An Exploratory Study on the Reverse Innovation Of Tata Nano Motors
Keywords:Reverse innovation, emerging economies, Tata Nano motor
This article unpacks the concept of reverse innovation by exploring Tata motor’s version of the Nano, dubbed world’s cheapest car which was introduced in India. The paper explores the ideation process, product development and marketing strategies which were employed by the firm. The Nano was created with the Indian populace in mind thus it was a local production for local customers first before exporting to developed world, the product development of the Nano became known for its cost cutting features which influenced the promotion price at first but later increased due to the upgrading of the car .The car became famous for its cost cutting features such as three lug wheel nut, accessing the trunk from inside and one windscreen wiper among other features. The price was tagged at $2000, which was equivalent to a motorcycle. Some notable aspects which impelled the successes of Tata Nano include hiring competent and knowledgeable human resource, creating synergies with chain supply for easy distribution. However the firm faced challenges which range from compromised safety standards, causing the car to catch fire, extended waiting period for the vehicle and lastly the marketing strategy which was not sustainable and ultimately led to the sales reduction.
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