Tata Motors Case Study Tata Nano
1. What could be the main reasons for Tata Motors to enter the global ultra-low-cost car market?
Tata Motors is one of the India’s largest automobile makers where manufactures cheap vehicles. A firm can reach a superior percentage of profit by supply an identical goods or service at a lower cost (Grant, 2010). It is to believed that Tata Motors choose to enter global market in low cost market is because in lower medium and low incomes population is more where this can win in volume as well as sales. This enable Tata Motors to generate more incomes without effected by the GDP as well as inflation of a country. Low priced necessity products demand is always there where high end products will be affected by inflation and many more. For example, Tata Nano was introduced that car, which can be seats up to five people introduced by Tata Motors to be replaced motorcycles in fairly cheap and competitive price with motorcycles is based on the ceiling price. The highest price of market will pay for your goods or service based on survey for pricing limits (MyMarketingDept. Inc, 2014). Tata Nano is introduced to take over the motorcycle markets with low cost and as the cheapest car that can be afford by many drivers in India. Tata Motor is India’s company where most of the populations in India can only afford motorcycle that is why motorcycles is common in India. Besides, in a pyramid of social class, the bottom of the pyramid have the most population among all, which is lower middle and low social status. Obviously Tata Motors which is selling cheap vehicles will be targeting these group of people in volume not high end market where is just profit. Tata Nano enable middle and lower income population to have more choices as well as another safety option other than motorcycles. Social mobility refers to the movement of individuals or groups in social position over time. Generally, social mobility refers to the change in wealth and social of individuals or families
Tata Motors is one of the India’s largest automobile makers where manufactures cheap vehicles. A firm can reach a superior percentage of profit by supply an identical goods or service at a lower cost (Grant, 2010). It is to believed that Tata Motors choose to enter global market in low cost market is because in lower medium and low incomes population is more where this can win in volume as well as sales. This enable Tata Motors to generate more incomes without effected by the GDP as well as inflation of a country. Low priced necessity products demand is always there where high end products will be affected by inflation and many more. For example, Tata Nano was introduced that car, which can be seats up to five people introduced by Tata Motors to be replaced motorcycles in fairly cheap and competitive price with motorcycles is based on the ceiling price. The highest price of market will pay for your goods or service based on survey for pricing limits (MyMarketingDept. Inc, 2014). Tata Nano is introduced to take over the motorcycle markets with low cost and as the cheapest car that can be afford by many drivers in India. Tata Motor is India’s company where most of the populations in India can only afford motorcycle that is why motorcycles is common in India. Besides, in a pyramid of social class, the bottom of the pyramid have the most population among all, which is lower middle and low social status. Obviously Tata Motors which is selling cheap vehicles will be targeting these group of people in volume not high end market where is just profit. Tata Nano enable middle and lower income population to have more choices as well as another safety option other than motorcycles. Social mobility refers to the movement of individuals or groups in social position over time. Generally, social mobility refers to the change in wealth and social of individuals or families
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