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

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

RecommendationsOn the basis of above internal and external analysis of the company together with the evaluation of different options, the company is suggested to consider alternative 3. As alternative 3 would allow the business to broaden in global markets without any reduction in its local incomes and any deterioration of its market position. By thinking about Alternative 3, the business might keep its store experience and brand name originality. Nevertheless, it might likewise think about alternative 2 that could permit the company to access the marketplaces with no possible investment. Although, the company might pursue alternative 1 which would enable the company to concentrate on possible worldwide markets instead of the local markets however as the company is highly depending on the regional markets with 90% of its stores in the US, there fore pursuing option 1 would result in the considerable decline in company's income. The company is recommended 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

International SegmentsExpansion towards worldwide markets through opening brand-new stores in other Europe and Asian countries with closing domestic shops is although a great choice for increasing the worldwide existence of the business. The closing of domestic shops could highly affect the earnings of the company as above 90% of its shops are situated locally and closing those shops would ultimately lower the earnings of the company. The company has a long term market position in United States which can not be generated soon in the new markets. The choice would assist the company to broaden in international markets in addition to the removal of problems raised in its local markets connected to its diversity. The benefits and drawbacks for Option 1 are listed below;

Pros:

• Exploration of new international markets.
• Increase in income from worldwide markets.
• Elimination of issues related to diversity.
• Revenue diversification.
• Action towards being a strong worldwide brand.

Cons:

• Loss of substantial earnings from the regional markets.
• Boost in competition.
• Differences in cultures might caused a failure of the brand particularly in Asian nations.
• Low earnings at preliminary levels.
• Increase 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 Case Solution Stores

Alternative 2 consists of the intro of online market locations through creating a proper business's site. With the increased trends towards online shopping, the online stores like Amazon, Alibaba and so on might pose an extreme threat to the market share of business. The competitors are moving towards click and Recommendations of Building Electronic Commerce Infrastructure Hong Kong Consumer Goods Distribution A Case Solution stores with Space introducing Piperline. This shift towards online markets could decrease the earnings for company. In this circumstance the company could think about presenting Click and Recommendations of Building Electronic Commerce Infrastructure Hong Kong Consumer Goods Distribution A Case Help stores. These shops with a low requirement of funds to settle would allow the company to reach international markets, without ending its domestic shops. The advantages and disadvantages of alternative 2 are offered as follows;

Pros:

• Low financial investment
• Reducing competitors danger
• Access to the world markets
• Expanding consumer base
• Easy to manage
• Big Earnings
• Low Operating Expense
• Easy brand-new market entrance

Cons:

• Threat to the market position
• Elimination of brand Originality
• Elimination of the terrific shop experience.
• Threat of decrease in elite sales.

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

Another option that the company might think about, is to broaden towards the global markets without closing its domestic shops that adds to the major part of earnings of the business. The benefits and drawbacks related to Alternative 3 are provided below;

Pros:

• Lowering competition threat
• Access to the world markets
• Enlarging customer base
• Big Revenues
• Exploration of new global markets.
• Boost in revenue from worldwide markets.
• Revenue diversity.
• Action towards being a strong global brand name.

Cons:

• Extension of concerns associated with variety.
• Differences in cultures could resulted in a failure of the brand name particularly in Asian nations.
• Low incomes at preliminary levels.
• Increase in marketing expenses to get market share.



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