Recommendations of The Fall Of Daewoo Motors Case Analysis

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Recommendations of The Fall Of Daewoo Motors Case Study Solution

On the basis of above internal and external analysis of the business along with the assessment of numerous options, the business is recommended to consider alternative 3. As alternative 3 would enable the company to broaden in worldwide markets without any reduction in its regional earnings and any degeneration of its market position. The business might pursue alternative 1 which would enable the business to focus on possible international markets rather than the regional markets but as the company is extremely reliant on the regional markets with 90% of its shops in the US, there fore pursuing option 1 would result in the considerable decrease in business's profits.

Aletrnative-1: Expanding International Brick and Recommendations of The Fall Of Daewoo Motors Case Solution Stores

Growth towards global markets through opening new shops in other Europe and Asian nations with closing domestic stores is although a good alternative for increasing the worldwide existence of the business. The closing of domestic stores could highly impact the earnings of the firm as above 90% of its stores are situated domestically and closing those stores would eventually reduce the earnings of the company. Additionally, the company has a long term market position in US which can not be produced soon in the brand-new markets. The choice would assist the business to broaden in worldwide markets together with the removal of issues raised in its regional markets associated with its variety. The benefits and drawbacks for Alternative 1 are noted below;

Pros:

• Expedition of brand-new international markets.
• Increase in profits from international markets.
• Elimination of concerns associated with diversity.
• Income diversification.
• Step towards being a strong international brand name.

Cons:

• Loss of substantial revenues from the regional markets.
• Boost in competition.
• Distinctions in cultures might caused a failure of the brand name particularly in Asian nations.
• Low earnings at initial levels.
• Increase in marketing expenditures to get market share.

Alternative-2: Introduction of Click and Recommendations of The Fall Of Daewoo Motors Case Analysis Stores

With the increased patterns towards online shopping, the online stores like Amazon, Alibaba and so on could pose a severe danger to the market share of company. In this scenario the business could consider presenting Click and Recommendations of The Fall Of Daewoo Motors Case Analysis stores. These shops with a low requirement of funds to settle would make it possible for the business to reach worldwide markets, without ending its domestic shops.

Pros:

• Low financial investment
• Reducing competition danger
• Access to the world markets
• Expanding consumer base
• Easy to manage
• Large Revenues
• Low Operating Costs
• Easy new market entrance

Cons:

• Hazard to the market position
• Elimination of brand name Originality
• Elimination of the terrific shop experience.
• Danger of decrease in elite sales.

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

Another alternative that the business might think about, is to broaden towards the global markets without closing its domestic stores that adds to the huge part of incomes of the company. The advantages and disadvantages related to Alternative 3 are provided below;

Pros:

• Minimizing competitors hazard
• Access to the world markets
• Expanding consumer base
• Large Earnings
• Expedition of brand-new international markets.
• Increase in income from global markets.
• Revenue diversification.
• Action towards being a strong international brand.

Cons:

• Continuation of problems related to diversity.
• Differences in cultures might led to a failure of the brand especially in Asian nations.
• Low earnings at preliminary levels.
• Boost in marketing expenditures to gain market share.



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