Recommendations of Caterpillar Inc: George Schaefer Takes Charge Case Analysis

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Recommendations of Caterpillar Inc: George Schaefer Takes Charge Case Study Solution

On the basis of above internal and external analysis of the company together with the assessment of various alternatives, the company is recommended to consider alternative 3. As alternative 3 would permit the business to broaden in global markets without any decrease in its local profits and any degeneration of its market position. By considering Alternative 3, the business could keep its shop experience and brand individuality. It could likewise consider alternative 2 that could permit the company to access the markets without any prospective financial investment. Although, the company might pursue alternative 1 which would allow the business to concentrate on possible worldwide markets rather than the regional markets but as the business is highly depending on the local markets with 90% of its shops in the United States, there fore pursuing alternative 1 would result in the significant decline in company's revenue. The company is suggested to consider alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Caterpillar Inc: George Schaefer Takes Charge Case Help Stores

The business has a long term market position in United States which can not be created quickly in the brand-new markets. The choice would assist the company to broaden in worldwide markets along with the elimination of issues raised in its regional markets related to its diversity.

Pros:

• Expedition of new worldwide markets.
• Increase in profits from international markets.
• Elimination of concerns connected to diversity.
• Earnings diversification.
• Step towards being a strong worldwide brand name.

Cons:

• Loss of substantial revenues from the local markets.
• Increase in competitors.
• Distinctions in cultures could led to a failure of the brand especially in Asian nations.
• Low incomes at initial levels.
• Increase in marketing expenses to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Caterpillar Inc: George Schaefer Takes Charge Case Analysis Stores

With the increased trends towards online shopping, the online shops like Amazon, Alibaba etc. might present an extreme danger to the market share of business. In this scenario the business could consider introducing Click and Recommendations of Caterpillar Inc: George Schaefer Takes Charge Case Analysis shops. These stores with a low requirement of funds to settle would enable the company to reach global markets, without ending its domestic stores.

Pros:

• Low investment
• Minimizing competitors hazard
• Access to the world markets
• Expanding customer base
• Easy to handle
• Big Earnings
• Low Operating Costs
• Easy new market entryway

Cons:

• Danger to the marketplace position
• Removal 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 business might consider, is to broaden towards the international markets without closing its domestic shops that contributes to the major part of incomes of the business. The benefits and drawbacks related to Alternative 3 are provided listed below;

Pros:

• Decreasing competitors hazard
• Access to the world markets
• Expanding customer base
• Large Profits
• Expedition of new international markets.
• Boost in earnings from international markets.
• Earnings diversification.
• Step towards being a strong worldwide brand name.

Cons:

• Extension of concerns connected to diversity.
• Distinctions in cultures might resulted in a failure of the brand specifically in Asian countries.
• Low incomes at initial levels.
• Boost in marketing expenditures to gain market share.



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