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Tata Motors
Tata "Nano" market, which also has different safety standards than India
Tata Motors: Case study
Case summary
Tata Motors is a low-cost Indian car manufacturing firm, which has made cars affordable for average Indian consumers
Its so-called 'People's Car' is inexpensive, safe, and fuel-efficient
Tata has enabled members of the Indian middle class to become drivers, which would have been impossible without its focus on keeping prices low.
Tata has expanded internationally, outside of India, and is seeking to expand to the U.S.
Its cars can be assembled anywhere, created from pre-fabricated parts. The cars are minimalist, designed to keep costs as low as possible (for example, the cars have no air-conditioning or power brakes) and thus the company can pass the savings on to the consumer.
Q2. Major issues
Keeping quality high and cost low
Competing with other fuel-efficient, small, budget vehicles
Q3. Identify the international management and business concepts/topics that are relevant to the case
Differentiation, economies of scale, globalization of business
Q.4 Relate the main issues (step 3) to the concepts (step 4) with explanation.
Differentiation: Tata has differentiated itself mainly on price. Its price-point is extremely low and the engineering and features of the Nano model were solely designed to keep the model within a certain price limit.
Economies of scale: The Nano was designed to be profitable for the company by producing the vehicles at a low profit margin, which would stimulate increased sales in a rapidly-developing market.
Globalization of business: The Nano must meet different national safety standards in light of its international expansion, many of which…
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