- Conclusions, recommendations and generation of innovative ideas
Adhering to the legal environment
Competition and intellectual property rights (IPRs) are essential for the markets to operate efficiently and for promoting customer well-being. These rights encourage competition between companies (Torti, 2015). However, overexploiting the rights might hold up the entire industry since there is no optimal balance between the IPRs and the industrial standards thus leading to a need for a policy model that takes in to account the innovator’s interest and standard-setting organization (SSO) aims.
For manufacturers to consciously continue producing and surviving in the changing environment, they need to consider sustainable concepts such as the environmental and social impact of their product (Muhamad et al. 2014). Tata Motors should have regarded as sustainability performance when developing Nano. The company’s sustainable innovation could not attain sustainability that reflects on firm’s economic, social and ecological production.
Nano was involved in several fire incidents, and the company failed to recall the cars they had already sold, which affected the company’s innovative sustainability leading to declining in production (Shafiulla, 2014). According to the industrial standards, no company could manufacture such a low-cost car, which affects the competitiveness in the market and customers welfare. The development of Nano did not only affect its sales but the sales of the entire company’s product ranges and financial losses and a decline in portfolio production. It is, therefore, crucial for management to know that marketing is not solely about satisfying customer wants, but it’s also about making profits in a competitive atmosphere.
- Ensuring continuous innovation
Tata motor is continually doing innovation to keep ahead of its competitors despite the market forces. The forces that are giving Tata the current better performance under different scenarios can be used to counter production in different regions. The changing business scenarios should be used to inspire the company to strive for change (Garg, 2019). Internal forces such as a change in top management or a decrease in profitability and loss of market share should be used by the current administration as a drive to improvement (Schweiger et al., 2018).
According to the system dynamic model, resistance to changes affects how the organization responds to the current situation. Tata motors should come up with strategies of modifying Nano and rectifying the defects as opposed to discontinuing the production.
Developing new product calls for interdisciplinary input whereby the team involved in the new project development must work as a team to ensure all processes, product challenges and to avoid overlooking for some critical issues.
India country has a higher number of youth, and the number is expected to increase shortly, for this reason, the company focus on producing stylish designs (Jain, 2017). Building cars with sleek and “hip” designs would be a better opportunity since youth are concerned with designs.
- Improving marketing and promotion strategies
According to Singh and Shalender (2014) study, it shows that there was inflexible marketing that contributed to poor sales performance for Nano. After the revised or improved Nano, the sales went up, which brought back the hope for better performance, this shows that with the right marketing strategies the product could do better. Thus, the company should revise its marketing and development strategies to improve car performance and gain some profits.
Tata Nano’s international launch in Sri Lanka received a positive reception. Though Nano has a smaller exterior footprint compared to the car in Sri Lanka, Nano was more spacious than the smallest car available there. This was an implication of possible market that Tata Motors can tap and target other nations it has operations, like African countries.
Though Tata motors have designed ways to allow customer interactive and engagement aimed at expanding the company’s market to exiting the market in India (Pareek, 2018), the company can undertake more promotional strategies. The company’s adoption of green innovation and environmental sustainability can be used to promote the company’s market share in the existing market.
Tata motors have a wide variety of substitute cars available for its customers like the 2 and 3 wheelers cars. This can be used to substitute Nano with the existing product to regain the customer’s trust. The company has been one of the best players in India; its brand of product portfolio can be used as a way of improving company performance.
Also, the Tata group has a span of resources across the globes, which include insurance, technology, steel, manufacturing solutions, among others. Tata Motor could use these resources to improve its efficiency more so the improve Nano product and put it to the required standard. The modification was done on Nano in 2012, lead to an increase in sale, much can be done to the product to improve its efficiency.
- Improving safety measure
Tata Motor’s safety standards are still questionable; Nano product was profoundly affected because the company did not adhere to safety measures. This issue made the car safety is poorly rated and zero-star rating in terms of child protection (Crawford, 2016). Tata motors should work on improving the safety standard and adhere to industrial standards.