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Perform a SWOT analysis for Tata Motors in details with respect to production of Tata Nano. Reference is attached below, ? Case Study / Scenario

Perform a SWOT analysis for Tata Motors in details with respect to production of Tata Nano.

Reference is attached below,

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Case Study / Scenario and the Tasks Involved in respect to the Case Study / Scenario and Possible Evidence Please go through the case below and attempt tasks in the assignment. TATA NANO - THE MODEL T FOR THE TWENTY-FIRST CENTURY? In March 2009, six years after the concept was hatched, India's much-hyped super-cheap Tata Nano went on sale. With million motorbikes sold in 2008 in India, Tata has big hopes for the Nano. Initially, the launch date would have been in the fourth quarter of 2008 but violent protests from farmer groups over land compensation for the factory site in West Bengal derailed Tata's plans. In the end, Tata decided to relocate the production to a plant in Pantnagar and build a dedicated plant in the western state of Gujarat. The Gujarat factory will have an annual capacity of 250,000 cars, but its opening is slated for 2010. In the mean time, Tata can only build 50,000 Nanos a year. The revised schedule meant that the car was to be shipped from July 2009 in phases to 100,000 customers chosen via a lottery. The mission to develop the world's cheapest car began back in 2003. At the time, Ratan Tata, the chairman of India's Tata Group, gave his engineering team three requirements: (1) the car should be low-cost, (2) adhere to regulatory requirements, and (3) achieve performance targets such as fuel efficiency and acceleration capacity. Five years later, on January 10, 2008 Mr. Tata unveiled the Tata Nano at 2008 Auto Expo in New Delhi. The Tata Nano has been nicknamed the Model T for the 21" century. During the ceremony, Mr. Tata commented: "I observed families riding on two-wheelers - the father driving the scooter, his young kid standing in front of him, his wife seated behind him holding a little baby. It led me to wonder whether one could conceive of a safe, affordable, all-weather form of transportation for such a family. Tata Motors' engineers and designers gave their all for about four years to realize this goal. Today, we indeed have a People's Car, which is affordable and yet built to meet safety requirements and emission norms... We are happy to present the People's Car to India and we hope it brings it brings the joy, pride and utility of owning a car to many families who need personal mobility." (www.tatamotors.com). Tata expects that the Nano will improve Indians' life: "People want to change their quality of life, and through the roads, will go from one place to another. It will be explosive growth, and Nano will be an answer. Nano is not urban product; it is a product for the country." (USA Today) The four-seater Nano is 3 meters (a little over 10 feet) long and 1.5 meters wide (about 5 feet). It can reach a speed of 65 miles per hour and has a fuel efficiency of 5 liters per 100 kilometers (or 47 miles per gallon). The base model is priced at 100,000 rupees (around $2,500), the same price as a DVD player in a Lexus. The basic model has no airbags, air conditioning, radio or power steering. However, more luxurious versions are available. Not everyone is pleased with the Nano. Green campaigners in India point to India's poor road infrastructure and rising pollution levels. One local pollution specialist pointed out that: "Even if they claim it will be fuel efficient, the sheer numbers will undermine this. India's infrastructure doesn't have the capacity." (www.timesonline.co.uk) India's capital Delhi already registers 1000 new vehicles per day. The average speed at peak times has dropped to 7 miles per hour. Mr. Tata, however, dismissed environmentalists' concern: "We need to think of our masses. Should they be denied the right to an individual form of transport?" (www.timesonline.co.uk) Despite its limitations, the Nano's fans outweigh its critics so far. It already has a dedicated Facebook group. Mr. Goyal, a 35-year old accountant, had been planning to buy the Nano since it debuted at the Delhi car show. By paying 50,000 rupees more, he can switch from a motorbike to a four-wheeler. The Nano will allow him to take along his wife and two children and would be more comfortable and safer than a motorbike. Hormazd Sorabjee, the editor of Autocar India, predicts, "The success of [the Nano] will change the rules of carmaking in the world." (New York Times, March 23, 2009). Because of the economic downturn, some expect that the Nano will appeal beyond the first-time market as consumers may trade down. Tata Motors plans to introduce the car in other emerging markets in Latin America, Southeast Asia, and Africa. The company also plans to launch a plusher, more expensive Nano in Europe in 2011. The Nano Europe will meet stricter European safety and emission standards. The carmaker even ponders to roll out the car in the United States a few years after the European introduction. Other carmakers are joining the fray. Renault-Nissan is teaming up with Indian motorcycle maker Bajaj to launch an ultra- cheap model by the end of 2012. A Nissan top-executive said: "We're working with Bajaj to make use of their frugal engineering skills and technology, while we're supplying some financial backing, a strong distribution system and potential expansion to other markets." (Media) Hyundai and several Chinese manufacturers are also lookin into the segment

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