Analysis of Tata Nano in India-Free-Samples-Myassignmenthelp.com

Question: Analyse the Initial Failure of Tata nano In Indian Market. Answer: This project is about the initial failure of the Tata Nano project in India. Tata Nano is a car, the invention by Ratan Tata for the middle class families. The car is a five-seater, four-wheeler and comes at an affordable price in the country. In its initial days there have been reports of the car catching fire which affected the brand. Data has been sourced from the Tata Nano project in India, an invention of a four wheeler at low cost by Ratan Tata The company faced problems that were political in nature related to the shift in location of the plant, which led to delay in the production. Inflation was another reason that led to the rise in the prices of the raw materials required for manufacture of the car (Bhasin 2017). The report can be found at https://www.iosrjournals.org/. The main threat was that the people were looking for an alternative, as this car could not be used for driving long distances due to the engine cc being low. The Tata Nano has an indirect competitor, which are the motorcycles. Nano was proving to be unreliable due to all the technical glitches it was suffering from. This led to the people shifting to a cost effective solution, which affected the sales of the Nano car (Aschmoneit and Janevska 2013). The positioning attributes also caused the failure of the brand in the market. The car was promoted initially as a replacement for two wheelers. It was stated to be the cheapest car but this term was not used in absolute word meaning, rather it showed the relative price of Nano to the other cars that were available in the market (iosrjournals.org 2017). All together, the production delays, the product attributes along with economic crisis, the political controversies and the failure to in selection of the right market segment led to the initial failure of the Tata Nano project in India. References Aschmoneit, M. and Janevska, D., 2013. Closing the gap between frugal and reverse innovation: lessons learned from the case of the Tata Nano. Bhasin, H. (2017). Swot Analysis of Tata Nano and why it failed to deliver. [online] Marketing91. Available at: https://www.marketing91.com/swot-tata-nano-failed-deliver/ [Accessed 3 Aug. 2017]. iosrjournals.org (2017). Tata Nano: A Positioning Disaster. [online] https://www.iosrjournals.org/. Available at: https://www.iosrjournals.org/iosr-jbm/papers/ies-mcrc-icscm/Part%205/47.pdf [Accessed 3 Aug. 2017].