Friday, May 10, 2019
Case Study Example | Topics and Well Written Essays - 500 words - 11
Case Study ExampleSince Indias GDP was low, the vast absolute majority of the population could only afford two wheeler vehicles. The strategies employed in ensuring that the Nano met all demands by the non-four-wheeler customers include ensuring that it was affordable for this portion of the population. It was priced at only 1 Lakh making it the cheapest car. In addition, it met high give the sack efficiency standards and met all safety standards that the two wheelers could not meet. For these reasons, people placed orders before they had even seen the car. in that respect were several 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 introductioned in a way that it promised an up(a) social mobility. Third, the designers could not compromise the buyers so as to ensure low cost car. For instanc e, they could not design it being a two door vehicle since this would reduce accessibility to rear seats.In filthiness of the huge initial orders, there were obstacles which resulted in poor sales. First, Tata did not have its own distribution transmit therefore, it resorted to using the traditional dealerships, which had limited space. Although this was a main issue Tata resulted to using other outlets so as to make the showrooms available in many cities in India. For instance, the company tied up with Big funfair 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 production 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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