Tuesday, September 3, 2013

Tata Nano: The People’s Car that Promises to Reconstruct the Automobile Industry

KIM W. Chan, MAUBORGNE Renée, BONG Robert, JI Mi
©2013 INSEAD Case Study
Also available: Teaching Note

The case describes Tata Motors’ strategic move to create and launch the Tata Nano and explores the successes and setbacks of the Tata Nano team in so doing. 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 the setback in executing its blue ocean strategy.  

Pedagogical 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.