8/8/2019 An Entrepreneurial Study of Tata Nano

http://slidepdf.com/reader/full/an-entrepreneurial-study-of-tata-nano 1/22

 A CASE

STUDY ONTATA NANO

PRESENTED BY: Vibhor Garg (2009MB0014)

Ravi Biwal (2009MB0027)

Manish Kumar (2009MB0042)

Binay Kumar (2009MB0005)

Rohit Rajak (2009MB0019) Amit Anthony Soren (2009MB0035)

Manish Kumar Jha (2009MB0011)

8/8/2019 An Entrepreneurial Study of Tata Nano

http://slidepdf.com/reader/full/an-entrepreneurial-study-of-tata-nano 2/22

GLOBAL AUTOMOBILE INDUSTRY

Key driver of any growing economy.

Comprises of the automobile and the autocomponent sectors.

One of the most important economic sectors byrevenue.

China is the world's largest motor vehiclesmarket, both by sales & by production.

Developed countries trend: Stagnating as aresult of the dropping car markets.

Developing nations: Consistently registeringhigher growth rates.

8/8/2019 An Entrepreneurial Study of Tata Nano

http://slidepdf.com/reader/full/an-entrepreneurial-study-of-tata-nano 3/22

INDIAN AUTOMOBILE INDUSTRY

World's second largest manufacturer of twowheelers.

Fifth largest manufacturer of commercialvehicles.

Largest manufacturer of tractors.

Fourth largest passenger car market in Asia.

Home to the largest motor cycle manufacturer.

Major  Manufacturers: Maruti Udyog Ltd,General Motors India, Ford India Ltd, Eicher Motors, Bajaj Auto, Hero Motors, Hyundai Motor India Ltd., TVS Motors, Swaraj Mazda Ltd.

8/8/2019 An Entrepreneurial Study of Tata Nano

http://slidepdf.com/reader/full/an-entrepreneurial-study-of-tata-nano 4/22

OVERVIEW: TATA NANO

World's cheapest car 

Rear-engine, 4-passenger city car 

Commercial launch: 23rd March 2009

Engine specification: 2-cylinder aluminium, MPFI624cc petrol engine mated to a four-speed gear box.

Emission control: CO2 emission of 101gm/km,Bharat Stage II and Bharat Stage III

Mileage: 23.6km/litre Weight: 600kg (1,300 pounds)

Variants: Tata Nano Standard, Tata Nano CXand Tata Nano LX.

8/8/2019 An Entrepreneurial Study of Tata Nano

http://slidepdf.com/reader/full/an-entrepreneurial-study-of-tata-nano 5/22

ENTREPRENEURIAL TRAITS OF

RATAN TATA

Self-confident and optimistic

Able to take calculated risk

Dynamic Leader 

Responsive to take initiatives

Perceptive with foresight

Persistence and Determination

Creativity

Organized and goal-oriented

Perseverance and Hard Work Independent Minded-Energetic and diligent

Honesty and Honor Or Integrity

Respond positively to changes and suggestions

8/8/2019 An Entrepreneurial Study of Tata Nano

http://slidepdf.com/reader/full/an-entrepreneurial-study-of-tata-nano 6/22

SWOT ANALYSISStrengths:

First mover advantage Brand name of TATA

Cheapest

Eco-Friendly

Fuel Efficiency & Engine Stylish

Weaknesses:

Booking is a tedious task.

Exclusively for city usage purpose, not suitable for hilly

areas. Placement of engine at the rear end can be a point of 

risk in case of head on collision.

Low suspension power.

Low engine capacity.

8/8/2019 An Entrepreneurial Study of Tata Nano

http://slidepdf.com/reader/full/an-entrepreneurial-study-of-tata-nano 7/22

CONTD«Opportunity:

Cross border existence of market.

Huge customer base in the form of Indian middle class.

Growth in the automobile sector.

Bikers can be motivated; auto rickshaw & second hand

market can be motivated.Threats:

Rising oil prices.

Increasing cost of raw materials.

Indian roads not suitable for the kind of strength theproduct has.

Other competitors (Bajaj, Maruti etc)

Govt. may come with new rules.

8/8/2019 An Entrepreneurial Study of Tata Nano

http://slidepdf.com/reader/full/an-entrepreneurial-study-of-tata-nano 8/22

BCG MATRIX

BEGINNING OF NANO

GROWTH OF NANO

IF AS PLANNED

8/8/2019 An Entrepreneurial Study of Tata Nano

http://slidepdf.com/reader/full/an-entrepreneurial-study-of-tata-nano 9/22

PORTER¶S INDUSTRY ANALYSIS

Competition in the Industry

Have to offer lower price to the customers.

A competitor's single innovation can change the wholescenario of the industry.

Potential of new entrant into Industry

The easier it is for a new firm to enter in a business, themore cut-throat competition.

Barriers to entry

Government Restrictions and legislations

Patents

High Entry Cost

8/8/2019 An Entrepreneurial Study of Tata Nano

http://slidepdf.com/reader/full/an-entrepreneurial-study-of-tata-nano 10/22

CONTD«

Power of Suppliers If there are few suppliers providing material essential to

make a product then buyers can set the price high tocapture more profit.

In case of Nano the power of the suppliers is limited and

thus their power is high.Power of Customers

Power of buyers is low because they are large in number and highly fragmented

Threat of substitute products

Various options in terms of cheap cars because after thelaunch, various other automobile companies havelowered their prices of respective segment.

8/8/2019 An Entrepreneurial Study of Tata Nano

http://slidepdf.com/reader/full/an-entrepreneurial-study-of-tata-nano 11/22

TREND ANALYSIS

8/8/2019 An Entrepreneurial Study of Tata Nano

http://slidepdf.com/reader/full/an-entrepreneurial-study-of-tata-nano 12/22

8/8/2019 An Entrepreneurial Study of Tata Nano

http://slidepdf.com/reader/full/an-entrepreneurial-study-of-tata-nano 13/22

8/8/2019 An Entrepreneurial Study of Tata Nano

http://slidepdf.com/reader/full/an-entrepreneurial-study-of-tata-nano 14/22

8/8/2019 An Entrepreneurial Study of Tata Nano

http://slidepdf.com/reader/full/an-entrepreneurial-study-of-tata-nano 15/22

8/8/2019 An Entrepreneurial Study of Tata Nano

http://slidepdf.com/reader/full/an-entrepreneurial-study-of-tata-nano 16/22

8/8/2019 An Entrepreneurial Study of Tata Nano

http://slidepdf.com/reader/full/an-entrepreneurial-study-of-tata-nano 17/22

8/8/2019 An Entrepreneurial Study of Tata Nano

http://slidepdf.com/reader/full/an-entrepreneurial-study-of-tata-nano 18/22

8/8/2019 An Entrepreneurial Study of Tata Nano

http://slidepdf.com/reader/full/an-entrepreneurial-study-of-tata-nano 19/22

COMPETITIVE ANALYSISCOMPETITIVE ANALYSIS

Local competition

Ultra Low Cost car by Bajaj, Nissan & Renault SA by

2011.

Global competition

Established car makers diversifying abruptly into small

cars.

New manufacturers planning to enter the small car 

market .

Used car dealers.

Established car makers and new manufacturers would

likely compete on fuel efficiency and emission

reductions.

8/8/2019 An Entrepreneurial Study of Tata Nano

http://slidepdf.com/reader/full/an-entrepreneurial-study-of-tata-nano 20/22

FUTURE PROJECTIONS

High sales volume will dramatically change the

company's market position. Plans to build an electric and hybrid model using its

platform.

Nano Europa: Longer wheelbase of 2.28m; front andrear body panels are substantially different, as are

headlamps and other details. Upgraded interior finishand up rated 3-cylinder all-aluminium MPFI gasolineengine, matched with a 5-speed automatictransmission and electric power steering, CO2emissions less than 100g/km, Safety strengthenedwith advanced restraint systems, ABS, ESP and

airbags. Europa exported to Europe, premium model in India.

8/8/2019 An Entrepreneurial Study of Tata Nano

http://slidepdf.com/reader/full/an-entrepreneurial-study-of-tata-nano 21/22

8/8/2019 An Entrepreneurial Study of Tata Nano

http://slidepdf.com/reader/full/an-entrepreneurial-study-of-tata-nano 22/22

THANK YOU

³The People¶s Car´