CASE STUDY 4
Tata Nano: The people’s car
Mayank Singh Mudgal
Ph11B0005
3rd March 2015
Introduction
This is the fourth report for the course ED5317: Strategies for Managing Innovation. The report requires us to study the case by INSEAD titled “Tata Nano: The people’s car that promises to reconstruct the Automobile Industry”. The following questions will be answered:
• What was the thinking behind Nano’s inception?
• What were the innovations involved in the design of the car?
• What were the challenges faced by Tata in the car’s launch?
• Was the product successful? What would you have done differently?
What was the thinking behind Tata Nano’s inception?
The development of the middle class of
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The first challenge faced was the design itself. The team realized there were basic features which could be removed to increase the cost reduction by a large margin. However, this also implied that the car would not be a desirable substitute two wheelers any way as it would not be changing their socio-economic status in any way. Nano would be perceived as a cheap car and would lose the target market.
The year 2008 also saw massive increase in the price of all the metals. This was indirectly caused due to oil being US$200 per barrel. Hence, manufacturing, processing and transportation of raw materials became costlier. This price rise was checked as Tata convinced the parts suppliers to continue the deal with the already decided prices and look for additional cost reduction.
The biggest challenge came in the form of protest against the method of land acquisition for the Nano plant in Singur in West Bengal. The land acquired was a fertile one and the local resistance got violent posing serious threat to the Tata employees. The plant had to be shifted even though 95% of the construction was completed. The dislocation cost the company a lot of
Once production slowed once more, prices for common goods went up. This
Prices also went up because people that were selling products wanted to make more money. Prices were going up people couldn’t afford to buy food most of the time. “ There is no cause to worry. The high tide of prosperity will continue”, said Andrew W. Mellon,. Trading throughout the countries became a loss because of their lack of wealth.
The firm is a multinational enterprise, with offices in 10 different countries and car stores in some 25 countries. Its main product line is the Tesla electric cars, currently consisting of three models: the Tesla Model S, Model X and Model 3. The Model 3 was launched in 2017 and is aimed at the lower spectrum of the EV market, whereas the model S and X are high-end cars serving the ‘premium’ segment. In this essay, I will examine Tesla’s
FRONT WHEEL DRIVE VERSUS REAR WHEEL DRIVE, WHICH ONE IS SUPERIOR? Cars, automotive vehicles that are being used all over the world, all over the time with variety of models, types and brands. Not to mention, cars has been one of the most important transportation method in our daily life. It can be said that, nowadays every people has his own cars.
Cultural differences were not accounted for at a high enough level (working style and speed in India was slower, varying management styles,
The advancement of automobiles over time has directly affected the advancement of society as a whole. Society relies intensely and increasing on private motorized transport, vehicles are expected to become safer, more luxurious and powerful. These expectation, however do not take into account of the ensuring consequences such as greater emissions of air pollutants and greater exposure of people to hazardous pollution that causes serious health problems. All the evidence points to the magnitude of these adverse effects on health and to the need to identify solutions that both reduce risks to health and meet the requirement for mobility. This creates a major challenge to the governments, public health organizations, environment authorities and most importantly to the design engineers.
Technologic factors: Technology is perhaps one the most important factors responsible for Tesla’s internal environment decisions and capabilities: digitalisation, improving technology and globalisation is having a significant effect on the automobile industry. Indeed, these technological advancements now allow for fully electric vehicles and driverless cars. The high rate of technological change is both an opportunity and a threat as the winners of this technological race will be those capable of appropriating these new technologies before their competition. Technological advancement is also a threat, since there is a risk of Tesla’s technology becoming obsolete, the firm must ensure that its R&D spending remains consequent so that it doesn 't fall behind its competitors. (panmore.com, Tesla Motors, Inc. PESTEL/PESTLE Analysis & Recommendations)
Nevertheless, its success story is something that the whole group Renault including Dacia can be proud of and can also be used a strategic model to sell cars in developing markets. Renault’s first model in India, the Logan launched in 2007 in partnership with Mahindra & Mahindra was a complete disaster. After the failure, Renault decided to operate alone by building its own factory in Chennai. Renault identified a gap in low and medium-priced SUV segment in India and decided to bring its much-acclaimed model, the Duster to India with some modifications designed to suit Indian market. It took 24 months and countless surveys and analysis to find out the design specification that suit the pulse of Indian customers.
BMW The 7-Series Project (A) AGENDA 1) Abstract/Executive Summary 2) Problem Statement 3) Case Analysis 4) Alternative Solutions 5) Recommendations 6) Limitations 7) Appendix Abstract/Executive Summary • To explore the BMW decision about how to manufacture the Prototype vehicles. • Previously, BMW prototypes were handcrafted at the company by skilled artists. • There is a proposal to change the process and make prototypes inorder to better understand the issues that may arise during final production phase.
I have no prior knowledge about Hybrid cars but once I heard about an electric car produced by Tesla and it made me very curious to know more about the topic I have done research on the Internet. In my speech today I am going to speak about the Development of hybrid vehicles. Innovations and Configurations in the Hybrid Vehicles have significant impacts on the environment. First, I will give a brief description about the Hybrid Vehicles and follow it up by discussing the Innovations and Configurations in Hybrid Vehicles and finally, discuss the Environmental impacts of hybrid vehicles.
The automotive industry is facing changes due to ecological impacts on the environment. Many automotive manufacturers such as BMW and Audi are now entering into the electric car industry where Tesla has established itself in. In this environment, there is a need for rapid innovation a firm 's capability to produce new technological products become crucial to survival in this industry. For this reason, human relations management will be beneficial to an organization as it allows creativity in employees who will be able to respond to changes in the environment efficiently and quickly which gives a company flexibility. " CEO Elon Musk created a master plan to compete with other automotive manufactures which were to Build sports car, use that money to develop an affordable car, use that capital to create more affordable vehicles, produce zero-emission electric vehicle power generation options (Tesla).
INTRODUCTION In June 2008, TATA Motors announced the acquisition of brands Jaguar and Land Rover from the car producing giant Ford Motors. The deal was valued at US$ 2.3 billion and is considered an overall success even from intercultural perspective. On the contrary, the deal was speculated to be a huge failure as the world was entering into recession in 2008 and Jaguar Land Rover (JLR) was incurring huge losses. The deal was an all cash deal with 100% acquisition of Jaguar Land Rover’s businesses.
In the beginning of the early 1990’s Porsche faced a severe problem. After orders decreased to 30% from 1986 to 1993 the company was on the verge of bankruptcy. The loss of almost 240 Mio. DM was so far the biggest in the company’s history. Porsche’s day as an independent luxury car company seemed to be over.
but it’s hard to make it happen and make everyone to use it because it run slower and few distance than normal car. Now a day fuel is more expensive and most making carbon dioxide in human activity [ 1] and electric car is developed enough to run on the road like normal car that we can see on the road. Thesis Statement: The Electric car have several features that make it as the future of every car. Body1 Topic sentence: Electric car did not make pollution. Support idea: zero pollution Support detail: It use electrical energy instead of fuel that not making carbon dioxide to the air or any pollution to the nature.
Growing customer expectations result in shorter life cycle of products and this means that companies should make their processes more and more flexible adopting modularity and product platforms in order to overcome competitors. Companies who fail to meet dynamic customer needs are doomed to fail. To illustrate this we can consider Tata Motors that designed a car selling at $2500 having identified the need for cheap vehicles and introduced market-pull innovation. Though having some negative feedbacks on its security it is affordable for many families in India.