Recommendations of Building Electronic Commerce Infrastructure Hong Kong Consumer Goods Distribution A And B Case Analysis

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Recommendations of Building Electronic Commerce Infrastructure Hong Kong Consumer Goods Distribution A And B Case Study Help

On the basis of above internal and external analysis of the company together with the examination of numerous options, the company is suggested to consider alternative 3. As alternative 3 would allow the business to expand in global markets with no reduction in its regional earnings and any deterioration of its market position. By thinking about Alternative 3, the business could preserve its store experience and brand name uniqueness. Nevertheless, it might likewise think about alternative 2 that might permit the company to access the marketplaces without any prospective investment. The business could pursue alternative 1 which would allow the business to focus on prospective global markets rather than the local markets however as the business is extremely dependent 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 revenue. The company is suggested to consider alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Building Electronic Commerce Infrastructure Hong Kong Consumer Goods Distribution A And B Case Analysis Stores

The company has a long term market position in United States which can not be produced soon in the new markets. The alternative would help the company to broaden in international markets along with the elimination of issues raised in its local markets related to its diversity.

Pros:

• Expedition of new global markets.
• Increase in profits from worldwide markets.
• Elimination of issues connected to variety.
• Profits diversification.
• Step towards being a strong worldwide brand name.

Cons:

• Loss of extensive earnings from the local markets.
• Increase in competitors.
• Distinctions in cultures might caused a failure of the brand particularly in Asian nations.
• Low revenues at preliminary levels.
• Boost in marketing expenditures to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Building Electronic Commerce Infrastructure Hong Kong Consumer Goods Distribution A And B Case Help Stores

With the increased patterns towards online shopping, the online stores like Amazon, Alibaba and so on might position an extreme risk to the market share of company. In this circumstance the company might consider introducing Click and Recommendations of Building Electronic Commerce Infrastructure Hong Kong Consumer Goods Distribution A And B Case Solution stores. These stores with a low requirement of funds to settle would allow the business to reach worldwide markets, without ending its domestic shops.

Pros:

• Low investment
• Lowering competitors danger
• Access to the world markets
• Enlarging customer base
• Easy to handle
• Big Profits
• Low Operating Expense
• Easy brand-new market entrance

Cons:

• Risk to the market position
• Removal of brand Originality
• Elimination of the terrific store experience.
• Danger of decline 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 shops that contributes to the huge part of profits of the business. The advantages and disadvantages related to Alternative 3 are offered below;

Pros:

• Minimizing competition risk
• Access to the world markets
• Enlarging customer base
• Large Revenues
• Expedition of new worldwide markets.
• Boost in profits from global markets.
• Revenue diversity.
• Step towards being a strong international brand.

Cons:

• Continuation of concerns associated with variety.
• Differences in cultures could caused a failure of the brand name particularly in Asian countries.
• Low profits at initial levels.
• Increase in marketing expenses to get market share.



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