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

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

On the basis of above internal and external analysis of the company in addition to the assessment of different options, the business is recommended to think about alternative 3. As alternative 3 would permit the company to expand in worldwide markets without any reduction in its local earnings and any deterioration of its market position. By considering Alternative 3, the company might preserve its shop experience and brand name originality. It could likewise consider alternative 2 that might permit the company to access the markets without any prospective financial investment. The business might pursue alternative 1 which would allow the company to focus on prospective worldwide markets rather than the local markets however as the company is highly reliant on the local markets with 90% of its stores in the US, there fore pursuing alternative 1 would result in the significant decrease in company's revenue. For that reason, the business is advised to consider alternative 3.

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

The company has a long term market position in United States which can not be created soon in the new markets. The choice would assist the business to expand in worldwide markets along with the removal of concerns raised in its local markets related to its variety.

Pros:

• Exploration of brand-new global markets.
• Boost in profits from worldwide markets.
• Elimination of issues connected to diversity.
• Revenue diversity.
• Action towards being a strong worldwide brand.

Cons:

• Loss of extensive revenues from the regional markets.
• Increase in competitors.
• Differences in cultures might resulted in a failure of the brand name particularly in Asian nations.
• Low revenues at initial levels.
• Increase in marketing expenditures to gain market share.

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

Alternative 2 consists of the intro of online market locations through producing a proper company's site. With the increased trends towards online shopping, the online stores like Amazon, Alibaba and so on might position a serious threat to the market share of company. The rivals are shifting towards click and Recommendations of Building Electronic Commerce Infrastructure Hong Kong Consumer Goods Distribution A Case Help shops with Space presenting Piperline. This shift towards online markets could lower the profits for company. In this circumstance the business might think about presenting Click and Recommendations of Building Electronic Commerce Infrastructure Hong Kong Consumer Goods Distribution A Case Analysis stores. These shops with a low requirement of funds to settle would make it possible for the company to reach international markets, without ending its domestic shops. The pros and cons of option 2 are offered as follows;

Pros:

• Low financial investment
• Lowering competition risk
• Access to the world markets
• Expanding consumer base
• Easy to handle
• Big Incomes
• Low Operating Expense
• Easy brand-new market entryway

Cons:

• Danger to the market position
• Elimination of brand Individuality
• Elimination of the terrific store experience.
• Risk of decline in elite sales.

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

Another option that the company might consider, is to broaden towards the worldwide markets without closing its domestic stores that contributes to the huge part of profits of the company. The benefits and drawbacks associated with Alternative 3 are offered listed below;

Pros:

• Minimizing competition danger
• Access to the world markets
• Increasing the size of customer base
• Big Earnings
• Expedition of brand-new global markets.
• Boost in profits from worldwide markets.
• Earnings diversity.
• Action towards being a strong global brand name.

Cons:

• Continuation of problems associated with diversity.
• Distinctions in cultures could led to a failure of the brand name particularly in Asian countries.
• Low revenues at preliminary levels.
• Boost in marketing expenditures to acquire market share.



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