Tata Motors : A Company

Her case focuses on how the initial strategies for launching and positioning Tata Nano as a “People’s Car” backfired and its shortcomings and mistakes that led to the wrong positioning of Tata Nano as “Worlds Cheapest Car”. The consumers did not find pride in owning the cheapest car, it brought down there social status in the society. In India owning an expensive car is still a luxury. The reasons for Nano getting wrongly positioned was the failure of its primary positioning strategy that is its Price Positioning Strategy Tata Nano was positioned on the price attribute dimension and was widely publicized as the world's cheapest car. Now if the consumers brought the car there was the inherent danger of being viewed by his social group as poor as they were owning a car that is thought off as cheap. The actual market realty is that the car which was supposed to be a game changer has miserable failed to take off, in spite of the massive hype and the goodwill of Brand

The story of Tata begins in 1868 when a young boy named Jamsetji Tata joined his father's small trading company. Thirty-five years later, that same boy was the owner of India's largest textile company, Tata Textile. Over the last century, Tata has excelled in many different business sectors including Materials (Steel and Mining), Agriculture, Energy, Consumer Products, Information Technology, Consultancy, Finance, Automobiles, Chemicals, Engineering and Hospitality. Tata Group of Industries reported $17.6 billion in revenues in 2005, which is equivalent to 2.8 percent of India's GDP. In 2006, it is projecting its annual revenue to be around $24 billion. Figure 1 shows the breakdown of Tata's revenues for the

During this project I researched on how TATA developed NANO costing Rupees1 lakh ($ 2500 U.S) and what will be its effects. A survey was also done for understanding consumer buying pattern and preferences (which is a part of secondary data).

They have brands and models of cars to appeal to every kind of demographic group, and simply cater for the needs and wants of consumers.
• Ford is particularly successful in their sponsorships, advertising and other forms of marketing. Ford is currently sponsoring the football Champions League, with “Destination Football” slogan (Bloomberg, 2005).
• The current research and development activities of Ford allow them to be pioneers in certain production technologies (Kochan, 2001).
Weaknesses

• In an attempt to attract younger generations to purchase Jaguar cars, Ford introduced “baby Jag”. The effects of such an action proved to be negative in damaging Jaguar’s reputation, and is a weakness for Ford (Kerwin, 2002)
• Quality assurance needs to be more of a focal point for Ford to avoid recalling cars and expensive repair operations. (Kochan, 2001)
• In 2002, Ford and Bridgestone experienced a faulty tyre scandal which caused a two billion dollar loss (BBC, January 2002). 
Opportunities

• To develop vehicles that uses other forms of energy than petrol and diesel and to become pioneers in this area.
• The numbers of car owners who replace their old models with new ones are on the increase (Mintel, 2004). 
• Demand for cars by women drivers is on the increase and so is the overall demand for cars (Key Note, 2005).
Threats

• Further increases in gasoline prices, and eventually the world supply of gasoline finishing.
• To become

TATA being a brand which follows the concept of branded house in which the company name is used across all its product categories. Thus it has been made easier for the consumers to identify the brand though they are enormously diversified.

Warren (2008) asserts that strategic management is a systematic approach to identification of environment of the company, need for change and then initiating the necessary change in the organization. The discipline of strategic management goes beyond the development of strategic plan for the organization and it includes pre planning and strategic planning processes. This report has analyzed the strategic management strategies of Tata Motors which is a part of Tata Group. The company is the largest automobile company in the India and is regarded as market leader in commercial vehicle segment (Tata Motors 2014a). The company is functioning in compact, midsize and utility vehicle segment.

The automobile industry has exceedingly grown in today’s world. From the world’s fastest, luxurious car to the economic and fairly cheap ones, the market is very demanding. The industry in this analysis is Tata Nano. Tata Motors was established in the year 1945 by Ratan Tata and has developed as one of the most prevalent automobile industry in India. Tata Motors, established in a country where most of the population can only afford purchasing motorbikes. But, recent studies showed that 65% of Indian families are now able to afford cars and also applies to the increasing purchasing power of people across developing countries. The Tata Nano was launched in 2008, as a vision of Ratan Tata to facilitate those families who drove on a scooter to have a more comfortable drive at an affordable price of just $2500. Tata Nano is also known as the world cheapest car and signifies great technology and a small

BBC (2015) narrated that vehicle industry has been entered into a premium era and so for that pushed car buying in a premium direction. Global village is maximising choices for buyers and innovation is adding more responsibilities to automotive industry to provide more economic and great quality vehicles so that buyers can get maximum benefit if they are spending more. Church, A. R. (2005) explained that British automotive industry is now entering in new phase of its success as buyers are understanding the significance of quality cars and other vehicles and are ready to spend more than they spent in past. This industry is notably contributing in British economy.

Tata Motors-have aussi Followed the footsteps beens and a pioneer in Technical Advancements in automobile sector. Tata Motors Benefit from the advanced Technically engineers operate in more than That 20 publicly traded companies Tata Group for it's R & D practical purposes. As Ratan Tata Said "The foundation of the company's growth is a deep understanding of Economic stimuli and customer needs, and the Ability to translate customer-Them Into Desired offerings through leading edge R & D". Tata Motors employs more than 1400 Scientists and Engineers All which make Tata Motors a winner in terms of technology in home market. Tata Indica, first as Indigenous, and Tata Nano, world's cheapest car, are examples of the technical capabilities and cost effective production efficiency of Tata Motors. Tata Motors-have-been Continuously investing around 2% of it's annual profits in research and development to stay ahead in the competition. Tata Motors is equipped with the 'only certified crash test facility in India' and Tata Motors set up it's European Technical Centre in 2005 That Improved companies competency in design engineering and product development. In services also, Tata Motors Developed has a -Electronic Control Unit as Compared to the Conventional Unit That the marriages accessories in a Manner effective sans Requiring a full fledges servicing

A primary issue Tata must consider is the current and future profitability of the Nano. In order to determine if their strategy of entering the small car market is feasible, the influences on the industry must be evaluated. If evaluation of the industry indicates that future profitability is in question, the company must consider canceling the project, or focus on areas where Tata can influence the industry to improve the likelihood of profitability.

1) The Tata Group has been transformed from a risk averse, slow moving giant into a more dynamic and aggressive conglomerate. How much of such a transformation can be attributed to one individual? Discuss the role of the leader in initiating and managing change.

Tata Motors, the General Electric of India is a conglomerate with a commanding presence in a vast industries across India and globally. In January 2008, Tata introduced to the Indian public it’s ultra cheap car “Nano”. The expected retail price for the Nano was expected to be as little as USD2,500 and would cater for the fast growing middle class segment of the Indian population. Tata Motors was set to change the face of the automobile industry in India. This was however met with some challenges, given the economic environment of India and thereby causing a delay of the launch by six months. The introduction of the “People’s car” created a new category/ trend of ultra cheap cars which then led to other auto makers

Indian automobile industry and the small car segment in particular was witness to history being created when Mr. Ratan Tata unveiled ‘Nano’ – the Rs. 1 Lakh ($2,500) small car from Tata Motors. Nano is conceptualized and designed to fulfill the middle income Indian household’s dream of owning a car. It is projected that Nano is going to expand the

To finish, we can see that the two-wheelers (motorbikes, etc.) are clearly dominating the vehicles sales market in India (representing 76% of the total vehicle sales whereas passenger vehicles represent 16% of the total vehicles sales in India) and could be in fact the main competitors of the Tata Nano. Indeed, they are well adapted to the small streets and their maneuverability is well known in the mind of customers, and more particularly college students. Besides, these two-wheelers have a very competitive price (Rs. 35,000 to Rs. 75,000) and are less expensive to operate and for the maintenance than the Tata Nano. As a result, the two-wheelers are probably the main competitors as they answer the same needs than the Tata Nano. Concerning the suppliers, we can see that they can have a huge impact on the automobile industry, as rising raw material costs can quickly increase the price of the cars, which was finally the case for the Tata Nano after its launch. To finish with the consumers, the case indicates that they are looking for low prices but their aspirations are rising. We are now going to look at the context of the automobile industry.

Ratan Tata, chairman of Tata Motors Ltd., hoped to raise the status of Middle class families in India by offering the Tata Nano. Expectations were increasing amongst the customers regarding the product features and its efficiency. Competitors were eagerly waiting for its arrival to find out what they were going to be up against. It had strong and convincing features and was actually a good product. Unfortunately there were too many strategic marketing problems that kept it from being as big as they thought it was going to be. We will explain the problems it met and showcase some alternative solutions that could be implemented.