Assumptions about:

Environment of the organization

Society and its structure
The market
The customer
Technology
( It defines what it is paid for)

Assumptions about the Specific

Mission of the organization
(e.g AT&T , SEARS, Marks and
Spencer ,GM)
( It defines what it considers
meaningful results)

Assumptions about the Core

Competencies needed to accomplish
mission
( It defines what it must excel in
order to maintain leadership)

Change in Theory of Busines

Before
Environment was duopoly between Maruti and Hyundai, with Maruti having greater than
50% share, with no major threat from competition at this price point of Rs. 2-6lacs for
global major. Market size was not significant for Big 3 to comnpete fircely. Other European
and Japanese manufacturers were in me too state and not focussed. Competition form
other Indian players was non existent accounting to technology gap , and with rest of
world players on service and spare availability and the spare cost. Customer was happy
to get his first car as the only car more of a pride than commodity. Financing was still not
prefferred by large customers due to social mindset. Car represented as achievement in
life. Show room experience was not a factor in purchase, and availability at the price
point with choice of colour and an weeks delevety was more than acceptable since
competition was non existent, the choice between two players and few models.

Mission was to remain dominant player in the A and B Segment - Small hat chbacks in
India . Focus was to have share of 66% on total life cycle cost of the car ( 33% - Car
initial cost , 33% spares in lifetime, remaining is fuel cost) . Had opened array of service
centres to tap the revenue through service and spares.

Low cost , mileage , spare cost, spare availability, service reach , customer care,
durability of products

in Theory of Business
After

Threat of market share erupted with technology and cost gaps eroding. With rise in
middle class income, market become attarctive, with emergence of competition in
the Maruti dominated segments of Rs. 3-6lac market, where both Indian global
palyers have put up array of products couple with providing world class experince to
the emerging new customers who are young - Gen Y. Car has become an commodity
to be changed every few years with up mobility by this generation. Finances are
being base of all purchases and easily available. Every one wants to tap this market
for it's attractiveness.
Maruti realized this demographic shift, and want to match the experience of buying
for this generation 25-40 years age, who look at show room experience as one of the
factor to look for option of being premium. People buy a car 2 times their annual
salary - which for this generation with finance falls in INR 7-10 lacs , so Nexa is
focussing this segment models.
To retain it's above 50% market share with change in competitive and demographic
environment, and count itself as a aspiring brand than an economical brand that it
today is.
Nexa is a way to fight competition, matching products and experience with
competition, and continue the mone earner sales through it's original outlet of the
mass models.

Aesthetics, Features, experience, Premium feeling , as the others are hygiene.