Reference no: EM131713916
Read the research problem and answer the following question in one page
MSIL was once known as the best automotive corporation of Hyundai’s maker in the India market and the company had managed to stay the best for a while, even to the point that they were unchallengeable by other automotive corporations. MSIL was considered the A-segment of automotive until very recently from 2008 up until 2013 that the corporation had witnessed a drastic market share decline from 61 percent to about 49 percent due to other competitions in the industry. Even with the drop-in market share decline, MSIL continued to be in the A-segment. The corporation however, fears that if things aren’t done quick enough, they may lose their competitive advantage in the marketplace. The issue at hand now is what would be the best strategy to increase revenue for MSIL. An issue that aroused due to competition in the car industry. “things such as a good strategy, a good structure that works one on one with the strategy in place, having the right individuals in place who are very knowledgeable, and having the right process in place (Keenan, 2014)”. Seeing how MSIL has acknowledge the new competition in the industry is present, and hence have taken initiatives towards maintaining their dominance in the A-segment so that they still have a greater advantage over their rivals.
Since MSIL is a corporation, “In the most general of terms, a stakeholder can be considered as any individual or group who can affect, or is affected by the achievement of the organization’s objectives. The fundamental concept of stake-holding is that organizations should be run for the benefit of, and should be accountable to, all their stakeholders (Metcalfe, 1998)” this means that the company has more than one owner, and they are the board members, employees, creditors, and customers. With the above-mentioned stakeholders, the company has investors who stand to lose lots of money in profit should the corporation not figure out a plan to gain back the lost shares. Not only the investors would be affected, because employees who have shares in the company stand to be affected as well, and customers who trusted the corporations automotive also stand to lose money, and most importantly, the town of India will be greatly affected.
To develop and analyze the various options available for MSIL corporation, the company must first determine which route is best for increasing revenue, maintaining the A-segment, and still dominating the market. The best approach to increasing revenue for the company is to approach it as a three-pronged solution in gaining exclusivity into new markets. “The three-pronged approach would help identify financial, operational, and market analyses (A Three-Pronged Approach to Organizational Analysis, n.d)”. While competition is so fierce in the top 50 cities of India, and there is money to be made, it isn't enough to become a powerhouse in the market. However, market shares outside of the top 200 cities are fully available to take advantage of and MSIL so far is leading and growing in these markets.
The three-pronged approach would be to expand marketing in these sections, offer more of the economic class vehicles, and offer more in the diesel-powered vehicles. In more rural communities, much more traveling is normally completed and therefore the gas efficiencies will increase saving the customer money in the long run. MSIL is already a great brand name that many Indians believe in as well as locally made. Stakeholders will be pleased to know that a solution has been thought of that can still maintain their dominance in the industry, produce profit, and see an increase in market share. They will feel some sort of relive to know that the corporation is aware of what’s going on, and isn’t taken it lightly that is why they are working on how to better improve in the areas that the company seems to not be doing so well, while also still gaining the trust of their customers, and potential ones as well.
Research study has showed that the automotive industry has been witnessing some very high competition, which has led to some financial strain on the makers. As a result, the most makers have also been experiencing a decline in sales, and market shares. To help increase sales, market shares, and viability, “The Federation of Automotive Dealers Association commissioned a study on dealer viability through leading consultant Frost & Sullivan called Assessing Industry Best Practices will help both OEM's and Dealers to Develop Business Viability (Thakkar, 2014)” this will help serve as a guide to automotive makers in the industry as a foundation on where to start.
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A. Explain the research design and methods you will use, justifying why they are appropriate for your research study.
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