Recommendations of Onstar: Connecting To Customers Through Telematics Case Solution

Home >> Stanford Business School >> Onstar: Connecting To Customers Through Telematics >> Recommendations

Recommendations of Onstar: Connecting To Customers Through Telematics Case Study Solution

RecommendationsOn the basis of above internal and external analysis of the company along with the examination of numerous alternatives, the business is recommended to think about alternative 3. As alternative 3 would allow the business to broaden in global markets without any decrease in its regional incomes and any deterioration of its market position. The company might pursue alternative 1 which would make it possible for the company to focus on potential international markets rather than the local markets however as the business is highly reliant on the regional markets with 90% of its shops in the US, there fore pursuing alternative 1 would result in the substantial decline in business's profits.

Aletrnative-1: Expanding International Brick and Recommendations of Onstar: Connecting To Customers Through Telematics Case Solution Stores

International SegmentsGrowth towards international markets through opening new stores in other Europe and Asian countries with closing domestic stores is although a great option for increasing the worldwide presence of the company. The closing of domestic shops might extremely affect the earnings of the company as above 90% of its stores are located domestically and closing those stores would eventually decrease the earnings of the company. The business has a long term market position in US which can not be produced quickly in the new markets. The alternative would assist the company to broaden in worldwide markets along with the removal of issues raised in its regional markets connected to its diversity. The advantages and disadvantages for Option 1 are listed below;

Pros:

• Exploration of new international markets.
• Boost in profits from international markets.
• Elimination of problems associated with diversity.
• Earnings diversification.
• Step towards being a strong worldwide brand name.

Cons:

• Loss of comprehensive incomes from the regional markets.
• Boost in competition.
• Distinctions in cultures could caused a failure of the brand particularly in Asian countries.
• Low revenues at initial levels.
• Increase in marketing expenditures to gain market share.

Alternative-2: Introduction of Click and Recommendations of Onstar: Connecting To Customers Through Telematics Case Solution Stores

With the increased patterns towards online shopping, the online shops like Amazon, Alibaba etc. could posture an extreme risk to the market share of company. In this circumstance the company could consider introducing Click and Recommendations of Onstar: Connecting To Customers Through Telematics Case Help shops. These stores with a low requirement of funds to settle would make it possible for the business to reach worldwide markets, without ending its domestic stores.

Pros:

• Low financial investment
• Decreasing competitors danger
• Access to the world markets
• Expanding customer base
• Easy to manage
• Large Incomes
• Low Operating Costs
• Easy brand-new market entryway

Cons:

• Threat to the market position
• Removal of brand name Originality
• Removal of the great store experience.
• Threat of decrease in elite sales.

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

Another option that the company might consider, is to broaden towards the international markets without closing its domestic shops that adds to the major part of profits of the company. The pros and cons associated with Alternative 3 are offered listed below;

Pros:

• Lowering competitors risk
• Access to the world markets
• Enlarging consumer base
• Big Earnings
• Expedition of new worldwide markets.
• Boost in income from international markets.
• Revenue diversity.
• Step towards being a strong worldwide brand.

Cons:

• Continuation of problems connected to variety.
• Distinctions in cultures could led to a failure of the brand especially in Asian countries.
• Low incomes at preliminary levels.
• Increase in marketing expenses to get market share.



This is sample work and not applicable to real case study. Please place the order on the website to get your own originally done case solution.