Wednesday, June 19, 2019
Case Study Example | Topics and Well Written Essays - 500 words - 11
Case Study ExampleSince Indias GDP was low, the vast majority of the universe could only afford two wheeler vehicles. The strategies employed in ensuring that the Nano met all demands by the non-four-wheeler customers included ensuring that it was affordable for this portion of the population. It was priced at only 1 hundred thousand making it the cheapest car. In addition, it met high fuel efficiency standards and met all safety standards that the two wheelers could non meet. For these reasons, people placed orders before they had even seen the car.There were several(prenominal) hurdles that the Nano had to address in the market. First, the Nano had to ensure that it offered better services than the two-wheeler by becoming a safe, all-weather vehicle. In addition, it had to be affordable. Second, the car had to be intentional in a way that it promised an upward social mobility. Third, the designers could not compromise the buyers so as to ensure low cost car. For instance, they co uld not design it universe a two door vehicle since this would reduce accessibility to rear seats.In spite of the huge initial orders, there were obstacles which resulted in poor sales. First, Tata did not have its own distribution channels therefore, it resorted to using the traditional dealerships, which had limited space. Although this was a main(prenominal) issue Tata resulted to using other outlets so as to agnise the showrooms available in many cities in India. For instance, the company tied up with Big Bazaar to display the vehicles in smaller cities. Additionally, two wheeler customers who were the main target were turned off by the perception of the Nano being the cheapest car as people wanted to upgrade their social status. Second, Tata also had a proceeds problem since the interim facilities production was low. Third, the company had issues with local communities who protested the use of arable land for industrial uses. This is one of the main obstacles that affected the progress of the Nano
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