Striking is that Tata introduced a new car… The Tata Nano. It was first introduced on the Auto Expo (Jan 2008). A cheap, basic designed and environmental friendly car (very economical) . The car will be on sales on July 2009. But is this business model innovation? What do you think? Yes, making cars available for everyone… Same as India did with the public transport 😉
Yes, I think they use cheap labor, they produce for the local market (India) and… the distribute through Internet. You can buy your Tata Nano Online here. Online? Yes, as the options are limited (color of the car only), Internet suits as a distribution channel here.
See here a video on this topic.. thx to Innovation Management.
Business Models Inc. 