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Tata Nano's Execution Failure: How the People's Car Failed to Reshape the Auto Industry and Create New Growth

Published 30 Jan 2017
Reference 6275
Topic Strategy
Region Asia
Summary

This case analyses Tata Motors' strategic move to create and launch the Tata Nano, exploring the factors behind the project's earlier success and the reasons for its execution failure. It illustrates the importance of having a strong and aligned set of value, profit and people propositions in order to create and capture a blue ocean. The teaching note reviews how Tata Nano created its exceptional value proposition and attained a viable profit proposition by following the right strategic sequence, and then examines different components of Tata Nano's people proposition to identify the major causes of failure in executing its blue ocean strategy. The case comes with a teaching note, lecture slides and a three-part movie based on first-hand research and face-to-face interviews describing Tata Nano’s strategic move from conception to execution. The slides and videos can be downloaded for teaching purposes from www.blueoceanstrategy.com
The case material is also available in Chinese.

Teaching objectives

1) To demonstrate how Tata Nano reconstructed market boundaries across alternative industries and created a commercially viable blue ocean opportunity by following the right strategic sequence. 2) To highlight the importance of matching value and profit propositions with an equally strong people proposition in ensuring the successful execution of a blue ocean strategy. 3) To review major BOS concepts, frameworks and tools in the course of analyzing the Tata Nano strategic move.

Keywords
  • Target costing
  • Value innovation
  • Business failures
  • Emerging markets
  • Pricing, Pricing strategy
  • Strategic alignment
  • Execution
  • Stakeholders
  • Blue ocean strategy
  • Strategy
  • Automobile Industry
  • Tata Nano
  • India
  • Pricing strategy
  • Strategic Innovation
  • Strategy execution
  • Execution failure
  • Business failure
  • Noncustomers
  • Q21617