Analyze Ford's decision to introduce the X-type to broaden Jaguar's appeal from niche player to major competitor in the luxury segment. Tata Motors recently introduced the Nano, the world's least expensive car. The Nano fits Tata's strategic goal of building a low-cost car for the Indian market. Give your opinion, backed by evidence and sound reasoning, on whether Tata can succeed in targeting both the very low end of the auto market as well as the high end. What would they have to do to pull it off? Discuss the future marketing challenges of Jaguar and Land Rover under the ownership of Tata Motors.
To fulfill its promise "to build a small car enough for the individual to run and take care [of] the simplest design that modern engineering can devise, [and] low cost," Henry Ford has explored innovative product design, supplier relations , manufacturing techniques and distribution methods. A hundred years later, participants in the ultra-low-cost car market (ULCC) has the same agenda in his attempt to build a car with a price of $ 2,500 to $ 5,000, which is less comparable in U.S. dollars $ 850 to Henry Ford Model T.
But this is not a history lesson that can be easily repeated. Today, all indicators point to a recession in the automobile industry, which require their leaders to balance the global economic crisis of the future market demand. Industry consolidation and restructuring in the global markets will accelerate, driven by the lack of access to capital and consumer economy, high fuel costs and low consumer confidence. Undoubtedly, a new and improved automobile operating model come out of this crisis, promoted by innovation and cost-effective solutions to meet the demands of a broader market of consumers. Maybe the car's launch ultra-low-cost mark the beginning of a redefinition of the competitive landscape for the entire industry.
In the long run, picking up the automobile market new ultra-low-cost to create rich opportunities and risky...