Recommendations of Volkswagen In China Running The Olympic Marathon Case Help

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Recommendations of Volkswagen In China Running The Olympic Marathon Case Study Analysis

RecommendationsOn the basis of above internal and external analysis of the company along with the examination of various alternatives, the company is recommended to think about alternative 3. As alternative 3 would allow the business to expand in international markets without any decrease in its regional revenues and any degeneration of its market position. By thinking about Alternative 3, the business could keep its shop experience and brand name uniqueness. It might also think about alternative 2 that could permit the business to access the markets without any prospective financial investment. Although, the business might pursue alternative 1 which would allow the company to focus on potential global markets rather than the local markets but as the business is extremely depending on the regional markets with 90% of its shops in the United States, there fore pursuing option 1 would lead to the considerable decrease in business's revenue. For that reason, the business is suggested to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Volkswagen In China Running The Olympic Marathon Case Analysis Stores

International SegmentsThe company has a long term market position in United States which can not be created soon in the new markets. The alternative would assist the business to expand in global markets along with the removal of concerns raised in its local markets related to its variety.

Pros:

• Expedition of brand-new global markets.
• Boost in earnings from international markets.
• Removal of issues associated with variety.
• Profits diversity.
• Step towards being a strong global brand name.

Cons:

• Loss of extensive earnings from the local markets.
• Boost in competition.
• Distinctions in cultures might caused a failure of the brand particularly in Asian countries.
• Low earnings at preliminary levels.
• Boost in marketing expenditures to gain market share.

Alternative-2: Introduction of Click and Recommendations of Volkswagen In China Running The Olympic Marathon Case Help Stores

Alternative 2 includes the introduction of online market locations through producing a proper business's site. With the increased patterns towards online shopping, the online shops like Amazon, Alibaba and so on could posture a serious threat to the market share of business. The competitors are moving towards click and Recommendations of Volkswagen In China Running The Olympic Marathon Case Analysis stores with Gap presenting Piperline. This shift towards online markets might lower the incomes for company. In this scenario the business could consider presenting Click and Recommendations of Volkswagen In China Running The Olympic Marathon Case Analysis stores. These shops with a low requirement of funds to settle would enable the company to reach international markets, without ending its domestic shops. The benefits and drawbacks of alternative 2 are provided as follows;

Pros:

• Low financial investment
• Reducing competition threat
• Access to the world markets
• Increasing the size of customer base
• Easy to manage
• Large Revenues
• Low Operating Costs
• Easy brand-new market entryway

Cons:

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

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

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

Pros:

• Lowering competitors hazard
• Access to the world markets
• Enlarging consumer base
• Large Revenues
• Exploration of brand-new global markets.
• Boost in revenue from global markets.
• Profits diversification.
• Action towards being a strong worldwide brand.

Cons:

• Continuation of issues associated with variety.
• Differences in cultures might resulted in a failure of the brand specifically in Asian nations.
• Low earnings at initial levels.
• Boost in marketing expenditures to acquire market share.



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