Recommendations of Changing Trends In Road Transportation Industry In India Case Solution

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On the basis of above internal and external analysis of the company along with the evaluation of numerous alternatives, the company is suggested to consider alternative 3. As alternative 3 would allow the company to expand in worldwide markets without any reduction in its regional revenues and any wear and tear of its market position. The business could pursue alternative 1 which would make it possible for the business to focus on potential global markets rather than the local markets but as the company is extremely dependent on the local markets with 90% of its stores in the United States, there fore pursuing option 1 would result in the substantial decrease in company's income.

Aletrnative-1: Expanding International Brick and Recommendations of Changing Trends In Road Transportation Industry In India Case Solution Stores

Growth towards international markets through opening new shops in other Europe and Asian nations with closing domestic stores is although a good choice for increasing the global presence of the company. Nevertheless, the closing of domestic shops could highly impact the revenues of the company as above 90% of its stores are located locally and closing those shops would ultimately minimize the incomes of the company. The company has a long term market position in US which can not be produced quickly in the brand-new markets. The choice would help the company to broaden in global markets along with the elimination of concerns raised in its regional markets related to its diversity. The benefits and drawbacks for Alternative 1 are noted below;

Pros:

• Expedition of new global markets.
• Boost in revenue from global markets.
• Elimination of problems associated with diversity.
• Earnings diversification.
• Step towards being a strong global brand.

Cons:

• Loss of extensive revenues from the local markets.
• Boost in competitors.
• Distinctions in cultures could resulted in a failure of the brand name specifically in Asian nations.
• Low earnings at initial levels.
• Increase in marketing expenditures to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Changing Trends In Road Transportation Industry In India Case Solution Stores

With the increased trends towards online shopping, the online stores like Amazon, Alibaba and so on might position a severe hazard to the market share of business. In this scenario the business could think about introducing Click and Recommendations of Changing Trends In Road Transportation Industry In India Case Solution stores. 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 competition danger
• Access to the world markets
• Increasing the size of consumer base
• Easy to manage
• Big Revenues
• Low Operating Costs
• Easy brand-new market entrance

Cons:

• Hazard to the market position
• Removal of brand name Individuality
• Removal of the terrific store experience.
• Danger of decrease in elite sales.

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

Another alternative that the company could consider, is to broaden towards the international markets without closing its domestic shops that contributes to the huge part of revenues of the company. The advantages and disadvantages associated with Alternative 3 are given below;

Pros:

• Reducing competition danger
• Access to the world markets
• Enlarging consumer base
• Big Profits
• Expedition of brand-new international markets.
• Boost in profits from international markets.
• Revenue diversity.
• Action towards being a strong international brand name.

Cons:

• Extension of issues connected to variety.
• Distinctions in cultures might led to a failure of the brand name specifically in Asian nations.
• Low earnings at initial levels.
• Increase in marketing expenditures to get market share.



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