Answer to Question #99086 in Management for Jyoti tiwari

Question

You are the chairman of isuzu motors in Japan. Your Indian subsidiary Isuzu India has managed to gain only under 2% of the market share so far & competitor brand such as Maruti & Hyundai account for 50% & 17% of the market shares respectively.
A. What turnaround strategies can you suggest to arrest the decline of revenue & profitability of your company?
B. In yt opinion would it be considered appropriate to pursue a combination strategy? State your response with appropriate justification & reasons.

Answer 1

The turn around strategies that Isuzu India can deploy is first, removing the products will little profit margins and low sales from the market, ensuring the only the selling products with wide profit margins drive the sales. Secondly, the company needs to develop a different product pricing structure as well as a different product promotion approach aimed for broadening the market share. What the company needs is awareness of their products and the advantages that they have over the competition. This argument is supported by the fact that Isuzu will be taking away market representation from the competition; their offers have to be aggressively convincing to win in the end.

It will be appropriate for the company to pursue a combination of strategy because the market share marginal difference between Isuzu and the competition is very wide, one strategy will not give the aggression and momentum needed to grow its market share. The company will have to focus on growing its market share while at the same time it is making profits. It is expected that the competition will have countermeasures to protect their dominance. Therefore, a combination of strategies is the approach that fits best.