Recommendations of Alibabas Jack Ma Rise Of The New Chinese Entrepreneur Case Solution

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Recommendations of Alibabas Jack Ma Rise Of The New Chinese Entrepreneur Case Study Solution

On the basis of above internal and external analysis of the business along with the examination of various alternatives, the business is advised to think about alternative 3. As alternative 3 would enable the business to expand in global markets with no decrease in its local revenues and any degeneration of its market position. By thinking about Alternative 3, the company could maintain its shop experience and brand name uniqueness. It could also think about alternative 2 that could permit the company to access the markets without any potential investment. The company could pursue alternative 1 which would make it possible for the business to focus on prospective global markets rather than the regional 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 significant decrease in company's revenue. The company is suggested to consider alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Alibabas Jack Ma Rise Of The New Chinese Entrepreneur Case Analysis Stores

Growth towards worldwide markets through opening new shops in other Europe and Asian nations with closing domestic stores is although a great alternative for increasing the international presence of the business. Nevertheless, the closing of domestic stores might highly impact the incomes of the firm as above 90% of its stores are located domestically and closing those shops would ultimately reduce the earnings of the firm. The company has a long term market position in US which can not be generated quickly in the brand-new markets. The choice would help the business to expand in worldwide markets along with the removal of issues raised in its local markets related to its diversity. The advantages and disadvantages for Option 1 are noted below;

Pros:

• Expedition of brand-new international markets.
• Boost in earnings from global markets.
• Removal of problems connected to diversity.
• Revenue diversity.
• Action towards being a strong global brand name.

Cons:

• Loss of substantial profits from the regional markets.
• Increase in competitors.
• Distinctions in cultures might led to a failure of the brand especially in Asian countries.
• Low incomes at initial levels.
• Boost in marketing expenditures to get market share.

Alternative-2: Introduction of Click and Recommendations of Alibabas Jack Ma Rise Of The New Chinese Entrepreneur Case Help Stores

With the increased patterns towards online shopping, the online stores like Amazon, Alibaba and so on might pose a severe hazard to the market share of business. In this situation the business could think about presenting Click and Recommendations of Alibabas Jack Ma Rise Of The New Chinese Entrepreneur Case Solution shops. These stores with a low requirement of funds to settle would allow the company to reach worldwide markets, without ending its domestic shops.

Pros:

• Low financial investment
• Lowering competition risk
• Access to the world markets
• Enlarging consumer base
• Easy to handle
• Large Earnings
• Low Operating Expense
• Easy brand-new market entryway

Cons:

• Threat to the marketplace position
• Elimination of brand Uniqueness
• Removal of the excellent shop experience.
• Danger of decrease in elite sales.

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

Another choice that the company might consider, is to expand towards the international markets without closing its domestic stores that contributes to the major part of incomes of the business. The benefits and drawbacks connected to Alternative 3 are offered below;

Pros:

• Reducing competitors danger
• Access to the world markets
• Expanding consumer base
• Big Revenues
• Expedition of new international markets.
• Increase in income from international markets.
• Earnings diversity.
• Action towards being a strong global brand name.

Cons:

• Continuation of concerns connected to variety.
• Differences in cultures could resulted in a failure of the brand name particularly in Asian nations.
• Low revenues at initial levels.
• Boost in marketing expenditures to gain market share.



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