TATA MOTORS:

-1 Time and cost: The launch of the NANO is quite Viable as the demand of the small car is on the rise in
the market. By the cost of the entry we mean the initial capital required to set up a new firm is very high

-1 specialized knowledge: TATA motors have great knowledge/ experience in the automobile industry
and has renowned Technological advantage because of the recent acquisition and mergers.

-1 Cost advantage: the price of the nano car was one thing that attracting people.

-1 Technology protection: they use technology, being home to world class engineering and many
research facilities. TATA Motors Limited henceforth referred as (‘TML’) is committed to protecting the
privacy and security of your personal data. The protection of your privacy in the processing of your
personal data is an important concern to which we pay special attention in our business processes. We
process personal data collected during visits to our websites according to the legal provisions valid for
the countries in which the websites are maintained.

-1 Economic scale: TATA generates significant economies of scale (the cost per unit decreased due to an
increased quantity of production) for the company

-1 Barriers to entry: In the automobile industry, barriers to entry are very high considering the fact that
incumbents like Tata Motors have already reached high scales of production which will be very
expensive for new entrants to match. Barriers to entry into this industry are high due to the very high
investment required for entry. Not forgetting that incumbents have gained experience with time and
know how to operate efficiently which gives them an added advantage (Johnson et al 2008) we can
conclude that the barriers of entry are high for new companies.

@compete rivalry

-1 Number of competitors: there are so many competitors of Tata motors like, maruti, Bajaj, Toyota,
etc.

-1 Quality differences: there so many Tata car with better quality for the customer such as Tata tiago,
Tata Nixon etc.

-1 Other differences: TATA not only produce car, they build truck Suv also.

-1 Switching cost: Tata produce nano car for consumer at low price that is only 1 or 2 lakes. People can
get bike at this price now they are having a car at this low price so definitely people will prefer nano care
rather than bike.

-1 Customer loyalty: At the launch of Tata Delight, Tata Delight is a loyalty programed for all Tata
Motors commercial vehicle customers, both existing and new. It offers customers a host of distinctive
facilities across all Tata Motors dealerships, sales outlets, and Tata Motors Authorized Service Station

@supplier power

-1 number of Supplier power: Tata supplier power are limited

-1 Size of supplier: The size of the suppliers are big enough to bring about the controlling power in the
price of the car.

-1 uniqness of service: Tata Motors targets 12,000 customers through unique customer outreach
program, covering 47 countries and 800 touch points, Tata nano was the most unique car with small size

-1your Ability to substitute: as Tata motors have fixed supplier so they have the less possibility to
substitute.

1 Cost of changing:

@threats of substitute

-1 Substitution performance: By being service oriented rather than just product oriented. By
understanding the core need of the customer rather than what the customer is buying. By increasing the
switching cost for the customers. There is no substitute of Tata nanos till now.

Cost of change: high if u look at Tata nano there is no other alternative if this small car this cheap
price.so the cost of changing is high for the tata motors.

@buyer power

-1 Numbers of customers: If there are few buyers then they are able to dictate the terms. They pull
down the cost by Bargaining. They force the manufactures to improve the Quality. All this can be clearly
seen in the case of NANO car the price tag at which it has been offered or the quality of the NANO car no
compromises has been done at any front

-1 Size of order: Tata motor have more than 10 thousand order per month locally and internationally.
They bags order for over 2,300 buses from various sts

-1 Differences between competitors: in the automobile industry all player are big and put huge
investment. the competitors are also mostly similar in strength The presence of many players of about
the same size little differentiation between competitors.

-1 Price sensitivity: if u have a look at the tata nano that was the world cheapest car attracting the
customer they are customer oriented for this the price sensitivity is low

-1 Ability to substitute: tata motors provide nono car with cheap price so there is no alternative for
customer to buy car with this cheap price. but now tata nano is producing is discontinue. So customers
have to look for and alternative maruti Suzuki is working on it if they success than it will be high.

-1 Cost of changing: if customer go for any alternative the cost of change wiil be huge because till now
Tata nano was the cheapest car.