Blue Ocean Strategy- Tata Nano

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Table of Contents: Executive Summary | 3 | Introduction | 4 | 3 Tiers of Non-customers | 4 | As Is Strategy Canvas | 6 | ERRC Matrix | 8 | As To Be Strategy Canvas | 9 | Conclusion | 11 | References | 12 | Executive Summary The aim of this report is to provide an example of the application of Blue Ocean Strategy to a product, company or industry. This report has used ‘Tata Nano’ as an example. Tata Nano is a product of Tata Motors in India which produced the world’s cheapest car ever in 2009. Tata Motors has used blue ocean strategy as a marketing tool for Tata Nano. The following report evaluates four analytical tools of Blue Ocean Strategy such as: 3 tiers of non-customers, As Is Strategy Canvas, ERRC matrix and To Be Strategy Canvas in respect to Tata Nano’s case. Among the three tiers of non0customers, Tata Motors were successful to transform the 2nd Tier of non-customer into their actual target customer. In the section of As Is Strategy Canvas the report reflects the current position and offering of the competitors. The ERRC matrix provides an overview of the factors that Tata Nano eliminated, reduced, raised and created in order to create the strategy. Finally, the To Be Strategy Canvas gives an understanding of the value curve of Tata Nano. Introduction One of the noteworthy principles of Blue Ocean Strategy is to avoid head-to-head competition and search for blue oceans through market refurbishment. This needs to be done by looking across alternative industries and different strategic groups within an industry (Roy 2010). In automobile industry, generally no company attempts to work with a totally new segment discontinuing their established categories like luxury segments or economy segments. Especially they are not comfortable to go beyond the way a segment is normally defined. Here about the opportunity lies to develop a blue

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