Recommendations of Anti Trust And Competitive Issues In B2b Trading Exchanges Covisint Inc Case Solution

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Recommendations of Anti Trust And Competitive Issues In B2b Trading Exchanges Covisint Inc Case Study Help

RecommendationsOn the basis of above internal and external analysis of the business together with the assessment of different options, the business is advised to consider alternative 3. As alternative 3 would allow the company to broaden in international markets with no reduction in its regional incomes and any wear and tear of its market position. By considering Alternative 3, the company might keep its shop experience and brand uniqueness. Nevertheless, it could also consider alternative 2 that could enable the business to access the marketplaces without any possible financial investment. The business might pursue alternative 1 which would allow the business to focus on possible worldwide markets rather than the regional markets however as the business is highly dependent on the local markets with 90% of its stores in the US, there fore pursuing alternative 1 would result in the substantial decrease in company's profits. The business is recommended to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Anti Trust And Competitive Issues In B2b Trading Exchanges Covisint Inc Case Solution Stores

International SegmentsExpansion towards international markets through opening brand-new stores in other Europe and Asian nations with closing domestic shops is although an excellent alternative for increasing the international presence of the company. However, the closing of domestic shops could extremely affect the incomes of the company as above 90% of its stores lie domestically and closing those stores would eventually lower the profits of the company. The company has a long term market position in US which can not be produced quickly in the new markets. The option would assist the business to expand in worldwide markets together with the elimination of concerns raised in its regional markets related to its variety. The benefits and drawbacks for Option 1 are listed below;

Pros:

• Exploration of brand-new global markets.
• Boost in revenue from worldwide markets.
• Elimination of problems related to variety.
• Profits diversity.
• Action towards being a strong global brand.

Cons:

• Loss of comprehensive profits from the regional markets.
• Increase in competitors.
• Distinctions in cultures might caused a failure of the brand particularly in Asian nations.
• Low incomes at initial levels.
• Increase in marketing expenditures to gain market share.

Alternative-2: Introduction of Click and Recommendations of Anti Trust And Competitive Issues In B2b Trading Exchanges Covisint Inc Case Help Stores

Alternative 2 consists of the introduction of online market locations through creating an appropriate company's website. With the increased trends towards online shopping, the online stores like Amazon, Alibaba and so on could position an extreme danger to the market share of business. The competitors are moving towards click and Recommendations of Anti Trust And Competitive Issues In B2b Trading Exchanges Covisint Inc Case Analysis shops with Space presenting Piperline. This shift towards online markets could minimize the incomes for business. In this circumstance the company might think about presenting Click and Recommendations of Anti Trust And Competitive Issues In B2b Trading Exchanges Covisint Inc Case Analysis shops. These shops with a low requirement of funds to settle would allow the business to reach global markets, without ending its domestic stores. The benefits and drawbacks of option 2 are offered as follows;

Pros:

• Low investment
• Lowering competition hazard
• Access to the world markets
• Increasing the size of customer base
• Easy to handle
• Big Revenues
• Low Operating Expense
• Easy brand-new market entryway

Cons:

• Threat to the market position
• Elimination of brand name Individuality
• Removal of the excellent shop experience.
• Risk of decrease in elite sales.

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

Another choice that the company could think about, is to broaden towards the global markets without closing its domestic shops that adds to the major part of earnings of the company. The pros and cons associated with Alternative 3 are offered below;

Pros:

• Lowering competition risk
• Access to the world markets
• Enlarging customer base
• Big Revenues
• Exploration of brand-new worldwide markets.
• Boost in income from international markets.
• Income diversification.
• Step towards being a strong international brand name.

Cons:

• Extension of problems related to variety.
• Distinctions in cultures might resulted in a failure of the brand name particularly in Asian countries.
• Low earnings at initial levels.
• Increase in marketing expenses to acquire market share.



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