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The Cool
Memorandum

To: Thomas A. Hemphill
From: (Your Name)
Date: Spell Out!
Subject: Name of Case
___________________________________________________________________
1. Tata Nano is neither an incremental innovation nor component or architectural innovation. This is because of brainstorming session to create functionality with different material better in order to achieve cost effectiveness objective. This is a complete rethinking process for fewer parts. Nano development is competence enhancing value for the firms that took part in this innovation. There is a chance of competence obviation due to radical innovation of less expensive car. Low margin and innovation readily imitable by competitor play major part in the competence destruction. This competence enhancing as research and development will bring new means and ways of production. This will benefit all the stakeholders in the long run if not in the short run. Oil companies, customers and service stations takes benefit of this innovation as other stakeholders.
2. Tata cost advantage is one of the influential factors for the adaptation of Tata Nano. Nano establishment as international brand impact the consumers. Tata home country bias is another plus that help in customer adaptation. Target market is lower middle class so strong distribution channel in rural areas will boost sale as well. Nano possesses complement advantage like roads and service stations that will help in the adaptation. Other factors like competing products, perceived status and perceived safety play major role in boosting confidence among customers.
3. Tata collaboration with another automaker enhances creativity. This will better pool research and development fund in order to reduce the problem of scarcity and bring more ways to accomplish less expensive car objective. It dilutes risk level associated with innovative development. Tata’s coalition with the supply chain enhances Tata’s holding in the government contacts

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