What would inspire the creation of such a tiny and minimally equipped vehicle? The answer to this lies in culture and the needs of people. The vast majority of all products are created to meet the needs of people, whether the need is a cultural, economic, or physical. In India and many other countries many families have very limited transportation. For some it is a family horse or donkey for others it’s a bicycle. Other families may have a single motorcycle or scooter that they fit three or four people on, including small children. The reason many only have these forms of transportation is because of the high cost and availability of cars and trucks. Tata Motors “Nano” Nicknamed the “people’s car” was originally designed as merely a replacement for motorcycles as the main transportation for the average Indian family (Bickerstaffe & Honeywill, 2008). The Average Indian Family became the inspiration for Tata’s new form of transportation, a micro car witch is the first of its kind.
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... start with a very basic product, soon the customer wants more," says David Cole, chairman emeritus of the Center for Automotive Research, a nonprofit automotive-industry research group. "To precisely hit the market when you are pioneering a segment is difficult" (RAMSINGHANI, 2012). Ramsinghani may be right but by starting with a car that has almost no amenities Tata has provided themselves with a base on which to build. After the initial release of the Nano Tata can get feedback on what the customers would like to see added. Pioneering a new market segment can be difficult and it is possible that Tata Motors has over anticipated the initial success of the Nano, but only time can tell if in this new market the Nano can be successful. In addition to the environmental factors and the issues with a new market segment, Tata Motors will need to manage political risks
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