International Marketing 10th Edition by Michael Czinkota, Michael Brumbach, Ilkka Ronkainen

Exercise 5

Innovators solve problems in two key ways: by acquiring or developing technologies and by altering business models or capabilities. In India, IT-based software and service providers used off-the-shelf hardware from the West but devised new ways of organizing work. Tata Motors focused on technology as well as capabilities when it set out to create the world's cheapest car (www.tatamotors.com/products-services/passenger.php?ref=worldwide). Examine the advantages of both of these methods.