1.

) Challenges in developing an innovative cost effective product are:

(a) Global competition: Global competition is often a major factor impacting the challenges of new product development.
Since the playing field is large and diverse, often spanning the globe, it may be very difficult for companies to gather
intelligence on competitiors. A company may invest heavily in a new product, yet be unaware that an overseas competitors is
set to release a similar product imminently. As a result, shepherding a a new product from concept to market is often done
under intense time pressure.
(b) Time: The companies today are facing time as one of the critical challenges in new product challenges. Introducing the
new product at the right time reduces the ambiguity about the failure of the product.
(c) Market potential: A company needs to know their current and future competitors. In today’s economic climate only
two products will be successful in any given market. Unless your product is far superior to your competition, you will not be
able enter a market successfully or retain your leadership in market. Knowing your future competitors will help you to
develop a strategy to retain your competitive advantage.
(d) Technological changes: A technological arms race may put product developers in a precarious position of
uncertainty. Product developers may not know what the next development might be. If a firm chooses a pathway to creating
functionality using a form of technology that may be soon absolete, the company’s investors could loose a sizable
investment.
(e) Distribution: Is there sufficient sales potential in the new product to convince a distributor, retailer, or agent to take
on the new lines? There are significant up-front selling costs involved in introducing new products. Everyone n the channel
wants some assurance that the investment of money and time will be recovered.
(f) New features: Adding new features can increase your overall product value and consequently, increase market share.
Competitive advantages needs to be articulated to your customers: how does the product meets the customers unmet need
that no one product can.
(g) Market size: It is also important to keep an eye on the market size as well as the market potential for the product in
meeting the business goals of the company. The last thing one want to find out is that there is no market for the product or
that the customers isn’t buying the product.
(h) Promotion: Promoting a new product in the new market or in the current market is the job of every marketer and the
utmost requirement for the longevity of the product in the market.

2.)Challenges faced by TATA in launching Tata Nano are:

 The lack of a correct strategy for a product like this. Firstly Tata motors couldn’t reach out to its target market since their
dealer network was situated only in the urban areas while the target market was situated in towns and villages. Their
target market wasn’t familiar with the car-buying experience and the company was not able to bridge that gap.
 This situation was further worsened when the project faced an eighteen-month delay as the production unit had to be
shifted from Singur, West Bengal to Sanand, Gujrat.
 The Nano was marketed as the “One lakh Rupee” car but after some time Tata was not able to keep up with that price
and the on-road price for a base variant Nano started to come around 2.59 lakhs which defeated their marketing
campaign for the car.
 One key issue for the Nano's failure was its marketing. A potentially game-changing innovation, Tata made Nano look
utilitarian but tagged it as "cheap" in a market where buying a car is associated with social status and prestige unlike in
the west.
 Tata also faced political problems and had to shift the plant location, which led to production delays. Transfer of the
whole plant significantly added to the product's cost. The initial waiting period was too high, making several customers go
away empty handed when the company could have potentially flooded the market. And now due to inflation, Nano's
prices have further increased due to increase in the prices of raw material such as steel, rubber and others
3.) Reason for e-commerce and m-commerce plays vital role globally:
e-commerce:
1. E-commerce sites give customers to shop from thousands of products of the same kind. For example, sites like Amazon,
Flipkart and e-bay showcases thousands of products and gives the customers the opportunity to choose what they like from
thousands of options.
2. Can access on the go. To shop while bored is fun for people who loves shopping. And e- commerce sites are the medium
for that. Customers can shop on the go.

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 3. E-commerce sites save money and time. A customer does not have to visit a shop by spending money for Petrol and hours
for makeup to know about recent trends. The online shop is a click away if you have a smart phone with high speed data
access
. 4. E-commerce sites save manpower. Once the website is made E-commerce sites are easy to manage. Manpower is needed
only to upload, update and remove the pictures of the products. Packing and transportation and proceedings are done by the
courier services.
5. E-commerce gets a vast reach among the audience. It is a perfect medium for business aiming national clients than local
businesses.
m-commerce:
1.Ubiquity: The use of wireless device enables the user to receive information and conduct transactions anywhere, at
anytime.
2. Accessibility: Mobile device enables the user to be contacted at virtuallyanytime and place. The user also has the
choice to limit their accessibility to particular persons or times.
3. Convenience: The portability of the wireless device and its functions from storing data to access to information or persons.
4. Localization: The emergence of location based applications willenable the user to receive relevant information on which to
act.
5. Instant Connectivity (2.5G): Instant connectivity or "always on" is becoming more prevalent will the emergence
of 2.5 G networks, GPRS or EDGE. Users of 2.5 G services will benefit from easier and faster access to the Internet.
6. Personalization: The combination of localization and personalization willcreate a new channel/business opportunity for rea
ching and attracting customers. Personalization will take the form of customized information, meeting the users’ preferences.
4.) "Entrepreneurs are made not born." It is true that family environment, religious, cultural conditioning and commercial
orientation of a region may create a favorable atmosphere for entrepreneurial growth. But these generic factors are
necessary conditions rather than sufficient one. It has been observed that a great many highly intelligent and energetic
persons never become entrepreneurs. Studies all over the world throw lot of evidences that " Entrepreneurial traits and
tendencies are acquired characteristics or learned behavior".
Entrepreneurs typically show higher levels of risk tolerance and ability to cope with ambiguity. They are also alert to
p oportunities, in the sense that they are able to make connections between apparently unrelated events and turn that into a b
u business. They are also incorrigibly optimistic, creative in finding resources and solutions to problems. They are also highly s e
lf self-confident in their ability and have a strong belief in their own motivations and abilities. But entrepreneurs are not born w
it with all these characteristics. To be successful as an entrepreneur we need to be in the right environment where we either fo r
m formally learn how to do it or absorb it from our families and surroundings. We also need a strong motivator who helps ent re
prentrepreneurs to build enterprise. He needs capital for establishing enterprise. So, we can say that, entrepreneurs are made n
o not born.
5.) Opportunity- Project Interface
Interface

Spotting an Scanning of Identification of Starting Project

opprtunity Environment product/service

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