MRKT 5000 Week 8 Case Analysis Assignment

MRKT 5000 Week 8 Case Analysis Assignment - TATA STEERS...

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TATA STEERS INTO ULTRA AFFORDABLE CARS Lakisah Mikell MRKT 5000 Week 8 Case Analysis Assignment
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Case Summary Can an automobile company sell a car for less than $3,000? Tata Motors is attempting that feat with their new People’s Car that’s been specifically designed for the consumers in India. It’s a four-door, four-seat subcompact car that includes no extra features (no radio, no reclining seats, etc.). Within the production of this car, Tata has had to cut costs on everything from materials, components, and seats in order to make it more affordable. They’ve even found ways to cut costs on the production of their engines, which cost about $700 per car after production is done. While Tata is working hard on the cost cutting, the competition is getting stronger with other auto makers who are producing models at similar and affordable rates. With the low price tag attracting potential consumers, Tata must be careful of the environmental and safety concerns because national and local regulations don’t require antipollution devices to be installed and it’s very likely that Tata won’t install this important component due to cutting costs. Since Tata has been cutting costs for the sake of a lower price tag, missing features like antilock breaks and air bags may contribute to an increasing fatality rate. Even with all the concerns, Tata will be moving ahead with production but they will need to move swiftly because the competition will
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This note was uploaded on 05/12/2010 for the course MRKT 5000 taught by Professor Bonosoro during the Fall '09 term at Webster.

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MRKT 5000 Week 8 Case Analysis Assignment - TATA STEERS...

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