Gen Max Case

MM582

Gen Max North America Market Penetration

(Week 3 You Decide)

Summary:

Aero Motors has developed a new fuel efficiency technology that GenMax wants to utilize in order to introduce a new hybrid automotive in the North American markets that is not only innovative, but also attractively priced. In the past, Aero Motors a subsidiary of GenMax has tried to enter the USA market unsuccessfully with their flag ship model in Asia and Europe for the luxury or high-end market sector. The task is to determine which strategy would be the most beneficial in order for Gen Max to enter successfully the North American market.

Market:

Although Aero Motors has had success in the past in outside markets, they have failed to capture the North American market in previous efforts. Even though this time their approach is different, they still need to identify and plan their strategy in order to ensure market acceptance as well as overcome some of the marketing and strategy problems from the past. Also, they need to prepare in advance a strategy to overcome the negative brand perception in areas where they might be recognized from the early attempts with the Pinnacle project.

Possible Strategies:

There are two possible introduction strategies for GenMax in order to enter the North American market. A go-it-alone strategy, where they attempt to enter the market under their own brand or partnering with a local company that will allow them to share the risk as well as use the positive brand image of their partners. Both strategies have advantages and disadvantageous that needs to be considered.

Go-It-Alone: Risk and Reward

A go-it alone strategy can be beneficial because if successful, the organization will be able to enjoy the full monetary and other rewards of the project. Also, GenMax will have full control of the project and will be able to make key decision without having to compromise their vision. Finally, by going at it alone, GenMax will also be able...