TATA NANO-CASE STUDY

Tata Nano-Case Study

Tata Nano-Case Study

Summary

Tata group is one of the most influential groups of India that does not need any introduction in automobile industry. It is also appreciated all over the world due to its efforts in automobile industry. In the beginning of this group, it performs business in the textile and steel sectors, where they are not so successful. In the year 1945, Tata group finally comes in the automobile business and opened a production facility by making purchase of some manufacturing shops from government of that time. The first automobile company of Tata group is TELCO limited. In 1991, when Mr. Ratan Tata takes control of Tata group he takes Tata from other businesses and make their efforts in the field of automobile industry to make effective cars. After long efforts, Tata motors finally launch the world cheapest car in the year 2008, whose price is about $ 2200.

This car is launched by using a very effective marketing and growth strategy. The value proposition used for this car is “Cost”. In India this car is launched as “1 lakh Rupees car”. This car provides more space as compared to other same type cars available in the market. In addition with this, it also provides more mileage due to its small size. To commercialize that product and to present this car effectively and globally, Tata motors uses every option. They use online shopping, make alliance with Nissan Motors and also make contract with ICICI bank to achieve maximum market to take maximum orders. Tata Nano also has many competitors not only in India but also in international market but they compete very well through his cheapest cost and low fuel consumption.

Background of Tata Company (Time in market, structure, changes to company since inception, etc.)

The famous group of Tata was founded in the year 1868 when the region of India was ruled by British Empire. In 1874, Tata group established their business of textile. After getting success in this industry, Tata group, in 1907, establish manufacturing of steel. In the year 1945, Tata Sons Limited also enters into the automotive industry by purchasing the East Indian Railway from government which is under the rule of British government at that time.

In the same year when the shops purchased from government, Tata sons also established a company named as Tata Engineering and Locomotive Company Limited (TELCO Limited). The primary facility of manufacturing for TELCO was established in Jamshedpur which is famous industrial city of that time in Eastern India. During 1945-73, TELCO was managed by J. R. D. Tata and after that Sumand Moolgaokar managed this company from 1973 to the year 1988 (Sun, 2002, P 528).

Sumand as the leader established another manufacturing facility at Pune and try to grab market of Auto industry. In 1991, Mr. Ratan Tata takes control of this group from his uncle and decides to take Tata group from textile and steel business where this group is not very ...