Abstract
This article unpacks the concept of reverse innovation by studying the Nano version of the Tata engine, the cheapest car in the world to be unveiled in India. The document examines the concept process, product development and marketing strategy used by the company. Nano was made with the people of India in mind, so it was the first local production for local buyers before it exports to the developed world, the development of Nano products became known for its cost-saving features, which initially influenced the price of promotion, but later increased due to car innovations. The car is known for its cost-cutting features, such as three walnut camera wheels, access to the trunk from the inside and a windshield wiper. The price was marked at $2,000, which was equivalent to a motorcycle. Some notable aspects that led to Tata Nano's success include the recruitment of competent and trained human resources, creating synergies with chain offerings for easy distribution. But the company faced challenges ranging from looming safety standards causing a car fire, a longer wait for the vehicle and ultimately a marketing strategy that was unsustainable and ultimately led to a drop in sales. Key words: Reverse innovation, emerging economies, Tata Nano motor DOI: 10.7176/JESD/12-6-11 Publication date: March 31 st 2021
Highlights
Reverse innovation means that when innovation is first introduced in poor or emerging countries before it "flows" to rich countries (Govindarajan; 2011)
The policy aspect was prioritised, educational policies were put in place and cascaded covering issues of safety and further indicating the significance of reverse innovation in emerging economies another key success area of Tata motors was the creation of synergies in supply chain with other companies
The results of this study clearly show that Tata Nano’s revolutionary innovation was first used in the emerging economies of India’s local customers before it was launched in "rich countries"
Summary
Reverse innovation means that when innovation is first introduced in poor or emerging countries before it "flows" to rich countries (Govindarajan; 2011). Reverse innovation in emerging economies brings new products to the market to address pressing local challenges and ensure that the availability of cheap products on the market is attractive to growing middlewage earners. The sharp decrease in nanolea costs and prices has led to demand for the product, which has prompted a drastic reduction in the cost-saving functions of the product. These factors, together with optimised marketing strategies with recruitment experts, have ensured the success of reverse innovations. The company faced some limitations, such as longer waiting times for the car, safety concerns, stigmatization of all these factors, which led to lower sales, which affected the company, and this led to the cessation of production of the Nano model
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
