Recommendations of Komatsu Ltd: Project Gs Globalization Case Solution

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Recommendations of Komatsu Ltd: Project Gs Globalization Case Study Solution

On the basis of above internal and external analysis of the business in addition to the evaluation of various alternatives, the business is advised to think about alternative 3. As alternative 3 would enable the company to broaden in international markets without any decrease in its local incomes and any deterioration of its market position. By thinking about Alternative 3, the company might preserve its shop experience and brand name uniqueness. It could also consider alternative 2 that could enable the company to access the markets without any possible financial investment. Although, the company could pursue alternative 1 which would allow the company to focus on possible international markets instead of the regional markets but as the company is highly dependent on the local markets with 90% of its shops in the United States, there fore pursuing option 1 would result in the significant decrease in business's income. The business is suggested to think about alternative 3.

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

Growth towards global markets through opening new shops in other Europe and Asian nations with closing domestic stores is although a great alternative for increasing the global existence of the business. The closing of domestic shops might extremely impact the revenues of the firm as above 90% of its shops are located domestically and closing those stores would ultimately decrease the revenues of the firm. The business 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 broaden in global markets in addition to the removal of concerns raised in its local markets associated with its diversity. The advantages and disadvantages for Option 1 are listed below;

Pros:

• Expedition of brand-new international markets.
• Boost in earnings from global markets.
• Removal of problems connected to variety.
• Income diversification.
• Step towards being a strong global brand.

Cons:

• Loss of extensive profits from the local markets.
• Increase in competitors.
• Differences in cultures might led to a failure of the brand name particularly in Asian countries.
• Low incomes at initial levels.
• Boost in marketing expenditures to acquire market share.

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

Alternative 2 includes the introduction of online market locations through creating a correct company's website. With the increased trends towards online shopping, the online shops like Amazon, Alibaba and so on might position a severe risk to the market share of business. The competitors are shifting towards click and Recommendations of Komatsu Ltd: Project Gs Globalization Case Help stores with Space presenting Piperline. This shift towards online markets might lower the profits for business. In this scenario the company might think about introducing Click and Recommendations of Komatsu Ltd: Project Gs Globalization Case Solution shops. These shops with a low requirement of funds to settle would allow the company to reach worldwide markets, without ending its domestic stores. The benefits and drawbacks of alternative 2 are given as follows;

Pros:

• Low financial investment
• Decreasing competition risk
• Access to the world markets
• Increasing the size of consumer base
• Easy to manage
• Big Incomes
• Low Operating Expense
• Easy brand-new market entryway

Cons:

• Threat to the market position
• Removal of brand name Uniqueness
• Removal of the great 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 expand towards the international markets without closing its domestic shops that contributes to the huge part of earnings of the business. The advantages and disadvantages associated with Alternative 3 are provided listed below;

Pros:

• Reducing competition hazard
• Access to the world markets
• Enlarging customer base
• Big Revenues
• Exploration of brand-new worldwide markets.
• Boost in earnings from worldwide markets.
• Earnings diversification.
• Step towards being a strong international brand.

Cons:

• Continuation of problems associated with variety.
• Distinctions in cultures might led to a failure of the brand particularly in Asian countries.
• Low profits at initial levels.
• Increase in marketing expenses to acquire market share.



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