QUESTION 1 : Is Tata well positioned as a diversified conglomerate to pursue blue oceans ?.

The Tata group embraced globalization and since 1995, made on average, one purchase a year. Therefore, to foster innovation and to become always a truly global company, Tata group is diversified structure has given it a valuable mixture of flexibility and deep pockets in five clusters that group people from different businesses : plastics and composites, nanotechnology, engineering, IT, water. More than, the Tata Group is pursuing innovation in nanotechnology with the R&D research Center whose name is “Tata Chemicals” and with frugal innovation to appeal to poor people and the rising middle class. So, all things considered, Tata is well positioned to pursue may be blue oceans because, his strength is always the innovation and the research on the top (high technology) or basic (frugal technology) levels for their customers.

QUESTION 2 : Does their focus on frugal innovation open up new blue oceans ?

The Mr. Tata’s motto is on the one hand “to foster innovation” and the other hand more attention for the group’s commitment to “frugal innovation”. His ambition is to marry high and low in two parallel markets of customers and of countries. For example, the high technology is adapted to the complicated demands of developing markets and the low innovation for the emerging markets. However, the frugal innovations are less expensive than the high innovations and the risk is too less with the obsolete patent used in the Western markets. But, in the emerging markets, there is an opportunity for highly profitable growth with a low-cost, it’s could be a new blue oceans with the frugal innovation on the car’s markets.