Smart Nano Strategy..!!

Last week, I was in strategy class of my MBA where we were assigned the task to find out the strategy of different automobile companies. While working on that, I realized that there is huge competition going on to be at that top spot in Automobile Industry. This caused continuous stimulating innovation in automobile engineering like speed, comfort, automation, safety, quality, and performance etc. There was so much going for each automobile company where I felt like it’s next impossible for new entrant to survive in this business.

People is striving so hard to gain competitive advantage on each other where they have actually forget that they are doing this businesses to make money for their stake holders and not to be fastest or bestest(another superlative of my Best) in world and I believe that’s one of the reason economical and financial power is shifting from west to East. Here is the example which will illustrate you why is so:

When the whole World is getting crazy behind to make most luxurious, fastest and costliest CAR, TATA was launching the only cheapest car in the world. Sounds strange, isn’t it..??

But, hold on point here is not about making car, point here is making business and earning profits and driving economy. When TATA decided to make NANO as one of smallest and cheapest family car, the whole automobile industry had laugh and forgot about it but I believe Ratan Tata knew exactly what he was doing and hence he still persisted to manufacture NANO. When this idea was launched in India, many people thought neither we have enough infrastructures nor gas where you can allow another almost 10 million people to drive a car. So, they decided to stop this plan. Yes, of course their vision was absolutely right and exactly same thing happened when they rebelled against this massive company and they got, what they wanted. It was quite obvious when you get car for just mere 1300 Pound, then any middle class person can afford to have a car and that too in market of 1.20 billion populations out of which more than 70% people fall under middle class. TATA had got huge customer base, but he had been asked to STOP at this moment. 

Now, it was challenge time for TATA to show some extra ordinary sense and business skills to run this project. After a while, TATA management come up with the strategy where they will have their all five fingers in butter. J

TATA decided to sell limited number of cars as government permits and so for first lot they allowed 100000 cars. This allowed them to make exact given number cars, and in a way it actually helped them to manage their supply chain better than before. TATA received 206,000 bookings for their car where they asked customer to keep deposit of at least Rs. 70,000/- because of such a massive demand then within next 4-6 months they pulled out lucky winners from the draw of 2 lac people. After this, they declared the delivery period of each lucky winner’s car which was after 6-8 months. Now, if you look at this business segment carefully, you will realize that around more than 200 thousand people are putting deposits for this car which made huge amount of cash money in the account of TATA Nano where they get to use the whole money for at least next one year without any interest..huge win..!! Later after 6-8 months, they will only return the money of people who has not got car but just remained as invested participants in their draw, whereas people who were lucky to have car paid its down payment almost a year in advance. This “lottery draw” strategy for massive demand actually helped them to brand this car as “The People’s Car”. So, basically TATA Nano got better control over business, huge brand value, no competitors, small investment, huge unstoppable after sell service business and top of it they made a place in the heart of millions by saying “it was the dream of middle class people to have car which we have successfully fulfilled.” Mind this because “Middle Class” is the spinal cord of our country of 1.20 billion people.

Now, after looking at such a successful and huge profitable business, TATA wants to move this style in Bangladesh, Sri lanka and African countries where TATA will surely going to get huge business not because its most luxurious, hi-tech and fastest car but because it’s cheapest..!! J

References:

http://autos.maxabout.com/cvid0000548/tata_jeh_1_lakh_rupee_car_petrol.aspx

http://www.carmagazine.co.uk/Drives/Search-Results/First-drives/Tata-Nano-CAR-review-first-riding-impressions/

http://www.gaadi.com/review-Tata-Nano-2859

http://www.tatanano.org/

http://tatanano.inservices.tatamotors.com/tatamotors/index.php?searchword=how+many+customers+registered+for+NANO&option=com_search&Itemid=

Rugby: Bring it on..!!

     I just love sports, be it then anything. By now, I have played almost more than 20 different kinds of sports. I am really a passionate about Sports. Last week, I got chance to try my hands on rugby in one of the tournament organized by my MBA cohort mates. Event was really well organized and teams arrived there were very professional Rugby Teams.

     Although as charitable event, it was not fully professional rugby. This event was fun event and made in such a way that people should know more about the Rugby and then can promote this sport around the county. This Rugby was Touch Rugby in which you don’t come across actual body tackles whereas you will be touched by opponent’s player then you need to pass the ball to his team members. Like this you will be allowed 5 touches but after that on 6^th touch Ball will be given to other team to attack.

     I felt this type of Rugby is really safe and one can even have girls and kids on their team. In fact, I was having 2 girls and 2 kids of (10 yrs old) on my team of 9 to play this tournament.

     We played 4 matches in which we lost in quarters by 1 try. My team was absolutely new in this sport, many of them were not even know the rules. 

     I must admit that for first game my team was having no idea what’s going on and we lost the match by 3 tries. In second one, we understood few rules and went for another one where we showed much better resistance and we allowed only try to happen against us. In 3^rd game, we understand rules much better than two before and we dominated the game which made us to reach quarter finals with having 0-0 results.

     Later on, by the time quarter finals start my team was absolutely exhausted and drained out because hot and humid weather which was absolutely not suitable for this games but they were still keen to get on one more game and were hungry to cross that TRY line. So, it was easy for me as leader to lift the spirit in them. In match, We also reached to Try line but just failed inch away to cross it and we lost the game by 1 Try. L

     If my team would have crossed that TRY line then It would have been like winning tournament. I still regret that moment when I could not dive myself beyond that TRY line for my team but nevertheless that have made me more hungry for the next tournament and I am very much sure that me and my team will cross it next time because now me and my team know the game very well now and can strategise it better. J 

     I enjoyed tournament so much and once again this game has given different learning and different perspective to see life differently. Thanks to Platinum Rugby Tournament. J

Cheers..!! J

For me..!!

Inspirational: How one should live before he/she die..??

I come across another incredibly awesome video. This one is really must watch for everyone.This is the reason how one should be in their respective life.

Everyone know that Steve Jobs has famous persuasive power which is equalled by his creativity and business brilliance -- apparent in legendary hardware and software achievements across three decades of work.

He is the one who invent The Macintosh computer (which brought the mouse-driven, graphical user interface to prominence),Pixar Animation Studios (which produced Toy Story, the first fully-3D-animated feature film), the iPod, the iPhone, the iPad (and who knows what's next?) all owe credit to Jobs' leadership and invention.

In this video, he mentioned about his 3 life stories which I really felt really close to me and understood much precisely and clearly because somewhere down the line as I have been through such kind of dilemma in my life too..!!

H mm..May be I have not made the choices which he did in those times but still hoping that will get another chance some day and that time am not going to miss them due to fear.

Hats off too this guy, as twice (at the age of 30 and 32), First when he was fired from Apple at the age of 30 even after he built it then later had huge battle with a rare form of pancreatic cancer. On both the occasions, he almost lost everything whatever he had but still kept the courage to build the empire once again. Honestly now, I have become the huge fan of this guy and his thoughts. :)

Now, I am not going to give up now anymore, and will keep digging to find out what exactly is motive of my life and what is that thing, I can do with immense love, passion and dedication like him. :O

Hope some day I will find it and will be to write about it too..!! :)