Recommendations of Daimler-Benz Ag: Negotiations Between Daimler And Chrysler Case Help

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Recommendations of Daimler-Benz Ag: Negotiations Between Daimler And Chrysler Case Study Solution

On the basis of above internal and external analysis of the business along with the assessment of different alternatives, the business is advised to think about alternative 3. As alternative 3 would enable the company to expand in global markets without any reduction in its regional revenues and any deterioration of its market position. The business could pursue alternative 1 which would make it possible for the company to focus on possible global markets rather than the local markets but as the company is highly dependent on the regional markets with 90% of its shops in the United States, there fore pursuing alternative 1 would result in the considerable decrease in company's earnings.

Aletrnative-1: Expanding International Brick and Recommendations of Daimler-Benz Ag: Negotiations Between Daimler And Chrysler Case Analysis Stores

Expansion towards global markets through opening brand-new stores in other Europe and Asian countries with closing domestic stores is although an excellent choice for increasing the worldwide existence of the business. Nevertheless, the closing of domestic shops might highly impact the profits of the firm as above 90% of its stores lie locally and closing those stores would eventually reduce the revenues of the firm. The company has a long term market position in United States which can not be created soon in the new markets. The alternative would help the business to broaden in international markets along with the removal of problems raised in its local markets related to its diversity. The benefits and drawbacks for Option 1 are listed below;

Pros:

• Exploration of new international markets.
• Boost in income from international markets.
• Elimination of problems connected to diversity.
• Profits diversity.
• Action towards being a strong global brand.

Cons:

• Loss of substantial earnings from the local markets.
• Increase in competitors.
• Distinctions in cultures might caused a failure of the brand specifically in Asian countries.
• Low incomes at preliminary levels.
• Boost in marketing expenditures to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Daimler-Benz Ag: Negotiations Between Daimler And Chrysler Case Help Stores

With the increased patterns towards online shopping, the online shops like Amazon, Alibaba etc. could pose a severe hazard to the market share of business. In this circumstance the business might consider presenting Click and Recommendations of Daimler-Benz Ag: Negotiations Between Daimler And Chrysler Case Analysis shops. These stores with a low requirement of funds to settle would make it possible for the business to reach global markets, without ending its domestic shops.

Pros:

• Low investment
• Minimizing competitors risk
• Access to the world markets
• Enlarging consumer base
• Easy to handle
• Large Profits
• Low Operating Costs
• Easy new market entrance

Cons:

• Danger to the marketplace position
• Removal of brand name Originality
• Elimination of the terrific shop experience.
• Threat of decline in elite sales.

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

Another option that the business might consider, is to broaden towards the international markets without closing its domestic stores that adds to the major part of profits of the company. The pros and cons related to Alternative 3 are given listed below;

Pros:

• Decreasing competitors risk
• Access to the world markets
• Expanding consumer base
• Large Incomes
• Exploration of new global markets.
• Increase in revenue from global markets.
• Revenue diversification.
• Step towards being a strong international brand.

Cons:

• Extension of concerns associated with diversity.
• Differences in cultures could led to a failure of the brand name particularly in Asian countries.
• Low incomes at initial levels.
• Boost in marketing expenses to acquire market share.



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