Technological Factors Affecting Tata Nano

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Content Sl.No. | Content | Page No. | 1 | Acknowledgement | | 2 | Introduction | | 3 | 1. Situation analysis of TATA NANO 2.1. ( PESTELC) 2.2. Understanding the Competitive Environment- Porter’s five forces 2.3. Competitive advantage( Potter’s Generic strategy) | | 4 | | | Acknowledgement Introduction TATA Group is more than 150 years old. In terms of market capitalization and revenues, Tata Group is the largest private corporate group in India and has been recognized as one of the most respected groups in the world. It has interests in steel, automobiles, information technology, communication, power, tea and hospitality. The Tata Group has operations in more than 85 countries across six…show more content…
The design team has looked into various alternatives ways of constructing a car. The team tried different technologies but the focused was always on the cost factor. And they were focused on consistent driving factor that is “what is the bare minimum that a customer will accept?” (Agrawal. S & Wadia. J, (2008)) It was made in such a way that it will achieve the cost targeted by implementing an innovative design and reducing the cost in each and every components of the car. Starting from engine, steering, wheels and tires to the windshield washing system, gear shifter and central console, every component was given special emphasis in an effort to cut down cost. In 2005, they started working on new engine for Tata nano after they have considered the suitable engine and decided to create an engine on their own. While to reduce cost they have used steel tube in place of steel rod which actually helps to reduce the weight of the cars. The wheels for Tata Nano were supplied by the Wheels of India and they used lighter wheels as compared to other vehicles. And in order to reduce the weight of the car and save cost, the engine induction system was made of plastic instead of aluminium. Tata Motors has manufactured Tata Nano cars by reducing all the cost incurred to lowest to make the 1 lakh car. The interior structures of the car were designed in more interesting ways with maximum scope for innovation but again their main focus was on the reduction of the cost. The car
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