Tata Motors Case Study Tata Nano

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1. What could be the main reasons for Tata Motors to enter the global ultra-low-cost car market? Tata Motors is one of the India’s largest automobile makers where manufactures cheap vehicles. A firm can reach a superior percentage of profit by supply an identical goods or service at a lower cost (Grant, 2010). It is to believed that Tata Motors choose to enter global market in low cost market is because in lower medium and low incomes population is more where this can win in volume as well as sales. This enable Tata Motors to generate more incomes without effected by the GDP as well as inflation of a country. Low priced necessity products demand is always there where high end products will be affected by inflation and many more. For…show more content…
Over 4 billion people are poor and represent a huge market, of a bottom of the pyramid approach (Prahald, 2005). Lower income people is a huge market to target at, it is better to get volume than high end product’s risk. Most of the people could afford the car that made huge advantage in sales the car. 3. Which world regions (and specific countries) would you recommend for Tata Nano’s international market expansion? Tata Nano should expand it’s market to other world region, the priority region that Tata Nano should consider is in Asia pacific. The Asian bottom of pyramid population consists of 2.86 billion people, which is 83 percent of the total population, this market is the largest o all different bottom of pyramid markets and makes up a significant share of the rapid growth in Asian consumer markets (Andersens, 2007). Asia is the biggest market among all, the country Tata Nano should be targeting priority is Vietnam. According to Appendix 1, Vietnam GDP per capita had increased each year, the current population of the Socialist Republic of Vietnam is estimated to be 90.388 million people, which is an increase of about 2.9% (World Population Statistics, 2013). Small household size with 4 members or fewer is common in Vietnam, especially in urban areas (Binh, 2011). Tata Nano is designed for 4 to 5 people which shows Vietnam is the country Tata Nano should expand with high population in medium and low income status as well as small

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