GenMax-Aero Motors
As the Director of Business Development at Aero Motors, I have evaluated each of the two possible options to introducing GenMax’s subsidiary, Aero Motors to the North American Market. The first option is the go-it-alone strategy in which we will attempt to penetrate the market with our own brand. The second option is to partner with a local company which will minimize the risk and enable Aero Motors to leverage the partner’s infrastructure and favorable brand image. After much consideration, it is evident that there are advantages and disadvantages to each alternative. Below I have delineated each option based on the risks and rewards and as it relates to effective use of our brand followed my recommendations.
Go-It-Alone: Risk and Reward
This strategy can bring a lot of reward if the project is a success, because GenMax will be able to capture all the profits and other possible benefits such as newly earned brand recognition. Additionally, GenMax will be able to take advantage of the two years before the competitors can utilize the new technology allowing for greater profitability. Lastly, by utilizing a go-it-alone strategy, Aero Motors will enjoy the autonomy to make decisions without having to wait for the partner to agree or compromise.
While those rewards appear to be favorable, there are also risks that should be considered. In utilizing the go-it-alone strategy one must take into account the limited or even non-existent brand perception Aero Motors and GenMax have in the North American market. It must be considered because the lack of brand equity can influence consumers’ perception of the quality of the product which may impact how they accept the new technology being introduced. The initial product positioning will be restricted as only those who have experienced the Pinnacle will have a frame of reference to drawn on