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| 1. Situation analysis of TATA NANO 2.1. ( PESTELC) 2.2. Understanding the Competitive Environment- Porter’s five forces 2.3. Competitive advantage( Potter’s Generic strategy)
TATA Group is more than 150 years old. In terms of market capitalization and revenues, Tata Group is the largest private corporate group in India and has been recognized as one of the most respected groups in the world. It has interests in steel, automobiles, information technology, communication, power, tea and hospitality. The Tata Group has operations in more than 85 countries across six continents and its companies export products and services to 80 nations. In the past few years, the TATA group has led the growing appetite among Indian companies to acquire businesses overseas in Europe, the United States, Australia and Africa some even several times larger in a bid to consolidate operations and emerge as the new age multinationals. The TATA group is 11th most reputable company in the world according to Forbes (A, Masud. & K,Kumar. (n.d.). ) Tata Motors created several breakthrough products in the past which changed the market dynamics and helped in providing a new customer experience such as 407 platforms in 1980s, TATA INDICA in the late 90s, ACE and TATA NANO. Tata Nano is a car which has breathed into life due to one man and that is Mr. Ratan Tata. Tata Nano, pet project of the chairman of the Tata Group Mr. Ratan Tata was a car which was expected to change the face of automobile sector in India. In the highly competitive small-car market of India, Tata Nano promised to set the bar so high that it would become extremely difficult for the competitors to match. The dream of owning a car for as little as Rupees 1 lakh s(Rs.100, 000 – roughly USD2500) was too tempting for millions of Indians who cannot afford even a small car. The kind of extensive media coverage Tata Nano received right from the day it was announced through the entire period until the first units were handed over to the owners was something that its competitors dreamed of. However, after two years of launch, the Tata Nano manufacturing plant at Sanand in Gujrat, India is running at around 20% utilization (Kumar, P. (2012, January 8)). Tata Nano today introduced an industry first offer. Customers can now swipe their credit card and drive out in a Tata Nano, on the same day. With the introduction of Tata Nano, it has made the life of the middle class family easy, safe and faster. Situational analysis of Tata Nano in India
Political factors and Economic factors
The land acquisition for one of the Tata Nano factories was not a smooth process. Initially, in 2006, the Tata Motors Company had decided to set up a Nano car-manufacturing factory in Singur (West Bengal). But the Communist Party of India (Marxist)-led Left Front government of West Bengal (WB) was unable to acquire land for that project, because land was to be acquired from farmers, and several unwilling Singur peasants (in alliance with opposition political parties, non-governmental organizations, and middle-class urban intellectuals) opposed this “farmland grab.” As a result of strong opposition from Singur peasants, Tata Motors Company relocated its project to Sanand (Gujarat) in 2008. The Bharatiya Janata Party (BJP) government of Gujarat was able to acquire land for the Nano project without generating much opposition from the people. The first Nano car rolled out of the Sanand factory in June 2010 (Roy, D. (2011, 6th April)). Technological factor
Value Chain Analysis
Tata nano was world’s economic car in the world and Nano has been known by the world. Nano is part of new breed of 21st century cars. The world’s cheapest car Tata nano was manufactured by Tata Motors the largest automobiles industry in India. Before starting the...
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