What would have been the advantages and disadvantages of Tat

What would have been the advantages and disadvantages of Tata collaborating with another automaker on the Tata nano? Who might it have collaborated with?

Solution

Tata Nano

Tata Nano, one of the cheapest cars in the world become a people\'s car which is affordable by almost everybody because it makes things smaller, lighter with superficial parts. I think this tata nano was entered the market with the pricing strategy of market penetration. This strategy was chosen because of these following several reasons. They make the market penetration by using 4Ps to be in the world market place. And because of the 4Ps and its costs- based pricing we can say that the tata use the market penetration.

Costs- based pricing

They use this method by approaching the target profit pricing. Tata nano tries to determine the price at which it will make the target profit it is seeking.

Product

The car is having only one component that can perform the same task just as good as two components can do[1] i.e. one windscreen wiper and one side mirror. see picture…

Besides the car doesn\'t have clutch, power steering or gearbox and neither radio nor air conditioner.

Price

Tata only aimed that to target an average Indian with the price tag of US$ 2500 who got the average salary about 150,000 rupees a year.

This price was targeted as it opened the door to car vehicle ownership for many Indian people.

Promotion

Advantages and disadvantages for current tata nano product.

According to the research there is people who were over 4 on the same motorbike. For that case, tata made a nano cars who could be in 4 on the cars with the low price for people who can afford a little. So this is the one of the advantages.

But on the other hand, there may be

Because of the above reasons,

The positive point of views

Internal factors (SWOT analysis)

The benefit is that Tata has been able to exchange expertise. For example after the Daewoo acquisition the Indian company leaned work discipline and how to get the final product \'\'right first time\'\'.

Weaknesses

Tata nano has one weakness which is not often recognized is that in English the word \'tat\' means rubbish. But the brand is not sensitive for the British consumer

Opportunities

Being the cheapest cars in the world and the one of the affordable vehicles for everyone especially for middle class people is the top opportunities of all.

Threats

Rising prices in the global economy could pose a threat to Tata Motors Limited on couple of fronts. The price of steel and aluminium is increasing putting pressure on the costs of production. Many of Tata\'s products run on Diesel fuel which is becoming expensive globally and within its traditional home market.

Costs…. According to the tata nano, the company charges a price that could cover both all its costs for producing, distributing and selling the tata and delivers a fair return.