Recommendations of Dallara Automobili: Transforming A Racing Legend Case Solution

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Recommendations of Dallara Automobili: Transforming A Racing Legend Case Study Solution

On the basis of above internal and external analysis of the company along with the examination of different options, the company is recommended to think about alternative 3. As alternative 3 would allow the company to expand in global markets without any reduction in its regional profits and any degeneration of its market position. The company could pursue alternative 1 which would make it possible for the company to focus on potential international markets rather than the regional markets however as the company is highly dependent on the local markets with 90% of its stores in the United States, there fore pursuing alternative 1 would result in the substantial decrease in business's revenue.

Aletrnative-1: Expanding International Brick and Recommendations of Dallara Automobili: Transforming A Racing Legend Case Help Stores

The company has a long term market position in US which can not be generated soon in the new markets. The option would assist the company to broaden in worldwide markets along with the removal of problems raised in its local markets related to its diversity.

Pros:

• Expedition of brand-new global markets.
• Increase in income from global markets.
• Removal of concerns related to variety.
• Income diversification.
• Step towards being a strong global brand.

Cons:

• Loss of substantial profits from the regional markets.
• Boost in competition.
• Differences in cultures might led to a failure of the brand particularly in Asian countries.
• Low profits at initial levels.
• Increase in marketing expenditures to gain market share.

Alternative-2: Introduction of Click and Recommendations of Dallara Automobili: Transforming A Racing Legend Case Help Stores

With the increased trends towards online shopping, the online shops like Amazon, Alibaba and so on could present an extreme danger to the market share of company. In this situation the company might consider presenting Click and Recommendations of Dallara Automobili: Transforming A Racing Legend Case Analysis shops. These stores with a low requirement of funds to settle would make it possible for the company to reach global markets, without ending its domestic shops.

Pros:

• Low investment
• Lowering competitors danger
• Access to the world markets
• Enlarging consumer base
• Easy to handle
• Large Revenues
• Low Operating Expense
• Easy new market entrance

Cons:

• Hazard to the market position
• Removal of brand name Originality
• Removal of the great store experience.
• Danger 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 contributes to the major part of incomes of the company. The pros and cons related to Alternative 3 are given listed below;

Pros:

• Reducing competitors hazard
• Access to the world markets
• Increasing the size of consumer base
• Large Revenues
• Expedition of brand-new worldwide markets.
• Boost in earnings from international markets.
• Revenue diversity.
• Step towards being a strong worldwide brand.

Cons:

• Continuation of problems connected to diversity.
• Differences in cultures might caused a failure of the brand name specifically in Asian countries.
• Low earnings at preliminary levels.
• Boost in marketing expenses to gain market share.



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