Recommendations of Cummins India: Consumer Driven Modularization Strategy Case Analysis

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Recommendations of Cummins India: Consumer Driven Modularization Strategy Case Study Help

On the basis of above internal and external analysis of the company along with the examination of different options, the business is recommended to think about alternative 3. As alternative 3 would enable the business to broaden in worldwide markets without any reduction in its regional incomes and any deterioration of its market position. The company might pursue alternative 1 which would allow the business to focus on potential global markets rather than the local markets however as the business is highly reliant on the regional markets with 90% of its shops in the United States, there fore pursuing alternative 1 would result in the considerable decline in business's earnings.

Aletrnative-1: Expanding International Brick and Recommendations of Cummins India: Consumer Driven Modularization Strategy Case Analysis Stores

Growth towards global markets through opening new shops in other Europe and Asian countries with closing domestic shops is although an excellent option for increasing the global presence of the company. Nevertheless, the closing of domestic shops could highly impact the earnings of the firm as above 90% of its stores are located locally and closing those shops would ultimately reduce the revenues of the firm. The company has a long term market position in United States which can not be created quickly in the brand-new markets. The alternative would help the company to broaden in international markets together with the elimination of concerns raised in its local markets associated with its diversity. The benefits and drawbacks for Option 1 are noted below;

Pros:

• Exploration of brand-new international markets.
• Increase in revenue from worldwide markets.
• Elimination of concerns associated with variety.
• Income diversity.
• Step towards being a strong worldwide brand name.

Cons:

• Loss of extensive revenues from the local markets.
• Boost in competitors.
• Differences in cultures could led to a failure of the brand name especially in Asian nations.
• Low revenues at initial levels.
• Increase in marketing expenditures to get market share.

Alternative-2: Introduction of Click and Recommendations of Cummins India: Consumer Driven Modularization Strategy Case Help Stores

With the increased trends towards online shopping, the online stores like Amazon, Alibaba and so on could present an extreme threat to the market share of company. In this scenario the company might consider introducing Click and Recommendations of Cummins India: Consumer Driven Modularization Strategy Case Solution shops. These shops with a low requirement of funds to settle would make it possible for the business to reach international markets, without ending its domestic stores.

Pros:

• Low financial investment
• Lowering competitors hazard
• Access to the world markets
• Expanding customer base
• Easy to handle
• Large Incomes
• Low Operating Costs
• Easy new market entryway

Cons:

• Risk to the market position
• Removal of brand name Uniqueness
• Elimination of the great store experience.
• Threat of decrease in elite sales.

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

Another choice that the company might consider, is to expand towards the global markets without closing its domestic shops that contributes to the major part of earnings of the business. The benefits and drawbacks related to Alternative 3 are offered below;

Pros:

• Decreasing competition threat
• Access to the world markets
• Increasing the size of customer base
• Large Profits
• Expedition of brand-new global markets.
• Increase in revenue from worldwide markets.
• Profits diversification.
• Action towards being a strong international brand name.

Cons:

• Extension of issues connected to variety.
• Distinctions in cultures might caused a failure of the brand particularly in Asian nations.
• Low revenues at initial levels.
• Increase in marketing expenses to acquire market share.



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