Case- Tata Nano

Páginas: 6 (1270 palabras) Publicado: 22 de enero de 2015
Introduction
The text “Tata Nano: The People’s Car” explores how Tata Motors, India’s largest automobile company, developed the Nano, the world’s cheapest car.

At the beginning there is a brief summary about the presentation of the Nano in 2008 and there are some facts in comparison to other countries. It says that the objective of this car is to provide to Indian families a safe andaffordable car instead of driving motorcycles and scooters carrying four to five people.
In the following it is explained how the vision was created and how Tata Motors translated this to the Nano Project. They make an overview about all the functions and advantages that the Nano has. After that they talk about Tata’s history and they listed the main years of the company.
The case raises questionsaround breaking the price; quality barriers and changing existing internal processes to accommodate revolutionary new ideas. They show the secrets behind the low price of the Nano. Furthermore, they exposes the problems Tata Motors had with the manufacturing plant in Singapore, which could have stopped the whole Nano Project right at the beginning and also how they deal with this.
The text thenfollows with the launch of the Nano in 2009 and that the orders exceeded expectations. This car was part of a global race to lower the prices of entry-level cars for millions of new developing world consumers.
At the end the text provides a short summary about how Tata Motors, thanks to its Nano, touched the U.S. ground and that there were opposite points of view from the potential consumers.1. What inspired Tata Motors to build the Nano? Why was there a need for an inexpensive car in India?
For the last half century, Tata’s strategy revolved around a deep understanding of the implications of economic factor, and how that can be translated into desirable customer products. To achieve this, Tata relies on cutting edge Technology. In the case of the Nano, Tata recognized that very fewattempts had been made to serve the large customer segment at the bottom of the pyramid in emerging markets. By developing an expensive car, Tata could attract consumer who were relegated to riding scooters and motorcycles. Tata felt that a car was a far superior option to two wheeled transportation especially for families concerned with safety and comfort. Tata believes that Nano could increasethe pool of prospective buyers in India by 65 percent.

2. What innovative steps did Tata undertake to design the Nano in a way that would meet the $2,500 price tag? Do you think the low price automatically means poor quality? How did Tata Motors address the quality issues while developing its budget car?
Tata began its design process for the Nano by first figuring out what its target customerscould pay for a car, and then working backward from that price. The company’s innovative approach required the ability to “think outside the box” and challenge many of the more traditional approaches to design and manufacturing. Tata identified the basic features that customers required in a car, and then asked its engineers and suppliers to develop a car with those specifications that would alsomeet the $2,500 final price tag.
Tata recognized that certain features were not necessary for its target market, and so eliminated those in order to incorporate necessary safety and quality features.
The Nano contains a smaller engine for example, since the ability to drive at higher speeds is unnecessary in India’s crowded cities. The company also used an innovative kit approach that allowsit to construct components and ship them separately to be assembled in multiple locations.

3. What caused delay in Nano’s launch? What important features of the Indian Economic environment were key factors that caused the problem? What does this story teach about the risk of doing business in India?
Tata had initially planned to manufacture the Nano at a newly built plant in Singapore, West...
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