Answer to Question #228439 in Marketing for pankaj

Question

for the last 5 years the scenario has changed. Many multinational car companies have

entered the country and introduced highly fuel efficient, user friendly, & high performance

models in the country. The buyers have thus seen the market change from sellers to

buyers’ market. Spectacular product characteristics have become the rule of the day.

Resultantly Konard has rapidly and constantly lost the market share. Realizing that the

company has no other alternative, they have tied up with a leading car company of Korea

and are now ready to launch an absolutely new and drastically improved version of the old

faithful Konard.

Questions:

a. Is the company’s strategy of tie up with Korea car manufacturer and the readiness to

launch a completely newer version of Konard a wise decision? Justify your answer.

Answer 1

Yes, the strategy is vital for the company to overcome competition. Through the Konard version, the company would access new markets, increase capacity, access sophisticated resources like technologies, share risks and costs with the partner.