Addressed to Tata Motors & Partners
Table of contents
SWOT-Analysis * Strengths * Weaknesses * Threats * Opportunities| | Marketing strategy| |
Conclusion & Recommendations| |
Tata Nano has invented a car that has a couple of strong competitive advantages. The most important advantage is that the car is relatively cheap and therefore affordable for more people than regular cars like Volkswagen and Ford. But does this competitive advantage also apply for the Dutch market? In the following market-entry report this will be analyzed through a SWOT-Analysis. But first some background information of the Tata Nano will be clarified. Furthermore a market-strategy will be proposed and the report will be concluded with recommendations.
In 1935 Tata Motors was established in India. At first the company was a locomotive manufacturing unit. In 1954 the company started to produce their first commercial cars. But their main focus was still at trucks, not at commercial cars. In 1986 Tata Motors began to establish the image they have nowadays. Their first light commercial vehicle was launched that year and in 1990 Tata Motors began its expansion in the car market.
With the Tata Sierra, Tata Motors produced their first passenger vehicle. This car was followed by the Tata Estate in 1992, Tata Sumo in 1994 and Tata Safari in 1998. Though these cars did not had the success Tata Motors was hoping for. The first big success the company had was by launching the Tata Indica on the market. This was India’s first fully indigenous passenger car. The reason for this was the car being inexpensive and easy to build and maintain. This car was even exported to countries like Italy and the UK. This was when Tata Motors decided to keep on producing cheap cars and make it their trademark. After the Tata Indica, the Tata V2 was even more successful. In 2008 the moment was there: Tata Motors introduced the worlds cheapest car named, Tata Nano. This car is very small with a length of 3.1 meters, width of 1.5 meters and height of only 1.6 meter. But, unless the car is small, four to five people can be seated. Thereby the car can reach a speed of 105 kilometers per hour which allows the car to drive on highways. Another interesting specification is that the car drive up to 20 kilometers per liters which is relatively cheap compared to other car brands.
The most important strength of the Tata Nano is its Technology. Tata Motors is the only company in the world that possesses of this knowledge. Furthermore the management of Tata Motors is able to reach a lot of people by means of a proper promotional campaign. Next to that Tata Motors has the capital to do business in Western countries. This is necessary since competition is big and as a result of this Tata Motors is able to launch the Nano in big quantities which is what we call: market penetration. In addition of course the product is unique. It is cheap and very mobile which will attract lots of customers. Tata Motors has 41 patents for innovation on the Tata Nano. This means no other company can use this techniques to create a new car which gives Tata Motors a huge competitive advantage. Then there is the strong brand name Tata Nano has. Almost every single person world wide has heard of it which is quite an achievement for Tata Motors. Furthermore the construction of the car is successfully tested which means the car is safe. At last the car is very environmental friendly since it has a high fuel efficiency and does not pollute a lot of carbon dioxide.
It will be hard for Tata Motors to control the production processes in Europe since the company already has factories worldwide. The more factories are opened the harder it will be to maintain them all. Thereby the brand image of...