuminating Tata’s business course.1 Generally, the market trends of the automobile industry have been changing over the years.
The company sales in 2010-2011 including exports of the passengers and commercial vehicles stood at 836,629 units which represented a growth of 25.2% since the previous year 2009. This growth was brought about by the revival of export and import trade, infrastructural development, increased construction and mining activities, financial activities and availability of healthy freights (Tata Motors, 2011, p.20).
The two companies have adopted various strategies that have been successfully towards problem solving within and outside the operations. In addition, these strategies have promoted market development within their region and the global market.