Recommendations of Maruti Udyog Limited: The Pricing Dilemma Case Analysis

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Recommendations of Maruti Udyog Limited: The Pricing Dilemma Case Study Analysis

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

Aletrnative-1: Expanding International Brick and Recommendations of Maruti Udyog Limited: The Pricing Dilemma Case Analysis Stores

Growth towards worldwide markets through opening new stores in other Europe and Asian countries with closing domestic stores is although a great alternative for increasing the global presence of the company. Nevertheless, the closing of domestic stores might highly affect the incomes of the firm as above 90% of its stores lie domestically and closing those stores would ultimately reduce the profits of the firm. The business has a long term market position in United States which can not be generated quickly in the new markets. The option would help the business to expand in international markets together with the elimination of problems raised in its regional markets connected to its diversity. The benefits and drawbacks for Option 1 are listed below;

Pros:

• Expedition of brand-new global markets.
• Increase in profits from global markets.
• Elimination of issues associated with variety.
• Income diversity.
• Action towards being a strong worldwide brand name.

Cons:

• Loss of comprehensive earnings from the regional markets.
• Increase in competitors.
• Distinctions in cultures might caused a failure of the brand especially in Asian nations.
• Low incomes at preliminary levels.
• Increase in marketing expenditures to get market share.

Alternative-2: Introduction of Click and Recommendations of Maruti Udyog Limited: The Pricing Dilemma Case Analysis Stores

With the increased patterns towards online shopping, the online stores like Amazon, Alibaba etc. could posture an extreme danger to the market share of business. In this circumstance the company could think about introducing Click and Recommendations of Maruti Udyog Limited: The Pricing Dilemma Case Solution stores. These stores with a low requirement of funds to settle would enable the business to reach international markets, without ending its domestic stores.

Pros:

• Low investment
• Decreasing competition danger
• Access to the world markets
• Increasing the size of consumer base
• Easy to manage
• Big Revenues
• Low Operating Costs
• Easy new market entrance

Cons:

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

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

Another choice that the company could think about, is to broaden towards the global markets without closing its domestic shops that adds to the major part of revenues of the business. The benefits and drawbacks connected to Alternative 3 are provided below;

Pros:

• Minimizing competition hazard
• Access to the world markets
• Enlarging customer base
• Large Earnings
• Expedition of new international markets.
• Increase in earnings from global markets.
• Profits diversity.
• Step towards being a strong international brand name.

Cons:

• Extension of concerns related to variety.
• Distinctions in cultures could led to a failure of the brand specifically in Asian nations.
• Low revenues at preliminary levels.
• Boost in marketing expenditures to gain market share.



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