Recommendations of Volkswagen In China: Running The Olympic Marathon Case Solution

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Recommendations of Volkswagen In China: Running The Olympic Marathon Case Study Help

On the basis of above internal and external analysis of the business together with the examination of numerous options, the company is advised to think about alternative 3. As alternative 3 would permit the company to expand in worldwide markets with no decrease in its regional profits and any wear and tear of its market position. By considering Alternative 3, the business might maintain its shop experience and brand name uniqueness. However, it might likewise consider alternative 2 that might allow the business to access the markets without any possible financial investment. Although, the company could pursue alternative 1 which would allow the company to focus on prospective global markets rather than the local markets however as the company is extremely depending on the local markets with 90% of its shops in the United States, there fore pursuing option 1 would result in the significant decline in business's revenue. For that reason, the company is advised to consider alternative 3.

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

Growth 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 company. The closing of domestic stores might highly impact the profits of the firm as above 90% of its shops are situated locally and closing those shops would ultimately decrease the incomes of the firm. Moreover, the company has a long term market position in United States which can not be produced soon in the brand-new markets. The choice would help the business to broaden in worldwide markets in addition to the removal of concerns raised in its regional markets connected to its variety. The benefits and drawbacks for Option 1 are noted below;

Pros:

• Expedition of brand-new worldwide markets.
• Increase in income from international markets.
• Elimination of issues related to variety.
• Profits diversification.
• Action towards being a strong worldwide brand.

Cons:

• Loss of comprehensive profits from the local markets.
• Boost in competitors.
• Distinctions in cultures might resulted in a failure of the brand specifically in Asian countries.
• Low earnings at preliminary levels.
• Boost in marketing expenses to get market share.

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

Alternative 2 consists of the introduction of online market locations through creating a proper company's site. With the increased patterns towards online shopping, the online shops like Amazon, Alibaba etc. could pose a serious threat to the market share of company. The rivals are moving towards click and Recommendations of Volkswagen In China: Running The Olympic Marathon Case Analysis stores with Space presenting Piperline. This shift towards online markets could lower the revenues for company. In this scenario the company might think about introducing Click and Recommendations of Volkswagen In China: Running The Olympic Marathon Case Analysis stores. These stores with a low requirement of funds to settle would make it possible for the company to reach global markets, without ending its domestic shops. The benefits and drawbacks of alternative 2 are given as follows;

Pros:

• Low investment
• Reducing competition threat
• Access to the world markets
• Expanding consumer base
• Easy to handle
• Large Profits
• Low Operating Expense
• Easy brand-new market entryway

Cons:

• Danger to the marketplace position
• Elimination of brand Individuality
• Elimination of the fantastic store experience.
• Danger of decline in elite sales.

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

Another alternative that the business might consider, is to broaden towards the worldwide markets without closing its domestic stores that contributes to the huge part of earnings of the business. The pros and cons connected to Alternative 3 are given listed below;

Pros:

• Minimizing competitors threat
• Access to the world markets
• Enlarging customer base
• Big Earnings
• Exploration of brand-new international markets.
• Increase in revenue from global markets.
• Earnings diversity.
• Step towards being a strong worldwide brand.

Cons:

• Continuation of concerns associated with diversity.
• Differences in cultures could caused a failure of the brand especially in Asian nations.
• Low incomes at initial levels.
• Boost in marketing expenses to gain market share.



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