International Journal of Management and Commerce Innovations ISSN 2348-7585 (Online) Vol. 7, Issue 2, pp: (339-345), Month: October 2019 - March 2020, Available at: www.researchpublish.com
A Study on Impact of Blue Ocean strategy adopted by TATA motors with special reference to Tata Nano 1
1
Bridin Roacha, 2Ajish V Nair, 3Ashish C Pius
Asst. Professor Rajagiri College of Management and Applied Sciences, Rajagiri Valley, Ernakulam, Kerala
2
Asst. Professor, Rajagiri College of Management and Applied Sciences, Rajagiri Valley, Ernakulam, Kerala
3
Asst. Professor, Rajagiri College of Management and Applied Sciences, Rajagiri Valley, Ernakulam, Kerala
Abstract: The automotive industry in India is one of the larger markets in the world and had previously been one of the fastest growing globally, but is now seeing flat or negative growth rates. India’s passenger car and commercial vehicle manufacturing industry is the sixth largest in the world, with an annual production of more than 3.9 million units in 2011. In such a scenario, businesses are expanding their market share by embracing the Blue Ocean strategy. As a result of this the existing paradigms of doing business are changing as existing businesses are attempting to build unassailable value innovations to create new customer specific products that will give them a share of the market that they would in the process create for them. And Tata Nano and Tata Ace are two products that have successfully employed the Blue Ocean strategy and have created a new market that was not tapped so far by the competition. Keywords: Blue Ocean Strategy, Automobile Industry, Red Ocean Strategy.
1. INTRODUCTION The main aim of Blue Ocean Strategy ("BOS") is not to out-perform the competition in the existing industry, but to create a new market space to make the competition irrelevant. This study looks at Tata motors' core and successful products and services, and identifies and discusses those that have successfully implemented the BOS and at the same time looks to explore new markets and new demand as created by the Indian auto major to go in for a product diversification that differentiated their product/service offerings in the market. STATEMENT OF THE PROBLEM In this murky world of cutthroat competition that is rendering the Red Ocean bloodier the Blue Ocean Strategy is the lone plausible solution. But finding the Blue Ocean in itself is a problem. No other auto companies could hit upon this novel idea before the Tata Motors. Their Nano is in effect the product for the Blue Ocean – the vast pool of two-wheeler users who could upgrade to a four-wheeler like Nano. But before they could rewrite their growth story they had to overcome the problem of identifying the Blue Ocean. To identify the Blue Ocean is a problem in itself that the research will help elaborate on. OBJECTIVES OF THE STUDY To judge how blue ocean strategy has improved TATA motors performance. To know the customer level of expectation and satisfaction To find out which income and occupational segment consumes the technology in a major proportion. To know the effectiveness of blue ocean strategy in the development of TATA NANO. To know the customer perception about TATA NANO.
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