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Target Costing Case Study Tata Nano

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

Author(s): KIM, W. Chan, MAUBORGNE, Renée, BONG, Robert, JI, Mi


This case and the accompanying three-part theory-based movie describe Tata Motors’ strategic move to create and launch the Tata Nano and the successes and setbacks of the Tata Nano team in actualizing this strategic move. The case and part-one of theory-based video first review how the Tata Nano was conceived based on noncustomer insights from an alternative industry – the two-wheeler market and how a strategic price was set against alternatives to capture the mass of target buyers. The case and part-two of the theory-based movie then show how the Tata Nano team complemented its compelling value proposition with a viable profit proposition by pursuing target costing to deliver exceptional buyer utility at the strategic price set. Finally, the case and part-three of theory-based movie examine different components of the Tata Nano’s people proposition to identify the major causes of the setback it experienced in executing the strategic move, illustrating the importance of matching strong value and profit propositions with an equally compelling people proposition to ensure the successful execution of a blue ocean strategy. The accompanying three-part theory-based movie, available here at blueoceanstrategy.com upon request for professors only, which longitudinally tracks the Tata Nano strategic move from conception to execution, is based on first-hand research and face-to-face interviews. Request material here. A comprehensive teaching note also accompanies the case.

Pedagogical objectives:

  • 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.
  • 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.
  • To review major BOS concepts, frameworks and tools in the course of analyzing the Tata Nano strategic move.
Case StudyHBSP | Case Centre
Teaching NoteHBSP | Case Centre
Video & Lecture SlidesRequest Material

- Помнишь, как ты отключил Следопыта? - спросила она, подойдя к своему терминалу.  - Я снова его запустила. Посмотрим, вернулся ли .

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