Tata Nano International market Essay Example | Topics and Well Written Essays - 2750 words

Tata Nano International market - Essay Example In some sense, the market was flooded with their products and a hedge existed to bar new entrants into this market category (McLoughlin and Aaker, 2010, p. 121). Tata Nano could not compete favorably in this category of the market because its products due to the presence of the stronger brands that had controlled the segment for years. Its pioneering entry into the ultra-low-cost market had the implication of expanding the market niche in the country in ways that increased possibilities and opportunities for local and international players. The growth of this segment of the market resulted partly from the synergies of globalization and liberalization of the market economy. These global forces helped Tata Nano to establish a strong operational base since the growth in the purchasing power of the middle class signaled the ability to own cheaper cars that could align well with the needs of the industry (Thakur, 2009). In general, some of the issues that affected the choice related to th e desire to invent alternative ways of business practice with regard to the global car industry. In essence, some of the issues that related to the growth of the industry revolved around the need to provide the clientele with alternatives away from the generally acceptable ways of conducting business. In this regard, Tata Nano became revolutionary in the manner in which it contributed to the realignment of the global car industry as perceived from the perspective of industry players. Essentially, the need for alternatives was necessitated by the apparent inequalities that favored global players at the expense of the local investors. Strategically, the choice for the ultra-low-cost car market positioned Tata Nano on a vantage position from... Center of discussion in this paper is Tata Nano as one of the companies that created the most innovative approaches in the global car industry. Its intention of manufacturing cheap and user friendly cars received positive remarks from the global markets. Although originally intended for the Indian middle class and low-income earners, the Tata Nano model has spread to other parts of the world. It also continues to receive diverse responses from various sections of the global markets. However, there is a sense in which the company continues to contribute to consistency in growth in car innovations. Some of the challenges that have affected the development of the Tata Nano model relate to the marketing strategies that have had the unintended consequence of lowering its prestige of the car. This effectively locked away the car from the higher-level income of clientele. Much of Tata Nano’s potential lies in the emerging markets. The growth of Tata Nano is tied to the development of new market segments previously ignored by established global players in the industry. It might be necessary to consider the fact that some of the issues that afflict the growth of the industry relate to the relative potential of other companies to engage with the markets and other aspects of business. It is recommended for the company to embark on aggressive marketing strategies that might help the company in redeeming some of the image lost through its single-angled dimension of marketing.