Tata Nano is the first car to be said to be the common man’s car. It is sold in home country India around Rs 1-lakh i.e approximately USD 2000. It is manufactured by Tata Motor Limited, the largest automobile company in India. It’s Chairman, Mr Ratan Tata envisions that Tata Nano to become a “People car” which is affordable by almost everybody. Tata Nano was first launched in India on 1st April 2009 and expected to be in Indian market by July 2009. Since launching, it has created a huge buzz all over India. Within the first two days of lunching, it has received 5500 booking. The s keep increasing every day since the launching.
What makes Tata Nano so cheap? Basically, by making things smaller, lighter, do away with superficial parts and change the materials wherever possible without compromising the safety and environmental compliance. It is said that Tata Nano has better millage than Toyota Prius and same gas emission as a scooter.
Tata Nano will be imported to Malaysia by Tata Industries in parts. It will be assembled in its two factories i.e in Shah Alam, Selangor and Pasir Gudang, Johor Bahru. There are four distribution centres in Peninsular Malaysia i.e. in Kuala Lumpur, Penang, Johor Bahru and Kuantan. All Tata Nano cars will be distributed through these distribution centres only. Order can be made vide these distribution centres or its web site.
There are three types of Tata Nano car available i.e. Tata Nano, Tata Nano CX and Tata Nano LX. However, due to hot weather in Malaysia, only Nano CX will be brought to Malaysia and will be sold here. The selling price of Nano CX in Malaysia is RM 13,704 per unit. It is estimated that gross profit for the first year would yield xxx, second year xxx and third year xxx. Estimated monthly instalment payment is xxx for seven years period. With this price, the target market is very wide which includes those with income RM 2000 per month, students, female workers and scooters’ riders.
2.0 SITUATION ANALYSIS
Tata Motors Limited is India’s largest automobile company, with revenues of Rs. 35651.48 crores (USD 8.8 billion) in 2007-08. It is the leader in commercial vehicles in each segment, and among the top three in passenger vehicles with winning products in the compact, midsize car and utility vehicle segments. The company is the world’s fourth largest truck manufacturer, and the world’s second largest bus manufacturer. In March 2008, Tata Motors acquired Ford’s UK based car brands Jaguar and Land Rover (BBC News, 2008).
According to Ratan Naval Tata (Chairman of Tata Group), the need for an innovation like Nano has got to do something for the people of India and transport. Unavailability and poor quality of mass transport is a common problem in India. In a two wheeler, father driving with elder child standing in front and wife behind holding a baby is norm in this country. Thus, this is a relatively an unsafe mode of transporting a family. Thus, with this in mind Tata Nano was created as a safer form of transport.
As one of its objectives is to become an Indian business conglomerate operating in many countries, Tata Nano will be introduced in Malaysia.
2.1 Market Summary
It is estimated that Malaysia has more than 5 million motorcycles on the road, compared to over 4 million motorcars(ICE, 2001).The majority of motorcycle buyers or users does not own a car and belong to the lower and middle-income group. A significantly larger percentage of motorcycle users in Malaysia are male.
2.1.1 Target Markets
The company is targeting lower income group with family, first-time buyers of car (fresh graduates) and motorcycle owners.
Tata Nano will position itself as the world cheapest car and yet does not compromise the quality, safety and environment. This positioning will be achieved by leveraging Tata Nano’s competitive edge: industries experience from the parent company Tata Motor who has been in vehicles industries (commercial, passengers
The environmental entrepreneurship
Eco-preneurship refers to the environmental entrepreneurship who are poised towards coming up with sustainable business ideas (Libecap, 2009, p.34). EcoPreneurs indeed identify environmental challenges and therefore develop environmental products and services which will aid in solving both the business and environmental challenges by providing a sustainable solution. The main competitive advantage for Eco-preneurship businesses is the fact that they are able to utilize sustainable options in energy, waste management and other spectra of the ecosystem.
Identification of the problem
It is indeed emerging that most of the business ventures today are only interested in profits and growth without due concern on positive environmental impacts. It is this problem that gives rise to a set of sustainable business solutions provided by the EcoPreneurs. This paper shall seek to enlist the benefits of an eco-preneurship business venture.
Statement of Purpose
Eco-preneurship makes companies more environmentally responsible for their actions. In the recent past, there has been an outcry over the carbon emission menace. Several conferences have yielded the Kyoto Protocol which aims at making industries more environment sensitive in their production and general operation.
There are various principles that hold eco-preneurship business ventures towards their sustainable business solutions. These principles are aimed at reducing energy waste as well as carbon emission. Businesses must recognize the fact that they owe a responsibility to the environment in which they operate in and must therefore develop sustainable solutions towards tackling problems related to waste management, energy needs, carbon emission, hazardous chemical usage as well as air pollution.
What is imperative to consider is the fact that most of the eco-preneurship business ventures derive many benefits as a result of their eco-friendly business operations. This paper succinctly looks into the benefits that eco-preneurship has both to itself and the larger environment in which it operates.
As earlier mentioned, eco-preneurship refers to environmental entrepreneurship. Eco-preneurship usually has a competitive advantage that they draw from being environmentally sensitive. Indeed, there are many benefits that the eco-preneurship business ventures enjoy.
Isaak (1999, p.11) reveals that eco-preneurship enjoys a good reputation due to their initiatives towards maintaining a sustainable environment. This advantage gives eco-preneurships a competitive advantage against competitors hence these companies are able to amass a large number of customers, both existing and new customers. With the large number of customers among the eco-preneurship ventures, there will be increased sales volumes which translate into profitable business ventures.
Eco-preneurship ensures that carbon emissions are reduced to negligible levels. Carbon emission is the main concern of every major company in the world today. Following the Kyoto Protocol, companies are required to be more vigilant in reducing their carbon emission. Since eco-preneurship is poised towards providing sustainable environmental solutions, reducing carbon emission has been at their foresight. Eco-preneurships therefore reduce carbon emission through reduced transportation. These companies are able to introduce environmentally sound solutions towards reducing transportation by utilizing the locally available material for their production lines hence reducing the need to purchase such items from a distant location.
According to Schaltegger and Wagner (2006, p.47), the environment is full of eco-opportunities which would provide a just in time solution to the problems that the environment encounters on a day-to-day basis. For instance, considering McDonalds, a large hamburger restaurant found in most parts of the world; such a company could utilize locally supplied chicken and other food stuffs that it requires in its production process. Moreover, this will lead to the growth of small and medium enterprises in the countries of operation. Therefore, the eco-preneurship will be able to support sustainable environmentally sound solutions and effectively reducing the carbon emission menace. Alternatively, using solar or wind energy also helps reduce the carbon emission. Most eco-preneurships make use of these energy sources for the benefit of their environment.
On the other hand, eco-preneurship is able to reduce the amount of hazardous chemical usage. Many eco-preneurships usually make use of chemicals that are not harmful to the environment. Chemical use within companies usually finds its way into the environment, either through seepage or intentionally (Folmer