Recommendations of Toyota: Service Chain Management Case Solution

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On the basis of above internal and external analysis of the business along with the assessment of different alternatives, the company is advised to think about alternative 3. As alternative 3 would enable the business to expand in international markets without any reduction in its local revenues and any deterioration of its market position. By thinking about Alternative 3, the business might keep its shop experience and brand name uniqueness. It might likewise consider alternative 2 that might permit the business to access the markets without any possible financial investment. The company might pursue alternative 1 which would enable the business to focus on prospective global markets rather than the regional markets however as the business is highly reliant on the local markets with 90% of its stores in the US, there fore pursuing option 1 would result in the substantial decline in business's profits. The business is suggested to think about alternative 3.

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

Expansion towards worldwide markets through opening brand-new stores in other Europe and Asian countries with closing domestic shops is although a good option for increasing the worldwide existence of the company. However, the closing of domestic stores could highly impact the revenues of the firm as above 90% of its shops lie locally and closing those shops would eventually lower the revenues of the company. 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 company to broaden in worldwide markets together with the removal of problems raised in its regional markets associated with its variety. The benefits and drawbacks for Alternative 1 are listed below;

Pros:

• Expedition of brand-new global markets.
• Increase in revenue from global markets.
• Removal of problems related to diversity.
• Earnings diversification.
• Step towards being a strong worldwide brand name.

Cons:

• Loss of comprehensive profits from the local markets.
• Boost in competition.
• Distinctions in cultures might caused a failure of the brand name particularly in Asian countries.
• Low earnings at initial levels.
• Boost in marketing expenses to acquire market share.

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

With the increased patterns towards online shopping, the online shops like Amazon, Alibaba etc. could pose an extreme danger to the market share of company. In this situation the company might consider presenting Click and Recommendations of Toyota: Service Chain Management Case Solution stores. These stores with a low requirement of funds to settle would allow the company to reach global markets, without ending its domestic shops.

Pros:

• Low financial investment
• Decreasing competitors danger
• Access to the world markets
• Increasing the size of customer base
• Easy to handle
• Big Earnings
• Low Operating Costs
• Easy brand-new market entrance

Cons:

• Hazard to the marketplace position
• Elimination of brand Individuality
• Removal of the excellent shop experience.
• Danger of decline in elite sales.

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

Another alternative that the company could consider, is to expand towards the worldwide markets without closing its domestic shops that adds to the huge part of revenues of the business. The pros and cons related to Alternative 3 are provided listed below;

Pros:

• Reducing competition hazard
• Access to the world markets
• Enlarging consumer base
• Big Incomes
• Exploration of brand-new worldwide markets.
• Boost in earnings from global markets.
• Earnings diversity.
• Action towards being a strong international brand.

Cons:

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



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