Not so long ago, Tata had launched a budget car, which was specifically meant for the target group that could not afford a car. This target group owned two-wheelers and carried on with this mode of transport even after their family grew. The Tatas saw this as untapped potential and decided to launch a car that matched the price of the bike.
All of this sounded good till the whole concept bombed just after the launch. The Nano, Tata’s budget car, did not do well in the target group. In fact, even after redefining the whole car, and revamping its structure, Tatas gained no success in managing to sell the car.
Tata Nano failed majorly because of the shortcomings of the car, the positioning of the car as well as the fact that the company failed to address the problems they had created.
The main issue with Nano could be attributed to the fact that they positioned the car as a low budget car as well as a taxi, which failed to impress the buyers. With time, Nano did realize this issue, but they did nothing to solve it. Eventually, the car started showing issues. One such issue was the speed limit, and the fact that you could not drive the cars on expressways without the car catching fire.
The second major issue was the space restrictions the car had. The small car did not offer much of the leg space to the person, which meant everyone was sitting in a cramped up position. The car did not get clearance for long distances as well as high altitudes.
What Nano taught is us how to address the problems that you may face, whether personally or professionally. here’s how you can break down your issues and bring a solution.
⦁ What is the issue that you are facing?
The first thing Nano teaches you is to understand and evaluate the issues that you are facing, and addressing them one by one. When Tatas saw that their budget car was failing, they decided to take the matters in their own hands, and understand what issues they were facing. The first thing they realized was that the car was positioned wrongly, which meant the buyers were confused by the proposition and were not ready to invest in a car that was not meant for them. like Nano, you too should understand what went wrong, and why you are facing these issues. You might want to brainstorm the whole issue, and clearly understand how each one views these issues.
⦁ Prioritize the issues that you might be facing
It is important that you consider all the issues that you are facing, and begin by prioritizing them individually. How important is a particular issue, and which issue needs to be focused upon will gain more clarity when you begin prioritizing the issues. This way you will also know which issue needs your immediate attention. For instance, with Nano, the positioning needed a major do-over, as that was causing most sales withdrawals. Secondly, there were issues within the car that needed to be changed but, that could be a secondary issue for the makers. They had to prioritize the issues and address them one-by-one.
⦁ List out the causes of these problems
Once you have all the issues on hand, it is time to understand what are the causes that have led to these issues. For instance, the main reason the positioning became an issue was that the makers did not know what will make the buyers convert. For instance, when they released it as a budget car, there were people who found the pricing way too high. When they released it as a taxi, the buyers could not fathom investing in a taxi like a car. These two causes led to the main issue which was no buyer for the car. You need to immediately address both causes and identify what kind of solution will improve the situation for you.
⦁ Start identifying the solutions
Once you know the problems, have defined and prioritized them, it is time you begin identifying the solutions for these problems. You need to begin by considering all the alternative approaches that can help you define a solution for the problem. Once you have identified the approaches, you will have to brainstorm with the team which solution will work best for you.
⦁ Know if you have the resources for the same
Once you know the solutions, and have also understood which approach works best for you, you need to know if you have the resources for the same. It is important to know if all the approaches are feasible and you can implement them. also, know if you have the right skillsets to approach these solutions.
Finally, it is important that you implement these solutions in the right way. Planning is the key to the right implementation of the defined structure and the solutions.
Nano failed but defined a path in which you can address the issues and bring a proper solution. with the right approach, you can become a Phoenix and rise from the ashes. While Nano is not going to rise again, they have defined a path for others who may fail.
If you are going through a tough road, and feel you might fail, it is important that you know which roads to opt for, and how best to approach the issues that you might be facing. It is important that you take the right solutions and address the right issues.
If you want my help in addressing issues and identifying problems, connect with me via email or phone.