Report on case study Competition

Submitted By: Shweta Kumari MBA (Gen.), 4th Sem Reg. No. A50001911016

CASE STUDY - 1 Indian Service Sector: Growth and Performance

The service industry forms a backbone of social and economic development of a region. It has emerged as the largest and fastest-growing sectors in the world economy, making higher contributions to the global output and employment. Its growth rate has been higher than that of agriculture and manufacturing sectors. It is a large and most dynamic part of the Indian economy both in terms of employment potential and contribution to national income. India's service sector, also known as the tertiary sector, found its share of success lately in the Indian economy. Primary sector consists of the agriculture sector, which is dominant sector of the economy since independence till the 1980's. Gross Domestic Product (GDP) for the secondary sector, consisting industries, and service sector has grown with the New Economic Policy in 1991. This case study was an attempt to find out the growth and performance in Indian service sector. The first section gave a brief introduction of Indian service sector. The second section discussed about the growth and performance of major service industries such as transport logistics, shipping, aviation, retail sector, health services, health services, hotels, telecom, software, construction and allied services. The last section of this case study discussed about the challenges of services sector to maintain growth tempo and stable business and financial services in Indian service sector. The contribution of the Services Sector has increased very rapidly in the India GDP for many foreign consumers have shown interest in the country's service exports. This is due to the fact that India has a large pool of highly skilled, low cost, and educated workers in the country. This has made sure that the services that are available in the country are of the best quality. The foreign companies seeing this have started

outsourcing their work to India especially in the area of business services which includes business process outsourcing and information technology services. This has given a major boost to the Services Sector in India, which in its turn has made the sector contribute more to the India GDP. The demand for services is on the rise with increases in income, as people are becoming less concerned about material needs. In the consumer sector, this leads to increasing demand for services such as health, education and entertainment. In business, companies recognize that many activities can be handled more efficiently by a service provider. Outsourcing services allows a business to concentrate on the activities that are critical to its success. These are called core activities, and they include sales and marketing, accounting, technology, quality, product and service delivery, management, human resources, finance and product development. The service sector is benefiting from improved marketing as service firms communicate their message more efficiently. Building understanding of the benefits of professional services is critical to the growth of the sector. According to the Rain Group, service firms can improve their performance by positioning themselves effectively and explaining their service benefits to customers. Services can help a business improve efficiency and achieve its strategic business objectives. For example, consultancy services can help a company focus on critical areas for growth. Training services, for example, help companies develop their workforce skills as a competitive advantage.

Case Study 2 Tata Nano- an Innovative Product but poor Realization

The Nano incorporates three innovations, which together make it huge. First, the Nano uses a modular design that enables a knowledgeable mechanic to assemble the car in a suitable workshop. Thus, Tata can outsource assembly to independent workshops that can then assemble the car on buyers orders. This innovation not only removes costly labor from the manufacturers side but also allows for distributed entrepreneurship on the dealers side. Second, the low cost of the Nano comes from a combination of its exclusion of frills and luxuries and its inclusion of numerous lighter components, from simple door handles and bulbs to the transmission and engine parts. The lighter vehicle enables a more energy efficient engine that gets 67 miles per gallon. Third, the Nanos novel design incorporates a much smaller footprintat 122 inches long, its one of the shortest four-passenger cars on the marketyet it allows for ample interior space. The problems of energy scarcity, environmental pollution and road congestion should not discourage Ratan Tata from making and selling as many Nanos as he can. Firstly, the Nano is more energy efficient and affordable than any other car. Moreover, the explosion of vehicles will force regulators to control pollution, pressure governments to build better roads, and motivate innovators to produce more efficient engines. A perusal of the history of innovation shows that great innovators brought the goods enjoyed by the elite to the masses. Tatas Nano will go up as another example in this inspiring history. More than 60% of the population of India falls in the middle income group, looking for a better quality of life and more comforts in their limited income. The development of basic infrastructure and amenities for all sections of society is a function of the Government of India. Ratan Tata dreamt of creating a common man's car with adequate comfort at an

affordable price. Nano was the only car in the world carrying a price tag of under $2000. Tata Nano had not only caught the attention of the world, it had also roused the expectation of millions of Indians on what was going to be a first in the history of the automobile. Tata Nano instilled a sense of pride in every Indian on the day of its launch. After such an open arm welcome and warm response, Tata Nano failed to prove itself as a common man's car. This Case study tried to analyze the strategy that went into the making of Tata Nano, 'a common man's car', the reasons for its poor sales after a tremendous opening, and the course of action required to make Tata Nano, a truly 'common man's car'. This story would have a more obvious happy ending if Tata had gotten it right the first time: sales numbers in the millions, a transport revolution in the developing world, etc. etc. But second best to getting it right is to know why things went wrong, which is now well-documented and available to the public. The car symbolized anything but an aspirational purchase. As we've learned, pricing wasn't the only thing that mattered. The target market segment shifted. The price went up while the perceived value stayed the same. The car had not been properly tested. Setting up manufacturing in India wasn't easy. Political interference, local unrest, and floods didn't help things either. All the while, Tata largely failed to capitalize on the very happy users who owned one of the cars that did work well. The company was unable to mobilize brand ambassadors who held the power to make the car aspirational.