Tata Nano Case Study



Abstract:
The objective of this case study is to illustrate the lessons of capital investment decisions through Tata Motor's Nano project. In 2003, Ratan Tata, chairman of Tata Group, announced his vision of designing a safe and affordable car for the common man. However, right from its inception, the project had gone through several hurdles. Finally, overcoming all the financial, technical and social challenges, Nano, acclaimed as the world's cheapest car, was launched amidst much hype and attention from all sections of media.While giving a brief on the entire journey of Nano from the origin of the idea to its launch, the case study highlights the importance of quantitative and qualitative factors in the evaluation of capitalinvestment decisions. Besides, it provides the learning opportunities to discuss the nature of the capital budgeting decisions and its various types.


Learning Objective
1. Identify market segments and choose the most viable option
2. Write a positioning statement
3. Assess cannibalization risk
4. Consider import-export potential
5. Determine fixed versus variable components of the marketing mix and their effect on pricing