Tata Nano Case Study

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Tata Motors

Tata "Nano"

Tata Motors: Case study

Case summary

Tata Motors is a low-cost Indian car manufacturing firm, which has made cars affordable for average Indian consumers

Its so-called 'People's Car' is inexpensive, safe, and fuel-efficient

Tata has enabled members of the Indian middle class to become drivers, which would have been impossible without its focus on keeping prices low.

Tata has expanded internationally, outside of India, and is seeking to expand to the U.S.

Its cars can be assembled anywhere, created from pre-fabricated parts. The cars are minimalist, designed to keep costs as low as possible (for example, the cars have no air-conditioning or power brakes) and thus the company can pass the savings on to the consumer.

Q2. Major issues

Keeping quality high and cost low Competing with other fuel-efficient, small, budget vehicles

Launching the product into the lucrative but very different U.S. market, which also has different safety standards than India

Q3.
Identify the international management and business concepts/topics that are relevant to the case

Differentiation, economies of scale, globalization of business

Q.4 Relate the main issues (step 3) to the concepts (step 4) with explanation.

Differentiation: Tata has differentiated itself mainly on price. Its price-point is extremely low and the engineering and features of the Nano model were solely designed to keep the model within a certain price limit.

Economies of scale: The Nano was designed to be profitable for the company by producing the vehicles at a low profit margin, which would stimulate increased sales in a rapidly-developing market.

Globalization of….....

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