Recommendations of Bajaj Auto Limiteds Business Strategy From Market Leader To Follower Case Analysis

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Recommendations of Bajaj Auto Limiteds Business Strategy From Market Leader To Follower Case Study Solution

On the basis of above internal and external analysis of the company along with the examination of various alternatives, the company is recommended to consider alternative 3. As alternative 3 would permit the business to broaden in international markets without any decrease in its regional profits and any deterioration of its market position. By thinking about Alternative 3, the company might keep its shop experience and brand originality. However, it could also think about alternative 2 that might enable the company to access the marketplaces without any possible financial investment. The business could pursue alternative 1 which would enable the company to focus on potential global markets rather than the local markets however as the company is highly reliant on the local markets with 90% of its shops in the United States, there fore pursuing option 1 would result in the considerable decline in company's revenue. The company is recommended to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Bajaj Auto Limiteds Business Strategy From Market Leader To Follower Case Solution Stores

Expansion towards worldwide markets through opening brand-new shops in other Europe and Asian nations with closing domestic stores is although a good option for increasing the worldwide presence of the business. The closing of domestic stores might highly affect the profits of the firm as above 90% of its shops are situated locally and closing those shops would eventually minimize the earnings of the firm. The business has a long term market position in United States which can not be produced quickly in the new markets. The option would help the business to broaden in worldwide markets along with the elimination of concerns raised in its local markets associated with its variety. The benefits and drawbacks for Option 1 are listed below;

Pros:

• Exploration of new global markets.
• Increase in income from international markets.
• Elimination of concerns connected to variety.
• Revenue diversity.
• Step towards being a strong worldwide brand name.

Cons:

• Loss of comprehensive profits from the regional markets.
• Boost in competitors.
• Differences in cultures could led to a failure of the brand specifically in Asian nations.
• Low incomes at initial levels.
• Boost in marketing expenses to get market share.

Alternative-2: Introduction of Click and Recommendations of Bajaj Auto Limiteds Business Strategy From Market Leader To Follower Case Analysis Stores

With the increased patterns towards online shopping, the online stores like Amazon, Alibaba etc. could posture a severe danger to the market share of company. In this situation the business could consider presenting Click and Recommendations of Bajaj Auto Limiteds Business Strategy From Market Leader To Follower Case Solution shops. These stores with a low requirement of funds to settle would allow the company to reach international markets, without ending its domestic stores.

Pros:

• Low investment
• Minimizing competition hazard
• Access to the world markets
• Enlarging customer base
• Easy to manage
• Big Earnings
• Low Operating Expense
• Easy new market entrance

Cons:

• Hazard to the market position
• Removal of brand Individuality
• Elimination of the fantastic shop experience.
• Risk of decrease in elite sales.

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

Another option that the company could consider, is to expand towards the worldwide markets without closing its domestic shops that contributes to the huge part of incomes of the business. The benefits and drawbacks related to Alternative 3 are provided listed below;

Pros:

• Lowering competition danger
• Access to the world markets
• Enlarging consumer base
• Large Revenues
• Expedition of brand-new worldwide markets.
• Increase in revenue from international markets.
• Earnings diversity.
• Step towards being a strong global brand.

Cons:

• Extension of concerns connected to variety.
• Differences in cultures might caused a failure of the brand name specifically in Asian countries.
• Low revenues at preliminary levels.
• Increase in marketing expenses to get market share.



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