The purpose of this case analysis is a basic investigation of an advancement in the automotive business

The purpose of this case analysis is a basic investigation of an advancement in the automotive business, the Tata Nano, the world’s least expensive automobile disclosed by Tata Motors in 2008 which is sold in India for around $2,500 (USD). It is made by Tata Motor Limited, the biggest vehicle organization in India. It’s director, Mr Ratan Tata envisioned that Tata Nano will turn into a “People’s Car” which is affordable to nearly everyone. The mission statement of Tata Motors states that, they are the best in the manner in which they operate, best in the products they deliver and the best in their value system and ethics (Luthans, 2015, p.403). Additionally, Tata Motors is committed to improve the quality of life of communities by working on employability, education, health, and environment.
Tata Nano was first propelled in India on April 1st, 2009 and anticipated to be in the Indian market by July 2009. Tata Nano focused on targeting families who utilize bicycles as a type of transportation. It was intended to enable the families to have a more agreeable, safe methods for traveling. As indicated by the A. H. Maslow hierarchy theory, the individual will display the conduct to the need he or she needs to satisfy (Luthans, 2015, p.427). Tata Nano was set as a swap for bikes and motorcycles as to improve wellbeing and safety needs of the individual and as per the security must be accessible at the most reduced cost conceivable. The making of Tata Nano had an imposing challenge at their hands of making an automobile that cost just a single lakh yet had all the vital and basic features. Tata Nano is a straightforward automobile which intended to be utilitarian because all the nonfunctional parts were dispensed and basic parts were updated to decrease cost like the start plugs and motor. The underlying automobile did not have an aerating and cooling framework and the hatch door was absent. The automobile mirrored similar characteristics where all the component guaranteed usefulness. Nonetheless, Nano confronted numerous hardships. The fall of Tata Nano emerged for Tata Motor from all viewpoints with respect to the arrival of Nano. This case examination will first demonstrate the diagnosis of the issues of Tata Nano, solution that distinguish alternative approaches to solve the issues, an action plan that includes distinguishing proof of every single particular movement expected to execute an answer that settles the recognized problems, and an assessment which includes confirmation of whether moves made to take care of the issues were effective.
To start, Tata Nano had such a significant number of issues that influenced notoriety to go frightfully. First, a political issue that emerged when the Communist government of West Bengal was keen on conveying Tata Motors to its state. Before Tata purchased the land, the West Bengal government did not actually possess the territory. The West Bengal government saw the Nano as an opportunity to reviving enterprises in West Bengal, a poor area that was customarily centered around cultivating. Second, an ethical issue was the initial Nano plant in West Bengal. Tata Motors constrained farmers from their property and distributed installments that were a small amount of the land value. Additionally, proceeding with the work with the continuous challenge demonstrated excessively unsafe environment, employees fizzled, making it impossible to appear for work after dangers from protestors. Third, the management issue of the whole assembling line was forced to be moved to Gujarat which differed the arrival of Tata Nano. According to Layak, huge introductory request required the company to construct the automobile at scale from the beginning, which demonstrated to be problematic when the company kept running into issues obtaining land for another industrial facility in West Bengal. Production for the initial 100,000 automobiles was postponed for over a year and a half. Fourth, there were a couple of safety issues where the automobile burst into flames in the ordinary course of the task. In order to reduce the cost of the Nano, airbags and antilock brakes which caused security concerns. Fifth, public relations of Tata Nano did not deal with the safety issues exceptionally well and this prompted lost trust in the product. The nation misconstrued the “Most Affordable Car in the World” slogan as “Cheapest Car in the World”. This went poorly in India where the automobile was viewed as a status symbol. This can be clarified by the Hofstede Dimensions for India where it had a score of 77 in power distance and 55 in masculinity which implies that people tend to purchase items that shows power and emotions (Country Comparison, 2018). Consumers portrayed Tata Nano as a cheap and poor-quality which massively decreased sales of the automobile. According to the article, “The Selling of the Nano”, the Nano’s advertising issues started with its product positioning. The cost crawled up by around 15%, putting it out of the compass of first-time purchasers with no standard work or payslips to back an application for credit (Catalyst, 2009). By underscoring its inexpensiveness as opposed to its essential characteristics, it dissuaded consumers who could bear the cost of more modern vehicles. Nonetheless, the various issues caused the focal issue of Tata Motors by not putting enough exertion in market positioning on the proposed automobiles. Rather, Tata Motors propelled the automobiles in the essential shape giving individuals a chance to utilize it to discover the deformities of the Nano. By underlining its inexpensiveness as opposed to its basic and simple features, Tata Nano has frightened off numerous upper white collar class families who could manage the cost of it.
Nano’s fundamental suggestion simply did not work. Individuals could purchase a motorcycle for a lower price or purchase a utilized automobile for a comparative sum. At the point when a brand creates a negative relationship there are just two conceivable arrangements: reposition or replace. Individuals are worried about the security issues so Tata Nano should address the wellbeing needs of the general population. The unpredictable purchasing conduct individuals look for a considerable measure of data before they really purchase any item. Along these lines, Nano should make successful correspondence to such sections who are its imminent clients. Nano should utilize their references and without a doubt their assistance to broadcast about the brand through word of mouth in a positive perspective. There are numerous clients of Tata Nano who are content with their purchases. This point can be utilized upon to pull in more clients for the automobile. Likewise, it was found amid an overview after Nano’s disappointment that individuals did not think that it is safe, regularly regarded and viewed it as a toy car. Nano should gaze upward to incorporate extra security frameworks in its automobile and convey these new additions forcefully to change the standpoint of the general population towards Tata Nano.