Recommendations of Alibaba Com Case Analysis

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Recommendations of Alibaba Com Case Study Solution

On the basis of above internal and external analysis of the company along with the examination of numerous options, the business is recommended to think about alternative 3. As alternative 3 would permit the company to broaden in worldwide markets without any reduction in its local earnings and any degeneration of its market position. The company could pursue alternative 1 which would make it possible for the business to focus on potential global markets rather than the local markets but as the business is highly reliant on the regional markets with 90% of its shops in the United States, there fore pursuing option 1 would result in the considerable decline in company's revenue.

Aletrnative-1: Expanding International Brick and Recommendations of Alibaba Com Case Solution Stores

Growth towards worldwide markets through opening new stores in other Europe and Asian countries with closing domestic stores is although an excellent option for increasing the international existence of the company. The closing of domestic stores might extremely affect the earnings of the firm as above 90% of its shops are located domestically and closing those stores would eventually minimize the revenues of the company. The company has a long term market position in United States which can not be produced soon in the new markets. The alternative would assist the business to expand in global markets in addition to the elimination of problems raised in its local markets associated with its variety. The benefits and drawbacks for Alternative 1 are listed below;

Pros:

• Expedition of new global markets.
• Increase in profits from global markets.
• Elimination of issues connected to diversity.
• Income diversification.
• Action towards being a strong global brand name.

Cons:

• Loss of substantial profits from the local markets.
• Boost in competition.
• Distinctions in cultures could caused a failure of the brand specifically in Asian countries.
• Low earnings at preliminary levels.
• Increase in marketing expenses to gain market share.

Alternative-2: Introduction of Click and Recommendations of Alibaba Com Case Help Stores

Alternative 2 includes the intro of online market places through producing a proper company's website. With the increased patterns towards online shopping, the online stores like Amazon, Alibaba and so on might posture a serious hazard to the market share of business. Furthermore, the competitors are moving towards click and Recommendations of Alibaba Com Case Help shops with Gap presenting Piperline. This shift towards online markets could decrease the incomes for company. In this circumstance the business could consider presenting Click and Recommendations of Alibaba Com Case Help stores. These shops with a low requirement of funds to settle would allow the company to reach international markets, without ending its domestic shops. The advantages and disadvantages of option 2 are given as follows;

Pros:

• Low financial investment
• Minimizing competitors risk
• Access to the world markets
• Expanding customer base
• Easy to handle
• Big Profits
• Low Operating Costs
• Easy brand-new market entryway

Cons:

• Threat to the marketplace position
• Elimination of brand name Uniqueness
• Removal of the fantastic store experience.
• Danger of decrease in elite sales.

Alternative-3: Expansion towards International Markets Without closing Domestic Stores

Another option that the business might consider, is to broaden towards the international markets without closing its domestic stores that contributes to the huge part of incomes of the business. The benefits and drawbacks connected to Alternative 3 are given below;

Pros:

• Reducing competitors hazard
• Access to the world markets
• Enlarging customer base
• Big Incomes
• Expedition of new worldwide markets.
• Increase in earnings from international markets.
• Revenue diversification.
• Action towards being a strong worldwide brand name.

Cons:

• Continuation of concerns connected to diversity.
• Distinctions in cultures might resulted in a failure of the brand name particularly in Asian nations.
• Low incomes at initial levels.
• Increase in marketing expenses to acquire market share.



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