Corporate Revitalization Strategies
XYZ motors being a prominent firm in Japan and the US, has the choice to use numerous business regeneration approaches to save the firm from succumbing to the loss of market portion. The company can explore the following corporate revitalization strategies.
XYZ can revitalize through rebranding. The company can use different names for its existing products and drop the previous name altogether. According to Petrenko, Aime, Ridge, & Hill, (2016) rebranding is the most appropriate in situations where a company loses its market share may have arisen due to poor publicity of the product and consecutive loss of consumers' confidence in it or if the product was in the decline phase of its life cycle.
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The company can regain its market share through product modification and variation. Over time, consumers may get used to the similar product with the same quality and taste leading to boredom and lack of appeal ( Petrenko, Aime, Ridge, & Hill,2016). Besides, competitors may have presented products that are comparable to those of XYZ Company in bid to seize part of the market from the firm. The company should consider having new features in its automobile to make its products more appealing to existing and prospective consumers while on the other hand, absolutely distinguish them from products of its competitors. XYZ should also introduce fresh products to the market to keep up with the changing client needs.
Another strategy is through aggressive retention publicizing approach. This approach serves to remind present clienteles why they should continue being noble to the firm. Also, through consumer awareness advertising to inform them of the new products or features in the current products. The company can also introduce a promotion strategy to persuade new customers and triumph over those it lost to its competitors.
Viability of Indian Market
XYZ Company should cautiously examine the sustainability of the Indian market through feasibility studies. Evaluating the level of competition in the Indian market to see whether the market is suitable to enter or not. The degree of competition will govern the strategy to embrace to penetrate the market efficiently. India’s economy is increasing at an unprecedented rate, with the annual GDP growth projected at 7% to 2020. This means that the automobile purchasing capacity of Indian citizens will also increase. The growth of the automobile industry has been tremendous in the post-liberalization period (Tiwari, & Kalogerakis, 2017). Conversely, the burgeoning automotive market compels a rise of both domestic and foreign automobile companies in India. XYZ will therefore expect competition in this high purchasing power market.
The firm should also research on the demographics of India and seek to understand the culture, social status, age, and gender matters to know the suitable products to sell in that specific market (Crane, Matten, &Spence, 2019). For example, wealthy Indians may fancy luxury cars to any other type of vehicles. Overall geographical research to understand the environment of the territory in India may also go a long way in helping the firm know the kind of car engines it should produce and supply to this country.
Moreover, XYZ Company should study the market trend in India to understand the standard of auto-motives to produce. They should consider the new terms and regulation set by the government and business communities in India. Understanding the market will enable the company to know the level of technology they will apply in their auto-motives and also how they can differentiate from the others in the market.
Social Responsibility
XYZ Motors has a social responsibility to its employees. Employees are the ones who deal and interact with customers, and hence, they need to be treated well. The most important responsibility of the company to its employees is to provide healthy and good working conditions. The firm also should pay its employees fair wages and incentives to motivate them. Poor wages and working conditions might have demotivated employees resulting in poor service delivery.
In its new venture in India, XYZ Company has a responsibility to the society to employ the residents of India. By doing so, the firm will be improving the social status of the community hence promoting a positive attitude and reputation to the society. The company should also consider and observe the consumer right. Information given to consumers should not be misleading or inappropriate (Crane, Matten, &Spence, 2019). Products should be of high quality, able to meet customers' needs and standards. Besides, XYZ should produce environmental friendly auto-motives to reduce environmental pollution.
Goal Setting
XYZ Motors should work to establish a strong market base in India in the next three years. By the end of the fifth year, The Company should have created a station in every major city of India. Having station across major cities will assist the clients to easily access the company services (Neubert & Dyck, 2016). The company should also be looking to expand its employees by 4% annually to increase its production by at least 10% annually. Besides, as the company expands its market base, it should consider establishing a recycling-based community and systems. This will be promoting global rollout end-of-life vehicle treatment in the first three years in Japan and the United States and by the end of the 5th year in India, to enrich the lives of communities.
Global Management Team and Strategies for Team Success
Management of the company in the three countries will be difficult for XYZ Motors. There arises a need to establish a capable global Management team that will be conducting duties in uniformity. For this team to be capable, the company should also consider having a familiar brand, regular communication of goals, defining expectation, and establish a common organizational culture ( Kerzner, 2018). The team will be conducting annual meetings whereby they can design a system to measure company performance. Also, the company should invest in technology to ease the oversea communication with the team. These regular communications will ensure the team is on the same page.
References
Crane, A., Matten, D., & Spence, L. (Eds.). (2019). Corporate social responsibility: Readings and cases in a global context . Routledge.
Petrenko, O. V., Aime, F., Ridge, J., & Hill, A. (2016). Corporate social responsibility or CEO narcissism? CSR motivations and organizational performance. Strategic Management Journal , 37 (2), 262-279.
Neubert, M. J., & Dyck, B. (2016). Developing sustainable management theory: goal-setting theory based in virtue. Management Decision , 54 (2), 304-320.
Kerzner, H. (2018). Project management best practices: Achieving global excellence . John Wiley & Sons.
Tiwari, R., & Kalogerakis, K. (2017). Innovation pathways and trajectories in India's auto component industry (No. 98). Working Paper, Hamburg University of Technology (TUHH), Institute for Technology and Innovation Management.
