Question

How to summarize the dilemma facing Subaru

Summarize the case and identify the dilemma facing Subaru.

Answer 1

The primary dilemma which is faced by Subaru was regarding the marketing strategy of the company. Subaru is planning to expand its operations in the country as it wants to expand beyond its current regions in which it is operating and find new regions where they can acquire more customers and market share. Now Subaru is faced with the dilemma of marketing strategy for this new expansion, as if they should go ahead with the existing marketing plan for these new customers which have a new mindset or shall they devise a new marketing strategy. Now historically if we see, Subaru has always made such marketing strategies that focus on the objective to show the customers that the company cares about their passion and remained focused on being eco-friendly. Now given the fact that this marketing strategy has worked in the past to acquire specific set of customers, they are under the dilemma now, that to acquire a new set of customers in new regions whether they should partially change the marketing strategy or to change it by a large extent.