Recommendations of Toyota Service Chain Management Case Analysis

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Recommendations of Toyota Service Chain Management Case Study Solution

On the basis of above internal and external analysis of the company along with the assessment of different alternatives, the company is suggested to think about alternative 3. As alternative 3 would allow the company to expand in international markets without any reduction in its local incomes and any deterioration of its market position. The business could pursue alternative 1 which would enable the business to focus on prospective global markets rather than the regional markets but 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 substantial decline in company's income.

Aletrnative-1: Expanding International Brick and Recommendations of Toyota Service Chain Management Case Solution Stores

Expansion towards international markets through opening brand-new stores in other Europe and Asian countries with closing domestic shops is although a good choice for increasing the global existence of the company. The closing of domestic shops could extremely impact the revenues of the firm as above 90% of its shops are located locally and closing those shops would eventually decrease the incomes of the firm. The business has a long term market position in US which can not be created soon in the brand-new markets. The option would help the company to expand in international markets along with the removal of issues raised in its regional markets associated with its variety. The pros and Cons for Alternative 1 are listed below;

Pros:

• Expedition of new global markets.
• Increase in earnings from international markets.
• Elimination of issues connected to diversity.
• Income diversity.
• Action towards being a strong global brand.

Cons:

• Loss of comprehensive revenues from the regional markets.
• Increase in competition.
• Distinctions in cultures could led to a failure of the brand specifically in Asian nations.
• Low earnings at preliminary levels.
• Boost in marketing expenses to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Toyota Service Chain Management Case Analysis Stores

With the increased trends towards online shopping, the online stores like Amazon, Alibaba etc. could present a serious threat to the market share of business. In this situation the business might think about presenting Click and Recommendations of Toyota Service Chain Management Case Help stores. These stores with a low requirement of funds to settle would allow the company to reach international markets, without ending its domestic stores.

Pros:

• Low financial investment
• Lowering competition hazard
• Access to the world markets
• Enlarging customer base
• Easy to manage
• Big Revenues
• Low Operating Expense
• Easy brand-new market entrance

Cons:

• Danger to the market position
• Removal of brand Originality
• Elimination of the excellent shop experience.
• Risk of decrease in elite sales.

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

Another choice that the business might think about, is to expand towards the global markets without closing its domestic stores that contributes to the major part of revenues of the business. The benefits and drawbacks connected to Alternative 3 are offered below;

Pros:

• Reducing competition risk
• Access to the world markets
• Increasing the size of customer base
• Large Incomes
• Expedition of new global markets.
• Increase in profits from worldwide markets.
• Earnings diversification.
• Action towards being a strong worldwide brand.

Cons:

• Extension of problems related to diversity.
• Distinctions in cultures might led to a failure of the brand name particularly in Asian countries.
• Low earnings at initial levels.
• Boost in marketing expenditures to acquire market share.



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