India’s Cheap Innovations; Cost Leadership Strategy to the Extreme.

               

                We’ve discussed Indian products in class before, particularly the Tata Motors Nano car designed for the burgeoning local middle class and soon to be showcased in Canada. Recently, yet another Indian company has unveiled its own cheap product for the masses, the Aakash, “sky” in Hindi computer, priced as a measly $45. This has come after a string of previous ideas, including $15 water purifiers and affordable heart surgery, designed to bring the comforts of modern life to a relatively impoverished population. Despite doubts about the quality of these products, these innovations posses the common aspect of being highly affordable, and focused on a particularly large, needy market.

                According to Porter’s generic strategies, these products all demonstrate the emphasis on Cost leadership, utilizing its government support to reduce prices and painstakingly developing a viable product. As stated the article, the purpose was the start a price war, a challenge for others to produce superior products, while keeping costs and technology in mind. With the mass of poverty stricken schoolchildren, young businessmen, farmers and government as potential consumers, the broad market provides wonderful opportunities, both for business and the improvement of the community.

 

http://www.thestar.com/news/article/1065032

http://newstonight.net/content/india-unveils-35-tablet-computer-aakash

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