Recommendations of Komatsu Ltd.: Project Gs Globalization Case Solution

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Recommendations of Komatsu Ltd.: Project Gs Globalization Case Study Analysis

On the basis of above internal and external analysis of the business together with the assessment of various alternatives, the company is recommended to consider alternative 3. As alternative 3 would enable the business to expand in international markets with no decrease in its regional revenues and any degeneration of its market position. By thinking about Alternative 3, the business could preserve its store experience and brand uniqueness. It could likewise think about alternative 2 that could permit the company to access the markets without any prospective investment. The company might pursue alternative 1 which would allow the company to focus on possible international markets rather than the regional markets however as the company is highly dependent on the regional markets with 90% of its stores in the US, there fore pursuing option 1 would result in the substantial decrease in company's earnings. Therefore, the company is recommended to consider alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Komatsu Ltd.: Project Gs Globalization Case Analysis Stores

The business has a long term market position in United States which can not be generated quickly in the new markets. The choice would assist the company to broaden in international markets along with the removal of problems raised in its regional markets related to its variety.

Pros:

• Expedition of brand-new global markets.
• Increase in revenue from international markets.
• Elimination of issues connected to variety.
• Earnings diversification.
• Step towards being a strong international brand name.

Cons:

• Loss of extensive profits from the regional markets.
• Boost in competition.
• Differences in cultures might led to a failure of the brand name specifically in Asian countries.
• Low revenues at preliminary levels.
• Increase in marketing expenses to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Komatsu Ltd.: Project Gs Globalization Case Analysis Stores

Alternative 2 consists of the intro of online market locations through producing a proper company's website. With the increased trends towards online shopping, the online stores like Amazon, Alibaba etc. might present a severe risk to the market share of business. The rivals are shifting towards click and Recommendations of Komatsu Ltd.: Project Gs Globalization Case Solution shops with Gap introducing Piperline. This shift towards online markets could lower the profits for company. In this situation the business could consider presenting Click and Recommendations of Komatsu Ltd.: Project Gs Globalization Case Help stores. These shops with a low requirement of funds to settle would make it possible for the business to reach worldwide markets, without ending its domestic stores. The advantages and disadvantages of option 2 are provided as follows;

Pros:

• Low investment
• Decreasing competition threat
• Access to the world markets
• Increasing the size of consumer base
• Easy to manage
• Big Profits
• Low Operating Costs
• Easy brand-new market entryway

Cons:

• Risk to the marketplace position
• Elimination of brand name Individuality
• Elimination of the great shop experience.
• Threat of decrease in elite sales.

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

Another alternative that the company might think about, is to expand towards the international markets without closing its domestic stores that adds to the major part of profits of the company. The advantages and disadvantages connected to Alternative 3 are provided below;

Pros:

• Decreasing competitors threat
• Access to the world markets
• Enlarging customer base
• Big Earnings
• Exploration of new global markets.
• Increase in earnings from global markets.
• Profits diversity.
• Action towards being a strong international brand name.

Cons:

• Extension of problems connected to diversity.
• Distinctions in cultures might resulted in a failure of the brand name specifically in Asian countries.
• Low earnings at initial levels.
• Increase in marketing expenses to acquire market share.



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