- Conclusions, recommendations, and generation of innovative ideas
- Legal and environment policies
Competition and intellectual property rights (IPRs) are essential for the markets to efficiently and promote customer well-being. These rights encourage competition between companies (Torti, 2015: Dasgupta, 2019). 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. Over exploiting Nano features to make it cheap made the car most of the standard features such as lack of airbags and accessing fuel through the front hood, among others, which contributed to its failure. In general, Nano was regarded as a poor quality car Dasgupta (, 2019).
For Tata motors 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).
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. Therefore, management must adhere to industrial policies, safety measures, and regulations. Also, removing the inflammatory part or using inflammatory components would solve some of the safety issues.
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.
- Ensuring continuous innovation
Tata motor is continually doing innovation to keep ahead of its competitors despite the market forces. The changing business scenarios should be used to inspire the company to strive for change (Garg, 2019). The current administration should use internal forces such as a change in top management or a decrease in profitability and loss of market share 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 either develop strategies for modifying Nano and rectify the defects instead of 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 has a large number of youth and is expected to increase shortly; hence, the company focuses 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
The misconception that low priced car would motivate people to buy Nano was a mistake that the company made. Failure to account for positioning Nano as a cheap car in the market translated to low quality to the Indian market. People are status conscious and would look for products that make them look wealthier Dasgupta, (2019). The car sound as an upgrade from bikes, which could not be perceived as meant to boost one’s status.
Therefore, Tata Motors should have positioned Nano with better features. A new car with hatchbacks would mean a luxury-oriented car. For the company to develop a high-status vehicle, it should modify Nano by adding some features like;- hatchbacks, with two doors, flip-up tailgate, well build, nicely pointed inside, and stylish rooflines and others, that will make the car look classic. Also, developing the Nano to a new model with advanced technology such as head-up displays, Wi-Fi hotspot, fast USB charging outlets, rear entertainment system for families traveling with children, and auto-dimming mirrors. cThis would attract different hierarchies, including youth who would love classic and modern products.
Singh and Shalender (2014) study show 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, showing that the product could do better with the right marketing strategies. Thus, the company should revise its marketing and development strategies to improve car performance and gain some profits.
According to Mr. Johnny Oommen head of international Business (Tata Motors press release in October 2016), Tata Nano’s global launch in Sri Lanka received a positive reception. Though Nano has a smaller exterior footprint than the cars 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 interaction and engagement to expand 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 wheelers of substitute cars for customers like the 2 and 3 cars. This can be used to substitute Nano with the existing product to regain the customer’s trust. The company has been one of India’s best players; its brand of product portfolio can be used to improve company performance.
Also, the Tata group has a span of resources across the globe, including insurance, technology, steel, and manufacturing solutions. Tata Motor could use these resources to improve its efficiency more so the improved Nano product and put it to the required standard. The modification was done on Nano in 2012, lead to an increase in sales; much can be done to the product to improve its efficiency.