Recommendations of Chery Automobile Company Evolution Of The Chinese Automotive Industry Case Help

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Recommendations of Chery Automobile Company Evolution Of The Chinese Automotive Industry Case Study Solution

On the basis of above internal and external analysis of the business along with the evaluation of various alternatives, the company is advised to think about alternative 3. As alternative 3 would allow the business to broaden in international markets with no reduction in its local incomes and any wear and tear of its market position. By thinking about Alternative 3, the company might keep its shop experience and brand name uniqueness. It might also think about alternative 2 that might allow the company to access the markets without any potential investment. The business could pursue alternative 1 which would allow the company to focus on potential global markets rather than the regional markets but as the company is highly dependent on the regional markets with 90% of its shops in the United States, there fore pursuing option 1 would result in the substantial decline in company's revenue. Therefore, the company is recommended to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Chery Automobile Company Evolution Of The Chinese Automotive Industry Case Analysis Stores

The company has a long term market position in US which can not be produced quickly in the brand-new markets. The choice would help the business to broaden in worldwide markets along with the elimination of concerns raised in its regional markets related to its variety.

Pros:

• Exploration of brand-new worldwide markets.
• Boost in profits from global markets.
• Removal of issues associated with diversity.
• Revenue diversity.
• Step towards being a strong international brand.

Cons:

• Loss of comprehensive incomes from the regional markets.
• Boost in competitors.
• Distinctions in cultures might resulted in a failure of the brand particularly in Asian nations.
• Low revenues at preliminary levels.
• Increase in marketing expenses to get market share.

Alternative-2: Introduction of Click and Recommendations of Chery Automobile Company Evolution Of The Chinese Automotive Industry Case Help Stores

With the increased patterns towards online shopping, the online shops like Amazon, Alibaba and so on could posture a severe hazard to the market share of business. In this scenario the company could think about introducing Click and Recommendations of Chery Automobile Company Evolution Of The Chinese Automotive Industry Case Help stores. These shops with a low requirement of funds to settle would make it possible for the business to reach international markets, without ending its domestic shops.

Pros:

• Low investment
• Reducing competitors hazard
• Access to the world markets
• Enlarging consumer base
• Easy to manage
• Big Incomes
• Low Operating Expense
• Easy brand-new market entrance

Cons:

• Hazard to the marketplace position
• Elimination of brand name Uniqueness
• Removal of the fantastic store experience.
• Threat of decline in elite sales.

Alternative-3: Expansion towards International Markets Without closing Domestic Stores

Another option that the company might consider, is to expand towards the worldwide markets without closing its domestic shops that contributes to the huge part of earnings of the company. The pros and cons associated with Alternative 3 are offered listed below;

Pros:

• Decreasing competition danger
• Access to the world markets
• Enlarging consumer base
• Large Incomes
• Exploration of brand-new global markets.
• Increase in profits from worldwide markets.
• Profits diversity.
• Step towards being a strong global brand name.

Cons:

• Extension of concerns associated with diversity.
• Distinctions in cultures might resulted in a failure of the brand specifically in Asian nations.
• Low incomes at preliminary levels.
• Increase in marketing expenditures to gain market share.



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