Alternative Analysis

Alternatives Analysis

Because Tata Motors stressed the insanely low cost of its Nano car, it became eminent that it would compete with two-wheel motorbikes. Since theses two-wheelers were so maneuverable, they appealed greatly to college students. One possible action would be to create an ad campaign that would specifically target college students to take them away from these bikes. The Nano could also be equipped with specific features for these students. Another possibility would be to advertise a more organized, saner way of transportation. With all of the motorbikes on the road in India, traffic can be chaotic and confusing. With more people driving cars (or mini cars) traffic would be much more neat. Finally, in order to compete with motorbikes, Tata Motors should stress fuel efficiency and low maintenance costs of the Nano. They should put as much emphasis on this as they do the price of the car. People choose motorbikes for these two reasons but they now need to be their two reasons for choosing the Nano.

In the event of production delays, the company simply needed to plan the location of their plant much more carefully. Instead of focusing solely on a location that best facilitates distribution, economic factors of building in that location need to be taken into consideration. The fact that their plant was shut down due to farmers protesting is ridiculous, especially when it comes to a project of this size. Also, the initial production numbers were set very high and relied heavily on the construction of a new plant. The company should have done whatever they could to modify current facilities that could produce the Nano. Although this would lead to less production, it would make sense. They should produce less of the Nano in order to test its performance in the market. After a successful entry, plans should be made for large-scale production (a new plant).

The CEO planned poorly

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