Recommendations of Banyan Tree Sustainability Of A Brand During Rapid Global Expansion Case Help

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Recommendations of Banyan Tree Sustainability Of A Brand During Rapid Global Expansion Case Study Analysis

On the basis of above internal and external analysis of the business along with the assessment of various alternatives, the company is advised to think about alternative 3. As alternative 3 would enable the business to expand in international markets without any reduction in its local earnings and any degeneration of its market position. The company might pursue alternative 1 which would make it possible for the company to focus on potential global markets rather than the local markets but as the business is highly reliant on the local markets with 90% of its stores in the United States, there fore pursuing alternative 1 would result in the significant decrease in business's earnings.

Aletrnative-1: Expanding International Brick and Recommendations of Banyan Tree Sustainability Of A Brand During Rapid Global Expansion Case Analysis Stores

The company has a long term market position in United States which can not be created soon in the brand-new markets. The alternative would help the company to expand in worldwide markets along with the elimination of issues raised in its local markets related to its variety.

Pros:

• Exploration of brand-new worldwide markets.
• Boost in revenue from worldwide markets.
• Elimination of issues associated with diversity.
• Profits diversity.
• Step towards being a strong global brand.

Cons:

• Loss of comprehensive earnings from the regional markets.
• Boost in competitors.
• Distinctions in cultures might resulted in a failure of the brand name particularly in Asian countries.
• Low incomes at initial levels.
• Boost in marketing expenses to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Banyan Tree Sustainability Of A Brand During Rapid Global Expansion Case Analysis Stores

With the increased trends towards online shopping, the online shops like Amazon, Alibaba and so on might position a serious danger to the market share of business. In this situation the business could consider presenting Click and Recommendations of Banyan Tree Sustainability Of A Brand During Rapid Global Expansion Case Analysis stores. These stores with a low requirement of funds to settle would enable the business to reach international markets, without ending its domestic stores.

Pros:

• Low financial investment
• Minimizing competition threat
• Access to the world markets
• Expanding consumer base
• Easy to manage
• Large Revenues
• Low Operating Costs
• Easy new market entryway

Cons:

• Danger to the marketplace position
• Elimination of brand Uniqueness
• Elimination of the great shop experience.
• Danger of decline in elite sales.

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

Another alternative that the business could consider, is to broaden towards the global markets without closing its domestic shops that adds to the huge part of incomes of the business. The pros and cons connected to Alternative 3 are given below;

Pros:

• Reducing competitors risk
• Access to the world markets
• Increasing the size of consumer base
• Big Revenues
• Exploration of new worldwide markets.
• Increase in income from worldwide markets.
• Earnings diversification.
• Step towards being a strong global brand.

Cons:

• Extension of concerns related to variety.
• Distinctions in cultures might led to a failure of the brand especially in Asian nations.
• Low profits at preliminary levels.
• Boost in marketing expenses to gain market share.



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