Porter's 5 Forces analysis of The Tata Nano Project: Making Of The Worlds Cheapest Car Case Analysis

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Porter's 5 Forces analysis of The Tata Nano Project: Making Of The Worlds Cheapest Car Case Study Solution

Porter's 5 Forces AnalysisA Porter's 5 Forces analysis of The Tata Nano Project: Making Of The Worlds Cheapest Car Case Analysis could be conducted to design various methods utilizing the strengths of the company to obtain opportunities, get rid of weaknesses and to reduce the threats. It might also be used to assess that how particular weak points withstand specific chances and increase the dangers. The methods prepared utilizing the Porter's 5 Forces analysis of The Tata Nano Project: Making Of The Worlds Cheapest Car Case Analysis are given as follows;
• Usage of strong global brand position and funds in expanding towards potential markets.
• Special brand experience could assist the business to much better position itself in new markets.
• Resistance in growth in the prospective worldwide markets motivating diversity.
• High rates limits the growth in various Asian and African countries with low per capita earnings.
• Strong brand name recognition, non-traditional methods of marketing and the distinct brand name experience might be used to lower the danger from possible consumers.
• Stringent look policies could resulted in the customer shift towards Victoria with high social obligation.
• Minimal target audience could led to a decline in the overall market share of the business.
These strategies could assist the business to improvise its market position and be at the leading position in the market.

Financial Analysis


Financial analysis for Porter's 5 Forces analysis of The Tata Nano Project: Making Of The Worlds Cheapest Car Case Analysis could be conducted to evaluate the availability of financial resources to the business that could be made use of in expansion towards worldwide markets. The monetary position of the business could be assessed by using the data given in the case Exhibit 1. The ratios that could be thought about in financial performance analysis are given up the Table 1 listed below;

From the above Table 1, it could be seen that the business has an affordable financial performance with a ROE of 7.9% and a high sales growth of 18.4%. A 4.3% net revenue margin does not appears to be possible and the company needs to put efforts in increasing its profits along with lowering its operational costs to increase its profit margins.

Porter's 5 Forces analysis of The Tata Nano Project: Making Of The Worlds Cheapest Car Case Analysis

Segmentation

The segmentation analysis includes the analysis of different organisation sections of the company in domestic and the global, markets. Most of the business's Brick and Mortar stores are located in US including above 500 shops in almost each of the state of US. The business has likewise a worldwide existence in 8 various nations with its highest number of shops located in United Kingdom i.e. 21. The companyhas a total of 54 shops in global markets that is most likely the 10% of its stores in the United States. It indicates that majority of the revenues of the business come from the regional markets. Moreover, the business is considering to broaden its stores into 7 more European and Asian countries. A chart showing the presence of the business in numerous worldwide markets is given in the Appendix 2.

Targeting


The business targets its clothes brand name to the young, tall and good-looking teens and kids that are thought about to be cool. This targeting policy is responsible for various differences in the company connected to its competitors. For example, the company hires excellent looking males and females for its shops and follows a rigorous appearance policy to keep destination of good-looking people towards its stores and supply an unique brand experience.

Positioning


The business has actually placed its brand as a high-end brand name targeting just a particular market segment. The company with its non-traditional methods of marketing through models and representatives posters its brand name image as a luxury clothing brand targeted to the cool and attractive characters in society. Although, this market position attracts different elite individuals towards the brand name but it injures the company's position in various communities focused at the equality in society.

External Analysis

Competitor Analysis


Porter's 5 Forces analysis of The Tata Nano Project: Making Of The Worlds Cheapest Car Case Analysis faces a lot of competitors in the market with the existence of different number of competitors in the market. Gap is likewise thought about to be a possible competitor in local as well as in worldwide; markets as the company is thinking about to shift in the global markets.



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