Recommendations of Maruti Suzukis India Limited: Competitive Strategies Of The Market Leader Case Analysis

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Recommendations of Maruti Suzukis India Limited: Competitive Strategies Of The Market Leader Case Study Help

On the basis of above internal and external analysis of the business along with the examination of different options, the business is advised to consider alternative 3. As alternative 3 would allow the company to expand in worldwide markets without any reduction in its local earnings and any deterioration of its market position. The company could pursue alternative 1 which would enable the company to focus on potential global markets rather than the local markets but as the business is extremely dependent on the regional markets with 90% of its shops in the US, there fore pursuing option 1 would result in the significant decline in company's revenue.

Aletrnative-1: Expanding International Brick and Recommendations of Maruti Suzukis India Limited: Competitive Strategies Of The Market Leader Case Analysis Stores

Expansion towards global markets through opening new stores in other Europe and Asian nations with closing domestic shops is although a great alternative for increasing the international presence of the company. Nevertheless, the closing of domestic stores could extremely affect the profits of the firm as above 90% of its shops lie locally and closing those shops would ultimately minimize 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 choice would help the business to expand in international markets along with the elimination of concerns raised in its regional markets associated with its variety. The pros and Cons for Alternative 1 are listed below;

Pros:

• Expedition of new international markets.
• Boost in income from global markets.
• Removal of concerns related to variety.
• Earnings diversity.
• Step towards being a strong worldwide brand.

Cons:

• Loss of substantial earnings from the regional markets.
• Increase in competition.
• Differences in cultures might resulted in a failure of the brand especially in Asian nations.
• Low revenues at initial levels.
• Boost in marketing expenditures to gain market share.

Alternative-2: Introduction of Click and Recommendations of Maruti Suzukis India Limited: Competitive Strategies Of The Market Leader Case Help Stores

Alternative 2 includes the introduction of online market places through creating a proper company's site. With the increased trends towards online shopping, the online stores like Amazon, Alibaba etc. might position a serious danger to the marketplace share of company. The competitors are moving towards click and Recommendations of Maruti Suzukis India Limited: Competitive Strategies Of The Market Leader Case Help stores with Space introducing Piperline. This shift towards online markets might lower the incomes for company. In this circumstance the business might consider presenting Click and Recommendations of Maruti Suzukis India Limited: Competitive Strategies Of The Market Leader Case Help shops. These shops with a low requirement of funds to settle would enable the company to reach international markets, without ending its domestic stores. The pros and cons of option 2 are provided as follows;

Pros:

• Low financial investment
• Reducing competition danger
• Access to the world markets
• Enlarging consumer base
• Easy to manage
• Big Revenues
• Low Operating Expense
• Easy brand-new market entrance

Cons:

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

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

Another alternative that the business could think about, is to expand towards the international markets without closing its domestic stores that contributes to the major part of revenues of the business. The benefits and drawbacks related to Alternative 3 are given listed below;

Pros:

• Decreasing competitors risk
• Access to the world markets
• Increasing the size of customer base
• Large Profits
• Exploration of brand-new worldwide markets.
• Increase in revenue from international markets.
• Income diversity.
• Step towards being a strong worldwide brand name.

Cons:

• Continuation of concerns associated with variety.
• Differences in cultures could caused a failure of the brand name specifically in Asian nations.
• Low earnings at preliminary levels.
• Boost in marketing expenses to gain market share.



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