Date: November 21st, 2014

Prepared For:

Md. Rashedur Rahman

Assistant Professor
Department of International Business
University of Dhaka

Prepared by:
ASM Towheed: 801312006
MD Miraz Hossain: 801312005
Kawsar Ahmed: 801312025

Elevator pitch: The case is based on the Inception of Indias one of the most successful business
entrepreneurs, with an astonishing accumulated revenue of $14 Billion, the legendary creator of
Tata Nano car; worlds economical family car that is ever built! It gives us a view that, despite all
the barriers of mechanical ambiguities, position of property, complex functionality and extremely
low profit margin; a business can move on the right track if support is ensured. We feel the
channeled for Tata Nano is to keep up the interest on their car, provide after sale service and
develop further to increase sales in national and international market as they were able to do
before launch.
1. For the last half century, Tatas strategy has rotated around a deep understanding of the
implications of economic factors, and how that can be translated into desirable customer
products. To achieve this, Tata depends on cutting edge technology. In the case of the Nano,
Tata recognized that very few attempts had been made to serve the large customer
segment at the bottom of the pyramid in emerging markets. By developing an inexpensive
car, Tata could attract consumers who were relegated to riding scooters and motorcycles.
Tata felt that a car was a far superior option to two wheeled transportation especially for
families concerned with safety and comfort. Tata believes that the Nano could increase the
pool of prospective buyers in India by 65 percent.

2. Tata began its design process for the Nano by first figuring out what its target customers
could pay for a car, and then working backward from that price. The companys innovative
approach required the ability to think outside the box and challenge many of the more
traditional approaches to design and manufacturing. Tata identified the basic features that
customers required in a car, and then asked its engineers and suppliers to develop a car
with those specifications that would also meet the $2,500 final price tag. Tata recognized
that certain features were not necessary for its target market, and so eliminated those in
order to incorporate necessary safety and quality features. The Nano contains a smaller
engine for example, since the ability to drive at higher speeds is unnecessary in Indias
crowded cities. The company also used an innovative kit approach that allows it to construct
components and ship them separately to be assembled in multiple locations.
3. Tata had initially planned to manufacture the Nano at a newly built plant in Singur, West
Bengal, India. However, after purchasing what it had thought was government owned land,
Tata discovered that the West Bengal government, in an effort to attract Tata, had actually
acquired the land from local farmers by imposing eminent domain. The farmers protested
the process accusing Tata of forcing them from their land. The farmers claimed their
compensation was only a fraction of the lands real value. The dispute caught the attention
of other activists and resulted in some 30,000 people rallying against the plant. Tata,
worried that the dispute would not come to a satisfactory conclusion, decided to relocate
the plant to a new city. The disputes ultimately cost Tata delays of at least six months.

4. Nano has changed the world auto industry. In a manner similar to Volkswagen, Tata has
shown the industry that a market exists for basic transportation at a low cost, especially in
the emerging markets where some believed that many people simply could not afford a car.
Tata demonstrated that being innovative and thinking outside the box are important to
companies as they approach these new markets, and indeed, even markets in developed
countries. In addition, Tata has stressed the importance of thinking into the future and using
today as a platform for tomorrow.
5. Nano could be a big seller in other emerging markets, but perhaps not in the developed
countries. The small size of the car and its lack of comfort features will make it less
attractive to U.S. consumers, however, others may argue that U.S. consumers have shown a
willingness to try new things such as the Smart Car, and the Yugo, the very inexpensive car
that Yugoslavia introduced in the U.S. in the 1980s. The perception that low cost equals low
quality will be important to overcome as Tata introduces the car to developed country
consumers, and that the company must find ways to convince consumers that the Nano has
passed or exceeded all safety requirements in these markets. Tata can take a page from
Hyundai as it makes its case on quality to U.S. consumers. Tata could also build on its
ownership of Jaguar and Land Rover, two names associated with performance, luxury, and
quality.

Appendix:
1. Tata Engineering and Locomotive Co. Ltd. Was established to manufacture locomotives and
other engineering products: 1945
2. Research and Development Centre set up at Jamshedpur: 1959
3. Exports begin with the first truck being shipped to Ceylon, now Sri Lanka: 1961
4. Setting up of the Engineering Research Centre at Pune to provide impetus to automobile
Research and Development: 1966
5. First commercial vehicle manufactured in Pune: 1977
6. Production of first light commercial vehicle, Tata 407, indigenously designed, followed by
Tata 608: 1986
7. One millionth vehicle rolled out: 1991
8. Mercedes Benz car E220 launched: 1995
9. 2 millionth vehicle rolled out, Indica, Indias first fully indigenous passenger car, launched:
1998
10. 3 millionth vehicle produced: 2003
11. Fiat Group and Tata Motors announce establishment of Joint Venture in India: 2007
12. Tata Motors new plant for Nano to come up in Gujarat, Tata Motors unveils its Peoples
Car, Nano, at the ninth Auto Expo: 2008