Blue Ocean Strategy Case Study

Tata Nano: Host to a Global Dream

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Abstract:
The showcasing of the Tata Nano at the Indian auto show on 10 January 2008, ushered in a whirlpool of apprehensions mainly because concrete answers were yet to be found. On one hand emotions ran high terming the Nano as an automotive fantasy that could create a different segment altogether. Critics, on the other hand, held on to their views as to whether the Nano satisfied the requirements of the global automobile consumer. The price hysteria surrounding the Nano, priced at a surprising $2,500 (1 lakh Indian rupees) was the epicentre of all debates when Tata announced that the Nano planned to claim the international market through global licensing. It was said that Tata Motors was working on plans to hit the markets of Latin America, South East Asia and Africa with the Nano. Given the strong distribution network of Tata Motors internationally, the option could have been termed logical. Moreover, the rising market of small cars cushioned Tata Nano's global dream. The future of the Nano in the international automobile market was thus placed on a tight rope even before it hit the roads. The world waited to discover if Tata had really created a wonder car to soothe all expectations.

Pedagogical Objectives:

• To analyse the reasons behind the upsurge in the market for small cars.
• To develop an insight into Tata motor's initiative to develop the cheapest car for the global automobile consumer.
• To debate if the Nano had the potential to claim the global market in terms of price and quality.

Keywords : Automobile; Licensed manufacturing; Tata Motors; Global markets; Distribution network; Satellite manufacturing; Developing countries; Domestic; Small car; India; Competition; Deluxe version; Export markets; Two wheeler; Safety standards