What Is the Key to Logan's Low Price Strategy?
11-12 What is the key to the Logan 's low price ?
The key of Logan’s low price is low costs. Materials and accessories that are used in the car are low-quality or old-fashioned such as : ignition with an old fashioned, manual key, there is no cruise control the windshield glass is nearly flat . the left and right outside mirrors are identical , the ashtarys are exactly the same as the ones used in another Renault model, the espace similarly logan shares an engine and gearbox with Renault 's Clio subcompact.
Production costs are lowered by producing in Romania at where labor rates and taxes .are lower. And also company benefit from economies of scale by manufacturing high volumes.
Logan’s targeted lower-income customers. Moreover, as Logan offers a medium-level quality with a cheaper price than its competitors; it is a “good-value pricing strategy”.
11-13 do you think Tata will be able to save the Nano ? what steps should the company take?
I think no, It’s been a rough season for Tata Motors’ much-publicized “people’s car,” the Nano. while overall auto sales in India’s booming economy rose more than 22%, Tata sold only 509 Nanos, down from the 9,000 it sold the previous July.
There are many reasons for the Nano’s poor showing: production delays, fires, the stigma attached to buying a “cheap” car. But the real problem is not with the car; it’s with the hype surrounding it.
Setting high pre-launch expectations limits its ability to perfect it business model post-launch, flexibility is essential to emerging-market innovation and product strategy. You have to get a lot of things right to successfully bring a product. First, it has to conceive of something people will actually want. (That’s three steps — thinking up something that’s wanted, identifying who actually wants it, and working out the details of how and under what circumstances they will use the product.) Nano has to devise a way to produce it reliably and profitably at the price those people will pay. And
The key of Logan’s low price is low costs. Materials and accessories that are used in the car are low-quality or old-fashioned such as : ignition with an old fashioned, manual key, there is no cruise control the windshield glass is nearly flat . the left and right outside mirrors are identical , the ashtarys are exactly the same as the ones used in another Renault model, the espace similarly logan shares an engine and gearbox with Renault 's Clio subcompact.
Production costs are lowered by producing in Romania at where labor rates and taxes .are lower. And also company benefit from economies of scale by manufacturing high volumes.
Logan’s targeted lower-income customers. Moreover, as Logan offers a medium-level quality with a cheaper price than its competitors; it is a “good-value pricing strategy”.
11-13 do you think Tata will be able to save the Nano ? what steps should the company take?
I think no, It’s been a rough season for Tata Motors’ much-publicized “people’s car,” the Nano. while overall auto sales in India’s booming economy rose more than 22%, Tata sold only 509 Nanos, down from the 9,000 it sold the previous July.
There are many reasons for the Nano’s poor showing: production delays, fires, the stigma attached to buying a “cheap” car. But the real problem is not with the car; it’s with the hype surrounding it.
Setting high pre-launch expectations limits its ability to perfect it business model post-launch, flexibility is essential to emerging-market innovation and product strategy. You have to get a lot of things right to successfully bring a product. First, it has to conceive of something people will actually want. (That’s three steps — thinking up something that’s wanted, identifying who actually wants it, and working out the details of how and under what circumstances they will use the product.) Nano has to devise a way to produce it reliably and profitably at the price those people will pay. And