Tata Motor Ltd

Question: Critically discuss the benefits and problems of launching a range of new products within an international company of Tata Motor Ltd . Critically evaluate the impact that new product development has on the long-term success of these new products of Tata Motor Ltd . Answer: Introduction This paper described the various aspect of Tata Motor Ltd (TML) as international company that manufactured Tata Nano. Tata Nano is the car which produced by Tata Motors Company. The main objective of this paper is to evaluate the Tata Nano utility in the current market. This paper covers the innovation global business study, corporate strategy for Tata Nano, launching process of Tata Nano and advantages of new product car. Indeed, Tata Motor is an Indian automotive sector multinational company. Tata Motor headquarter is located in Mumbai, Maharashtra. Its products include passenger cars, buses, vans, trucks, coaches and military vehicles. Tata Motor is the world 17th largest motor vehicle, fourth largest truck and second largest bus manufacturer organization by volume. Tata Motor has manufacturing plants in Dharwad, Jamshedpur, Pune, Lucknow and Patnagar as well as in United Kingdom, South Africa, Argentina and Thailand. (Career Launcher India Ltd, 2009) Further, the Tata Nano was la unched with US$ 1600 price that would increase with time. Tata Nano targets to provide Indias middle classes people from two-wheelers. It got high publicity when it was launched in the market. (Aaker, McLoughlin, 2009) Innovative international business study: Innovation is new idea or opinion about international business. Innovation is the key for every market in the world. Innovation required building new thought and process that implemented to positive change. Innovation thought has been transformed into reality. In the concern of business, it is a process and business concept that activated in the marketplace and produce development for the company. However, innovation is different from invention. Because of innovation means use of a better while invention means directly related to creation of the method or idea. In the regard of Tata Motors, it produces Tata Nano car for their middle classes people of India that is known as innovation international business. Mr. Ratan Tata aim to provide four-wheeler to every Indian family instead of two-wheeler. So, they produced Tata Nano product for the Indian middle class family. (Cavusgil, 2009) Analyze Tata Motor corporate strategy: Corporate strategy is direction of firm that creates value the coordination and configuration of its multinational market. Here, value creation means the generation of higher financial activity from multi-market activities. Corporation is the activity of the management that lie with corporate power structure. Configuration relates to multi-market scope of the corporate such as product diversification and geographic focus. In the other words, Corporate strategy provides clear way for all kinds of business units working in agreement to meet shareholder requirement while provides value to their staffs and customers. It is direction for company to takes purpose to achieve business success in the long term. These are the corporate strategies of the TML that are described below: Tata Motor constructed scored card approach. (Grant, 2010) TML has 5 member corporate team that deal with several functions. The functional expertise came from SBUs. Tata Motor began central resourcing by e-sourcing to reduce the inventory values. Tata Motor created communized types of parts. The performance evaluated on the basis of these performance such as process quality, product quality and safety and cost measures. SBU high authority people given autonomy design to approach corporate strategy objectives and goals. (Grant, 2010) Above corporate strategy is helpful to generate new idea so they created Tata Nano car for middle class family of India. Corporate strategy made by Board of member and Ratan Tata is the part of them. So, Tata Nano car idea came from Ratan Tata mind. He wanted to provides cheapest city car for Indian. Analyze the launch process of Tata Nano: We would analyze the launch process of Tata Nano. The main reason behind to launched Tata Nano is to that when I observed family driving on two-wheelers in India. I saw that father is driving the two-wheeler and his wife is standing behind the him with child. So, it was too dangerous in the night travel and stormy weather so I decided to launch a cheapest car for Indian middle class family to provide safer drive with family. This ideal let me wonder when I could conceive of a affordable and safe transport for such a family. Tata Motor designer and engineers gave their all efforts to fulfill their dream. Tata Nano launched by Tata Motor at 9th annual Auto Expo on January 2008 at Pragati Maidan in the New Delhi, India. It is affordable as well as safety and emission norms perspective. So, Tata Motor management team is happy to launched city car to Indian people. We think its bring pride, utility and joy of owing a car to several family who requi re personal mobility. Further, Mr. Girish Wagh negotiates with customer and said you have three-wheeler then why you wanted to buy four-wheeler. Then, he replied that if I have four-wheeler. Then, I would get better marriage prospect in my village. So, Tata Motor launched Tata Nano car. The main objective of launching process of Tata Nano is to launch worlds cheapest car that is inspired by the number of Indian families with two-wheeler instead of four-wheeler transport. (Aaker, McLoughlin, 2009) Moreover, the Tata Nano is first rear engine car in India. It has 623cc engine and 21.97km/liter fuel efficiency in city and 25.5km/liter on highway road. Maximum speed of this car is 105 km/liters and trunk capacity is 15 liters. It is first car with 2 cylinder petrol engine. Tata Nano manufactured at Sanand, Gujarat. After tested in Tortune Tracks, Tata Nano launched in the market with cheapest or affordable cost. Advantages of launching a range of Tata Nano: Tata Nano car is world cheapest car that is launched in India in 2008 at Pratati Maidan. It is much popularized product of Tata Motor. It is good as well as international business perspective. These are the main advantages of Tata Nano car that is described below: Tata Motor Mumbai branch announced the advantages of the Tata Nano that it sales will be increased due to launch of new Tata Nano car in the India market that affects international business of Tata Motor. (Williamson et al, 2013) Tata Nano car will provide four year or 60000 km (whatever is earlier) warranty without any extra costs. This warranty will be expended if you bought car too late from launching period. (Williamson et al, 2013) In addition, all buyer of this car have option to maintenance contract only Rs 99 per month. In the August 2010, Tata Nano management announced that they enhanced features in cars electrical and exhausts systems that are the advantages of launching process of Tata Nano in the international business perspective because most of international automotive sector companies also increase their features. So, it is essential for Tata Nano to increase their feature to make stable in the worldwide competitive market. In the August 2010, Tata Motor has stated to open sales of the Tata Nano and it is easily available in 12 states. Tata Motor will assure the entire nations with open sales in March 2011 to provide advantages those have dream of owning the car. Further, customer satisfaction indicates that 80 percent of the people are satisfied and more satisfied with Tata Nano due to durability, safety, mileage and maneuverability. (Williamson et al, 2013) Benefit of the Tata Nano provides Safety or security for its user: The benefit of the Tata Nano car as a product of Tata Motor could provide security in the global business. This car was affordable for anyone and comfortable with Indian roads. The benefit of the Tata Nano is described below: Interior space: Its interior space is too comfortable as compare to other car which costs are closest to Tata Nano. Those people have six feet height they can sit in this car. It is possible only because their engine in the bonnet. Nano height is more than of Hyundai Santro. Therefore, there is a lot of headroom that makes it too comfortable in the interior space side. Fuel Economy: Tata Nano mileage is 18-20 km/liter in city and 23-25 in highway road that better as compare to other vehicles. ARAI certified its mileage of 25 km/liter and it has low carbon footprint around 92.7g/km in the India. Safety: Safety is the main benefit of Tata Nano car. Nano is tested in UK at the MIRA. It is safer as compare to other vehicle. It does not have airbags. Air conditioning: It is low cost care it does not mean that it has low quality AC. AC rarely affects the performance of the Tata Nano car. It raise the competitive market in the perspective of AC. Drivability on rough terrain: It is drivable in the rough road so it is good for Indian market because most of rural area road condition is not good. So, it can drive in the all zone of nation. It gave more competition in the four-wheeler sector in the worldwide. Parking solution in city: Tata Nano covers low space in the parking so it is good care in the current situation of city. It provides solution of parking. Due to solution of parking space it would more demanding in the worldwide market. It could more popular in the abroad market. Power head lights: It has powerful head lights that became more attractive in the competitive market of the world. Speed and acceleration: Speed is the main benefit of the Nano car. Nano highest speed is around 151 km/hour. It is too attractive in the current competitive market. Tata Nano impact on the organization structure, risk management and corporate culture: Tata Nano is worldwide famous car so its affect organization structure direct or indirectly. Tata Nano increased the sales of Tata Motor. It improves the structure of the Tata Motor through its brand image in the current market. Further, Tata Nano car control the risk of the Tata Motor because its car is cheapest in the worldwide so people will like to buy it so there will be no risk as well as over production perspective. If company will produce high units and there sale will be less then it reduce the profit margin and sale volume of the Tata Motor. Indeed, risk management is the process of identification and acceptance or mitigation in the investment. It is two types of process that determine what risk exist in the investment and then handling specific risk in way. In the other word, it is happen anytime for fund manager or investor perspective and attempts to quantify the potential losses in th e investment. After, they took appropriate action according their objectives and goals. (Rejda, 2011) Further, Tata Nano car has easy durability and cheap as well as other competitive so it could be maintain the corporate culture of the Tata Motor. Corporate culture indicates the organization behavior that how react the organization. (Davis, 2003) Tata Motor (Nano) growth strategy in 2015: Tata Nano is the cheapest care in the world. Due to its easy durability, low costs and attractiveness it became more popular brand in the India. Tata Nano was top 10 selling cars of the 2015. It is showing success story of 2015. Within the 11 months ended, it sales raise around 18 percent to 74545 units from past years. Indeed, Maruti, Alto, Hyundai and Alto are the top selling models of petrol care are declining in the last 11 month. Further, customer bought 1.87 million cars as compare to 1.78 million in 2011. (Raj, 2012) Tata Motor saw good growth in passenger car in month of February 2015. In the care segment, the growth of company was 31 percent while in MHCV segment. The commercial and passenger sales in February 2015 were around 11 percent with 44225 vehicles. (Sharma, 2015) Domestic sales of commercial and passenger vehicles were 40314 units that were 14 percent higher as compare to February 2014. Further, in the financial year, Tata Motor sold 119041 units lower as compare to last year. In the export perspective, it shipped 3911 units in Feb 2015 as compare to 4636 units. So, registering was fall down. References Aaker, D., A., McLoughlin, D., (2009). Strategic Market Management: Global Perspectives. 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