Thank You

Sir
FOR GIVING US SUCH A GREAT
PRESENTATION
………………..
Mr. Abdullah Md. Ahshanul Mamun
Assistant Professor.
DBA,IIUC
Presentation On
“TATA-NANO-VATION”
Presented By:

Name ID No.
Abu Bakkar Siddik Chowdhury R-191251
Shakil Mohammed Emon R-191252
Biplob Das R-191255
Jibon Sheel R-191256
 About TATA motors
 Established in 1945, the company is top 1 automobile manufacturer
in India, world’s 4th largest truck manufacturers and world’s third
largest bus manufacturer.
 Tata motors has produced & sold more than 4 million cars in India
so far.
 It has more than 25000 employees, 4500 engineers and scientists
and with R&D.
 Tata launched “TATA INDICA” India’s largest selling car, which is
India’s first fully indigenous car.
 In 2005, they created a new segment mini trucks with the launch of
“TATA ACE”.
 In Jan 2008, TATA unveiled its “People car” , TATA NANO the
cheapest car.
 Business Models for TATA NANO 
 Dream of Sri RATAN TATA, a car cheap enough for motor cycle buyers.
 For this project, TATA adopted “COLLABARATIVE APPROACH”,
which usually believes in vertically integrated approach and company
believes it could do everything better than others.
 BUSINESS PROCESS OUTSOURCING.
 Refined the manufacturing process by breaking down every component
of the car into its smallest pieces.
 eliminating everything that was unnecessary.
 NANO was more eco-friendly and affordable with a millage of 23
KM/ltr.
 COST CUTTING FEATURES
 The trunk is only accessible from inside the car as the rear hatch doesn’t open
 One wide wiper instead of usual pair.
 No power steering, radio or music can be fitted as accessories.
 No air bags In any model.
 624cc two engine cylinder. 
 No air conditioning. 
 To ease the assembly, body panels are glued instead of welded.
 Collaboration as a source of innovation
TATA MOTORS considered COLLABORATION as the source of innovation from
different company’s idea to reduce cost.
 TATA divided the components into two types – proprietary design and Tata motors
design.
 For proprietary design components Tata went with established suppliers such as
BOSCH GROUP.
 BOSCH GROUP, which supplies the engine management systems.
 Bosch split the development between its design centers Bangalore and Germany
 Using local design capabilities was a crucial decision and employment took place at
higher wage levels.
 Bosch developed a software consists of electronic control unit, fuel injectors, sensors,
ignition oil, tank vent level and throttle body assembly.
  Cost effective “drum brakes” were used.
 Distribution Manufacturing
 Tata wanted to build one million Nano’s per year.
 NANO is constructed of components that can be built
and shipped separately to be assembled in a variety of
location.
 So. Tata Nano is being sold in KITS.
 Any local entrepreneur can establish assembly unit and
can sell in pre-defined locations.
 TATA NANO-A GLOBAL CAR?
 Though It succeeded in creating huge market hype before the launch, it took
whole 2 years to sell its 1,00,000th car. It Couldn’t meet the annual sales
expectations of 2,50,000 cars. 
  First reason is the forced movement of production plant from west Bengal to
sanand, Gujarat because of strike.
 Few fire incidents and resulted media sensitivity. 
 Negative word of mouth from non targeted customers who bought the car.
  Positioning as “worlds cheapest car” was actually a disaster in global market.
CASE QUESTIONS
 How do you view Tata Nano as an innovation ? A
differentiated product or a low cost product?
Tata Nano is a both a differentiated product with the lowest possible
price. 
 Tata Nano is a low cost car by the positioning itself as the “Worlds cheapest Car” with
a price tag of ₹ 1,00,000.
 Targeted to 2 wheeler motor cycle buyer who cant afford 4 wheelers.
 Low cost product with complete entry level features.
Tata Nano is differentiated in a very different manner
  Stating itself as worlds cheapest affordable car.
 Nano born with the emotional touch and that created a huge market hype.
 Collaborative approach with more than 100 suppliers for this project is truly
uniqueness.
 Tata Nano could not have seen the light of the day had
it not embarked upon a policy of collaborations and
alliances. Do you agree? Justify?
Without collaborations and alliances, NANO wouldn’t have reached customer.
 Bosch being a major player in supplier took a challenge and succeeded in providing
with the least cost technology.
 Giving free decision making to the suppliers made them innovators.
 Without the suppliers the Nano would have been costlier in several factors.
 The innovation was faster as each supplier produced simultaneously.
 Innovation from different suppliers.
 The plants and employment might have increased the price of end product.
 Breaking down of components and outsourcing them gave an option to concentrate
more on that particular product.
 Despite the huge market hype and the first mover advantage, it
appears that company has not able to cash upon in? do you agree
with this? What are the reasons for this?
Yes, TATA MOTORS was unable to cash upon it. Because:
 The annual sales expectations of 1 lakh per year was not reached.
 It took 2 long years to reach its 1,00,000th car.
 Strikes in west Bengal resulted in movement of production plant to sananda, Gujarat
which not only resulted in 18 months delay to first buyer and also huge cost.
 It also resulted in heavy inventory costs.
 Few fire cases made customers to back out on the verge of buying, safety does matter.
 The sound of 2 cylinder engine was a major negative factor which made it sound like a
auto.
 Negative word of mouth by non targeted customer group.
  Lack of basic features made it just plane product but not a complete car.
 What is the role of leadership and strategy execution in
bringing out such zero- base products? Justify your
answer.
 A team of 500 members lead by 5 core members made Nano into reality.
 Mr. wagh used to take suggestions from every person in the plant to make it better and
better with least cost. 
 The suppliers are allowed to research for their particular part so that they can come up
with innovative ideas.
  For this project Ratan Tatan believed “Together more can be achieved”.
 More than 100 suppliers, everyone trying to reduce the cost.
 Anyone with an assembly plant can become a distributer for that particular region.
 Cost reduction of each and every part resulted in low price.
 Tata Nano targeted to motor cycle buyers instead of car buyers.
 Conclusion
 Nano's positioning as a "cheap" car killed the aspirational
element in the car and the performance of the model has
been terribly underwhelming over the years.
 Although Tata Motor’s tried to correct its 4Ps it could not
help Tata Nano to get the success. 
 So finally after four years of it commercial launch,
understanding the inevitability of positioning
management repositioned Tata Nano as a "Smart City
Car“.