Management: Leading and Collaborating in a Competitive World, 12th ed ; (2016) a

Question

Management: Leading and Collaborating in a Competitive World, 12th ed; (2016) authors: Bateman, Snell & Konopaske; Publisher: McGraw-Hill; ISBN-13: 978-1-259-546945

Concluding Chapter 2 Case: Tata Motors: From Cheap to Awesome? (text pg. 73)

Complete the following questions (approximate one-page submission):

(1) Which barriers to entry contributed most to Tata Motors' lack of success with the original Nano?

(2) Which macroenvironmental factors did Tata Motors consider when adjusting the marketing and manufacturing strategies to achieve success with the more recent Twist and LX models?

(3) To what degree do you believe Tata Motors will succeed in delivering a successful low-cost vehicle to consumers in India and other developing economies?

Explanation / Answer

Ans 1:

Tata Motor's Nano was launched in the market targeting the customers from the rural area who didn't afford to buy a car and were buying a car for the first time. This targeting strategy made the car to be perceived as cheap driving away would-be buyers. Also, the low sales were a result of the unacceptably low level of quality and features built into the vehicle, including an underpowered and noisy motor, no stereo or air conditioning, and wires visible in the driver’s compartment. Another reason for the Nano’s demise was a missed target market, namely young urban drivers.

Ans 2:

Tata Motors considered focussing on technological and demographical factors when adjusting the marketing and manufacturing strategies to achieve success with the Nano's Twist and LX models. They shifted there focus from first-time rural buyers to young urban customers trying to rebrand their image as an affordable 'awesome' car from 'cheapest car in the world'.The company introduced several technological upgrades such as power steering, music system with Blue-tooth connectivity, and enhanced interior and exterior features. They also responded with maintenance contracts, test drives, and safety improvements.

Ans 3:

I believe that Tata Motors will succeed with new improved models of the Nano targeting the more demanding demographic. The company might have to continuously revamp the models according to the trend as other cars in the market keep updating their models each year. One more upgrade can be to introduce air-conditioning as the cars are expected to have that by the customers.

Related Questions

Navigate

• Browse (All)
• Browse M
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.