Recommendations of Komatsu: Ryoichi Kawais Leadership Case Help

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Recommendations of Komatsu: Ryoichi Kawais Leadership Case Study Analysis

On the basis of above internal and external analysis of the company along with the examination of different alternatives, the business is recommended to think about alternative 3. As alternative 3 would permit the company to expand in worldwide markets with no reduction in its regional revenues and any wear and tear of its market position. By thinking about Alternative 3, the business could maintain its shop experience and brand originality. It could also consider alternative 2 that might enable the business to access the markets without any possible financial investment. Although, the company might pursue alternative 1 which would make it possible for the business to focus on potential global markets rather than the regional markets but as the company is extremely depending on the regional markets with 90% of its shops in the US, there fore pursuing option 1 would lead to the substantial decline in company's profits. The business is recommended to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Komatsu: Ryoichi Kawais Leadership Case Analysis Stores

Growth towards worldwide markets through opening brand-new shops in other Europe and Asian nations with closing domestic stores is although an excellent option for increasing the worldwide presence of the company. The closing of domestic stores might extremely affect the incomes of the firm as above 90% of its stores are situated locally and closing those stores would ultimately reduce the revenues of the company. The business has a long term market position in US which can not be produced soon in the brand-new markets. The choice would help the business to expand in global markets along with the removal of problems raised in its local markets related to its diversity. The benefits and drawbacks for Option 1 are noted below;

Pros:

• Expedition of new international markets.
• Boost in income from international markets.
• Elimination of concerns related to variety.
• Profits diversification.
• Action towards being a strong global brand name.

Cons:

• Loss of substantial revenues from the regional markets.
• Increase in competitors.
• Distinctions in cultures might led to a failure of the brand name particularly in Asian nations.
• Low profits at initial levels.
• Boost in marketing expenses to gain market share.

Alternative-2: Introduction of Click and Recommendations of Komatsu: Ryoichi Kawais Leadership Case Help Stores

With the increased trends towards online shopping, the online shops like Amazon, Alibaba etc. could present a serious risk to the market share of business. In this situation the business might consider presenting Click and Recommendations of Komatsu: Ryoichi Kawais Leadership Case Solution shops. These stores with a low requirement of funds to settle would enable the business to reach global markets, without ending its domestic shops.

Pros:

• Low investment
• Reducing competition threat
• Access to the world markets
• Increasing the size of consumer base
• Easy to handle
• Big Earnings
• Low Operating Costs
• Easy new market entryway

Cons:

• Hazard to the marketplace position
• Removal of brand Uniqueness
• Removal of the excellent store experience.
• Risk of decrease in elite sales.

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

Another alternative that the company could consider, is to expand towards the worldwide markets without closing its domestic stores that adds to the major part of profits of the company. The advantages and disadvantages related to Alternative 3 are given below;

Pros:

• Lowering competition risk
• Access to the world markets
• Enlarging customer base
• Big Incomes
• Exploration of new worldwide markets.
• Increase in earnings from worldwide markets.
• Earnings diversification.
• Action towards being a strong worldwide brand.

Cons:

• Continuation of concerns connected to variety.
• Differences in cultures could resulted in a failure of the brand name especially in Asian countries.
• Low revenues at preliminary levels.
• Increase in marketing expenditures to acquire market share.



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