Nano Tata

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The case illustrates the opportunities, challenges and trade-offs involved in the design, prototyping and marketing of the Nano — the so-called people’s car — by Tata Motors Ltd. (TML), a Tata Group company. The case takes place nine months after the company’s chairman, Ratan Tata, launched the Nano, on January 10, 2008, at the 9th Auto Expo in Pragati Maidan, an exhibition center in New Delhi, India. The case asks students to take the position of Ravi Kant, the company’s managing director, in early September 2008, as he faces multiple dilemmas that could lead to the temporary closure of the Nano manufacturing facility in Singur, West Bengal: increasing competition, rising
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The presentation lacked three points that would have helped us make a better evaluation on Tata’s global strategy and helped their presentation be more credible. Firstly, the presentation did not address the different car models that currently exist and ones that Tata plans to launch in the future. As Tata goes into the United States and European market, the cars do not have to be at the $2,500 price point since the lowest car prices in United States, for example, is about $9,000. Considering this, Tata can add more necessary features and increase their price (and margins) by charging between $5000 and $9,000. Second thing that the presentation could have addressed is the synergies Tata can obtain from their Jaguar and Land Rover business, in terms of distribution channels, international markets, etc. At the same time, the negative impacts a low end Tata Nano will have on Tata’s high end Jaguar and Land Rover needed to be mentioned. Thirdly, the presentation needed to compare Tata to one of its competitors, Sitara. Sitara was launched in Pakistan at about the same price range and targeted the same markets, competing against two wheelers. Pakistan’s consumer behavior is similar to that of India, so by studying why Sitara only sold about 500 models and failed can help us mitigate these risk and failures when launching and expanding Tata.
The team recommended entering the EU and the US markets. Our team came to the conclusion that
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