Tata Nano case notes :

Take in consideration frameworks, in the next business cases (strategic frameworks, new value
propositions).

Argument every single phrase, with articlesq from journals.

Bharti company in Africa case.

Middle class for developing countries is going to be more important in the next 20 years, and it will be
decreasing in the others countries such as Japan, US , EU …

Middle class expand every single year, and the GDP is witnessing that.

90% of the middle class will be in Asian countries.

Most of new emerging and developing countries, are now in the last places of the ranking of corruption.

Governance: looking back vs looking forward.

LB: preserving the past achievements, and for LF, creation of value, where we try to measure risks of
taking new decisions, and how decision can be done.

Capitalism isnn’t viewed at the same vision for every country (USA vs Japan).

Economies:

- Market based (driven by the market USA

- Corporate
- State guided (driven by public decision
- Crony capitalism (clse business-government business)

Missing pieces : in the emerging markets, they are a lot of things missing, for example : good
governance, good thinkers.

The basis of the competition is the value proposition, because clients buy solutions, but companies sell
products

Pest + 5 forces de Michael Porter, à utiliser dans les rapports.

MP used his model to describe how Japanese companies destroyed the American companies in the
world.

Objectives and recommendations must be done with timelines, deadlines (double the market share for
the next 2 years …à.

3 levels of strategy in the company (corporate level strategy, Business level strategy, Operationnal and
functional strategy)

Owner strategy is the main thing to follow in the US for example but not in Japan.

- Corporate (adding value aboce that of excuting business)

- Business strategy (core competencies define business strategy)
 - Operational strategy (that will be used on operational levels)

Aspiration = something that u want to do and go up.

Emerging markets used to create things that are aspirational and for nano case, it wasn’t aspirational at
all.

Good enough is key for big market share, and not only good quality.

Main question? How the business model will work when working from your country, your home one to
another place  adapt for the cultural specificities of the country.

Standardization vs Localization

Each market require some kind of localization to succeed, and it may be the key element to global
business, failure to localize remains one of the main reasons for failure in new markets.

Entering to an emerging market:

+ side:

Established brands, technology financial strength …

-Side: missing pieces make it hard to access to emerging markets.

HBR article: is the bottom of pyramid really for you? HBS review.

Tata case:

Should we go now or after, for example Tata went down, meanwhile Essilor figured how to deal with the
market, and made a sustainable strategy.

For rural areas for example, there some variables that are hard to find for example, distribution is one of
them, and they have to make investments in also some others things, transportation is one of them…

At the base of pyramid, people are not too loyal to brands.

Blue ocean : a good financial structure.

The business model matters more, we can compare between google and apple, apple has built a total
eco system (everything), meanwhile google, is still trying to improve and do the same things as apple.

This is maybe the reason of doing things in a really good way back in Apple.

A successful company is the one that knows how to create value to customers, and know to get the job
done, and not by giving some existing solutions.

Solutions compete, and not companies compete.

New ways of doing things by outsourcing everything to have cheaper costs.

Issues that need to be resolved to go down for the pyramid.

Q2: what would some of the challenges be to addressed for a product like the Tata Nano moving down
the economic pyramid in India? Using these categories, again what analytical matrix, could u design with
criteria to evaluate potential success of targeting this opportunity from things mentioned in the article.

Essilor: