Recommendations of The Saga Of Lee Iacocca: From Ford To Chrysler Case Solution

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Recommendations of The Saga Of Lee Iacocca: From Ford To Chrysler Case Study Analysis

On the basis of above internal and external analysis of the business along with the assessment of numerous alternatives, the business is recommended to consider alternative 3. As alternative 3 would permit the business to broaden in global markets without any decrease in its local revenues and any degeneration of its market position. The business might pursue alternative 1 which would make it possible for the company to focus on prospective global markets rather than the local markets however as the company is highly reliant on the local markets with 90% of its shops in the US, there fore pursuing alternative 1 would result in the significant decline in company's income.

Aletrnative-1: Expanding International Brick and Recommendations of The Saga Of Lee Iacocca: From Ford To Chrysler Case Solution Stores

Expansion towards international markets through opening new shops in other Europe and Asian countries with closing domestic shops is although a good alternative for increasing the worldwide presence of the business. The closing of domestic shops might extremely affect the revenues of the company as above 90% of its stores are located domestically and closing those shops would eventually minimize the earnings of the firm. The business has a long term market position in US which can not be created soon in the new markets. The option would assist the business to expand in global markets together with the removal of problems raised in its local markets associated with its diversity. The pros and Cons for Option 1 are noted below;

Pros:

• Expedition of brand-new international markets.
• Boost in revenue from worldwide markets.
• Elimination of concerns connected to diversity.
• Revenue diversification.
• Action towards being a strong international brand name.

Cons:

• Loss of extensive profits from the local markets.
• Boost in competitors.
• Distinctions in cultures might caused a failure of the brand especially in Asian countries.
• Low earnings at initial levels.
• Boost in marketing expenditures to acquire market share.

Alternative-2: Introduction of Click and Recommendations of The Saga Of Lee Iacocca: From Ford To Chrysler Case Solution Stores

With the increased trends towards online shopping, the online stores like Amazon, Alibaba and so on might pose a serious threat to the market share of company. In this situation the business might think about presenting Click and Recommendations of The Saga Of Lee Iacocca: From Ford To Chrysler Case Analysis stores. These stores with a low requirement of funds to settle would make it possible for the company to reach international markets, without ending its domestic shops.

Pros:

• Low investment
• Decreasing competition threat
• Access to the world markets
• Increasing the size of consumer base
• Easy to manage
• Large Profits
• Low Operating Costs
• Easy brand-new market entryway

Cons:

• Threat to the market position
• Removal of brand name Uniqueness
• Removal of the great store experience.
• Threat 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 worldwide markets without closing its domestic stores that contributes to the huge part of earnings of the business. The benefits and drawbacks associated with Alternative 3 are offered below;

Pros:

• Decreasing competition danger
• Access to the world markets
• Increasing the size of consumer base
• Big Revenues
• Expedition of brand-new international markets.
• Increase in income from global markets.
• Revenue diversification.
• Step towards being a strong international brand name.

Cons:

• Continuation of issues connected to variety.
• Distinctions in cultures might caused a failure of the brand specifically in Asian countries.
• Low incomes at preliminary levels.
• Increase in marketing expenses to acquire market share.



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